As Spanish and Italian bond yields creep higher, strategists say yields could spike to the autumn 2011 levels that led to fears that Spain needed an imminent bailout.
After several weeks of improved sentiment, yields on Italian and Spanish bonds spiked this week amid political uncertainty. But instead of fleeing to safe havens, investors may seek a halfway house in French sovereign bonds, analysts told CNBC.
CNBC's Kelly Evans reports on all the market moving events from Europe, as a series of earnings releases helped stocks recover from losses on Monday.
The euro zone's embattled economy has turned a corner, according to a business survey on Tuesday that showed businesses are more optimistic about the future but highlighted a growing chasm between the region's economies.
Mitul Kotecha, Head of Global FX Strategy at Credit Agricole says Europe growth will continue to be weak which will weigh on the euro. He says euro will end closer to 1.25 at the end of the year.
European markets are sending U.S. stocks lower today. As earnings season begins to wind down, is European risk back on the front burner? CNBC's Michelle Caruso-Cabrera & Brian Shactman discuss.
CNBC's Simon Hobbs reports on Monday's market, as political uncertainty sent shares sliding, and investors locked in profits on indexes trading close to multi-year highs.
Spanish and Italian stocks led markets lower Monday as investors started fretting about the political situation in both countries, with some indexes suffering one of their worst days in months.
Risks to Spain's economy and financial sector remain elevated as it undergoes a difficult process of fiscal and external adjustment, the IMF reported Monday.
Euro zone factory prices fell for the second month in a row in December, mirroring the trend in consumer inflation and leaving room for a possible European Central Bank interest rate cut to revive the weak economy.
U.K. Chancellor George Osborne said on Monday that banks in Britain will have to separate retail banking from riskier investment banking activities.
Daniel Harden, Senior Commercial Dealer at Global Reach Partners says the euro zone looks healthier as banks have stopped borrowing emergency funds and have started paying back their loans.
CNBC's Simon Hobbs reports on EU markets moved higher on Friday after the U.S. released its jobs report.
Bill Blain, senior fixed income broker at Mint Partners, says the euro zone crisis will kick off again.
Euro zone factories had their best month in nearly a year during January as burgeoning German output offered support amid signs the worst may be over for the troubled currency bloc, a survey showed on Friday.
Spain's short-selling ban came to an end on Thursday but analysts say that although the lifting of the ban is a sign of improved sentiment, further downward pressure should be expected in the coming weeks.
Spain's ruling People's Party denied on Thursday that Prime Minister Mariano Rajoy and other leaders received payments from a slush fund after a newspaper published what it said were secret party accounts.
CNBC's Simon Hobbs reports on today's market action in Europe, as shares pared losses after a series of earnings weighed on market sentiment.
CNBC's Ross Westgate reports on all the market moving events from Europe.
CNBC's Simon Hobbs reports European shares closed lower after weaker-than-expected GDP data came in from the U.S.