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European stocks slump after Tokyo plunge

European stock markets slumped on Thursday, with most indices dropping more than 2.0 percent after Tokyo shares plunged owing to weak Chinese data and signs that the US Federal Reserve may soon taper massive stimulus measures, analysts said. London's benchmark FTSE 100 index sank 2.16 percent to stand at 6,692.39 points in afternoon deals, Frankfurt's DAX 30 fell 2.67 percent to 8,303.28 points and in Paris the CAC 40 shed 2.39 percent to 3,954.31. The Madrid market gave up 1.82 percent and Milan dropped 2.72 percent.

Greece could earn more debt relief, says eurozone chief

Greece could be rewarded with another cut in its debt by its international creditors if it continues to apply the terms of its economic recovery, eurozone chief Jeroen Dijsselbloem said on Thursday. "Eurozone countries are prepared to do more if necessary to help Greece, on the condition that the programme is fully implemented," Dijsselbloem told the Kathimerini daily in English, pointing to a Eurogroup decision on the issue in December. Eurozone members will take stock of Greece's recovery progress before the summer of 2014, he added.

Draghi says euro zone more stable, "needs a more European UK"

By David Milliken and Marc Jones LONDON (Reuters) - The euro zone is more stable than a year ago but economic conditions remain challenging and governments must push on with reforms and banking union plans, European Central Bank President Mario Draghi said on Thursday. Speaking in London almost a year after he vowed to do "whatever it takes" to save the euro, Draghi said European countries should strengthen their ties and flesh out plans made last June for closer integration, including a banking union.

ECB's Draghi: Europe's banking reform must include agency to wind down busted banks

FRANKFURT - European Central Bank President Mario Draghi said it was "imperative" that Europe's leaders create a new agency with powers to restructure busted banks in order to help the region leave its economic and financial crisis behind it once and for all. In the text of a speech to be delivered in London Thursday, Draghi said the new agency would keep troubled banks from burdening governments through bailout costs — thereby cutting the vicious link that has helped drive Europe's three-year crisis over too much debt.

ECB considering measures to tackle financial fragmentation-Noyer

PARIS (Reuters) - Financial fragmentation persists in the euro zone and the European Central Bank is considering additional monetary actions to tackle the problem, ECB governing council member Christian Noyer said on Thursday. "The current degree of financial fragmentation in the euro area remains an obstacle to the smooth transmission of our monetary policy," Noyer told a conference in Paris.

Stocks around the world take a battering after Japan's Nikkei tanks over 7 per cent

LONDON - Financial markets around the world were roiled Thursday after Japanese stocks suffered their biggest slide since the country was hit by a devastating tsunami more than two years ago. Several reasons have been blamed for the 7.3 per cent fall in the Nikkei index to 14,483.98, including a spike in Japanese government bond yields and unexpectedly weak Chinese manufacturing figures. Mixed messages from the U.S. Federal Reserve about when it may start withdrawing some of its monetary stimulus have also contributed to Thursday's retreat.

Germany's Bundesbank chief says France must cut deficit

The head of Germany's Bundesbank, Jens Weidmann, said France needs to make additional efforts to reduce its public deficit, in an interview published Wednesday. France was originally supposed to bring its public deficit back to the EU's ceiling of 3.0 percent of gross domestic product, but has won a two-year extension from the European Commission.

Hopes rise for deal on delayed EU insurance rules

By Huw Jones LONDON (Reuters) - The European Union is nearing a deal on long-delayed insurance rules that the bloc has touted as a regulatory benchmark for the world to follow, regulatory and policy officials said. The rules, known as "Solvency II", will seek to improve the method for deciding how much capital an insurer must hold as a safety buffer by better assessing risks and liabilities from customer policies.

Column: The European Union's unending quandary

By John Lloyd (Reuters) - The pace of European disintegration continues to quicken. Recession deepens in the 17-member euro zone. It is now the longest downturn since the currency was launched in 2000. In Italy, a new left-right government, launched on an anti-austerity program, finds the neighborhood more austere than it had hoped.

TSX, U.S. markets climb ahead of speeches by U.S. Fed presidents, BoC

TORONTO - North American markets surged ahead at the open Tuesday as investors awaited for signs from the U.S. Federal Reserve on when the central bank will scale down its $85-billion bond buy back program. Almost all sectors on the S The Canadian dollar was up 0.01 of a cent to 97.18 cents US. On Wall Street, the Dow Jones industrials index was ahead by 60.67 points to 15,395.95, the S
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