Europe, Europe Debt | featured news

Debt-crippled Ireland formally applied Sunday for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming Celtic Tiger and the economic envy of Europe.

The ultimate size will depend on whether Dublin merely tries to shore up and restructure its crippled banks, or whether a larger package is offered to give it more breathing room.

Broad probe testing 91 European banks finds most are fit to withstand severe economic shocks.

Moody's put Spain's Aaa credit rating on review for a possible downgrade because of flagging economic prospects, challenging fiscal targets and rising funding costs.

Moody's Investors Service downgraded Greek debt by four notches to junk status. It follows Standard & Poor's, which put the debt-laden country in the speculative-grade camp almost seven weeks ago.

Report shows that, so far, China's economy has not been hurt by Europe's debt problems.

U.S. stocks edged higher, bolstered by U.S. Federal Reserve Chairman Ben Bernanke's comments that the economy is unlikely to slide into a second recession, but worries about European finances persisted after Fitch Ratings warned that the U.K. faces budget challenges.

Stock futures tumbled Tuesday after the euro fell to a new four-year low....

Stocks tumbled for a second day Friday after concerns grew that the deep spending cuts under Europe's bailout plan would slow a global recovery.

Shares rose in Europe and on Wall Street as markets calmed. Gold, however, hit a record amid efforts to defend European countries from sovereign default.