Author: Matthew West

On the same day official figures showed the biggest slide in retail sales figures in two years and one member of the Bank of England’s interest rate-setting committee indicated it would restart its asset purchase program if the economy weakened significantly, 10-year sovereign debt yields fell to record lows.

European shares were called to open lower sharply lower on Wednesday as investor caution replaced hope ahead of an unofficial European Union summit in Brussels to discuss policy responses to the euro zone crisis.

European shares were set to open higher on Tuesday as investors came to the conclusion that the markets were most likely over-sold and news emerged overnight of around 100 billion euros ($127 billion) of liquidity provided by the European Central Bank to the Greek central bank to prop up Greece’s financial system.

European shares were called to open lower on Monday after world leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing a global economy increasingly threatened by Europe's debt crisis.

The euro zone is facing its darkest hour but will emerge more competitive than in the past, the chief executive of the London Stock Exchange told CNBC on Friday, though he noted that smaller businesses are very important to Europe’s recovery.

European shares were headed for another day of losses on Friday, ending a dismal week in which the euro zone debt crisis dragged equity markets to new 2012 lows.

European shares signaled a slight rebound on Thursday but the ongoing problems in Greece still weighed on sentiment as the country announced a second round of elections would be held on June 17 and European leaders talked of a Greek departure from the euro zone.

The governor of the Bank of England said on Wednesday that the euro zone is “tearing itself apart without any obvious solution" as he admitted that the UK central bank, the Financial Services Authority (FSA) and the government have been discussing contingency plans to deal with the prospect of a Greek exit from the euro or a collapse in the euro zone “for some time.”

A potential exit by Greece from the euro, even if it leads to a run on European banks, would not bring down Portugal’s banking system, the chief executive of Portugal’s largest publicly listed bank told CNBC on Wednesday.

A leading fund manager called on the board of Chesapeake Energy to fire its chief executive on Monday after it revelations that he had taken $1.1 billion in personal loans against his stakes in the energy company.