EU CONSUMER STAPLES: Carrefour x ???????? Ahold Delhaize had talks (x2)
(CAFP; NR/BBB)(ADNA; Baa1/BBB+)
- Article mainly cites competition regulation concerns in Romania & Belgium and doubts on French government support.
- CAFP has a history of failed bids — most notably the 2021 Couche-Tard attempt, blocked by the French government on ‘food sovereignty’ grounds.
- Needless to say, and despite equal ratings and 2-handle leverage at both, a deal would have been credit negative near term on likely debt funding for the equity value and associated supply.
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COMMODITIES: Recovery in WTI Futures Still Considered Corrective, For Now
A bearish theme in WTI futures remains intact and the recovery since Apr 9 is - for now - considered corrective. The move higher is allowing an oversold trend condition to unwind. Recent weakness has resulted in the breach of a number of important support levels, reinforcing a bearish threat. A resumption of the bear cycle would open $53.72, a Fibonacci projection. Resistance is seen at $64.49, the Mar 5 low. The 50-day EMA is at $66.12. The trend needle in Gold continues to point north and this week’s fresh cycle high reinforces bullish conditions. The latest move down is allowing an overbought trend condition to unwind. Moving average studies are unchanged, they remain in a bull-mode position highlighting a dominant uptrend. The next objective is $2547.9, a Fibonacci projection. Initial firm support to watch lies at 3184.2, the 20-day EMA.
- WTI Crude up $1.1 or +1.73% at $64.78
- Natural Gas up $0.03 or +1.13% at $3.042
- Gold spot down $62.06 or -1.84% at $3318.74
- Copper up $3.15 or +0.64% at $496.25
- Silver up $0.39 or +1.19% at $32.9004
- Platinum up $10.08 or +1.05% at $970.41
EQUITIES: E-Mini S&P Builds on Tuesday's Gains, Targets Resistance at 20-Day EMA
Eurostoxx 50 futures have recovered from Tuesday’s low. Recent gains highlight a corrective cycle and the rally marks an unwinding of a recent oversold trend condition. Resistance at the 20-day EMA, at 4971.53, has been breached. The next level to watch is 5105.00, the 50-day EMA. Key support and the bear trigger has been defined at 4444.00, the Apr 7 low. A break of this level would confirm a resumption of the downtrend. A reversal higher in S&P E-Minis on Apr 9 highlighted the start of a correction. The trend condition has been oversold following recent weakness and gains have allowed this to unwind. The contract remains below important resistance points and the trend condition is bearish. A resumption of weakness would refocus attention on 4832.00, the Apr 7 low and bear trigger. Initial resistance to watch is 5425.57, the 20-day EMA.
- Japan's NIKKEI closed higher by 648.03 pts or +1.89% at 34868.63 and the TOPIX ended 52.2 pts higher or +2.06% at 2584.32.
- Elsewhere, in China the SHANGHAI closed lower by 3.402 pts or -0.1% at 3296.355 and the HANG SENG ended 510.3 pts higher or +2.37% at 22072.62.
- Across Europe, Germany's DAX trades higher by 621.39 pts or +2.92% at 21913.28, FTSE 100 higher by 137.76 pts or +1.65% at 8466.24, CAC 40 up 153.25 pts or +2.09% at 7479.72 and Euro Stoxx 50 up 119.92 pts or +2.42% at 5081.37.
- Dow Jones mini up 657 pts or +1.67% at 40016, S&P 500 mini up 115.25 pts or +2.17% at 5430, NASDAQ mini up 468.75 pts or +2.55% at 18853.75.
EQUITIES: EU Bank call spread
SX7E (19th Dec) 195/220cs, bought for 4.8 in 6k vs 1.26k at 174.90.
