-Ireland is not an exception to ESM conditions-DPA
-Philips earnings rise on cost savings
-Automobile suppliers lower after Deutsche Bank downgrade
-German GDP may contract in quarter four -Buba
-Investors watching technical support levels
-Some still fear Spain will wait too long to ask for aid

FTSE-100: 0.01%
Dax-30: -0.17%
Cac-40: 0.03%
FTSE-Mibtel 30: 0.52%
Ibex 35: -0.11%
Stoxx 600: -0.03%

The main European equity benchmarks are now trading somewhat mixed, but they have trimmed their earlier losses.

That following the sharp drops seen last Friday on Wall Street, with some observers now fearing that recent poor company earnings from several technology heavyweights -such as IBM or Google- may be a harbinger of economic weakness to come. This, at least, is what some analysts are saying as the corporate confession season trundles on.

To be had in account, the week will see another deluge of company earnings in the US, with those in Europe progressively ramping up.

According to Thomson Reuters data, out of the 8% of companies on the STOXX Europe 600 index that have reported results so far, 48% have missed forecasts.

Back in the US, of the 116 S&P 500 companies which have confessed thus far, 58% have missed on revenue expectations, as the economy took a tool on their results.

Adding to the gloom, and acting as a backdrop, was the weak trade data out overnight in Japan. As well, in its latest quarterly report the Bank of Japan has cut its economic assessment for most regions in the country, due to the slowdown overseas it said.

Results out this morning from the likes of Electrolux and Philips have not done much to assuage investors' concerns, such that technical support levels for the main equity benchmarks will now be closely scrutinized so as to guard against losses possibly deepening.

Philips, the lighting company, has reported a 43% rise in earnings before interest, taxes, amortization and one-time items, to €562m, which is well above analysts' expectations. Positively, its sales figures also came in ahead of estimates, yet management attributed the better than forecast earnings to the cost savings initiatives undertaken.

Deutsche Bank has lowered its view on shares of French car parts supplier Valeo to hold.

From a sector stand-point the worst performance on the DJ Stoxx 600 is now to be seen in the shares of the following industrial groups: Utilities (-0.57%), Banks (-0.68%) and Automobiles (-1%).

No major economic data releases are due out this morning.

Small moves in other asset classes

The euro/dollar is now up by 0.28% to the 1.3057 dollar mark.

Front month Brent crude futures are now rising by 0.118 dollars to 110.26 dollar mark on the ICE.

AB

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