EUROPEAN UNION

European stocks, bond futures, and the euro were sent reeling on Tuesday by the shock warning from Standard & Poor's that it might downgrade euro zone countries en masse if no credible plan to solve the debt crisis emerges at a summit later this week.

Standard & Poor's is expected to announce later on Monday that it may downgrade the credit ratings of all 17 euro zone countries, two EU officials told Reuters.

The aforementioned designation suggests a 50 percent chance of a downgrade within 90 days.

The leaders of France and Germany said on Monday they would push for EU treaty change by March to introduce closer fiscal union and sanctions for countries flouting deficit limits in a bid to shore up confidence in the euro zone.

Gold prices fell Monday after European leaders and Italy's new head of state produced specific plans for containing their sovereign debt crisis.

Macedonia is symbolically important to Greece since it is the home of legendary heroes like Philip of Macedon and Alexander the Great.

Merkel said France and Germany are demanding structural changes which go beyond agreements.

U.S. non-manufacturing sector expanded for the 24th consecutive month in November, but at a slightly slower rate, according to a closely watched index released Thursday.

Syria has responded positively to an Arab League request that it allow observers into the country as part of a peace plan to end an eight-month-long uprising, but on the condition that the League drop sanctions and agree to amendments that league officials have previously rejected, the Foreign Ministry said Monday.

Stocks rallied more than one percent on Monday, building on the previous week's gains, as optimism grew an agreement between French and German leaders would break new ground to resolve the Eurozone debt crisis.

France and Germany have agreed on a series of reforms to address the Eurozone sovereign debt crisis that will be presented to EU President Herman Van Rompuy on Wednesday, French President Nicolas Sarkozy said after a meeting with German Chancellor Angela Merkel on Monday.

With joblessness at 17 percent as of October, the country also faces a potential downgrade of its sovereign debt rating by credit agencies.

India sees no impediments to importing Iranian oil despite a new wave of sanctions imposed by the West, Oil Minister S. Jaipal Reddy said on Monday.

India gold, which traded steady Monday, is likely to near the all-time high helped by safe haven buying, and silver is likely to follow suit, analysts said.

Carbon dioxide emissions from the burning of fossil fuels reached 10 billion tonnes in 2010, the first time such an amount has ever been reached, according to an editorial Sunday.

European stocks rose early on Monday, adding to last week's 8.5 percent jump on growing hopes of a comprehensive solution to the Eurozone debt crisis as French President Nicolas Sarkozy and German Chancellor Angela Merkel meet ahead of a key summit.

Stock index futures rose on Monday, building on the previous week's strong gains, as optimism grew that the upcoming European Union summit would break new ground to resolve the euro zone debt crisis.

Biden met with Greece President Karolos Papoulias on Monday before beginning talks with new Greek Prime Minister Lucas Papademos. Biden arrived in Greece after traveling from Turkey. This week is seen as crucial for the struggling Eurozone. Italy's new government unveiled austerity measures that European leaders hope will be the start of a turning point in the struggle to keep the euro intact.

Oil prices ratcheted up on Monday morning on concerns that tension between Iran and Western countries could lead to an oil distribution disruption and a potential shortage.

NICOSIA, Dec 5Sources told Reuters at the weekend that Germany was prepared to soften language in the euro zone's permanent rescue fund that compels bondholders to accept losses in exchange for much stricter budget rules.

Crude oil prices gained in European trade Monday on fears that growing tensions between Iran and Western powers may threaten crude supply from the Middle East.