LONDON (ShareCast) - -IMF criticises Bank of Spain –El Mundo
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-Oil down on constructive talk with Iran

FTSE-100: 0.65%
Euro Stoxx 50: 0.56%
Dax-30: 0.79%
SMI: 0.47%
Cac-40: 0.99%

The main European equity benchmarks are now registering a moderate rebound ahead of the release of important economic indicators expected out ‘before the bell’ on Wall Street.

That despite a renewed flaring-up in Spain and Italy´s sovereign risk premiums, which has seen the single currency move below 1.30 overnight, to a two week low. The yield on Spain´s 10 year treasuries is now rising by 11 basis points, to 6.09%, off an intra-day high at 6.16%.

Of interest, and somewhat surprisingly, remarks last Friday from ECB council member Joerg Asmussen to the effect that the central bank could raise rates should economic activity improve. Similarly, some market commentary has taken note of remarks out from the Under Secretary of the Spanish Treasury, Jaime Garcia Legaz, asking for more pro-activity from the European Central Bank. No less relevant, Spanish daily El Mundo today echoes the conclusions of a draft IMF report which criticises the slowness with which the country´s monetary authority has presided over the restructuring of the country's banking system.

Acting as a backdrop, investors are watching out for this next weekend´s Presidential elections in France, as well as for the results of this week´s Spanish debt auctions, scheduled for tomorrow and Thursday.

Francois Hollande has extended his advantage in a head-to-head race versus Nichola Sarkozy by two points to 56% against 44%, according to a TNS survey carried out on the past 13th of April.

Retail sales data and quarterly results from Citigroup, this afternoon, Stateside, will also drive stocks.

Equities

From a sector stand-point the best performance is now to be seen in the following industrial groups within the DJ Stoxx 600: oil (1.26%), basic resources (1.05%) and utilities (0.71%).

Royal KPN NV is jumping higher on speculation that it may sell its Belgian mobile-phone unit.

International Power has agreed with GDF Suez on the terms of a cash offer.

Credit Suisse could announce the loss of up to 5,000 jobs in its investment banking business, according to reports in the Swiss press.

German services trade union Verdi has called for fresh warning strikes by about 6,000 Deutsche Telekom workers on Monday.

Dutch firm Vestas Wind Systems is 18% higher on the back of take-over speculation.

Macro-economy

The Eurozone trade balance fell to €3.7bn in February from the previous month´s reading of €5.3bn (Consensus: €5.0bn).

Swiss producer and import prices rose by 0.3% month-on-month in March (Consensus: 0.5%).

Other markets

Front month Brent crude futures are now falling by 1.02% to the $120.01/barrel mark in ICE trading.

The euro/dollar is at 1.3024, 0.40% lower, after falling below 1.30 overnight, to two month lows.

CAC 40 - Risers
Technip (TEC) € 86.70 +3.89%
GDF Suez (GSZ) € 18.63 +3.73%
LVMH (MC) € 130.45 +2.60%
EADS (EAD) € 30.90 +2.25%
Air Liquide (AI) € 98.28 +2.00%
Total (FP) € 37.15 +1.99%
Essilor International (EI) € 66.46 +1.89%
Schneider Electric (SU) € 46.67 +1.67%
Bouygues (EN) € 21.48 +1.58%
Danone (BN) € 51.03 +1.53%

CAC 40 - Fallers
Societe Generale (GLE) € 17.20 -3.40%
BNP Paribas (BNP) € 29.40 -3.29%
Credit Agricole (ACA) € 3.78 -3.15%
AXA (CS) € 10.64 -1.85%
Alcatel-Lucent (ALU) € 1.48 -1.79%
Carrefour (CA) € 15.32 -1.45%
Lafarge (LG) € 30.45 -1.39%
Cap Gemini (CAP) € 29.59 -1.09%
Accor (AC) € 24.83 -0.68%
Vallourec (VK) € 45.33 -0.65%

AB

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