Thailand Central Bank Raises Benchmark Interest Rates To 2.50%

(TH) Thailand Central Bank raised the Benchmark Interest Rate by 25bps to 2.50%; as expected

(UK) February BRC Shop Price Index y/y: 2.7% v 2.5% prior (largest increase since November 2008)

(FR) France January Central Gov't Balance: -€13.5B v -€148.8B prior

(CZ) Czech February CPI M/M: 0.1% v 0.2%e ; Y/Y: 1.8% v 2.0%e

(CZ) Czech January Trade Balance (CZK): 15.7B v 13.6Be

(SZ) Swiss February CPI M/M: 0.4% v 0.3%e; Y/Y: 0.5% v 0.4%e

(SZ) Swiss February CPI EU Harmonized M/M: 0.3% v 0.0% prior; Y/Y: 0.5% v 0.2% prior

(SW) Sweden January Industrial Production M/M: 4.1% v 0.8%e; Y/Y: 15.0% v 9.9%e

(SW) Sweden January Industrial Orders M/M: -1.6% v 0.8% prior; Y/Y: 12.1% v 17.7% prior

(UK) January Visible Trade Balance: -£7.1B v -£8.5Be; Total Trade Balance: -£3.0B v -£4.0Be; Trade Balance Non EU: -£4.2B v -£5.2Be

Fixed income
(PO) Portugal Debt Agency (IGCP) sold €1.0B vs €1.0B Indicated in 5.45% Sept 2013 bonds;
Avg Yield 5.993% v 4.086% prior; Bid-to-cover: 1.6x v 1.9x prior

(SW) Sweden sold SEK2.0B in 3.5% 2022 Bonds; Avg yield 3.463%

Notes/Observations:
EU to allow regulators in individual countries to apply their own definitions of banks health in coming stress tests

Equities:
FTSE 100 -0.30% at 5985, CAC 40 +0.1% at 4020, DAX +0.50% at 7199, FTSE MIB +0.40% at 22,445, IBEX -0.25% at 10,542, SMI -0.05% at 6507

European shares are trading mixed fluctuating between gains and losses. Oil prices have declined but investors are hesitating to take any major risks ahead of the EU leaders summit on Friday.

Prudential [PRU.UK] and its CEO seems to have emerged from the failed takeover of AIG Asia as insurance company posted stronger than expected results, more than doubling net income and exceeding operating profit estimates. The main source of profit was Asian and US operations and investors were particularly pleased with a 20% increase in dividend. In terms of outlook, Prudential aims to double profit in Asia.

Shares jumped to over 3% and continue to trade in positive territory. German insurer company Hannover [HNR1.GE] also gained over 1% after results beat expectations. EADS [EAD.FR] gained over 2.9% after surprising on the upside. EADS swung to profit after a loss last year and reinstated its dividend as company expects stabilization in its profits. Company guided EPS and Revenues to be higher in 2011 than last year levels.

Among decliners German solar name E.ON [EOAN.GE] lost about 1.2% after expecting a significant earnings decline in 2011 due to Germany's nuclear-fuel tax which will take effect in 2011. The adverse effect will continue into 2011, albeit at a lesser degree. Earnings, apart from revenues, were below analysts' estimates.

In M&A news, Tognum AG [TGM.GE] rallied 4.1% after Daimler and Rolls Royce joint venture offered €24/shr for the company. Company surged already yesterday after jv confirmed it was in discussion with Tognum. Iberdrola Renovables [IBR.SP] also rose 8% afte initiating merger talks with parent company Iberdrola [IBE.SP]. The unit is valued at €2.98/shr