Economic calendar: Canadian CPI data, earnings from Morgan Stanley and Goldman Sachs

• European indices set for more or less flat opening

• German ZEW for January, Canadian CPI for December

• Morgan Stanley and Goldman Sachs to report earnings

Futures markets point to a more or less flat opening of the European cash session today. This comes after a mixed trading during the Asian session that saw regional indices struggling to find a common direction. JPY is one of the worst performing G10 currencies after the Bank of Japan was forced to once again step in the bond market to bring yields down.

Economic calendar for the day ahead is rather light. Traders will be offered German ZEW index for January as well as Canadian CPI data for December. Morgan Stanley and Goldman Sachs are set to report earnings ahead of the session while the Q4 report from United Airlines will be released after the Wall Street session.

UK labor market data for November was released today at 7:00 am GMT. Data came mostly in-line with estimates with the unemployment rate staying unchanged at 3.7% (exp. 3.7%) and core wage growth accelerating from 6.1 to 6.4% YoY (exp. 6.3% YoY). Simultaneously, final German CPI data for December was released and it offered no surprises - CPI inflation in Germany was confirmed at 8.6% YoY in December, just as signaled by flash estimate.

10:00 am GMT - Germany, ZEW index for January. Expected: -15.0. Previous: -23.3

1:15 pm GMT - Canada, housing starts for December. Expected: 257k. Previous: 264.2k

1:30 pm GMT - Canada, CPI inflation for December. Expected: 6.3% YoY. Previous: 6.8% YoY

1:30 pm GMT - US, New York Empire index for January. Expected: -8.7. Previous: -11.2

Central bankers' speeches

• 8:00 am GMT - ECB Fernandez-Bollo

• 9:15 am GMT - ECB Muller

• 8:00 pm GMT - Fed Williams

Wall Street earnings reports

• Morgan Stanley (MS.US) - before market open

• Goldman Sachs (GS.US) - before market open

• United Airlines (UAL.US) - after market close