European indices recover after the political turmoil in Greece and the slump in energy and commodity prices. Markets were under pressure yesterday after Prime Minister Antonis Samaras announced bringing forward a parliamentary vote on a new head of state on December 17th. Markets were further weighed down by China's decision to set new restrictions on collateral for short-term loans. The FTSE 100 index is currently trading +0.33% quoted at 6,521.44 points, Germany's DAX 30 added +0.52% trading at 9,850.86 after German CPI on a monthly basis was in line with expectations and +0.6% on a yearly basis beating expectations by +0.1%. France's CAC 40 added +0.49%, currently trading at 4,248.44 points. France's CPI disappointed with a reading of -0.2%. Analysts expected a rise of +0.2%.

Markets await the ECB's Monthly report published at 09:00 GMT and Eurozone's Targeted LTRO at 10:15 GMT.