Stumbling markets had fallen for a second consecutive week on Friday after investors heard hawkish messages from the feast of central bank meetings.

Expectations had been set that interest rates would remain higher for longer even though inflation and economic data has started to turn lower.

But this morning has seen a bid in equity markets with US futures looking positive and in the green.

The benchmark S&P500 US index has eyes on the 50-day simple moving average at 3863 as initial resistance.

The mild change in improved sentiment comes from China’s alleged move to enact pro-business policies and stimulus next year.

The upside target for the bulls is the 100-day SMA at 3926.4 which would take prices back to the choppy range that was seen for most of November and December.

Will DAX’s “golden cross” entice more bulls?

European stocks are still digesting their biggest decline in many months last week.

The ECB delivered a much more hawkish message than expected saying that interest rates were set to rise “significantly” at a steady pace.

Many ECB watchers were taken aback by this shift with some calling it a “hawkish pivot”.

This rhetoric will be a key driver for European assets in the new year, but it certainly put a dent in eurozone and global growth prospects as well over the coming months.

The German Dax tumbled last Thursday out of its recent range, despite forming a ‘golden cross’ (when 50-day SMA crosses above its 200-day counterpart) earlier this month.

The 50-day simple moving average sits at 13736 with the widely-watched 200-day SMA at 13561.