Europe open: Hopes rise ahead of EU summit

-EU budget negotiations expected to be tortuous -Spain to auction 3.5bn euros in medium and long-term bonds -Banks deposited 226.33bn euros overnight at ECB

-EU budget negotiations expected to be tortuous

-Spain to auction 3.5bn euros in medium and long-term bonds

-Banks deposited 226.33bn euros overnight at ECB

FTSE-100: 0.46%

Dax-30: 0.68%

Cac-40: 0.35%

FTSE-Mibtel 30: 0.43%

Ibex 35: 0.40%

Stoxx 600: 0.50%

The main European equity benchmarks began today's session with moderate gains.

That as the European budget negotiations kicked off in Brussels and with US markets closed in observance of the Thanksgiving Day holiday.

European Union heads of states and governments will meet today and tomorrow in Brussels to attempt and negotiate a deal on the so-called long-term EU budget (2014-20), with negotiations expected to be tortuous. Never the less, hopes rose as EU President Van Rompuy's latest proposal for a small reduction in the trillion euro budget appeared to be gathering support, including from the UK, according to some published reports.

Out on the corporate front, Renault plans to create 1,300 jobs in Spain under a scheme after reaching a deal with unions in that country.

There were also reports that Santander may be studying an initial public offering of its US auto insurance unit.

From a sector stand-point the best performers on the DJ Stoxx were to be seen in the following groups: Basic resources (1.10%), Chemicals (0.90%) and Automobiles (0.88%).

Weaker than forecast economic dataThe Eurozone service sector purchasing managers' index for the month of November compiled by Markit has come in at 45.7, versus 46 for the previous month (Consensus: 46).

The Eurozone manufacturing sector purchasing managers' index for the month of November has come in at 45.8, versus 45.7 for the previous month (Consensus: 45.8).

Italy's non-EU trade balance improved to €1.47bn in October, after -€657m in the previous month.

Dutch consumer spending remained flat in September in year-on-year terms, versus a 2% drop in the month before.

Little movement in other asset classes

The euro/dollar is now gaining 0.30% to the 1.2865 dollar mark.

Front month Brent crude futures are falling by 0.154 dollars to the 110.68 dollar level on the ICE.

AB

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