European equities opened lower this morning and have continued to see losses heading into the second half of the session. The Eurogroup meeting continues to be the key focus with ministers meeting for the third time in two weeks to discuss the release of the next tranche of Greek aid. Overnight, a senior democratic senator said that US lawmakers have made little progress on the fiscal cliff in the last ten days which has also weighed on sentiment.
Italian consumer confidence missed expectations at 84.8 vs. Exp. 86.3 which was a record low. In the immediate reaction Dec-Bund moved higher and EUR/USD fell below the 1.2950 handle. The spread between the Italian 10-year and its German counterpart has widened ahead of Italian supply later on this week and the data release.
In Spain, the Catalonian election saw the pro-independence separatist party win 87 out of 135 seats in Catalonian parliament, putting pressure on Spanish PM Rajoy. Despite winning the election, the party failed to get a resounding mandate for a referendum on independence.
Looking ahead, the session remains light on tier-1 macroeconomic data releases however any news coming out of the Eurogroup meeting will be keenly watched.
Print 11:46, 26 Nov 2012 - Market Analysis - Source: RANsquawk
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