European Markets Digest The Hawkish ECB Guidance

European markets are seen opening on a mildly positive note on Friday even as investors come to terms with the ECB’s commitment to retain rates sufficiently restrictive for as long as required. The stronger-than-expected GDP readings from the U.S. is also seen shaping market sentiment. Markets also keenly wait for the PCE-based inflation readings for December from the U.S.

Wall Street had closed on a positive note on Thursday amidst a fresh set of earning reports and updates on GDP, durable goods orders and jobless claims. Nasdaq Composite added 0.18 percent to close at 15,510.50 whereas the Dow Jones Industrial Average rallied 0.64 percent to finish trading at 38,049.13.

Mildly positive sentiment prevailed in the European bourses on Thursday as investors digested the ECB’s hawkish stance and the stronger-than-expected U.S. GDP. The pan-European Stoxx-50 rallied 0.37 percent. France’s CAC 40 and Switzerland’s SMI, both added 0.9 percent. Germany’s DAX gained 0.10 percent. U.K.’s FTSE 100 edged up 0.03 percent.

Current indications from the European stock futures indicate a mostly positive sentiment. The SMI Futures (Mar) has surged 0.81 percent. The CAC 40 Futures (Feb) has rallied 0.57 percent. The FTSE 100 Futures (Mar) has gained 0.41 percent. The pan-European Stoxx 50 Futures (Mar) has edged up 0.07 percent. The DAX Futures (Mar) is however trading 0.15 percent lower.

Ahead of the PCE data update, American stock futures are trading in negative territory. The US 30 (DJIA) is trading 0.26 percent lower, whereas the US500 (S&P 500) is trading 0.30 percent lower.

Asian stock markets are trading on a mixed note as the euphoria surrounding the recent Chinese stimulus waned. Fears of a monetary policy pivot by the Bank of Japan also weighed. South Korea’s KOSPI rallied 0.72 percent whereas China’s Shanghai Composite rallied 0.38 percent. Japan’s Nikkei 225 has slipped 1.1 percent whereas Hong Kong’s Hang Seng has declined 0.52 percent. DJ New Zealand edged down…