-CDU's Fuch: Draghi does not have too much support from Merkel -Bbg
-Stocks rise after German auction technically uncovered
-Dutch central bank chief asking for stringent conditionality -FTD
-Portugal's return to bond markets next year uncertain -Credit Suisse
-Nokia to unveil new phones in an hour's time

FTSE-100: -0.35%
Dax-30: 0.36%
Cac-40: -0.13%
FTSE Mibtel 30: -0.32%
Ibex 35: 0.23%
Stoxx 600: 0.02%

The main European equity benchmarks have turned around since this morning, although they are still trading mixed. The main factors behind that improvement are two.

The first were the results of Germany's 10 year bond auction this morning, which went technically uncovered, while the bid-to-cover ratio dropped sharply, from 1.8 times the amount on offer to 1.1. Markets however have taken the above to mean that risk aversion is on the retreat; hence the rise witnessed in stocks.

Following that, Bloomberg has just reported that the European Central Bank is to announce unlimited -but sterilized- bond purchases at its meeting tomorrow.

With possibly more negative implications for stocks, Michael Fuchs, the Christian Democratic Union party's deputy leader in Germany's parliament, is said to have said that the ECB's Mario Draghi does not have too much support from German chancellor Angela Merkel.

The head of Holland's central bank, for his part, is said to be asking for very stringent conditionality to be attached to any bond purchases.

All eyes on Nokia

Nokia is expected to grab the spotlight today, in approximately an hour's time, as it unveils its new phones. Some believe it may be the firm's last possibility to recover lost market share from the likes of Apple.

Richemont, the world's second largest luxury goods group has confirmed
its bullish outlook on Wednesday, saying sales continued to be healthy.

General Motors has reportedly balked at sharing its mid-sized car technology with PSA Peugeot Citroen, a German magazine reported on Tuesday, according to Reuters. That could potentially weaken the rationale for a broad alliance being negotiated by the two automakers.

Lufthansa is facing nationwide strikes on Friday, the UFO union announced yesterday.

From a sector stand-point, and on the DJ Stoxx 600, the best performance can now be seen in the following industrial groups: basic resources (1.07%), travel (0.90%) and insurance (0.42%).

Eurozone services PMI below expectations

The Eurozone's service sector purchasing manager's index for the month of August has come in at 47.2, after a reading of 47.5 for the month before (Consensus: 47.5).

The French PMI dropped to 49.2 in August, after a reading of 50 in the month before (Consensus: 50.2).

The euro bounces back

The euro/dollar has turned around and is now rising by 0.44% to the 1.2586 level.

Front month Brent crude futures are now off 0.661 dollars, to the 113.44 dollar mark on the ICE.

AB

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