-Contradictory reports on whether Spain will ask for a bail-out
-Some banks regaining access to unsecured funding-Barclays
-Spanish Treasury bill auction on tap

FTSE-100: 0.45%
Dax-30: 0.69%
Cac-40: 0.56%
FTSE-Mibtel 30: 0.71%
Ibex 35: 1.12%
Stoxx 600: 0.44%

The major European equity benchmarks have begun the day with moderate gains on reports which cite The Financial Times as saying that Spain may be close to asking for a bail-out. However, it is being delayed by considerations put forth by Germany and by worries over what the repercussions of that could be for Italy.

Bloomberg is also casting a spotlight on Spain today. However, it reports that Spain's PM believes that holding out for longer will win the country better terms.

Meantime, S&P has further cuts its long term credit ratings on 11 Spanish banks and short term rates on four. This is normal as financial institutions' credit ratings are usually linked to the sovereign's by means of the so-called zero coupon curve.

All of the above ahead of an auction of Spanish short-term bills scheduled for later this morning.

Car sales off

Luxury group LVMH has today unveiled a further slowdown in comparable sales growth in the third quarter, to 6%.

Roche Holdings gained 0.5% after reporting third- quarter sales that exceeded analyst estimates.

Registrations plummeted 11% to 1.13m vehicles last month from 1.27m a year earlier, according to data out from the Brussels-based European Automobile Manufacturers' Association (ACEA). It was the 12th consecutive monthly drop and the biggest decline since October 2010.

As an aside, The Telegraph reports this morning that French business leaders are in a state of near panic over the seriousness of the current financial crisis.

From a sector stand-point the best performance is now to be seen in shares of the following industrial groups: Technology (1.02%), Banks (0.85%) and Chemicals (0.77%).

Multiple data points slated for release

Eurozone consumer price data is due for release at 10:00 from Eurostat, along with the latest trade statistics.

The German ZEW Institute's investor sentiment index for the month of October will be released at the same hour.

Slight gains in other asset classes

The euro/dollar is now up by 0.44% to the 1.3004 dollar mark.

Front month Brent crude futures are now rising by 0.109 dollars to the 91.95 dollar mark on the ICE.



AB

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