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FXstreet.com (Barcelona) - The German DAX (+0.20%) and the Spanish IBEX 35 (+0.11%) move higher, while the French CAC 40 (-0.22%) and the Italian FTSE MIB (-0.17%) ease on Friday. The British FTSE 100 gains +0.21% despite disappointing UK industrial production figures.

European markets are digesting yesterday's risk rally on the ECB press conference, sounding unanimous that a refi rate cut is not in policymakers' plans. Also, Moody's downgrade to Cyprus by three notches from B3 to Caa3, with a negative outlook on the rating, is concerning. Investors are also pricing in the events in Asia, including the larger than expected current account deficit (actual ¥-222.4B in November, instead of expected ¥-3.5B), and rising December CPI inflation, at 2.5% (YoY) instead of the expected 2.3%.

After yesterday's successful bond auction in Spain, the Italian government went to the well today and benefited from this new risk sentiment, achieving its lowest yields since March on the 3-year debt, at 1.85% (€3.5B sold). The Portuguese CPI inflation report remained at 1.9% as expected in December.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones are mixed ahead of the NY opening, between -0.07% and +0.04%. US trade balance, import and export prices data are due at 13:30 GMT. WTI crude oil trades at $93.26 (-0.63%) and Gold moves at $1669 (-0.33%).

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