Stocks on world markets edged higher on low volumes yesterday, while Spanish bond yields rose to a euro-era high, as scepticism about a €100bn bailout for Spain’s banks scared investors ahead of elections in Greece on Sunday.

The euro fell below $1.24, near a two-year low last night, as Italian borrowing costs soared and concerns mounted over Spain’s banking sector.

THE Swiss franc plunged against the euro and dollar yesterday, after Switzerland’s central bank shocked markets by setting a floor for the euro/Swiss exchange rate in an effort to curb franc strength which has taken a toll on the economy.

THE British economy will grow at a sluggish pace this year, held back by lacklustre consumer spending crimped by an inflation rate that is well above the Bank of England’s target, a Reuters poll showed.