from WSJ:
LONDON—European stock markets fell from session highs to trade only slightly in the black /now in the red/ Wednesday, as the outcome of the European Central Bank's longer-term refinancing operation scheme prompted concerns that the amount funding provided for banks may still not be enough...
The ECB beat market expectations by saying it allotted €489.19 billion ($639.96 billion) in the first of two keenly awaited three-year refinancing operations Wednesday. The central bank said it allotted the three-year loans—the longest maturity the ECB has ever offered—to 523 banks.
Although said to be positive for the banking industry, some warned that it may not be the answer to push banks to lend in order to prop up euro-zone sovereign bond markets.
"As the dust settles, the ambiguous nature of these data is perhaps coming in to focus—does this record LTRO take up imply carry trade support for the 'periphery' or more reflect banks' acute financing difficulties?" said Rabobank.
