North Korea nuclear test prompts stern warnings from neighbors

SEOUL/TOKYO (Reuters) - South Korea sent a stern warning to North Korea on Thursday, two days after the North tested a nuclear bomb, saying it could strike the isolated state if it believed an attack was imminent as it deployed a new cruise missile to drive home its point.

North Korea conducted its third nuclear test on Tuesday, in defiance of U.N. resolutions, pushing it further along the path of developing a workable long-range nuclear missile and drawing condemnation from the United States, Japan, Europe and the North's only major ally, China.

Pyongyang said that the test was designed to bolster its defenses due to the hostility of the United States, which has led a push to impose sanctions on the country after its long-range missile launch.

North Korea on Thursday repeated its warning that any further sanctions would provoke it into taking firmer action.

Seoul warned that it would strike if attacked. South Korea has already relaxed rules allowing troops on the border to return fire directly without seeking permission from the army chiefs.

"The cruise missile being unveiled today is a precision-guided weapon that can identify and strike the window of the office of North Korea's leadership," Defence Ministry spokesman Kim Min-seok told reporters."

Japan, which has little capacity to strike at the North if threatened by an attack because of the constraints of its pacifist constitution, said it had the right to develop such capability in response to changes in the regional security situation - but had no plan to do so at present.

"When an intention to attack Japan is evident, the threat is imminent, and there are no other options, Japan is allowed under the law to carry out strikes against enemy targets," Defence Minister Itsunori Onodera told Reuters in an interview.

"Given Japan's political environment and the peace-oriented diplomacy it has observed, this is not the time to make preparations (for building such capability)," he said.

"But we need to carefully observe the changing security environment in the region."

Any sign that Japan was moving to develop such a capability would upset neighbors China and South Korea, where memories of Tokyo's past military aggression run deep and which have reacted strongly in the past to suggestions it might do so.

It is unlikely the United States, which acts as a security guarantor for both its allies, would permit any major escalation in any conflict with North Korea.

Japan and China are engaged in a bitter island dispute that has soured relations between the two and alarmed Washington while Seoul and Tokyo have also clashed verbally over a separate disputed island.

DIPLOMATIC STAKES RAISED

The United States and its allies are pushing for new sanctions at the U.N. Security Council aimed at slowing North Korea's nuclear and long-range missile development.

President Barack Obama spoke to Japanese Prime Minister Shinzo Abe on Wednesday about North Korea's nuclear test and reaffirmed U.S. commitments to Japan's security.

"They pledged to work closely together to seek significant action at the United Nations Security Council and to cooperate on measures aimed at impeding North Korea's nuclear and ballistic missile programs," the White House said in a statement after the call.

The United States and its allies are believed to be pushing to tighten the noose around North Korea's financial transactions in a bid to starve its leadership of funding.

Japan's Onodera called on the North's biggest benefactor, China, to join in strengthening the sanctions.

"I think China is the one that is most concerned about the development ... From now on, it is necessary for us, including China, to seek effective steps, effective economic measures (against North Korea)."

North Korea has repeatedly said it is planning what it terms "stronger measures" against the United States and its allies, although it hasn't specified what those could be.

It is not capable of hitting the United States, but its medium-range missiles can hit Japan and South Korea. It also has an estimated 8,000 artillery systems stationed within 100 km of the heavily militarized border between the two Koreas.

"If the U.S. and its allies challenge the DPRK (Democratic Peoples Republic of Korea) with 'strong measures', (a) 'financial freeze' and fresh pressure and 'sanctions' over its underground nuclear test, it will react to them with stronger measures for self-defence," its KCNA news agency said on Thursday.

Australia signaled its displeasure with Pyongyang by banning diplomats seeking to reopen an embassy there from visiting the country.

While it was still unclear what fissile material North Korea used in its third nuclear test - its statements appeared to indicate that it was likely plutonium as it is easier to miniaturize than uranium - it seemed that initial environmental fears about the test were not realized.

China's Environment Ministry said it had found no abnormal radiation from the test site, which is around 100 km from its border. South Korea too said it had not detected any radiation.

(Additional reporting by Fayen Wong in SHANGHAI; Rob Taylor in CANBERRA; Writing by David Chance; Editing by Linda Sieg and Nick Macfie)

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Newark mayor says beating, witness silence are “evil”

(Reuters) – Newark Mayor Cory Booker on Wednesday condemned the failure of witnesses to alert police after seeing a young man forced to strip naked and whipped over a $ 20 debt – violence revealed only after a cell phone video went viral on the Internet.

