EUROPEAN UNION

U.S. stocks were down more than 3 percent on Thursday afternoon after briefly nosediving, with the Nasdaq at one point down more than 9 percent and the S&P 500 and Dow briefly falling into negative territory for the year, as worries about contagion from Greece's debt problems mounted.

The Federal Reserve is closely watching for signs the European sovereign debt crisis could derail a fragile U.S. economic recovery, a top Fed official said on Thursday.

Stocks fell on Thursday after weaker-than-expected retail sales and as the European Central Bank stopped short of taking any additional measures to keep a debt crisis from spreading in the euro zone.

The European Central Bank resisted market pressure to ride to the rescue of struggling euro zone countries on Thursday, giving verbal support to Greece's tough savings plan but stopping short of any fresh action.

The Greek parliament prepared to adopt a harsh austerity plan in the face of violent unrest, as European Central Bank inaction disappointed markets fearful a debt crisis will engulf the euro zone.

U.S. stocks were lower on Thursday after weaker-than-expected retail sales and as the European Central Bank failed to offer additional measures to stop a debt crisis from engulfing the euro zone.

The Greek parliament prepared to adopt a harsh austerity plan on Thursday in the face of violent unrest, as markets looked to the European Central Bank to prevent a debt crisis engulfing the euro zone.

U.S. stock index futures pointed to a lower open on Thursday after weaker-than-expected retail sales and the European Central Bank left monetary policy unchanged, disappointing investors who hoped the ECB would prevent a debt crisis from engulfing the euro zone.

Euro zone policymakers and the head of the IMF warned of looming financial contagion on Wednesday unless a euro zone debt crisis is stopped in Greece, as nervous investors fled to the safe haven of the dollar.

Pending sales of previously owned homes hit a five-month high in March as buyers rushed to sign contracts before a tax credit expired, while a jump in factory orders underscored manufacturing strength.

Striking public workers challenged the Greek government's bailout-for-austerity deal with the EU and IMF on Tuesday as investors fretted about Athens' ability to push through ambitious budget cuts.

Markets reacted skeptically on Monday to a record 110 billion euro ($145 billion) bailout for Greece, with investors doubting it would offer more than temporary relief to a euro zone shaken by divisions and saddled with high debt.

Markets reacted skeptically on Monday to a record 110 billion euro bailout for Greece, with investors doubting it would offer more than temporary relief to a euro zone shaken by divisions and saddled with high debt.

Greece has sealed a deal with the European Union and the IMF that opens the door to a multi-billion euro financial bailout of the heavily indebted euro zone member, a senior government official said on Sunday.

European banks will contribute to a multi-billion euro Greek bailout, Germany said on Friday, as talks to secure European Union and IMF aid to Athens in return for draconian budget cuts edged toward a deal.

Greece readied severe austerity measures on Thursday to secure a multi-billion-euro aid package and avoid debt default, providing relief to financial markets but drawing threats of a mighty battle from unions.

Greece readied severe austerity measures Thursday to secure a multi-billion euro aid package needed to avoid default, providing relief to financial markets but drawing threats of a mighty battle from Greek unions.

Greece readied severe austerity measures on Thursday to secure multi-billion dollar aid, providing relief to financial markets but drawing threats of a mighty battle from Greek unions.

ECB Governing Council member Axel Weber said on Thursday the impact of any Greek debt default on other states would be incalculable and urged quick approval of an aid package to prevent market upheaval and contagion to other states.

Greece's borrowing costs fell on Thursday and the euro was off its one-year low on optimism that a bailout plan for Athens would be finalized soon, though Spain's risk premium rose after S&P's debt rating downgrade.

The international bailout of Greece is likely to total up to 120 billion euros, a German lawmaker said on Wednesday after International Monetary Fund chief Dominique Strauss-Kahn held talks in Berlin.