LIVE MARKETS-Europe before the bell: Cautious start before ECB

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EUROPE BEFORE THE BELL: CAUTIOUS START BEFORE ECB

European equity index futures are mostly steady on Thursday - the last trading day before the long Easter weekend - ahead of the ECB policy announcement later on, which is expected to result in a quarter-point rate cut.

Euro STOXX 50 futures STXEc1 are down 0.1%. Futures on the DAX FDXc1, CAC FCEc1 and FTSE FFIc1 are up 0.3% to down 0.3%.

Focus for the ECB will be on the tone around tariffs and the expected impact the trade war will have on inflation and growth.

Investors will also be on the lookout for comments on the euro, as the currency has strengthened markedly since Trump's so-called Liberation Day on April 2, last week hitting its strongest against the dollar in over three years.

The ECB's policy decision follows comments from the Fed Chair Jay Powell on Wednesday, where he cautioned that the tariff policies risk pushing inflation and employment further from the Fed's goals.

U.S. equities slid on Wednesday after Powell's comments, but Wall Street futures are rebounding on Thursday, with the e-mini S&P EScv1 up about 1%.

In corporate news, luxury brand Hermes HRMS.PA said sales were up 7% in the first quarter, slightly below expectations. It added it would raise prices in the U.S. to fully offset the tariff policies imposed.

British supermarket Sainsbury's SBRY.L said it expects flat profit this year due to a jump in costs and a step up in competition.

(Samuel Indyk)

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