EQUITIES: Climb Higher for Eurostoxx Futures Undermining a Bearish Theme

Recent gains in Eurostoxx 50 futures undermine a recent bearish theme and the contract is holding on to its gains. Price has cleared the 20- and 50-day EMAs, signalling scope for a stronger recovery. A continuation would open 5742.40 next, a Fibonacci retracement point. For bears, a reversal lower would instead expose the key short-term support and bear trigger at 5475.00, the Nov 21 low. First support lies at 5609.26, the 50-day EMA. S&P E-Minis are holding on to their recent gains following the recovery from the Nov 21 low. The climb has resulted in a breach of the 20- and 50- day EMAs. This highlights a bullish development and the likely end of the corrective cycle between Oct 30 and Nov 21. A continuation higher would signal scope for a move towards the key resistance and bull trigger at 6953.75, the Oct 30 high. Key support lies at 6525.00, the Nov 21 low.

• Japan's NIKKEI closed higher by 561.23 pts or +1.14% at 49864.68 and the TOPIX ended 6.74 pts lower or -0.2% at 3334.32.
• Elsewhere, in China the SHANGHAI closed lower by 19.712 pts or -0.51% at 3878 and the HANG SENG ended 334.32 pts lower or -1.28% at 25760.73.
• Across Europe, Germany's DAX trades higher by 98.65 pts or +0.42% at 23810.01, FTSE 100 lower by 3.13 pts or -0.03% at 9698.64, CAC 40 up 17.5 pts or +0.22% at 8092.11 and Euro Stoxx 50 up 32.34 pts or +0.57% at 5718.51.
• Dow Jones mini up 104 pts or +0.22% at 47648, S&P 500 mini up 12.25 pts or +0.18% at 6852.5, NASDAQ mini up 29.75 pts or +0.12% at 25634.75.