- European markets mixed
- Investors await ECB bond buying plan
- STMicroelectronics down on negative broker notes

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European stocks fluctuated on Wednesday as investors awaited the European Central Bank's plan to save the euro.

Several sources are carrying leaks of what the ECB governing council will decide at its policy meeting on Thursday.

The plan appears to be to buy short term bonds (up to three years maturity) of distressed countries like Spain and Italy in the secondary market, while also selling similar assets "back" into the market, or taking in deposits of cash, in a process known as sterilisation.

The idea is to reduce the interest rates Spain and Italy have to pay to borrow money while avoiding inflationary risks if too much money is pumped into Europe's financial system.

The urgency of the situation was emphasised today by retail figures for Europe which showed sales fell 0.2% in July.

On Friday another key number is released, the US non-farm payrolls figure which shows the unemployment rate in the US. The fact it is has remained stubbornly above 8% for three and a half years is one reason President Obama is facing a tough fight election battle in November

COMPANIES

Richemont, the swiss jewelry maker gained 1.5% after reporting revenues rose in the first half of 2012

STMicroelectronics, the huge Franco-Italian microchip maker slid 4.9% after analysts at UBS and Exane advised clients to sell the stock.

Dutch finance powerhouse ING Groep gained 1.5% after reports it is mulling a sale of some US assets.

The strongest sector on the Stoxx Europe 600 was health care which rose 0.94%. The weakest was oil and gas which dropped 1.57%.

BS

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