Eurostoxx futures +0.5% in early European trading

Positive vibes seen in early trades in Europe

  • German DAX futures +0.5%
  • French CAC 40 futures +0.8%
  • UK FTSE futures +0.3%
Just be wary that a large part of the gains seen here can be attributed to catch-up play to the performance of US equities overnight. European equities closed in a mixed mood before the late surge in US stocks – led by tech – so that is helping to fuel some of the gains.
Other than that, Facebook beating forecast revenues in Q2 is also helping to lift sentiment further but it’s all about the ECB later on. Expectation that the central bank will ease today has heightened (OIS market sees odds of a 10 bps rate cut at ~51% now) and that should tells you how markets are feeling about the decision later on today.