CHINA PRESS: China To Cut VAT On Short-term Home Sales

• RES 4: 92.55 High Nov 11 
• RES 3: 92.31 High Nov 12          
• RES 2: 92.00 Round number resistance
• RES 1: 91.93 High Nov 27      
• PRICE: 91.58 @ Close Nov 28
• SUP 1: 90.53 Low Nov 25       
• SUP 2: 90.28 Low Nov 21  
• SUP 3: 90.00 Round number support    
• SUP 4: 89.86 Low Nov 19 and the bear trigger     

A volatile spike higher in Gilt futures on Nov 26 resulted in a breach of some important short-term resistance points. This strengthens a bullish theme and a continuation higher would signal scope for a climb towards resistance at 92.55, the Nov 11 high. A gap in the daily chart has been filled. For bears, a stronger reversal would refocus attention on the first important support at 90.53, the Nov 26 low.

• Belgium has opened books on its latest Bons d' Etat issue. In the first three days (through last Thursday), books were E151.79mln. This compares favourably to the E117.4mln raised through the third day of subscription last time in late August. Across lines, Belgium raised E122.82mln of the new 2.00% 1-year Dec-2026 Bons d' Etat (ISIN: BE3871308388) and E28.98mln of the new 10-year Dec-2035 Bons d' Etat (ISIN: BE3871309394). The subscription period for the issue ends tomorrow.

NOMINAL FLOWS: This week will see a redemption of E18.4bln from a formerly 10-year BTP. Coupon payments for the week total E7.5bln of which E2.7bln are from the EU, E2.6bln are Spanish and E2.1bln Italian. This leaves estimated net flows for the week at negative E7.3bln, versus negative E15.9bln last week.

• RES 4: 5825.00 High Nov 13 and a key resistance      
• RES 3: 5742.40 76.4% retracement of the Nov 13 - 21 bear leg
• RES 2: 5691.30 61.8% retracement of the Nov 13 - 21 bear leg  
• RES 1: 5688.00 High Nov 28          
• PRICE: 5657.00 @ 06:33 GMT Dec 1
• SUP 1: 5602.97/5475.00 50-day EMA / Low Nov 21 and bear trigger     
• SUP 2: 5427.01 61.8% retracement of the Aug 1 - Nov 13 bull cycle  
• SUP 3: 5383.00 Low Sep 18 
• SUP 4: 5366.00 Low Sep 17      

The move higher in EUROSTOXX 50 futures last week undermines a recent bearish theme and the contract is holding on to most of its gains. Price has traded above the 20- and 50-day EMAs, signalling scope for a stronger recovery near-term. A continuation would open 5691.30 and 5742.40, Fibonacci retracement points. For bears, a reversal lower would instead expose the key S/T support and bear trigger at 5475.00, the Nov 21 low.