- Investors see through Deutsche Bank charges, shares up
- Santander results weigh on Spanish financials
- Barnier (EU): Not out of crisis but over peak
- Catalonia accuses Spain of unfair treatment before EU

FTSE-100: -0.55%
Dax-30: -0.47%
Cac-40: -0.88%
FTSE Mibtel 30: -0.78%
Ibex 35: -1.89%
Stoxx 600: -0.51%

The main European equity benchmarks are now registering large falls, tracking losses overnight on Wall Street.

Leading the retreat is the Madrid bourse´s equity benchmark, where Santander´s results seem to be weighing on the entire Spanish financial sector. The bank reported fourth-quarter profit of €401m ($544m), missing the €801.6m consensus estimate.

The above comes ahead of the release of a new batch of macroeconomic indicators, Stateside, this afternoon. Also worth noting, as a market backdrop, is the slow crawl higher in market interest rates and oil prices.

The recent gains made - and likelihood of further advances - by the single currency are also calling the attention of some observers. Thus, the Chief Executive of ST Microelectronics today described the euro´s rise as an added challenge for European exporters.

In that same vein, Unicredit wrote today, in reference to US Treasuries, that: "after breaking the 2% threshold, the next key resistance for US Treasuries is 2.05%. If that level is broken, charts point to an increase in yields up to 2.20-2.40%." Simply put, that would constitute a very significant move.

Nevertheless, the Stoxx 600 is still headed for its longest streak of monthly gains since 1997, according to Bloomberg data. Also to be had in account, there was some negative commentary out of ratings agency Standard&Poor´s overnight as regards the outlook for China.

Deutsche Bank, Europe's biggest bank by assets, announced a fourth-quarter loss of €2.17bn, far in excess of analysts´estimates, but due to one-time charges linked to the elimination of 1,400 jobs and the setting aside of €1bn ($1.35bn) in provisions for legal expenses.

Phone equipment manufacturer Ericsson has reported higher-than-expected fourth-quarter core profit and revenue growth this morning.

Mixed signals from German data?

German unemployment dropped by 16,000 in people in January, versus the 8,000 rise forecast.

French comsumption remained flat in December versus the previous month (Consensus: 0.2%).

German retail sales contracted at a 1.7% month-on-month pace in December (Consensus: -0.1%).

Spain´s consumer price index rose at a 2.6% year-on-year clip in December (Consensus: 3,0%).

Euro strengthens
The euro is down 0.09% at 1.3560 dollars.

Brent crude feature are off a tad, down by 0.078 dollars, to the 114.8 dollar mark on the ICE.



AB

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