debt crisis

A run of downbeat economic news Tuesday reinforced expectations that the 17-nation eurozone's economy shrank during the last three months of 2011 as the government debt crisis dragged on even the biggest and richest countries.

Oil advanced from a three-day low after Greece's parliament approved austerity measures to secure an international bailout, easing concern that Europe's debt crisis will worsen and curb demand for commodities.

Japan's economy shrank 2.3 percent in the fourth quarter as manufacturers were battered by the strong yen, weak export demand amid the European debt crisis and flooding in Thailand.

For the past six weeks, Wall Street traders have optimistically pushed the Dow up. Now, Wall Street will debate whether this is beginning or end of eurozone's debt crisis. 

More than two years after it came clean about its addiction to debt, Greece may finally have begun its long and painful road to recovery.

The debt crisis will again be top of investors' minds this week as the U.S. earnings season passes the halfway mark and there is little on the domestic economic calendar. 

U.S. stock futures are falling as uncertainty about a tentative deal to resolve Greece's debt crisis weighs on investor sentiment ahead of a summit of European leaders.

Echoing comments by American officials, leaders at the World Economic Forum in Davos said that aid to the euro zone from the rest of the world would be contingent on a larger commitment by Europe.

Renewed gloom about the debt crisis in Europe threatens to end the calm that has prevailed on Wall Street in recent weeks.

After a hugely-turbulent 2011, the 17 countries that use the euro will be quickly confronted in the new year with major hurdles to solving their government debt crisis, just as the eurozone economy is expected to sink back into recession.