- Eurozone industrial output falls
- ECB says policy will remain loose
- Draghi speaks on stress tests
- US retail sales and jobless claims to be released
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European equities were in the red at the midday mark as Eurozone industrial production fell unexpectedly in October.
Industrial output dropped 1.1% on the month, compared to a decline of 0.5%. Economists had forecast an increase of 0.3%.
The report came as a fresh warning about the bloc's economy recovery as the European Central Bank (ECB) signalled that its policy would remain loose as long as needed.
In its monthly bulletin the ECB said that it would continue to assist the gradual economic recovery in the euro area.
Last week the ECB kept its key policy rates unchanged at record lows and reaffirmed that interest rates would stay at present or lower levels for an "extended" period.
The ECB expects gross domestic product in the Eurozone to decline 0.4% this year and pick up to 1.1% growth next year and 1.5% in 2015.
Separately, ECB President Mario Draghi said bank holdings of government bonds will be tested among other debt categories in the monetary authority's planned stress test next year.
However, he warned that the larger debate over risk weights for sovereign debt holdings is not the ECB's responsibility.
"Sovereign debt is going to be stressed like all other categories in banks' balance sheets," Draghi said during a plenary debate on the ECB's Annual Report 2012 at the European Parliament in Strasbourg, France.
The ECB is conducting a review of the balance sheets of the largest Eurozone financial institutions in an attempt to bolster confidence in European banks before taking over the supervision of banks in November 2014.
US retail and jobless claims
A report on US retail sales to be released later today is expected to show a rise of 0.6% in November, up from the prior month's 0.4% increase.
Jobless claims figures will also be unveiled and is tipped to rise to 320,000 in the week to December 7th from 298,000 the previous week.
The reports come ahead of next week's Federal Reserve policy meeting when the central bank may announce a tapering of monetary stimulus.
"This is the final piece of the jigsaw ahead of the Fed meeting and could make the difference when it comes to the decision on tapering," according to Alpari analyst Craig Erlam.
According to a recent survey by Bloomberg, 12 out of 35 economists believe that the Fed will begin to taper at its December 17th-18th meeting, nine said a withdrawal will start in January while the remaining 14 don't expect a scaling back of stimulus until March.
John Wood, Peugeot
John Wood Group's shares
dropped after saying it expects earnings from its engineering division to fall 15% in 2014.
PSA Peugeot Citroen declined after disclosing a charge of about €1.1bn in its auto operation due to unfavourable currency movements in Russia and latin America and lowering its estimate for savings from its partnership with General Motors.
Ziggo rallied after the Dutch broadband provider said that Liberty Global Plc has renewed talks to buy the company.
Fortum Oyj gained after saying it will sell its Finnish power distribution business for €2.55bn to Suomi Power Networks Oy.
The euro fell 0.03% to $1.3782.
Brent crude declined $0.238 to $109.440 per barrel, according to the ICE.