Light Bias Lower In Pre-ECB European Trade, Earnings Being Digested

Euro Stoxx 50 futures are 0.1% lower, while the cash equivalent is 0.2% worse off.

• Feedthrough from yesterday’s late extension higher in U.S. Tsy yields is limiting upward impetus, even with Chinese & HK equities moving higher.
• Earnings digestion dominates on the micro front (already released highlights there come from Nokia, SEB & STMicroelectronics), while participants await the latest ECB monetary policy decision.
• Utilities lead the move lower from a sectoral perspective, while the geopolitical risk-related rally in energy markets is allowing the energy sector to outperform.
• Earnings from luxury retailer LVMH will cross after hours.
• Technically, Euro Stoxx 50 futures have recovered from last week’s low (4,402.00) and the contract traded sharply higher Wednesday. Initial support lies at the 20-day EMA (4,498.90). On the upside, key resistance is at the Dec 14 high (4,634.00), with 4,600 capping yesterday’s rally. Clearance of the former would confirm a resumption of the medium-term uptrend.