-Germany insists next tranche of Greek aid be deposited in escrow account -Handelsblatt
-Merkel says legal basis for banking supervision not enough to activate ESM
-Samaras to give report at summit

FTSE-100: 0.18%
Dax-30: 0.17%
Cac-40: 0.00%
FTSE-Mibtel 30: 0.05%
Ibex 35: 0.28%
Stoxx 600: 0.05%

European equities have begun the day slightly higher, similar to what was seen in Wall Street overnight and despite better than expected data overnight out of China. That ahead of today's EU summit -where no major decisions are expected to be taken.

Perhaps best expressing market sentiment, some traders comment that they are somewhat loathe -but not pessimistic- to push stocks much higher until clearer signs emerge of progress in handling the Eurozone crisis. Not to be missed, the main equity benchmarks on both sides of the Atlantic are fast approaching important -and likely very hard to breach- levels of technical resistance.

Sentiment in the currency markets is quite similar, with analysts at Unicredit this morning commenting that: "Investors do not seem eager to ride an EUR-USD rally above 1.3169 peak, as there is no full solution in the current Spanish and Greek debate. A good result of today's auctions in Spain could offer support."

Also on tap, Spain's Treasury will today auction up to €4.5bn in medium and long-term debt. A positive result could help reassure the market. However, at 09:00 the Bank of Spain will publish its latest monthly loan delinquency data (July: €169.3bn), which could dampen any positive effect from the above.

To be had in account, yesterday the troika stated that it agreed with the Greek authorities on the core measures of the austerity package and expects a full agreement in the coming days. Financing issues will then be discussed between the official lenders and Greece.

No more drinks for Remy Cointreau

Nestle is retreating after the company reported nine-month sales growth that missed analysts' estimates.

Likewise, Remy Cointreau -France's second-biggest distiller- posted an improvement in first-half sales that fell short of forecasts.

From a sector stand-point the best performance is now to be seen in the following industrial groups: Basic resources (0.99%), Construction&Materials (0.66%) and Industrial Goods and Services (0.36%). Food&Beverage stocks are leading losses, down by 1.89%.

Weak Dutch data

Dutch consumer confidence index worsened to -32 points in September, after -29 in the month before (Consensus: -27).

The Swiss trade balance improved to €2.01bn in September, after €1.73bn in the previous month.

Single currency shy this morning

The euro/dollar is now off by 0.22% to the 1.3087 dollar mark.

Front month Brent crude futures are declining by 0.283 dollars to the 112.90 dollar level on the ICE.

AB

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