European non-payment indemnity or insurance cost has been rising steadily due to the fears over recession situation. The Federal Reserve stressed on the downward risk that the US economy has been facing.

Markit Purchasing Managers Index (PMI) has also exposed its statistics after July where 17 euro-zone members have been exposed as tightening their business activities in September.

Newedge strategist Annalisa Piazza stated that though the foreign demand has improved but the domestic market is still facing problem and so, the situation in the Eurozone market has remained tight.

The markets experienced a set back after the world's second-largest economy, China also slowed down and its manufacturing dropped in September.

Markit has notified, "Around 0900 GMT, the iTraxx Europe index of 125 high-grade borrowers, including 25 banks and insurers, was 13 basis points wider at 198/201 basis points".

It also exposed that the Crossover index of 50 of the European corporate borrowers expanded 54 basis point and remained at 852/858 basis points.

Meanwhile the doubts about the Greek debt crisis have been experiencing same pace, as it is still not sure that Greek will be able to come out of the turmoil or not. Though Greek Government has confirmed that it will meet its budget targets through reducing pensions, low-income groups will be taxed too and public workers will be kept as reserves for some time.