Greece's vows to get a handle on its budget deficits eased traders' concerns about the country's debt, but they also forced many to consider the debt of Greece's fellow euro-zone governments. Analysts said Greece's efforts to cut spending and raise taxes might not be adequate to quell anxiety mounting over the euro. Banks, hedge funds and other investors are focusing on Spain, Italy, Portugal and other indebted countries. "If the problems of Greece aren't addressed now, there is a risk the market will focus on the next weakest link in the chain," said Jim Caron of Morgan Stanley.

Related Summaries