Resumption in Russia gas flows lifts euro
ECB set to hike rates by at least 25 basis points
ECB rate decision due at 1215 GMT
U.S. crude oil prices trade below 100 a barrel

LONDON, July 21 Reuters Stock markets eased on Thursday as a resumption of Russian gas supplies to Europe lifted the euro ahead of the European Central Bank39;s anticipated first interest rate hike in over a decade to quell inflation.

The flow of Russian gas resumed to Germany after a 10day outage to ease Europe39;s supply concerns for now, helping to ease worries about fallout on the economy.

The euro edged up, distancing itself further from last week39;s parity against the greenback, the recovery bolstered by expectations the ECB might deliver a big 50 basispoint rate hike.

Russian President Vladimir Putin has warned that supplies could be reduced further or even stop, prompting the EU to tells its members to cut usage.

European markets are going to be pulled and pushed by Putin39;s mood, said Michael Hewson, chief markets strategist at CMC Markets.

Markets are looking to see how much the ECB will raise interest rates later at 1215 GMT on Thursday, with a 25bps hike already price in, Hewson said. 

Traders also await details of an ECB tool to contain stress in bond markets, made all the more urgent by a crumbling government in Italy, one of the euro zone39;s most indebted countries.

Rate hikes from the U.S. Federal Reserve next week and from the Bank of England in August are also well…