EQUITIES: Bull Cycle in E-Mini S&P Intact as Contract Trades to Fresh Cycle High
Eurostoxx 50 futures maintain a bullish theme. This week’s gains have resulted in a breach of key resistance at 5525.00, the Aug 22 high. The break confirms a resumption of the uptrend. The impulsive climb opens 5646.00 next, a Fibonacci projection, with potential for a test of the 5700.00 handle further out. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. Initial firm support is 5525.00, the Aug 22 high. A bull cycle in S&P E-Minis remains intact. The contract has again traded to a fresh cycle high to confirm a resumption of the uptrend and maintain the positive price sequence of higher highs and higher lows. Sights are on 6787.63, a Fibonacci projection. Initial support to watch is at the 20-day EMA, at 6666.25. It has recently been pierced, a clear break of it would signal scope for a deeper pullback, potentially towards the 50-day EMA, at 6550.28.
- Japan's NIKKEI closed higher by 385.88 pts or +0.87% at 44936.73 and the TOPIX ended 7.34 pts lower or -0.24% at 3087.4.
- Across Europe, Germany's DAX trades higher by 292.87 pts or +1.21% at 24410.52, FTSE 100 higher by 1.95 pts or +0.02% at 9448.56, CAC 40 up 84.15 pts or +1.06% at 8051.87 and Euro Stoxx 50 up 68.66 pts or +1.23% at 5649.87.
- Dow Jones mini down 11 pts or -0.02% at 46712, S&P 500 mini up 10.75 pts or +0.16% at 6772.25, NASDAQ mini up 87.25 pts or +0.35% at 25104.5.
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EUROPEAN INFLATION: Unrounded August EZ HICP
- Headline 2.05% (2.0% MNI tracking, 2.1% MNI median ahead of national data, 2.04% prior)
- FAT 3.21% (3.2% MNI median, 3.25% prior)
- NEIG 0.78% (0.7% MNI median, 0.76% prior)
- Energy -1.89% (-1.6% MNI median, -2.39% prior)
- Services 3.10% (3.1% MNI median, 3.15% prior)
- Core 2.27% (2.2% MNI median, 2.31% prior)
EUROPEAN INFLATION: HICP in line with consensus
- HICP came in line with consensus at 2.1% and a tenth above the MNI tracking of 2.0%.
- Core HICP surprised a tenth to the upside at 2.3%Y/Y while services CPI at 3.1% was in line with the MNI median.
- 2dp and more colour to follow.
COMMODITIES: Gold Extends Current Bull Cycle, Breaches Key Resistance at $3500
A bear cycle in WTI futures remains intact and recent gains are considered corrective. A key support at $61.99, the Jun 30 low, has recently been breached, strengthening a bearish theme. A continuation lower would open $57.71, the May 30 low. Key short-term resistance has been defined at $69.36, the Jul 30 high. Clearance of this level would cancel a bear theme. Initial resistance to watch is $66.56, the Aug 4 high. Gold is trading sharply higher this week as the metal extends its bull cycle. Today’s gains have resulted in breach of key resistance at $3500.1, the Apr 22 high, and delivered a fresh all-time high. This confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is $3547.9, a Fibonacci projection. Initial firm support to watch lies at $3381.8, the 20-day EMA.
- WTI Crude up $1.67 or +2.61% at $65.68
- Natural Gas down $0.02 or -0.6% at $2.979
- Gold spot up $1.43 or +0.04% at $3477.25
- Copper down $3.1 or -0.68% at $456.05
- Silver down $0.45 or -1.11% at $40.2417
- Platinum down $22.35 or -1.59% at $1385.23
