- OECD: Eurozone banks still short of capital
- OECD: Shortfall greatest in France and Germany
- Periphery bond yields again lower after Italian debt auction
- ECB will not cut rates in 2013, some economists says

FTSE-100: 0.14%
Dax-30: 0.02%
Cac-40: -0.28%
FTSE Mibtel 30: -0.11%
Ibex 35: 0.31%
Stoxx 600: -0.28%

The main European equity benchmarks have started the day on a mixed footing as investors wait for the signal to advance, or not, from their brethren on the other side of the pond. That as the main benchmarks are now still hovering at or near resistance in the form of multi-year highs.

Acting as a backdrop, some in the markets -not least Goldman Sachs among them - are now of the view that the European Central Bank will demur from cutting rates further this year.

Morgan Stanley is of a similar mind but adds that, "However, we are reminded of the upbeat press conference a year ago, which boldly called for a trough in the euro area economy. Later that year, the ECB still cut interest rates again at its July meeting. Today, however, Draghi was careful not to proclaim 'victory' over the crisis and instead stated that the jury was still out on the OMT."

Also worth noting, Japan´s Cabinet Office has recommended the implementation of a new fiscal stimulus package. With more negative implications, today's worse than expected inflation data out in China.

SAP is rising after announcing a significant overhaul of its enterprise-software system, while the likes of Cap Gemini SA is benefiting from the positive outlook just provided by its rival Infosys.

From a sector stand-point the worst performers now on the DJ Stoxx 600 are: Basic resources (-1.66%), Utilities (-0.64%) and Construction (-0.62%).

Dutch industrial production rose at a 1.2% month-on-month clip in November (Consensus: 0.0%).

Spanish industrial production on the other hand contracted by 7.2% year-on-year in November, far more than the 4% fall expected.

The euro/dollar is again higher, now 1.3340, up by 0.56%, possibly following positive comments out of analysts at Goldman Sachs, who are telling clients to buy with a target of 1.37.

Front month Brent crude futures are still off by 0.251 dollars to the 111.61 dollar mark on the ICE.

AB

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