LONDON (ShareCast) - -IFO´s Sinn says in Greece´s interest to leave the Euro-Der Spiegel

FTSE-100: 0.76%
Dax-30: 1.38%
Euro Stoxx 50:1.13%
SMI: 0.18%
Ibex 35: 1.77%

European equities are now registering stronger gains than at the start of the session, thanks to positive news out of China and Greece over the weekend. On Friday evening the Asian giant announced a 50 basis point decrease in its reserve requirement ratio. That came almost a month later than expected, but even so has been welcomed by markets.

There also seem to have been some potentially very significant news out on Greece this morning. Particularly noteworthy are the reports to the effect that some ECB officials would support an increase in the funds available for the European Stability Mechanism (ESM), towards €750bn. Likewise, there may now be grounds for thinking that China and Japan may be more inclined to support an increase in the funds put at the disposal of the International Monetary Fund, judging by remarks from Japanese officials.

However, some reports cite German Finance Minister Wolfgang Schaeuble as having aired his dismay at Greece´s lack of implementation of the promised reforms in an interview with German daily Tagesspiegel. Similarly, other media outlets are indicating that Greece will be asked to meet a list of 24 demands from its creditors. On the other hand, Mr. Schaeuble has also been cited as showing some flexibility as regards the exact numerical target of debt reduction which the country must meet.

All of the above ahead of this evening´s meeting of Eurozone finance ministers.

On the negative side of things is news that Iran has stopped its sales of oil to British and French companies.

EQUITIES

Dutch delivery firm TNT has said that its board of directors has rejected a take-over bid made by US-based peer UPS, sending its shares rocketing higher.

Swiss engineering group ABB has up to $8bn available for takeovers in the next three years, Chief Executive Joe Hogan was quoted as saying on Sunday according to Reuters.

Drinks group Carlsberg has reported a 4.2% drop in 2011 profit on weaker sales in Russia and higher input costs.

Shares in Veolia Environment are falling after Les Echos reported that the company’s directors are seeking to replace Chief Executive Officer Antoine Frerot.

MACROECONOMY

INSEE´s French business confidence index remained flat during the month of February, at 92 points.

Italian industrial orders grew by 3.4% month-on-month in December.

OTHER MARKETS

Front month West Texas crude futures are rising by 0.62% to the $120.33/barrel mark in NYMEX trading.

The Euro/dollar is now up 0.94% to the 1.3270 dollar mark.

AB

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