Levels on the majors this morning are pretty much where North America left them Wednesday.

Few bits and bobs to lend strained risk sentiment a little support. Japanese factory output rose 2.4% in June, rising for the fourth month in a row, and giving the country the fastest quarterly output expansion in more than half a century.

Australian June building approvals came in at +9.3%, some way above the median forecast of 6.0%.

China will be sticking to present monetary policy to promote economic recovery. There had been growing fears that they might be tempted to tighten to cool surging stocks.

EUR/USD continues to hold above the psychological 1.4000 line. Talk of option defence ahead of said level and also obviously talk of stops gathering just below.

Data out this morning;

07:55 GMT: German unemployment (July) expected 8.4%

08:00 GMT: Italian large company employment (May)

08: 00 GMT: Bloomberg Italian, French, German, Euro zone retail PMI (July)

09:00 GMT: Euro zone economic confidence (July) expected 75.0, business climate indicator expected -2.83, consumer confidence -24, industrial confidence -30, services confidence -19