The two and a half minute video of the beating, which took place in Newark in August, got 40,000 views on YouTube before it was removed from the website, according to the Star-Ledger newspaper, which posted it on its own site.

“We have strong reason to believe there were others who saw this crime happen” but said nothing, never calling 911 or alerting police, the mayor said at a news conference on Wednesday to announce arrests in the case.

“In the face of evil, those who remain quiet are participants in that evil,” Booker said.

The video shows the victim complying with a man’s orders to strip naked, admit he owes $ 20 and repeatedly say “(It’s a) dog eat dog world.” The man then whips the victim, using a belt borrowed from another man, the video shows. Laughter from those watching the beating is heard throughout the video.

“This is not who we are. We are Newark, New Jersey. We do not tolerate this level of cruelty, of callous disregard for the dignity of humanity,” Booker said at the press conference.

Four people responsible for “this heinous, vicious, cruel crime” were recently apprehended and charged with robbery, assault and other crimes, Booker said.

Charged in the violence were Ahmad Holt, 22, who is believed to have carried out the whipping, Raheem Clark, 31, who is believed to have supplied the belt, Jamaar Grey, 23, accused as the cameraman, and Nicole Smith, 25, according to Booker’s office.

Newark, eight miles from Manhattan and New Jersey’s largest city, was once a thriving manufacturing center, but in recent decades it has battled an image of urban blight and high crime.

Since becoming mayor in 2006, Booker – a likely candidate for U.S. Senate next year – has made crime reduction a central priority. In March 2010, Newark experienced its first murder-free month since 1944.

But since then, amid cuts to the police force, crime has remained a significant problem in the city.

(Additional reporting by Paul Thomasch; Editing by Barbara Goldberg, Bernard Orr)

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'Blade Runner' Oscar Pistorius Charged with Girlfriend's Murder

Breaking News

By Stephen M. Silverman

UPDATED
02/14/2013 at 06:45 AM EST

• Originally published 02/14/2013 at 06:30 AM EST

Oscar Pistorius – the "Blade Runner" who made history last year as the first paralympian to compete in the able-bodied Olympics – was charged with murder Thursday after his girlfriend, model Reeva Steenkamp, was found shot dead inside his home in South Africa.

CNN reports that neighbors reported an incident at the house and a pistol was recovered at the scene, according to police. Early news reports said Steenkamp was planning a Valentine's surprise for Pistorius but that it went horribly wrong.

Police spokeswoman Denise Beukes said, "There is no other suspect involved" and that there had been "previous incidents" at Pistorius's home.

The suspect (who initially was not named, per South African law) was being cooperative and undergoing blood alcohol and forensic tests, said Beukes, adding that he requested to be brought to court immediately and that an application for bail would be refused.

A spokeswoman for Pistorius declined to comment, said CNN. The athlete's father, Henke, told the South African Broadcasting Corporation that his son was "sad at the moment."

Henke Pistiorius added, "I don't know nothing. It will be extremely obnoxious and rude to speculate. I don't know the facts."

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Study questions kidney cancer treatment in elderly

In a stunning example of when treatment might be worse than the disease, a large review of Medicare records finds that older people with small kidney tumors were much less likely to die over the next five years if doctors monitored them instead of operating right away.

Even though nearly all of these tumors turned out to be cancer, they rarely proved fatal. And surgery roughly doubled patients' risk of developing heart problems or dying of other causes, doctors found.

After five years, 24 percent of those who had surgery had died, compared to only 13 percent of those who chose monitoring. Just 3 percent of people in each group died of kidney cancer.

The study only involved people 66 and older, but half of all kidney cancers occur in this age group. Younger people with longer life expectancies should still be offered surgery, doctors stressed.

The study also was observational — not an experiment where some people were given surgery and others were monitored, so it cannot prove which approach is best. Yet it offers a real-world look at how more than 7,000 Medicare patients with kidney tumors fared. Surgery is the standard treatment now.

"I think it should change care" and that older patients should be told "that they don't necessarily need to have the kidney tumor removed," said Dr. William Huang of New York University Langone Medical Center. "If the treatment doesn't improve cancer outcomes, then we should consider leaving them alone."

He led the study and will give results at a medical meeting in Orlando, Fla., later this week. The research was discussed Tuesday in a telephone news conference sponsored by the American Society of Clinical Oncology and two other cancer groups.

