08.10 London's bourse has just opened and the FTSE 100 is up 22 points to 5469. Markus Huber at ETX Capital said that tight trading in European equities was likely to continue for at least the first half of today's trading session ahead of the anxiously awaited EU summit: The problem with the EU meeting is that although expectations are very low for a positive outcome investors are increasingly running out of patience which is putting additional pressure on politicians. Unfortunately it is not all about Germany just agreeing to Eurobonds and everything will be fine but also about important and necessary reforms which need to be implemented by all countries in order to avoid a much more severe crisis in the future. The question is if politicians indeed have the necessary time available which will be needed in order to negotiate and implement these reforms, however any progress being made towards a more stable and financially viable Euro-zone would certainly be welcomed by investors and bring periphery yields down to more sustainable levels in the long run. 08.05 Early this morning, the Microsoft offices in Athens were apparently attacked, with assailants driving a van through the front doors and setting off an incendiary device that burned the building entrance. A police source told Reuters that the van contained three inflammable gas canisters and five cans of gasoline. There are no reports of any injuries at the moment. AP reports that there was no immediate claim of responsibility. It added that several small extremist or domestic terrorist groups are active in Greece, usually targeting official buildings, banks or symbols of state power with small bombs or incendiary devices.The attacks usually occur late at night and rarely cause injuries. 07.52 Still with Italy, the country's parliament is set to today approve a controversial labour market reform so prime minister Mario Monti can go to the Brussels summit with it in his hand to reassure his EU partners. Mr Monti's government reckons the reform is key to kick-starting growth in the recession-hit economy. The project, which was revealed in March after months of disputes with trade unions, is based on the Danish "flexicurity" model, which aims to ensure both flexibility and security in the labour market. AFP reports that it includes incentives for employers to hire workers but also eases the procedure for letting them go in case of a downturn, and will help young people get jobs though apprenticeships, in a country hit by high youth unemployment. 07.40 Italy faces another key debt auction today where it will sell as much as €9bn in six-month bills. Yesterday, the country paid 4.7pc to sell two-year paper, a new high since December, as investors expressed their doubt over whether this week's summit will deliver a decisive solution to the debt crisis. Meanwhile, Mario Monti, Italy's prime minister, is expected to send a letter to European leaders today explaning the progress Italy has made with reforms. 07.35 Ahead of this week's EU summit, Angela Merkel and Francois Hollande will meet in Paris today to try to square their differences over how to tackle the crisis. Those differences were thrown into relief yesterday as Mrs Merkel ruled out jointly guaranteed eurozone debt for "as long as I live." Hollande supports the idea of eurobonds. Before that meeting, Mrs Merkel will address the lower house of Germany's parliament later this morning. 07.25 That expectation of a muted market was echoed by Craig Erlam at Alpari. Markets are struggling to pick up momentum in either direction as we near the end of the week. Usually, we see sentiment pick up as we near a summit, with optimism high that the meeting will generate some form of solution to the dire situation in the Eurozone. Each time we see this optimism quickly disappear after the summits as leaders re-appear full of smiles and no plans. This week we are seeing something different. We are seeing people adopt a "wait and see" approach. The effect of this has been low volatility in the markets and only small moves in prices. I expect if this summit fails to bear any fruit, we will see this repeated many times in the future until the leaders get a grip. At the end of the week we are likely to see a big reaction whatever happens. 07.17 Markets are expected to struggle to gain much momentum this morning as traders sit tight ahead of this week's summit. This week's EU summit continues to act as a cloud over markets with expectations getting lower by the day. Yesterday's events did nothing to change the mood of prevailing pessimism, especially after German Chancellor Angela Merkel was reported to have ruled out any idea of jointly guaranteed eurozone debt for "as long as I live," and thus ruling out any notion that we would see a step towards Eurobonds at this week's summit. 07.12 Why don't governments just let ailing economies default, asks Jonathan Compton, who heads the aptly titled Bedlam Asset Management. He argues that fear of contagion if a eurozone country leaves is just a "fairy tale designed to frighten voters into submission." More from Mr Compton: One is that sovereign default is normal, especially after major banking crises. Only 13 of the G20 countries (the world's wealthiest nations) existed a century ago. Of these, only two have not defaulted. Many have repeatedly reneged. The other is that default can be beneficial. Markets already expect several EU countries to 'restructure', hence Greek and Portuguese 10-year government bonds are now worth 16pc and 65pc of their face value; but discussion remains a political heresy because the eurozone has some aspects of a religious cult. The result is an absence of analysis on how to manage the cyclical inevitability of default, or to reap the benefits. It is also worth noting that for many countries default is their normal condition. Spain is the winner, officially defaulting 18 times since 1550. Greece has done so five times since its re-creation in the 1820s, and has been barred international borrowing for 110 years out of the last 190. 07.10 Meanwhile, the countdown continues to Brussels' latest do or die summit. Yesterday, the EU's 'Gang of Four' unveiled what has been billed as the master plan to save the euro. Bruno Waterfield, our Brussels correspondent, has compiled a handy Q&A explaning the ins and outs of this grand plan. 07.00 Over my dead body. That's what Angela Merkel had to say yesterday on the idea that we could see eurobonds any time soon. Speaking at a private meeting with MPs, she ruled out jointly guaranteed eurozone debt for "as long as I live." The German Chancellor's comments were met with applause. One participant reportedly shouted: "We wish you a long life!"