LIVE MARKETS-Europe before the bell: Pullback set to continue

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Europe before the bell: Pullback set to continue

Global stocks pulled back on Wednesday and European futures are signalling a slightly soft open when cash trading gets underway on Thursday.

Euro STOXX 50 futures STXEc1 are down about 0.1% heading towards the open, while futures on the DAX FDXc1, CAC FCEc1 and FTSE FFIc1 are down 0.1%-0.4%.

Geopolitics remains in focus, although the market is still taking the ongoing situation in Venezuela in its stride.

Instead, Trump's social media posts have added a bit of skittishness into markets.

Trump vowed to block defence contractors from paying dividends or making share buybacks. He also threatened to ban Wall Street investments in single-family homes.

"While details are unclear and implementation cumbersome, a move towards more government intervention would create uncertainty and add to some risk premium in the markets," writes Jefferies economist Mohit Kumar.

Corporate news is also picking up.

British supermarket Tesco TSCO.L forecast full-year profit at the upper end of its previous guidance following a 3.2% rise in Christmas sales.

Meanwhile AB Foods ABF.L warned of lower annual profit due to weak demand at its Primark chain in Europe and subdued U.S. sales at its food business.

(Samuel Indyk)

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