European markets lower on EMU recession despite leaders' comments (Barcelona) - The EMU Q3 GDP came in at -0.1% (QoQ), in line with consensus, despite upside surprises in the Eurozone largest countries. “We would argue that the recession began in Q4 2011, even if that quarter was followed by flat GDP in Q1 instead of an outright contraction”, wrote TD Securities analyst Cristian Maggio. The French GDP eased from 0.3% to 0.2% annualized growth, and the German economy saw its growth softening from 0.5% to 0.4%, instead of rising to 0.8% as forecast. The Spanish GDP came in line with consensus, easing from -1.3% to -1.6% in Q3 (YoY), and contracting by -0.3% quarterly. The Italian GDP surprised the pessimistic consensus of -0.5% (QoQ) and of a drop from -2.4% to -2.9% (YoY) in Q3, as actual figures came in at -0.2% (QoQ) and -2.4% (YoY).

Earlier, risk sentiment had a boost on Olli Rehn's comments. He believes the European economy may have bottomed out, that Baltc countries are resuming growth after adjustment, and the EU joint bank supervision will start in 2013. He also said that the ECB made an impact to ease market tensions, and that could also bee seen in yesterday's Italian bond auction. About banking, harmonizing deposit guarantees wouldn't mean merging funds, and pooling deposit guarantees in EU wouldn’t boost credit. Credit is tight on lack of demand and supply constraints. It's been reported that Spain is considering requesting a credit line from the IMF alone, instead of calling for an European bailout.

ECB's Mario Draghi said the central bank bought precious time with its unconventional measures and standed firm in his belief that the Euro can't go backwards. The German finance minister Schaeuble said Greek aid will be agreed on by Tuesday.

The German DAX 30 is down by -0.05%, the French CAC 40 falls by -0.50%, the Italian FTSE MIB softens by -0.43%, but the Spanish IBEX 35 gains +0.08%. Futures for the S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a somewhat “red” opening ahead of US initial jobless claims, the CPI inflation report and Empire and Philly Fed November surveys. WTI crude oil is down by 0.06% ($86.24) and Gold drops by -0.37% ($1720).