European Stocks. First hour: Indices negative before inflation data – swiss selloff weighing on markets

European indices are negative after yesterday's rebound in very volatile markets following the selloff after the surprise decision of the SNB to scrap of the currency cap and further lower interest rates to minus 0.75%. The move indicates that the SNB sees a high chance that the ECB will implement quantitative easing after its policy meeting on January 22^nd. The Swiss Market Index SMI extended losses today trading -3.88% following yesterday's biggest slump since 1989.

The FTSE 100 index is currently trading -0.43% quoted at 6,470.72 points, Germany's DAX 30 lost -0.27% trading at 10,005.11, back above the important level of 10,000 points. France's CAC 40 declined by -0.11%, currently trading at 4,318.57 points. German data on CPI for December was in line with expectations with 0.0% on a monthly, and +0.2% on a yearly basis with no changes to the previous data.

Market participants are looking forward to the publication of the Eurozone's harmonized CPI data on inflation. Later in the day market participants will closely watch data on U.S. CPI, Industrial Production, Capacity Utilization and the Reuters/Michigan Consumer Sentiment Index.