By Research Team, 1245 GMT: Aspokesperson for the Germangovernment has been on the wires, denying rumors of a third Greekbailout and saying that the Greek debt swap must be completedbefore any discussion of a Euro-area firewall can occur. Thespokesperson also added that the German government is confidentthat the opposition will back the fiscal pact. Eleswhere, EU's Barroso hassaid he has no doubts that Spain will respect its EU budgetrules. 1026 GMT:European retail sales unexpectedly rebounded in January afterfalling for the last four months. Sales rose 0.3% from December,after dropping by half a percentage point at the end of 2011.Economists had predicted a further drop in January. The unexpectedrise was led by growth in France, which served to offset weakerthan expected German numbers. 0940 GMT:European PMIs have come in weaker than expected on the whole, withthe services sectior failing to match gains in manufacturiong seenlast week. Only Germany showed improvement on expectations. Meanwhile, the ECB's Paramo has said that theEurozone "is not in crisis." 0720 GMT: TheEuropean session opens today with risk appetite signioficantlyweakened by Moodys' downgrade of Greece overthe weekend. Ratcheted-down growth forcasts out of Chinaovernight also heven't helped market sentiment, and commodity-correlated currenciescontinue to underperform after weak data overnight turned off risk.Stay tuned for European services PMIs later inthe day.
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