FTSE bounces back after lengthy losing streak

European markets have opened the week in positive territory, with the FTSE 100 rebounding from a period of extended losses.

Ending its nine-day losing streak on Friday, London's leading index today opened up 1.93% or 100 points to 5,264.

Investors have been pumping cash back into areas such as financials and miners, which took the largest hit in last week's sell-off.

Meanwhile, in Europe the French Cac gained 2.94% or 84 points to 2,940, while Germany's Dax rose 2.9% or 159 points to 5,652 in early trading.

A broker note from UBS warning markets are pricing in a break-up of the euro failed to dampen optimism in Europe's leading indices.

"Fixed income investors are betting that either Germany moves towards a fiscal union with its eurozone partners or that, without the ECB willing to buy unlimited amounts of sovereign bonds in the secondary markets, the eurozone will break apart," said the note.

Elsewhere, Moody's has also dealt another blow to global markets, warning all the eurozone's sovereign debt ratings are threatened by the debt crisis.

The ratings agency said it will review credit ratings in the first quarter next year, adding downgrades are on the cards.

"In the absence of major policy initiatives in the near future which stabilise credit market conditions, or those conditions stabilising for any other reason, the point is likely to be reached where the overall architecture of Moody's ratings within the euro area, and possibly elsewhere within the EU, will need to be revisited," said Moody's.