European stock futures were little changed as concern amongst traders that the second bailout for Greece may not resolve the European debt crisis.

Futures on the Euro Stoxx 50 Index expiring in March fell 0.1% to 2,541 during the early hours of trading. FTSE 100 Index futures slipped more than 0.1%. The Stoxx Europe 600 Index has advanced 9.1% so far this year due to optimism that the euro area will contain its sovereign debt crisis as well as better than expected U.S. economic data improving the situation.

The Bank of England will publish the minutes of its February meeting which will show how the nine members’ Monetary Policy Committee voted on the expansion of quantitative easing.

What do the Technicals say?

Looking at the Euro stoxx 50 (EU.50) data from May 2008 to March 2009, applying Fibonacci to the picture, yesterday we hit the 2562 (38.2%) level. Since the open of today’s session the Euro is below 38.2%, which may open the opportunity to test 2256 (23.6%) but with moving averages now over crossed over around 2843, Particularly the 21 day moving is now supporting the dips to bounce back. On the upside, we may retrace back to test the 38.2% level and further 2817 (50%).

Sources:
www.bloomberg.com

Malik Khan
XTB UK

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