European shares were slightly lower on Thursday morning as traders sit on their hands ahead of the latest ECB meeting amid well-received earnings from German automaker Daimler (LON:0NXX) and Swiss pharmaceutical firm Roche (SIX:ROG).
The FTSE 100 is in sync with the lower start on the German DAX with both indices led lower by airlines after both Lufthansa (LON:0H4A) and EasyJet (LON:EZJ) offered profit warnings.
After benefiting from the windfall of lower fuel prices, the outlook for airlines has darkened with traveller confidence dented by recent terror attacks. Easyjet has highlighted the direct impact of Brexit via a lower British pound. CEO Carolyn McCall said the drop in sterling cost company £40m.
European banking shares are rising on Thursday, helped by reports that Italy is preparing a bailout package for Monte dei Paschi (LON:0R7P). Mario Draghi will likely face questions about the Italian banking sector but is unlikely to give any direct answers before stress test results next week.
The Japanese yen has risen after Bank of Japan governor Kuroda said there were “no need and no possibility for helicopter money”. The comments will disappoint investors who had been selling the yen in anticipation of the Bank of Japan announcing helicopter money at its meeting next week. After the failure of its current quantitative easing program to boost inflation, helicopter money is one of the few reaming tools in the Bank of Japan’s arsenal.
William Hill (LON:WMH) was amongst the top mid-cap risers after bookmaker announced its CEO James Henderson was departing. It has been a couple of difficult years following tighter government regulations on the gambling industry and unexpected results typified by Leicester City topping the Premier League.
US stocks look set to open relatively unchanged after poorly-received results from Intel (NASDAQ:INTC) afterhours as the Dow Jones aims for its 10th daily rise. Intel beat earnings expectations but slower revenue growth at its faster data centre business caught investors by surprise.
USA pre-opening levels
S&P 500: 3 points lower at 2,170
Dow Jones: 16 points lower at 18,579
Nasdaq 100: 26 points lower at 4,683
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