European equity futures are looking around 60bps lower, the German constitutional court concluding the ESM hearing, but made no firm decisions or timings were made, finance minister Schaeuble  has said that he hopes for a decision in a matter of weeks, but ongoing uncertainty will hurt sentiment. German CPI came out in line with forecasts, and look out for German and Swiss bond auctions mid morning.

Early trade in the FX market looks light, the EURUSD has rallied slightly to 1.227 but the bias still remains to the downside on ongoing uncertainty. Spanish and Italian bonds are slightly lower in early trade, having moved sharply higher yesterday.


Posted by Philip Ball | Sales and Trading