European stocks are on the decline as commodity prices continued to fall while the take-up of the ECB's latest cheap money program, known as TLTROs, met expectations on Thursday, but was still disappointing compared to earlier expectations. Brent crude hit a five and a half year low today, touching $63 a barrel, while WTI dropped as much as $58.80/bbl - also the weakest since July 2009.

Weak data from China & Germany spook markets

European stocks fell for a second day as German imports and exports contracted in October, while Tesco (OTCPK:TSCDF, OTCPK:TSCDY) and energy companies plunged. German October imports slid 3.1% from a month earlier, while exports fell 0.5%. Snapping a world-beating rally, highly volatile Chinese stocks tumbled the most since August 2009, with the Shanghai Composite Index closing down 5.4% at 2,856.27 after earlier gains of as much as 2.4%.

The families of four co-founders of Infosys have sold about 65B rupees ($1B) of stock to capitalize on a gain in their price and to fund various philanthropic activities. Together, the group holds a combined 91.5M shares (nearly 8% of Infosys' (NYSE:INFY) outstanding shares), according to the company's annual report. Shares closed down 4.8% at 1,972 rupees in Mumbai.

Japan slipping into recession

Japan’s economy shrank more than initially reported in the third quarter, contracting 1.9% as capital spending declined and private consumption remained weak. Last month, the government estimated that GDP contracted 1.6% during the July-September period. The revised data confirms Japan slipping into recession less than a week prior to general elections that Prime Minister Shinzo Abe has framed as a referendum on his economic policies.

The European Commission has given Belgium, France and Italy until March to bring their budgets in line with legal requirements, saying they were at risk of breaking EU rules. This gives the countries more time to adjust policy before the EU executive decides whether to fine France for missing consolidation targets or put Italy and Belgium under a disciplinary procedure because of their debt. The Commission will also publish the draft budget assessments of the 18 euro zone countries, except Greece and Cyprus which remain under bailout programs.

U.K. manufacturing PMI is at highest level in four months

U.K. manufacturing PMI edged up to its highest level in four months, rising slightly to 53.5 in November from 53.3 in October and topping consensus of 53.0. Domestic demand offset falling exports due to sluggish orders from the euro zone and emerging markets. The pound gets a lift and is up 0.5% at $1.5722, while the FTSE 100 is -0.8%.

Moody's Investors Service has downgraded Japan's Sovereign debt rating

Japan's sovereign debt rating by one notch to A1 from Aa3, citing heightened uncertainty over the achievability of fiscal deficit reduction goals and effectiveness of growth enhancing policy measures. The yen dropped to a seven-year low of 119.14 per dollar immediately following the announcement, but is now trading down 0.1% at 118.48.