European markets are bracing for a wave of contagion from Greece

LONDON (Reuters) - European markets are braced for a wave of contagion from Greece on Monday, with heavy losses for southern European government bonds and regional stock markets expected as investors scramble to discount a possible "Grexit" that most had still assumed was unlikely as late as Friday afternoon.

Germany needs ‘small miracle’ to avoid recession after exports fall by 5.8%

German exports suffered the biggest monthly fall in more than five and a half years in August, leaving Europe’s largest economy in need of “a small miracle” to avoid recession in the third quarter.

European markets rally on news of Federal Reserve move

European markets rallied on Thursday after the US Federal Reserve pledged to keep the cost of borrowing at rock-bottom levels for longer than expected, offsetting its decision to begin trimming back its massive $85bn a month stimulus programme.

Pound drops to new two-and-a-half year low

Sterling fell below $1.49 on Monday morning, as a strong dollar and fears over easing continue to hammer the British currency.

Euro-Zone's Private Sector Shrinking Fast

LONDON—The euro zone's private sector contracted in April at the sharpest pace since November, damaged by a steep decline in the manufacturing sector, suggesting the region won't rebound quickly from the recession recent data are pointing to.