European cash equity markets are mostly higher ahead of the midway stage (FTSE -0.2%, DAX +0.6%, CAC +0.8%, FTSE MIB +1.3%). Technology stocks are among the best performers, led higher by French firm STMicroelectronics after they posted stronger-than-expected fourth-quarter results. German sporting goods manufacturer Adidas are at the other end of the Stoxx 600 after Morgan Stanley cut the stock to ‘underweight’ from ‘equal-weight’. From a regional perspective, the FTSE 100 has lagged behind as a stronger currency weighed after Sterling touched a fresh eleven-week high versus the Greenback overnight.In fixed, core EU bonds are ahead with Bunds extending their lead over their UK counterparts on soft PMI data from the Euro Zone – manufacturing slowed to 50.4 (f/c. 51.4) from 51.4 while services dipped to 50.8 (f/c. 51.5) from 51.2. The data has also weighed on the Euro in currency space although the Australian Dollar remains the weakest after the soft domestic jobs data released overnight. We also saw some upside in the Norwegian Krone after the Norges Bank left rates on hold and said the policy rate would most likely be raised in March. Elsewhere, oil prices are mixed with US crude futures up +0.42 but Brent down -0.5%. Spot gold has lost -0.25%. Looking ahead, futures are pointing to a relatively flat open on Wall Street with earnings due from American Airlines, Bristol Myers Squibb and Freeport McMoRan. Data wise, we await US jobless claims and Markit PMI plus the DoE inventory report. The European Central Bank are also due with the ‘Monetary Policy Decisions’ and ‘Press Conference’ due at 12:45/13:30 GMT.
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