• German prelim retail sales (Jan) -0.6% m/m, -1.2% y/y. Weaker than expected compared to median forecasts of +0.2% and -0.7%respectively. However December monthly data revised up, to +0.5% from initial -0.2%.
• French Q-4 ILO unemployment rose to 8.2% from revised 7.6% in Q-3. Worse than expected compared to median forecast of 7.9%.
• French producer prices (Jan) -2.0% m/m, -2.7% y/y. Much weaker than expected, compared to median forecasts of +0.3% and -0.4% y/y respectively
• Euro-zone Q-4 GDP -1.5% q/q, -1.3% y/y, compared to median forecasts of -1.5% and -1.2% respectively.
• General Motors says there is substantial doubt about its’ ability to continue as going concern.
• Bank of England trims rates 50bps to record low 0.50%, as expected.
• USD and JPY firmer this morning, with risk aversion ratcheted up a notch. European stocks down across the board. Some disatisfaction Chinese didn’t come up with another big fiscal stimulus package. General Motors comments that there is substantial doubt about its’ ability to continue as a going concern also unerving the market. European economic data almost uniformally weak. EUR/USD lower as market awaits ECB rate decision. Talk of decent buy orders around 1.2540 have so far cushioned fall, BIS said to have been buying around 1.2550 also helping.