In the US stock index futures are broadly flat but Dow futures are up about 15 points on optimism about a solution to the euro zone debt crisis. In Europe, banks lead shares higher ahead of an Italian bond auction. Yields are down across the board after two successful auctions of Spanish and Italian debt on Thursday. Asian markets were mostly higher as a result of Thursday's successful European debt auctions.
European shares mixed after weak U.S. economic data this morning. The Bank of England and the ECB leave key rates unchanged. Yields fall sharply in Spain and Italy debt auctions. There are now signs of economic stabilization, according to ECB President Mario Drahi. Recession in euro zone may be less likely, as a result.
European markets fall as Fitch says ECB should ramp up bond buying. The euro falls to a 16-month low vs. the dollar following Fitch comments. Italian banking stocks rebound, led by Unicredit. There was strong demand for the sale of German bonds. The German economy shrinks during the 4th quarter. Merkel praises the Italian government for speed of launching reforms. Italian PM Monti warns of austerity exhaustion and says austerity alone will not solve all of his country's problems. A new report calls organized crime "Italy's Biggest Bank." Commercial bank overnight deposits at the ECB hit another record high. Natural gas stocks are weak as natural gas hits its lowest level since September 2009. With Yra Harris, Notes from Underground blog.