-All eyes on ECB press conference at 13:30
-Moody's lowers Portugal's country ceiling to Baa3 from Aaa
-Single currency again over 1.26
-Sweden unexpectedly cuts benchmark rate by 25bp

FTSE-100: 0.65%
Dax-30: 1.48%
Cac-40: 1.27%
FTSE-Mibtel 30: 1.43%
Ibex 35: 1.61%
Stoxx 600: 0.79%

The main European stock benchmarks are now moving comfortably higher, ahead of this afternoon's crucial press conference from European Central Bank (ECB) President, Mario Draghi's, press conference, which is due to begin in under half an hour's time.

The ECB is expected to announce its intention of purchasing unlimited amounts of short-term debt of those countries which request aid, in exchange for strict conditionality. Another key element is that the ECB is not expected to have seniority over other creditors, nor is it expected to set a fixed 'cap' on bond yields. No modification is foreseen in its main refinance or deposit rates.

Crucially, however, much of the above may already have been discounted by markets, even if it remains to be seen how Germany's Bundesbank will react.

Acting as a backdrop, ex-Federal Reserve Vice-Chairman Donald Kohn has been cited as saying that tomorrow's US employment report could determine whether the country's central bank moves on the monetary policy front, or not, at its meeting next week.

Nokia downgraded

German airline Lufthansa has said it would be open to mediation in its escalating fight with cabin crew over pay and conditions.

French telecom equipment Alcatel-Lucent maker will clarify the details of its latest restructuring plan at a board meeting expected next week, three sources close to the matter have told Reuters.

EU regulators are extending their review of United Parcel Service's planned takeover of Dutch peer TNT Express.

Deutsche bank has downgraded its view on shares of Nokia to sell from hold.

From a sector stand-point the best performers now on the DJ Stoxx 600 are: Automobiles (2.09%), Basic resources (1.82%) and Chemicals (1.55%).

French unemployment rises

Unemployment in France -excluding its overseas territories- rose to 9.7% in the second quarter, after 9.6% in the first (Consensus: 9.8%).

Other asset classes edge higher

The euro/dollar is now slightly higher, up by 0.25% at 1.2640.

Front month Brent crude futures are gaining 0.703 dollars to the 113.95 dollar mark.

AB

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