1210 GMT: EU's Rehn has been on the wires talking about embattled EZ peripheral states. Rehn said it is essential that Italy fully implement fiscal consolidation, adding that all decisions on Spain's, deficit outlook will wait until after March. He added that the Euro-area has entered a mild recession, and that risks to growth remain. Rehn comments come on the back of the EU commission's loweruing of growth forcasts for the Euro area from +0.5% to -0.3%.

0930 GMT: The IFO survey out of Munich today came in better than expected. A reading of German business climate rose to 109.6 from 108.3 in January, above the 108.8 predicted by economists. The current assessment and economic expectation gauges also rose above expectations. Meanwhile, UK loans for house purchase have come in better than expected.

0730 GMT: Today's European session opens with currencies and risk strong against safe investments. Australian markets may well be affected today by political instability in the country with the current Foreign Minister last night announcing a political challange to PM Gillard. A party leadership vote is due on Monday. Meanwhile, Germany is set to resist or delay inctreasing the size of Europe's frewall against contagion from the Greek debt crisis. The US and Japan are reportedly considering contributions to the fund. Stay tuned for the German IFO survey results later today.