In the United States, about 65,000 new cases of kidney cancer and 13,700 deaths from the disease are expected this year. Two-thirds of cases are diagnosed at the local stage, when five-year survival is more than 90 percent.

However, most kidney tumors these days are found not because they cause symptoms, but are spotted by accident when people are having an X-ray or other imaging test for something else, like back trouble or chest pain.

Cancer experts increasingly question the need to treat certain slow-growing cancers that are not causing symptoms — prostate cancer in particular. Researchers wanted to know how life-threatening small kidney tumors were, especially in older people most likely to suffer complications from surgery.

They used federal cancer registries and Medicare records from 2000 to 2007 to find 8,317 people 66 and older with kidney tumors less than 1.5 inches wide.

Cancer was confirmed in 7,148 of them. About three-quarters of them had surgery and the rest chose to be monitored with periodic imaging tests.

After five years, 1,536 had died, including 191 of kidney cancer. For every 100 patients who chose monitoring, 11 more were alive at the five-year mark compared to the surgery group. Only 6 percent of those who chose monitoring eventually had surgery.

Furthermore, 27 percent of the surgery group but only 13 percent of the monitoring group developed a cardiovascular problem such as a heart attack, heart disease or stroke. These problems were more likely if doctors removed the entire kidney instead of just a part of it.

The results may help doctors persuade more patients to give monitoring a chance, said a cancer specialist with no role in the research, Dr. Bruce Roth of Washington University in St. Louis.

Some patients with any abnormality "can't sleep at night until something's done about it," he said. Doctors need to say, "We're not sticking our head in the sand, we're going to follow this" and can operate if it gets worse.

One of Huang's patients — 81-year-old Rhona Landorf, who lives in New York City — needed little persuasion.

"I was very happy not to have to be operated on," she said. "He said it's very slow growing and that having an operation would be worse for me than the cancer."

Landorf said her father had been a doctor, and she trusts her doctors' advice. Does she think about her tumor? "Not at all," she said.

___

Online:

Kidney cancer info: http://www.cancer.net/cancer-types/kidney-cancer

and http://www.cancer.gov/cancertopics/types/kidney

Study: http://gucasym.org

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Stock index futures point to slightly higher start

NEW YORK (Reuters) - Stock index futures edged higher on Wednesday, suggesting the market would continue a recent upward trend that took benchmark indexes near multi-year highs.

* Equities have been strong performers of late, with the S&P 500 rising for the past six weeks, putting it up 6.5 percent so far this year. The Dow is about 1 percent from an all-time intraday high, reached in October 2007.

* While the long-term trend in markets is expected to remain positive, some investors may be looking to take profits at current levels, with the S&P near its highest since November 2007. Recently, daily moves have been small and trading volume light as investors search for new reasons to drive stocks higher.

* Industrial and construction shares will be in focus a day after President Barack Obama's State of the Union address, where he called for a $50 billion spending plan to create jobs by rebuilding degraded roads and bridges. He also backed higher taxes for the wealthy.

* Retail sales data is scheduled for release at 8:30 a.m. and are seen rising 0.1 percent in the month as consumers eyed smaller paychecks on the back of a recent tax increase. Sales rose 0.5 percent in December.

* Much of the stock market's recent gains have come on the back of stronger corporate results. Economic data, including recent reads on gross domestic product, have indicated some weakness.

* S&P 500 futures rose 2.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 19 points and Nasdaq 100 futures rose 6.75 points.

* In company news, Comcast Corp late Tuesday agreed to buy General Electric Co's remaining 49 percent stake in NBC Universal for $16.7 billion. Comcast jumped 8 percent to $42.10 in premarket trading while Dow component GE was up 3.2 percent to $23.31.

* Yahoo Inc Chief Executive Marissa Mayer on Tuesday said the company's search partnership with Microsoft Corp was not delivering the market share gains or the revenue boost that it should.

* Companies scheduled to report quarterly results on Wednesday include Deere & Co , MetLife Inc , Applied Materials and Whole Foods Market .

* According to the latest Thomson Reuters data, of the 353 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.

* Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

* Also in economic news, business inventories are seen rising 0.3 percent in December, a repeat of the November increase. The data is due at 10 a.m.

* U.S. stocks closed modestly higher on Tuesday as investors looked ahead to President Barack Obama's State of the Union address.

