PORTUGAL

Growth ground to a halt in the euro zone's private sector this month while China's factory sector contracted for the first time in a year, surveys showed on Thursday, deepening evidence of a sharp slowdown in the global economy.

The euro zone's private sector grew at its weakest pace in almost two years this month as demand from abroad fell and the region's ongoing debt crisis weighed on minds at home, business surveys showed on Thursday.

The euro climbed a third day on Thursday as a deal between France and Germany over a bailout of Greece raised hopes ahead of a major European summit, though investors barely moved from government bonds and precious metals.

Cyprus may need a bailout to cope with its worst peacetime disaster from a munitions blast unless urgent action is taken to improve the country's finances, Central Bank Governor Athanasios Orphanides has warned.

A rescue package for Greece could involve a short-term default without disastrous repercussions for the euro zone, Austria's central bank governor said, the first sign of a crack in the European Central Bank's hard line.

Pressure on Europe's banks to raise more capital increased on Monday after last week's stress tests revealed their holdings of European sovereign debt, with likely losses on Greek bonds a growing concern.

Banks that scraped through the European Union's stress test of 90 lenders will start feeling the heat Monday from investors to beef up capital buffers.

Cutting Greece's debt will not solve the country's problems, ECB policymaker Jens Weidmann was quoted as saying on Sunday, adding Athens needed to raise its productivity instead.

The credit ratings agencies are again angering governments, but this time they are taking on the big fish of the world economy. From Washington to Brussels, Moody's, Standard & Poor's and Fitch have added to the intense pressure on governments trying to deal with crushing sovereign debt.

Global consumer confidence fell in the second quarter to its lowest level in a year and a half as an uncertain economic outlook, a deepening euro zone debt crisis and rising inflation made people more cautious, a survey showed on Sunday.

Ireland would like to see the euro zone issue common bonds as part of the solution to the bloc's debt crisis, the Irish deputy prime minister said on Sunday.

If the Fed wades further into muddy stimulus waters, that will set the stage for a certain gold boom in the short to medium term. Historically, a dollar sell-off has been the biggest force behind a gold boom. If the Fed takes recourse to another round of easing in pursuit of its goal of propping up job creation and real growth, it will inadvertently cause a dollar sell-off and trigger, in turn, a gold super rally.

Technology giant Apple unveiled Mac OS X Lion, which the company claims is the world's most advanced desktop operating system, at its Worldwide Developers Conference (WWDC) last month.

The setting is perfect for another gold boom cycle to kick in, perhaps pushing the yellow metal into a super cycle. There are several factors aiding gold's further push into higher price records, greater investment worth and long-term reign as a de facto currency. There are all sorts of classic factors supporting gold all the way, like the demand from China and India bursting at seams, continued worries for the US dollar and the worrisome prospect of sovereign default in some European countri...

A health check of European banks is expected to show that as many as 15 lenders need more capital to withstand a prolonged recession, with criticism growing that the tests do not encompass the impact of a Greek default.

The International Monetary Fund on Thursday called for a greater sense of urgency to address the Greek debt crisis and warned Europe it was taking too long to repair its banking system in the face of growing risks of contagion.

Stocks were little changed on Thursday as Federal Reserve Chairman Ben Bernanke delivered congressional testimony for the second day and worries about hitting the U.S. debt ceiling dogged investors.

European Union leaders need to come up with a comprehensive plan for tackling the region's debt crisis if they hold an emergency summit on Friday, the Irish Prime Minister said on Wednesday after Ireland had to swallow its first ever junk credit rating.

Moody's cut Ireland's credit rating to junk on Tuesday, warning that the debt-laden country would likely need a second bailout -- just the latest move amid heightening concerns about Europe's ability to address its debt crisis and prevent it from spreading.

Stocks were little changed on Tuesday, though comments from Federal Reserve officials suggesting the possibility of more stimulative policies sparked gains that briefly put the Nasdaq in mildly positive territory.

Prime Minister Silvio Berlusconi sought on Tuesday to calm fears that Italy could be swept into a full-scale financial crisis as the center-left opposition pledged to help parliamentary approval of debt-cutting measures.