Low interest rates are justified by economic conditions in the eurozone and their impact on banks’ profitability should not be exaggerated, says ECB policymaker Francois Villeroy de Galhau.

Greek government bond yields dipped yesterday after Fitch became the second ratings agency to upgrade it to “Single B” status, marking another milestone in the debt-laden country’s slow journey away from default territory.

European shares rose and US stocks hit record highs yesterday, helped by corporate results, while uncertainty about French elections pushed the euro to its biggest loss in about three weeks.

Portugal just can’t shake off its bears. The nation’s shorter-term notes are under-performing their counterparts across the eurozone even as a recovery in stocks and oil prices boosted demand for higher-yielding assets.

Creditor officials and Greek authorities have begun talks intended to unlock bailout funds, as some euro-area central bankers were said to raise opposition to the prospect of additional emergency cash for the country's banks.