Risk trades are breathing easier so far on the day as China's rate cut is helping to bolster sentiment - for now at least.
Treasury yields retreating from the highs yesterday is also helping with the mood but yields are still elevated, so that will remain a bit of a cause for concern for equities before the weekend. In particular, tech stocks remain highly vulnerable with the Nasdaq chart also not looking too encouraging:
The drop below the 200-day moving average is continuing and sellers could be eyeing the October low next.
But for now, the mood music is hinting at a calmer open in Europe but we'll see if risk appetite will change as it did during US trading yesterday.
Looking ahead, we'll get euro area inflation figures but they will be the final prints for December. As such, don't expect much change to the narrative that price pressures are still soaring in the region amid the turn of the year.
0700 GMT - Germany December PPI figures
0745 GMT - France January business confidence
1000 GMT - Eurozone December final CPI figures
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
