EQUITIES: Stocks Sink as USD Continues to Rip Higher
S&P E-Minis remain soft. Continued weakness confirms a resumption of the bear cycle that started mid-August. The break paves the way for a move towards 3741.75, the Jul 14 low. The key support at 3657.00, Jun 17 low, has also been exposed. This is an important bear trigger. EUROSTOXX 50 remain soft following the reversal last week from 3678.00, the Jun 13 high and this week’s follow through. Key short-term support at 3423.00, the Sep 5 low has been cleared, the break strengthens bearish conditions and opens 3360.00 next, the Jul 14 low.
Note Japanese markets are closed for a bank holiday.
- Elsewhere, in China the SHANGHAI closed lower by 20.541 pts or -0.66% at 3088.369 and the HANG SENG ended 214.68 pts lower or -1.18% at 17933.27.
- Across Europe, Germany's DAX trades lower by 94.56 pts or -0.75% at 12436.07, FTSE 100 lower by 61.58 pts or -0.86% at 7097.88, CAC 40 down 43.45 pts or -0.73% at 5875.24 and Euro Stoxx 50 down 31.26 pts or -0.91% at 3395.82.
- Dow Jones mini down 155 pts or -0.51% at 29989, S&P 500 mini down 22.75 pts or -0.6% at 3748.5, NASDAQ mini down 88.5 pts or -0.77% at 11475.
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EQUITIES: Defensives Outperforming Early
- Asian markets closed lower: Japan's NIKKEI closed down 139.28 pts or -0.49% at 28313.47 and the TOPIX ended 4.26 pts lower or -0.22% at 1967.18. China's SHANGHAI closed down 61.02 pts or -1.86% at 3215.203 and the HANG SENG ended 234.51 pts lower or -1.2% at 19268.74.
- European equities are trading mixed/flat, with financials and materials stocks weighing most heavily, and defensives (consumer staples, utilities) outperforming: the German Dax down 17.11 pts or -0.13% at 13179.97, FTSE 100 down 27.9 pts or -0.37% at 7460.75, CAC 40 down 0.46 pts or -0.01% at 6362.2 and Euro Stoxx 50 up 1.75 pts or +0.05% at 3656.
- U.S. futures are flat: Dow Jones mini down 3 pts or -0.01% at 32898, S&P 500 mini up 1.5 pts or +0.04% at 4132, NASDAQ mini up 7.25 pts or +0.06% at 12903.75.
ITALY: CDX Publishes FPTP Constituency Distribution For Election; FdI Hold Most
The centre-right coalition (CDX) has published the distribution of candidacies for the 147 FPTP seats in the Chamber of Deputies and the 74 FPTP seats in the Senate ahead of the 25 September legislative election. The right-wing nationalist Brothers of Italy (FdI) have been assigned the most constituency candidacies as the most popular party from the coalition according to opinion polling.
- Distribution as follows:
- Brothers of Italy (Fratelli d'Italia, FdI) - 59 Chamber seats, 36 Senate seats
- League (Lega) - 44 Chamber seats, 23 Senate seats
- Forza Italia (Forward Italy, FI) - 33 Chamber seats, 11 Senate seats
- Us Moderates (Noi Moderati, NM) - 11 Chamber seats, 4 Senate seats
- The intention of distributing the first-past-the-post seats is to avoid parties from the same coalition contesting against one another.
- The remaining 253 Chamber seats and 126 Senators are decided via national proportional representation/abroad constituencies.
- As can be seen from the graphic below, the former Deputy PM Matteo Salvini's League (formerly the Northern League) has its FPTP seats concentrated largely in the wealthy north of Italy. Former PM Silvio Berlusconi's centre-right Forza Italia's candidacies lardely concentrated around its historic heartlands in the south of Italy and Sicily, while Giorgia Meloni's FdI's candidacies run the breadth of the country.
Source: @EuropeElects
