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European markets higher ahead of tomorrow's central banks

The German DAX (+1.00%), the French CAC 40 (+0.25%), the Italian FTSE MIB (+0.09%) and the Spanish IBEX 35 (+0.36%) are edging higher ahead of tomorrow's central bank decisions by the BoE and ECB. In regard to the ECB, TD Securities analysts wrote the following: "We see a 30-40% chance of a refi rate cut, which is not priced into the market".

EMU GDP Q4 contracted by -0.6% as expected and the annualized figure dropped further, from -0.6% to 0.9%, also as predicted. The economic calendar is now empty for the rest of the European morning.

The British FTSE 100 is up by +0.41%. BoE's Mervyn King said that banks are still too big to fail, still an issue for supervisors. UK house prices rose 0.5% (MoM) in February, more than the 0.2% expected, and the 3m/YoY data rose from 1.3% to 1.9%, beating the 1.7% consensus.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening by 0.25-0.35% ahead of US ADP employment change and factory orders data.

Forex Flash: EUR/GBP with negative bias towards 0.8566 then 0.8449/47 - Commerzbank

Commerzbank analysts see a negative bias as the EUR/GBP slips lower: "The market last week reversed from the double Fibonacci retracement and the October 2011 high, at 0.8780/0.8830", wrote analyst Karen Jones, seeing likelihood of failure.
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Forex Flash: Italy PD's Bersani focused on political reform – TD Securities

A quiet European morning in terms of economic calendar, with the only release being the second reading of Q4 GDP which came in exactly in line with the first print at -0.6% Q/Q, TD Securities analysts focused on comments made by Italy's Bersani, unveiling his post-election platform at the PD caucus.
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