CHINA: Country Wrap: Policies Coming to Expand Service Consumption
- The Vice Minister of Commerce revealed that the Ministry of Commerce will introduce several policy measures next month to expand service consumption, utilizing fiscal and financial measures to optimize and enhance service supply capacity and stimulate new growth in service consumption. The Director of the Department of Trade in Services of the Ministry of Commerce, stated that the Ministry of Commerce and relevant departments have jointly developed "Several Policy Measures to Promote Service Exports," and the relevant documents will be issued soon. (source: China Securities Journal)
- China's trade with other Shanghai Cooperation Organization (SCO) member states stood at around 512.4 billion U.S. dollars in 2024, up 2.7 percent year on year, a commerce official said Wednesday. Last year, China imported nearly 90 billion U.S. dollars worth of crude oil, natural gas and coal from other SCO members, along with 13.66 billion dollars worth of agricultural products, Ling Ji, vice minister of commerce, said at a press conference. Energy imports from other SCO members accounted for about one-fifth of China's total imports in 2024. (source Xinhua)
- China's major bourses were mixed with the Hang Seng down -0.66% along with Shenzhen down -0.14% whilst the CSI 300 the outperformer up +0.69% and Shanghai a mere +0.07%.
- Yuan Reference Rate at 7.1063 Per USD; Estimate 7.1465
- The 10-Year CGB is steady at 1.77% today.
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EUROSTOXX50 TECHS: (U5) Support Holds For Now
- RES 4: 5575.00 High Mar 3 and a major resistance (cont)
- RES 3: 5526.00 High Mar 19 / 20 (cont)
- RES 2: 5486.00/88.00 High May 20 and a bull trigger / High Jul 10
- RES 1: 5449.00 High Jul 27
- PRICE: 5364.00 @ 06:21 BST Jul 29
- SUP 1: 5292.00 Low Jul 22
- SUP 2: 5281.00/5194.00 Low Jul 1 & 4 / Low Jun 23 and bear trigger
- SUP 3: 5138.00 High Apr 30
- SUP 4: 5078.00 Low Apr 30
The trend condition in Eurostoxx 50 futures remains bullish and short-term weakness for now, appears corrective. Support at 5281.00, the Jul 1 / 4 low, remains intact. A clear break of this level would strengthen a bearish threat. For bulls, a resumption of gains would refocus attention on key resistance and the bull trigger at 5486.00, the May 20 high. It has recently been pierced, a clear breach of it would resume the bull cycle and open 5500.00.
EURGBP TECHS: Short-Term Reversal Threat
- RES 4: 0.8835 High May 3 2023
- RES 3: 0.8800 Round number resistance
- RES 2: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 1: 0.8769 High Jul 27 and the bull trigger
- PRICE: 0.8680 @ 06:33 BST Jul 29
- SUP 1: 0.8666/49 Low Jul 28 / 20- day EMA
- SUP 2: 0.8581 50-day EMA
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8508 Low Jun 27
EURGBP reversed sharply lower from Monday’s intraday high. For now, the trend set-up remains bullish, however, Monday’s price pattern - a bearish engulfing candle - does signal a potential short-term reversal. A continuation lower would expose support at the 20-day EMA, at 0.8649. Clearance of this average would signal scope for a deeper retracement. For bulls, a move through 0.8769, the Jul 27 high, would confirm a resumption of the uptrend.
SCHATZ TECHS: (U5) Remains Above Last Week’s Low
- RES 4: 107.360 High Jul 22 and a key resistance
- RES 3: 107.273 50-day EMA
- RES 2: 107.233 20-day EMA
- RES 1: 107.205 Low Jul 18
- PRICE: 107.140 @ 06:06 BST Jul 29
- SUP 1: 107.010 Low Jul 25 and a bear trigger
- SUP 2: 107.993 1.500 proj of the Jul 7 - 11 - 22 price swing
- SUP 3: 106.964 1.618 proj of the Jul 7 - 11 - 22 price swing
- SUP 4: 106.928 1.764 proj of the Jul 7 - 11 - 22 price swing
Schatz futures traded sharply lower last week resulting in a break of key short-term support at 107.120, the Jul 11 low and a bear trigger. However, the contract has recovered from Friday’s low and recent price patterns highlight a potential base. A continuation higher would expose resistance at the 20-day EMA, at 107.233. The 50-day EMA is at 107.273. On the downside, key support and the bear trigger has been defined at 107.010, the Jul 25 low.
