MORNING BID EUROPE-Swedish rates: accentuating the negative

* A look at the day ahead from European Economics and Politics Editor Mark John and EMEA Markets Editor Mike Dolan. The views expressed are their own.

LONDON, Feb 11 (Reuters) - Fed Chair Janet Yellen's signalling that tighter credit markets, volatile financial markets and uncertainty over China have all raised risks to the U.S (Other OTC: UBGXF - news) . economy will chip away at any lingering expectations for a near-term rate rise in the United States. In Europe, meanwhile, more easing looks on the cards. The ECB is expected to move next month and today Sweden's central bank is seen shaving a further 10 basis points off its key rate to a record low of -0.45 pct. A so-called normalisation of global monetary policy seems a while off.

French President Francois Hollande could announce a reshuffle of his cabinet as early as today to help revive his unpopular government before elections in 2017. Foreign Minister Laurent Fabius was appointed to head France's constitutional court on Wednesday, leaving at least one post vacant and giving a chance of a wider reshuffle. Hollande will appear on French TV news channels at 1900 GMT, a chance to explain any changes.

Negotiators from EU member states sit down in Brussels to look at the deal being offered Britain to try and keep it from quitting the bloc. While EU members want to accommodate London's demands in general to keep Britain in, there are still several points that need ironing out, most important among them a mechanism allowing non-euro members to have a say in the single-currency area's decisions and limiting access to social benefits to migrant workers in Britain. Separately, European Council President Donald Tusk is pursuing a tour of EU capitals to see what the scope is for an accord at next week's crucial summit. He calls the state of play "fragile" but is still hopeful for a deal.

MARKETS AT 0745 GMT

It was always going to be a tough gig, but whatever Fed chair Yellen intended to do with her congressional testimony yesterday, it's not done much to calm the waters in world markets. The readout from most seems to be that while tightening financial conditions may lead the Fed to pass up another rate hike in March, she still expressed enough confidence in the economy to resume rate rises later in the year. With the futures market now only seeing a one-in-five chance of another rate rise at all this year and economists wondering where a renewed spurt of growth and inflation is going to come from if we're already slowing down now, then there's a big leap of faith in there somewhere. The flattening of the U.S. Treasury curve to below 100bp for the first time since 2007 shows Yellen's confidence, even though she was almost bound to express it, is not being shared by investors. She (Munich: SOQ.MU - news) does get a second bite of the apple today in the Senate. The S&P500 wiped out all its early gains last night to end flat. Even (Taiwan OTC: 6436.TWO - news) with Tokyo and Shanghai shut for holidays, Asia equity has juddered. HK shares are down almost 4 pct and Seoul is down about 3 pct. Many are now very anxious about how Shanghai will reopen on Monday and the slide in dollar/yen to a 15-month low has effectively disappeared the latest BoJ ease. Oil prices are on the backfoot again, meantime, with US inventory builds dragging US crude prices well below $30, and Brent is testing $30 area again too. European stocks are called down about 1 pct, with the focus likely to return to the fragile banks. HSBC and Standard Chartered (BSE: 580001.BO - news) are down over 5 percent in Hong Kong trading. Sweden's Riksbank is widely expect to cut interest rates again later today, bringing attention back to the negative interest rate concerns more broadly as it moves deeper sub-zero. Euro group meeting later today, with eyes on Portugal and Greece budgets and preparation for EU summit next week.

Upcoming events/data/ themes for market reports on Thursday:

- UK RICS Jan housing survey

- RBA chief Stevens parliamentary testimony

- Philippines, Serbia and Chile interest rate decisions

- European corp events: SocGen (Paris: FR0000130809 - news) , Glencore (Xetra: A1JAGV - news) , Nokia (Milan: 23568.MI - news) +Alcatel (Paris: FR0000130007 - news) , Shire (NasdaqGS: SHPG - news) , Publicis (Paris: FR0000130577 - news) , Rio Tinto (Other OTC: RTPPF - news) , Tate & Lyle, Ashmore, Pernod Ricard (Paris: FR0000120693 - news) , Metro AG (Xetra: 725750 - news) , Legrand (Other OTC: LGRVF - news) , Natixis (Swiss: KN.SW - news) , Zurich Insurance (LSE: 0QP2.L - news) , Thomas Cook, Yara

- Euro group meets - will discuss Greece programme and signs that Portugal is slipping.

- Swiss, Ireland (Other OTC: IRLD - news) , Hungary Jan inflation

- UK 2045 gilt auction

- Italy govt bond auction

- Dutch Q4 GDP

- Swedish Riksbank rate decision, Jan jobless

- Turkey Dec current account

- Yellen delivers reprise of her congressional testimony to the Senate

- Mexico Dec industrial output

- US Treasury auctions 30-year bonds (Editing by Sonya Hepinstall)