(Editing by W Simon)

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Pope asks for support after decision to resign, says strength diminishing

VATICAN CITY (Reuters) - Pope Benedict, in his first public comments since he announced that he would become the first pontiff in centuries to resign, on Wednesday said he was fully aware of the gravity of his decision but confident that it would not hurt the Church.

"Continue to pray for me, for the Church and for the future pope," he said in unscripted remarks at the start of his weekly general audience, one of his last public appearances before he resigns on February 28.

The pope, who looked and sounded strong, was interrupted several times by thunderous applause from the some 8,000 faithful and tourists who packed the vast audience hall.

In brief, prepared remarks that mirrored those he read to stunned cardinals when he announced his decision on Monday, the pope said God would continue to guide the Church because it was much more than its earthly leader.

"I took this decision in full freedom for the good of the Church after praying for a long time and examining by conscience before God," he said.

He said he was, "well aware of the gravity of such an act but at the same time aware of not being able to carry out my (papal) ministry with the physical and spiritual force that it requires".

Benedict said he was sustained by the "certainty that the Church belongs to Christ, who will never stop guiding it and caring for it".

He said that "he felt almost physically" the affection and kindness he had received since he announced the decision.

Later on Wednesday, an Ash Wednesday Mass that was originally scheduled to have taken place in a small church in Rome, has been moved to St Peter's Basilica so more people can attend.

Unless the Vatican changes the pope's schedule, it will be his last public Mass.

(Reporting By Philip Pullella; editing by Barry Moody)

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Telenor ramps up investments to support shift to data

OSLO (Reuters) – Mobile telecoms firm Telenor expects to accelerate investments in data and digital services this year as customers flock to its higher margin products, it said on Wednesday.

Telenor, which has around 150 million customers in Europe and Asia, will continue to roll out its third generation (3G) service in Thailand and fibre network in Norway to take advantage of “exploding” demand, and could also invest in 3G services elsewhere in Asia and in Denmark.

“The world is going all out on data. There are new digital concepts on every corner. It will be all about data in the future,” Chief Executive Jon Fredrik Baksaas told Reuters.

“People are becoming more dependent on data access; I compare it to electricity, people will take it for granted,” Baksaas said after the firm published quarterly results and released its initial 2013 guidance.

The transition to data, particularly in Thailand and Norway, the firm’s biggest markets, could push capital spending to between 12 and 14 percent of revenues this year from 12 percent in 2012, Baksaas said.

The shift to data, along with smaller losses in India, will allow Telenor to improve margins this year and the firm sees its earnings before interest, taxes, depreciation and amortization (EBITDA) margin widening to 34 percent from 32 percent.

The margin increase and a record 20 billion crown ($ 3.64 billion) cash flow in 2012 gives Telenor ample cash and it plans to pay a record dividend of 6 crowns per share after the previous year’s 5 crowns, it said.

UPSIDE

“We believe few investors will argue with the company’s decision to accelerate investment to support growth and the excellent returns in robust markets where demand for smartphones and data is accelerating,” Nomura said in a note to clients.

“The case for generating a positive return on this type of investment is more secure,” it said, maintaining a buy rating on the stock.

At 0942 GMT, Telenor shares were 2.2 percent higher at 121.7 crowns, outperforming a 0.1 percent fall by the broader telecom index.

Still, Morgan Stanley said the upside was limited given that Telenor has outperformed the telecom index by 30 percent over the past year and its valuation at 6 times it EBITDA puts it above the sector’s ratio of 5.

Fourth-quarter results, though short of expectations, had only a muted impact on valuation, particularly as they contained several one-off items, analysts said.

Analysts said they would be watching out for further clarity on Telenor’s Indian operations, as it may still seek to buy further licenses, or plans for its stake in Russia-focused Vimpelcom.

(Editing by Hans-Juergen Peters and Helen Massy-Beresford)

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Westminster Names Affenpinscher Banana Joe Best in Show

People Pets

By Kiran Hefa & Alison Schwartz

02/12/2013 at 11:55 PM EST

Westminster has its top dog!

After two days of meticulous primping, prizes and the less-pretty realities of any spirited championship, the 137th Annual Westminster Kennel Club Dog Show came to its finale Tuesday night, declaring Affenpinscher Banana Joe the best in show.

The competition proved fur-rocious as the pint-sized, black-haired furball bested six other finalists (and 2,721 entries total) for the honor, including Old English Sheepdog Swagger, who was named the reserve best in show. It’s the first time the breed has ever taken home the top prize in Westminster history.

