EU CONSUMER CYCLICALS: CONSUMER CYCLICALS: Autos: Week in Review
May-24 10:55
- A quiet week for Autos with little news flow or primary action.
- Spreads were slightly tighter for the most part, in line with the broader market.
- Higher bund yields leave crossover spreads tighter on the week.
- Chinese EV tariffs continue to dominate headlines with the US raising tariffs to 100%. The EU looks set to announce tariff increases in June in a lesser amount. With China likely to retaliate this story will continue to roll on but is a slow burner for credit impact. For their part the OEMs don’t seem enthused by the prospect of disruptions. Tesla would prefer no tariffs to remain competitive in China, while VW called for a focus on cost reduction to improve competitiveness
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GILT SYNDICATION: 4.375% Jul-54 gilt tap: Allocations
Apr-24 10:53
- Size set earlier: GBP6.75bln (larger than the GBP4.75-6.00bln MNI expected)
- Books closed in excess of GBP91bln (inc GBP5.8bln JLM interest)
- Spread set earlier at 3.75% Oct-53 gilt +1.75bp (Guidance was: +1.75/+2 bps)
- HR 109 % vs 3.75% Oct-53 gilt (GB00BPCJD997)
- Expected Settlement Date: 25-Apr-2024 (T+1)
- ISIN: GB00BPSNBB36
- Joint Leads: BNPP/GSIB/HSBC/MS(B&D/DM)/UBS
- Timing: Hedge deadline: 12:15BST
From market source
OUTLOOK: Price Signal Summary - Corrective Cycle In Gold Remains In Play
Apr-24 10:52
- On the commodity front, Gold is trading closer to its recent lows. The precious metal has traded below the 20-day EMA and this signals the start of a possible corrective cycle. A continuation lower would suggest scope for an extension towards $2221.5, the 50-day EMA. Note that a short-term bear cycle would allow a significant overbought trend condition to unwind. Key resistance and the bull trigger has been defined at $2431.5, the recent Apr 12 high.
- In the oil space, WTI futures have recovered from their recent lows and price remains above key short-term support at $80.85, the 50-day EMA. The recent move lower highlights a corrective phase and a break of the 50-day average would signal a stronger bearish theme and open $76.07, the Mar 11 low. On the upside, key resistance and the bull trigger has been defined at $86.97, the Apr 12 high. A break would resume the uptrend.
EGB OPTIONS: Bobl put spread
Apr-24 10:48
OEM4 119.25/117.50ps 1x2 sold at 57.5 in 1k.
