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The article reports that stock markets in the U.S. and abroad rose sharply on news that Germany might not insist Greece restructure its debt as a condition of receiving more financial assistance from Europe. Investors have feared that a restructuring could exacerbate debt crises in other struggling nations including Portugal, Spain, and Ireland.

The article discusses signs that concerns about a financial crisis in Europe have begun to ease. Several indebted nations including Spain and Greece have seen their borrowing costs decline. The gap between interest paid on Greek and German sovereign debt has narrowed, and the euro has gained against the U.S. dollar.

The article discusses developments in Europe's sovereign-debt crisis and prospects for the U.S. economy. Finance ministers in Europe will likely approve $527 billion in loans to combat the crisis in Greece and elsewhere. Officials in Hungary said they would impose spending cuts in an effort to avoid defaulting on the nation's debts. In the U.S. a weak employment report raised questions about how much of recent economic growth has been due to government stimulus measures.

The article discusses the difficulty European banks are experiencing in obtaining loans. Recently introduced restrictions on money market funds coupled with concerns stemming from a European debt crisis have made creditors wary about lending to banks. Rates banks pay for interbank loans and commercial-paper funding have both risen.

The article reports that an ongoing debt crisis in Europe has prompted some central banks and large money managers to reduce their exposure to the euro. The central banks of South Korea, Iran, and Russia have all indicated concerns about the currency. The $40 billion Global Sovereign Fund of Kokusai Asset Management has reduced its holdings of euro-zone stock funds.

The article focuses on the U.S. corporate-bond market in the wake of Europe's 2010 debt crisis. Bond prices have rebounded, but signs of strain linger across the credit markets. Statistics are offered on junk-bond yields and monthly high-yield bond issuance. Topics include demand for U.S. Treasurys and stock markets indicators.

The article discusses whether a recent decline in stock prices represents a temporary correction in a bull market that began in March, 2009, or the start of a new bear market. Strong corporate earnings argue in favor of continued rising stock prices, while a debt crisis in Europe has created anxiety among investors. Several quotes representing differing perspectives are presented.

The article discusses reaction to suggestions by U.S. and European regulators that credit-default swaps (CDS) need to be more tightly regulated. Brian Yelvington of Knight Libertas LLC said it was unfair to blame trading in CDS for recent financial crises. H. Rodgin Cohen of Sullivan & Cromwell said abusive practices in derivative markets could be curbed through greater transparency.

The article discusses reviving credit markets in the U.S. and abroad. Several firms including Bank of America Corp. and GMAC Financial Services had successful bond sales during the week of March 8, 2010. Bond sales by European firms in March are significantly outpacing those of the previous month. John Lonski of Moody's Investors Service observes that financial liquidity for firms has improved.

The article reports on a practice among European officials under which they are said to be making tours around the world and offering bonds that do not exist to investors.

The article reports that the yearlong strength of the credit markets in the U.S. has ended during the second quarter of 2010, as debt worries in Europe intensified.

The article discusses economic circumstances in the euro zone. By one estimate the euro-zone economy will contract 4.1% in 2009. Euro-zone unemployment has reached 8.1%. Contrary to the U.S. and U.K., European nations have been hesitant to embark upon economic stimulus measures to combat an ongoing recession.

The article discusses the interest-rate policies of the Bank of England (BOE) and the European Central Bank (ECB). In February, 2009 the BOE is expected to reduce a key short-term interest rate to 1%, while the ECB will likely hold its analogous rate steady at 2%. However, some investors believe the ECB could cut that to 1% later in 2009.

The article discusses recent strength displayed by the U.S. dollar. As the U.S. economy has showed signs of faltering, the dollar has declined relative to other currencies. Expectations that the U.S. Federal Reserve will be finished cutting interest rates by the summer of 2008, however, coupled with fears that European interest rates could soon fall, have helped buoy the dollar.

The article reports that European banks are issuing much less commercial paper to secure short-term funding and issuing fewer loans. Over a two-month period outstanding commercial paper from Banco Santander SA and Millenium BCP has declined by about $1 billion apiece. In addition, bank deposits that might otherwise be available for loans have begun piling up at the European Central Bank.

The article reports on the growing debt crisis in Europe as proven by the rising borrowing costs in Italy.