- Weaker than expected Eurozone PMIs
- ECB policy makers expect a deal on Cyprus
- Cyprus would rather exit euro than commit suicide
- Successful Spanish debt auction

FTSE-100: -0.78%
Dax-30: -0.79%
Cac-40: -1.12%
FTSE Mibtel 30: -0.20%
Ibex 35: -0.77%
Stoxx 600: -0.54%

European equities are treading water near their lows of the day, caught in the downdraft of the much weaker than expected economic data out in the Eurozone this morning, in the form of the latest purchasing managers' surveys out from Markit.

The above trumped the unfolding crisis in Cyprus as the main driver of the market this morning.

The country's ex-Socialist Presidential candidate, Girogos Lillikas, this morning remarked that: "I hope our partners are not asking us to choose between committing suicide and leaving the euro," ekathimerini reports.

Nevertheless, European Central Bank (ECB) officials have been cited today as saying they expect a Cyprus support plan by Monday.

The Mediterranean country's banks are now expected to remain closed until next Tuesday, while the European Central Bank has committed to providing liquidity until Monday. The latter puts the onus on the government in Nicosia to find a viable solution by then.

Periphery markets, however, have improved slightly, on the back of a successful auction of medium and long-term debt. Spain's Treasury has sold €4.5bn in debt instruments, ahead of the €4bn expected.

Diverging results from retailers

French luxury group Hermes has reported a 26.4% increase in operating profits for 2012. Operating margins rose to record levels.

Fashion retailer Hennes&Mauritz has posted lower-than-expected first quarter earnings.

From a sector stand-point, and on the company front, the worst performance is now to be seen in the following sectors: Automobiles (-2.08%), Chemicals (-1.56%) and Technology (-1.19%).

Very weak PMI numbers

The Markit manufacturing sector purchasing managers' index for the month of March in the Eurozone has come in at 46.6, versus 47.9 for the month before (Consensus: 48.2).

In parallel, the service sector gauge dropped to 46.5 from 47.9 (Consensus: 48.2).

Particularly worthy of mention are the very weak readings seen in the numbers for the German services sector.

The Dutch unemployment rate worsened to 7.7% in February from 7.5% in the month before (Consensus: 7.6%).

Switzerland's money supply accelerated to an annualised rate 9.8% in February, after 9.4% in the month before.

Other asset classes drift lower

The euro/dollar is drifting lower by 0.14% to the 1.2920 dollar level.

Front month Brent crude future are now retreating by 0.379 dollars to the 108.31 dollar mark on the ICE.

AB

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