Economics / Markets

The eurozone reported zero growth in the first quarter, beating forecasts of a 0.2% contraction and narrowly escaping a technical recession.

Ratings agency Moody's Investors Service has cut the long-term debt and deposit ratings for 26 Italian banks as the crisis in Europe clouds their prospects.

(Updated 9:15am) Asian indices fell overnight, mirroring losses in the US and Europe, over fears about the impact a Greek exit from the single currency could have on the rest of the region.

US markets have fallen to three-month lows during trading today as the eurozone worries that resurfaced last week show little sign of subsiding.

FIVE THINGS

Vince Cable has voiced concerns there will be dire consequences for the UK's economy if Greece were to exit the euro and debt contagion spread.

The UK's leading share index has fallen to its lowest level this year, slipping below 5,500, as Greece's continued failure to form a coalition government dampens risk appetite.

Governor of the Bank of England, Sir Mervyn King, will signal on Wednesday that interest rates will remain around their record low until the end of next year at the earliest, the Daily Telegraph reports.

CONDENSED NEWS

The Bank of England's Monetary Policy Committee has resisted calls for further quantitative easing after leaving its programme of stimulus unchanged, with interest rates also kept on hold.