As SA’s Reserve Bank considers interest rates this week, global interest remains fixed on the drama enveloping Europe, writes <b>Matt Quigley</b>

EU leaders have struck a deal for banks and insurers to accept a 50% loss on their Greek bonds in a bid to try to contain the sovereign debt crisis.

World markets rose and the euro rallied as investors reacted to the weekend’s EU summit, where "good progress" on the sovereign debt crisis was made.

Markets will discover this week whether optimism over EU leaders’ efforts to resolve the continent’s debt crisis has any firm basis in reality.

World stock markets have tumbled after China’s robust economic growth took a knock and German leaders warned that Europe’s debt crisis might linger.

Markets are cautiously optimistic but on edge, amid a seemingly stabilising EU debt crisis, and ahead of key data from the US.

Europe’s intractable debt situation continues to deteriorate and a months-long parade of grim data has raised fears of another global recession.

The rand ended firmer against the dollar after a volatile session, as investors were drawn to emerging markets by efforts to curb the EU debt crisis.