Post lunch European indices rallied with word new targeted long-term loans are being discussed within the ECB.  Press reports of an announcement of weaker inflation growth expectations to be possibly  announced soon only supported that expectation. (Remember the ECB meets tomorrow).  However that move was short-lived with indices erasing that entire move by an hour into the US session.  On the session the region saw mixed moves with the Stoxx 600 flat on the day on volume 7% higher. The split of sectors up vs down was even with Basic Resources leader while Autos continued to lag.

Burberry -4% led the luxury space lower after Goldman Sachs said the company will need to outlay big bucks to retain their brand momentum.

As noted earlier tobacco names benefited from the US’ FDA head leaving: BATS +5.2%, Imperial Brands +1.4%. 

Yesterday Logitech +2.2% provided a positive FY20 view with their CEO today noting M&A is front and center with the ability to do a large deal.

From earlier: Schaeffler -6.2%, Daimler -1.3%, BMW -.7%, VW -1.4%, Fiat +3.7%, ING Group -2.2%, and Dialog Semi +2.2%.

Tonight, Australia reports its Trade Balance with a tighter surplus expected.  Retail sales are expected to show a slight tick up after falling in December. In addition to the ECB, GDP and employment data for the region will be released as well. Home prices in the UK and Swiss Employment data is expected as well.