Asian markets have risen thanks to a positive lead from Wall Street, but gains were capped by lingering doubts about an upcoming European Union summit aimed at tackling the Euro Zone debt crisis. US markets were given a boost by the S&P Case-Shiller price index for 20 major US cities, which rose for the third straight month in April. The modest rise in the US market, caused by property prices falling less than expected, provided a fillip as the sector is a key component in the world's biggest economy. However, separately the Conference Board reported that consumers grew more pessimistic about the economy for the fourth consecutive month in June.

Eyes are on Europe, with leaders meeting in Brussels for two days of talks to consider proposals to give EU authorities more power over national budgets, and to centralize banking supervision. But it is foreseen that they will not be able to overcome their differences to hammer out a coherent deal. The gathering would be anything but banal and would tackle real issues, while Italian Prime Minister Mario Monti vowed to work overtime to save the Euro.  A proposed scheme to move over the next decade towards greater centralized power for the financial sector, for budgetary matters and for economic policy, has been circulating the mainstream. Moreover, the Euro area level would be in a position to require changes to budgetary envelopes if they are in violation of fiscal rules. The meeting comes against a backdrop of a downgrade for 28 Spanish lenders by Moody's and an appeal by Madrid for rescue cash to prop up its banking sector.

This week also saw Cyprus become the latest Euro Zone member to ask for a handout as its economy struggles owing to its exposure to Greece's debt mountain.