European stock futures began Thursday in a subdued mood as investors prepared for the European Central Bank's (ECB) latest monetary policy decision. EuroStoxx 50 futures fell 0.29%, DAX futures were largely unchanged, FTSE 100 futures fell 0.41%, and CAC 40 futures rose 0.78% in early trade.
Key Highlights:
ECB in Focus: Market mood is subdued as traders look forward to the ECB rate decision. Most analysts predict a third cut this year, probably dropping the deposit facility rate to 2.25%, as the central bank attempts to underpin weak euro zone growth in the face of persistent global trade uncertainties.
Mixed Futures Performance:
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EuroStoxx 50 and FTSE 100 futures are negative, indicating investor caution.
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DAX futures are mostly steady, trading at 21,336, with technical indicators in a mixed pattern between short-term selling and longer-term purchasing.
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CAC 40 futures defied the pattern with a 0.78% gain, trading in excess of 7,050, fueled by some sector strength.
Corporate Earnings: Investors also look to earnings from prominent European companies such as ABB, Pernod Ricard, Hermes, Deliveroo, and L'Oreal, potentially injecting volatility within targeted sectors.
Natural Gas Rebound: European natural gas futures rose towards €35/MWh, bouncing back from a recent seven-month low, as US tariff relief on some Chinese tech imports eased recession concerns and milder weather increased storage injections.
Global Trade Concerns: US importers are struggling with an increase in canceled shipments from China, attributed to ongoing tariff disputes, which continues to overshadow the global economic outlook.
Source: CNBC, Borsa Italiana, Live Index, Trading Economics