New austerity plans set by Spain and Portugal will produce only small improvements in their debt trajectories, and weaker growth due to the austerity could erode even those modest gains, Reuters calculations suggest. The two countries, faced with the risk of a Greek-style debt crisis in which they could lose their ability to fund themselves

Oil recovered early losses of almost 3 percent on Monday after a dip below the psychological $70 a barrel level brought out bargain hunters, despite signs of weakness in the U.S. recovery and warnings on Hungary's debt. Benchmark U.S. crude prices fell by as much as 2.8 percent, touching a low of $69.51 a barrel

German Chancellor Angela Merkel will on Monday agree a package of budget cuts with her cabinet and outline her policy agenda through 2014, hoping to shore up the euro and her own authority. Ministers resumed talks on Monday after working late into Sunday night. Merkel was due to announce the results of the 2011 draft

European finance ministers sought to calm nervous financial markets on Monday by nailing down details of a massive financial safety net for the euro zone and working towards stricter budget discipline rules. EU paymaster Germany was putting finishing touches to tough austerity measures designed to set an example to Europe in budget consolidation and help

European shares were lower around midday on Monday, as Hungary's debt crisis added to existing worries about the euro zone, though losses were pared after the release of better-than-expected German manufacturing data. At 1106 GMT, the pan-European FTSEurofirst 300 <.FTEU3> index of top shares was down 0.2 percent at 996.50 points, off the day's low

Yahoo Inc is planning to introduce features that will give its users even more access to updates from the popular social networking site Facebook, expanding a partnership the web companies struck last year. Starting Monday, Yahoo and Facebook accounts can be more broadly linked together, allowing Yahoo users, for instance, to have a Facebook newsfeed

Shares in oil major BP Plc rose on Monday after the company said it was capturing most of the oil gushing from its leaking Gulf of Mexico well, and that an additional capture system would be ready in mid-June. BP said on Sunday its lower marine riser package (LMRP) containment cap had captured 10,500 barrels

 Industrial metals sank on Monday, with copper hitting an eight month-low as investors sold off riskier assets on mounting fears over the euro zone economy's health, which knocked down its single currency. Concern that Hungary may be next casualty of the growing debt crisis in Europe and disappointing U.S. employment data  from Friday continued to unsettle

European shares fell sharply on Monday for the second consecutive day on worries over euro zone debt problems after concerns grew on Friday that a Greek style debt crisis could hit Hungary, with banks the major losers. By 0850 GMT, the pan-European FTSEurofirst 300 index of top shares was down 1 percent at 988.86 points.

Greek shares <.ATG> fell 3.6 percent on Monday, tracking weakness in European bourses, with the benchmark share index reaching its lowest level since March 1998, led lower by banks. At 08:09 GMT, the Athens bourse's benchmark index was down 3.61 percent to 1,431.47 points with banks <.FTATBNK> shedding 3.82 percent. Shares of National Bank <NBGr.AT>,