Earning top marks at Westminster is the latest accolade in Banana Joe's storied run. The paw-dorable pooch, who is 5 years old, has been named best in show 86 times in his career, and his Westminster win will go down as his last.

"It's all so indescribable. It's just a wonderful thing as a tribute for a small breed with such a big heart," handler Ernesto Lara said post-victory. "The plans for him now is for him to retire back home where he was born, and that's in the Netherlands."

Describing his little buddy, Lara praised the breed for its commendable qualities as a canine companion.

"An Affenpinscher is a very human-like dog," he said. "It's definitely a breed you don’t want to tame or train, in the proper sense."

"You want to befriend it," Lara continued. "Once you gain the friendship, they're loyal just like a human friend."

As for Banana Joe's big victory, "Nobody told him he's small," said Lara, "and I don't think he'll believe that."

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Pope shows lifetime jobs aren't always for life

The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.

There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.

"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.

Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.

Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.

When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."

One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.

The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."

In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."

"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.

Experts on aging agreed.

"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."

Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.

But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.

"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.

"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.

Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.

In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.

Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.

The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.

Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.

Other leaders who are still working:

—England's Queen Elizabeth, 86.

—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.

—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.

—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.

__

Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Yen steady, euro dips after G7 urges against FX war

LONDON (Reuters) - The yen hovered near three-year lows against the dollar and the euro fell on Tuesday after the G7 nations urged countries to refrain from competitive devaluations and a U.S. official backed Japan's new anti-deflation policies.

The Group of Seven industrialized nations published a statement saying it remained committed to "market-determined" exchange rates, reacting to weeks of concern that Japan's monetary easing policy, which has also weakened its currency, could trigger far-reaching currency wars.

"We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates," the group said.

Japan's Finance Minister Taro Aso welcomed the G7 statement, saying it showed the group recognized Japan's new anti-deflation policy was not aimed at affecting foreign exchange markets.

By 5:30 a.m. ET the yen was close to a three-year low of 94.31 to the dollar. The euro was down 0.2 percent versus the dollar and 0.5 percent lower at 125.90 yen after rising over 2 percent on Monday.

Treasury Undersecretary Lael Brainard said on Monday the United States supported Japanese efforts to end deflation, but also noted the G7 has long been committed to exchange rates determined by market forces.

The euro, the main riser among major currencies over the last few months as confidence in the euro zone has rebounded and the yen has slumped, was back at $1.3405 following the G7 statement.

It had risen briefly earlier after ECB Vice President Vitor Constancio said the bank's employment growth and inflation forecasts next month were likely to be close to the December figures.

The comments doused rate cut hopes, only re-kindled last week by the head of the bank, Mario Draghi, who said it was looking to see whether the euro's recent rise risked pushing inflation below its comfort zone.

SPAIN FOCUS

Having started the day down 0.2 percent, European shares were almost level again by 5:30 a.m. ET as London's FTSE 100 <.ftse> and Paris's CAC-40 <.fchi> recovered, though Frankfurt's DAX <.gdaxi> remained down 0.2 percent.

In the bond market, Spanish and Italian bonds inched up as domestic buyers took advantage of a recent sell-off, but the recovery looked fragile given political uncertainty in both countries.

Spain sold 5.6 billion euros ($7.5 billion) of 6- and 12-month Treasury bills, beating the top end of the target amount, but paid a higher yield on the longer-term paper as a political corruption scandal weighed on shaky confidence.

The ECB's Draghi is due to address Spanish lawmakers later on Tuesday to explain and defend the ECB's current monetary policy strategy against a backdrop of heightened concerns about the strong euro.

Draghi is also expected to meet Prime Minister Mariano Rajoy, but the market does not expect them to discuss whether Madrid might need financial aid, which would trigger the ECB's bond purchase scheme.

Financial markets showed a muted reaction, meanwhile, to the news that North Korea has conducted a nuclear test.

The nuclear test monitoring agency said the blast was double the size of its 2009 test. NATO condemned the move, calling it an "irresponsible act" that posed a grave threat to world peace.

"The test was not something that makes your heart pound as much as a pressing situation between Iran and Israel," said Kaname Gokon, research manager at brokerage Okato Shoji, referring to the threat of possible military action to prevent Iran from developing nuclear weapons.

Brent oil dipped to just under $118 a barrel, copper was flat, while spot gold stayed near a one-month low.

(Editing by Will Waterman)

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