Greek Prime Minister Alexis Tsipras on Saturday urged voters to ignore European scaremongering and vote 'No' in this weekend's referendum as polls showed support swinging behind the 'Yes' campaign.
European Stability Mechanism (ESM), which is Europe‘s permanent rescue facility, is expected to come into force on October 8. Trevor Williams, Lloyds Bank says it probably is not going to start until next year.
A spate of good news have lent a good support to global markets. Nigel Chalk of Barclays admitted that most market expectations have been met, but the rally will be durable if further clarity on Europe emerges.
Shares on world markets retreated on Thursday on dimmed expectations for new stimulus from the Federal Reserve and data showing slower global economic growth, while the euro rose after sources said Spain is in talks over conditions for aid to reduce its borrowing costs.
Spain is negotiating with the euro zone over conditions for international aid to bring down its borrowing costs though the country has not made a final decision to request a bailout, three sources with knowledge of the matter said on Thursday.
Greece is the most difficult member-state among the euro-zone nations, which has a different set of problems in comparison to other debt-ridden states, European Financial Stability Facility (EFSF) Chief Executive Klaus Regling has said.
Manpreet Gill of Standard Chartered expects funds to continue flowing in emerging markets, but he is optimistic about funds flowing into the fixed income space than equities in the near-term.
Ahead of the ECB meet on Thursday, Jurgen Michels of Citi feels chances of ECB action is very little taking into consideration the stands taken by the German Federal Bank, Bundesbank and Spain's reluctance to ask for support from the EFSF.
After the EU leaders decided to sort out Spain and Italy‘s debt woes, the global markets saw an upside. However, Trevor Williams, Chief Economist of Lloyds Bank tells CNBC-TV18 that he is not very enthusiastic about it
Mecklai graph of the day: Will the rally in EURO sustain? The EURUSD rallied to fresh session highs of $1.2591 surging as much as 1.5 %, the biggest intraday advance since Nov. 30.
European leaders agreed on Friday to create a single supervisory body for euro zone banks and to allow them to be recapitalized directly by the currency area's rescue fund without adding to government debt.
Nick Parsons of National Australia Bank, in his analysis of the European markets on CNBC-TV18, explains that the next ECB council meeting will see strong hints of a cut in rates and that will be enough to make investors think that there is some concerted action.
Giving her perspective on the on the effectiveness of that up to 100 billion euro bailout for Spain, Sarah Hewin, Regional Head of Research for Europe in the Global Research Department of Standard Chartered Bank that the bailout at the top end of the estimations of how much Spain banks could need for recapitalization purposes.
Eurobonds may be hailed by some as a potential solution to the Greek debt crisis, but likely would be met by skepticism in the open market.
Germany dismissed a French-led call for euro zone governments to issue common bonds, a day before a European Union summit which investors are looking to for new measures to counter the bloc's debt crisis.
The biggest fear is that Spain's cost of debt is hovering around the dangerous 6% limit, says Lyn Graham Taylor of Rabobank.
Euro zone finance ministers need to impress finance markets with the size of their rescue fund for indebted countries when they meet later this week, the head of the OECD said on Tuesday, advocating "the mother of all firewalls".
Greek parties will try on Wednesday to agree a reform deal in return for a new EU/IMF rescue to avoid a chaotic default.
HSBC Private Bank believes that the EU summit rightly focused on growth issues, but that the financial hurdles that the area faces will continue for a while.
Eurozone finance ministers will decide on Monday what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens after negotiators for private creditors said they could not improve their offer.
Italian Prime Minister Mario Monti wants the lending capacity of the euro zone's permanent rescue fund to be doubled to one trillion euros, German magazine Der Spiegel wrote on Saturday.
Chief negotiators for Greece's private creditors left Athens on Saturday without a deal on a debt swap plan that is vital to avert a chaotic default.
Standard & Poor's cut its credit rating of the euro zone's EFSF rescue fund on Monday. Lyn Graham-Taylor, strategist-fixed income at Rabobank says, EFSF is going to struggle to raise longer dated paper.
US rating agency Standard & Poor's cut its credit rating of the euro zone's EFSF rescue fund on Monday, and Greece was under pressure to break a deadlock in debt swap talks if it is to avoid an unruly default.
Credit ratings agency S&P unleashed a series of ratings downgrades on Friday, bringing the focus squarely back on the eurozone.