"Mixed signals are coming outfrom the Eurozone," notes YEO LAY HWEE. "While there are commentators and analysts who think the worst is over and eurozone is on the mend, Moody downgraded Portugal’s debt ratings last week from A1 to Aa2. But this occurred at the same time as Spain successfully raised €6 billion in the international bond markets, and against the backdrop of the slight recovery in the value of the euro. China has emerged as “saviour” - buying Spanish bonds and planning to invest several billion euros in Greek strategic sectors such as shipping, airport and logistics. Premier Wen also reassured Chancellor Merkel of China’s long term commitment to the euro. All these positive signals however are also tempered by warnings that EU’s banking system is undercapitalised and that Europe will remain mired in years of weak growth..