SPAIN AUCTION RESULTS: Bono/Oblis/ObliEi

The trend condition in Gold remains bullish and the latest pull back appears corrective. Moving average studies are in a bull-mode position highlighting a dominant uptrend and positive market sentiment. A bearish theme in WTI futures remains intact following the recent impulsive sell-off. The move down has resulted in the breach of a number of important support levels. The break reinforces a bearish threat and, despite being in oversold territory, signals scope for a continuation of the bear leg.

• WTI Crude down $0.07 or -0.12% at $60.53
• Natural Gas down $0.01 or -0.16% at $3.643
• Gold spot up $20.88 or +0.7% at $3006.13
• Copper up $11.9 or +2.84% at $430.65
• Silver up $0.1 or +0.35% at $30.1951
• Platinum up $5.61 or +0.61% at $925.35

S&P E-Minis continues to trade in a volatile manner. A bearish theme remains intact and the latest fresh cycle lows, strengthen current conditions. Scope is seen for an extension towards the 4800.00 handle next. Eurostoxx 50 futures remain in a bear cycle following the latest impulsive sell-off. Monday’s move down resulted in a breach of a key support at 4699.00, the Nov 19 ‘24 low (cont).

• Japan's NIKKEI closed higher by 1876 pts or +6.03% at 33012.58 and the TOPIX ended 143.36 pts higher or +6.26% at 2432.02.
• Elsewhere, in China the SHANGHAI closed higher by 48.973 pts or +1.58% at 3145.549 and the HANG SENG ended 299.38 pts higher or +1.51% at 20127.68.
• Across Europe, Germany's DAX trades higher by 116.75 pts or +0.59% at 19914.58, FTSE 100 higher by 95.42 pts or +1.24% at 7796.36, CAC 40 up 29.74 pts or +0.43% at 6956.66 and EuroStoxx 50 up 18.1 pts or +0.39% at 4673.9.
• Dow Jones mini up 671 pts or +1.76% at 38804, S&P 500 mini up 73.75 pts or +1.45% at 5185, NASDAQ mini up 232.5 pts or +1.32% at 17772.

• 10-year EGB spreads to Bunds have unwound a good deal of yesterday morning’s risk-off widening, with the risk backdrop having stabilised slightly compared to the prior three sessions. The BTP/Bund spread is almost 4bps narrower at 121.5bps, after briefly marking above 130bps yesterday.
• This morning, Sole 24 Ore reported that the Italian Government will revise its 2025 GDP forecast down to 0.6%, from 1.2% in its October projection round. Growth is expected to range from 0.7-0.8% in 2026/27.
• Although this would present a less favourable denominator for achieving the Government’s 3.3% 2025 budget deficit projection, we note that the 2024 budget deficit was four tenths lower than originally expected at 3.4%.
• Tariff-related headlines remain in focus for EGBs today, with the global data calendar relatively light. Tomorrow, EU member states are set to vote on retaliatory tariffs against the US’ levies on steel and aluminium imports.
• Reuters reported yesterday that the current proposal includes 25% counter-tariffs on a range of US goods, to take effect in mid-May and December.
• Notably, successful lobbying from Italy, France and Ireland has seen bourbon, wine and dairy tariffs excluded from the Commission’s proposal. As such, the magnitude of the tariffs will be lower than the previously announced E26bln.