EUROPEAN UNION

The outlook for Europe looks gloomy especially after the European Central Bank (ECB) warning that risks to euro area financial stability increased considerably in the second half of 2011, as the sovereign risk crisis and its interplay with the banking sector worsened in an environment of weakening macroeconomic growth prospects.

Europe's banks borrowed nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday, encouraging demand for the euro and stocks on hopes the funding will ease the two-year old debt crisis.

European stocks and the euro firmed on Wednesday, enjoying a brief surge after banks borrowed around $489 billion euros from the European Central Bank at its first-ever offer of three-year loans on hopes it will be a significant step toward easing the region's two-year old debt crisis.

Army deserters killed by Syrian forces in one of the bloodiest massacres of the country's nine-month uprising as Arab League peace observers set to enter the country.

European shares and the euro rose on Tuesday on surprisingly good news about the German economy and a better-than-expected outcome at a Spanish treasury bill auction, but concerns about the euro zone debt crisis limited gains.

European shares and the euro rose on Tuesday on unexpectedly good news about the German economy's prospects, but concerns about problems policymakers are having in tackling the euro zone debt crisis limited gains.

Below are highlights of comments made by ECB President Mario Draghi in testimony to the European Parliament on Monday.

European finance ministers will pursue plans on Monday to enhance the IMF's arsenal and press on with a drive for tighter fiscal rules in an attempt to assuage doubts they can overcome their sovereign debt crisis.

Gold prices hovered in a tight range Monday as doubts that Eurozone banks have enough access to cash and the uncertainties about the severity of the continent's recession offset physical demand from Asian buyers.

European finance ministers will pursue plans on Monday to enhance the IMF's arsenal and press on with a drive for tighter fiscal rules in an attempt to assuage doubts they can overcome their sovereign debt crisis.

The euro zone will tackle its debt crisis this week by offering more cash to the IMF and long-term liquidity to banks, while moving toward tighter fiscal rules, after ratings agency Fitch cast doubt on its capacity to respond decisively.

The U.S. housing market, once the epicenter of the global financial collapse that spawned today's European debt crisis, is on the verge of delivering some positive news.

The euro zone will pursue measures to tackle its sovereign debt crisis this week by offering more cash to the IMF and long-term liquidity to banks, while moving towards tighter fiscal rules, after ratings agency Fitch cast doubt on it ability to forge a decisive response.

Even the safest euro zone banks could start queuing up at the European Central Bank for cash in the next few months as their massive exposure to government debt freezes them out of money markets.

Fitch Ratings on Friday warned it may downgrade France and six other Eurozone countries as it believes that a comprehensive solution to the region's debt crisis is technically and politically beyond reach.

Credit rating agency Fitch told the Eurozone on Friday it thinks a comprehensive solution to the bloc's debt crisis is beyond reach, as it put an number of the bloc's economies including Italy on watch for potential downgrades.

Oil, the lifeblood of the global economy, has plunged more than 10 percent in the past five days, to about $93 per barrel Friday, and the compelling question for investors and motorists alike is -- in early 2012 where does oil head?

Baroin told the French parliament that Britain is becoming “marginalized” in Europe.

The U.S. National Institutes of Health (NIH) will sharply curtail medical research studies using chimpanzees, humans' closest relative in the animal kingdom, after an expert panel said such studies are rarely warranted.

The threat of Europe's financial crisis drifting overseas, slowing the U.S. recovery, remains. The Federal Reserve noted this week that Europe's debt crisis remains a threat to the U.S. economy, which it said is expanding moderately. Concerns linger over the health of the European banking sector and possible ratings downgrades in debt-ridden European countries.

Asian shares rose and the euro edged higher Friday, as signs of strength in the U.S. economy temporarily broke through gloom over the European debt crisis that had driven a selloff in riskier assets over the past three days.