CHINA-EU: Die Welt Reports VdL Plans "Surprise" On Tariffs
(MNI) London-Following an earlier meeting with Chinese President Xi Jinping, European Commission President Ursula von der Leyen and Council President Antonio Costa have held talks with Premier Li Qiang as part of the China-EU summit in Beijing. Reuters reports Li as saying, "China and the EU share extensive common interest and have no fundamental conflicts of interest...Partnership is the correct positioning." Li: "China and Europe should cooperate more closely."
- VdL: "...our trade relationship today needs more balance [...] What needs to be done to achieve rebalancing: Increase market access for European companies in China, limit the external impact of overcapacity, reduce export controls are important steps forward. On each of these topics, when our concerns are not addressed, our industry and citizens will demand that we defend our interests."
- Germany's Die Welt reports that, despite expectations being low due to the truncation of the summit, "...von der Leyen is planning a surprise. Due in part to pressure from Berlin, the EU Commission has been negotiating for weeks about lifting the tariffs so hated in Beijing, provided Chinese companies are simultaneously willing to make so-called price undertakings." This would see Chinese firms voluntarily increase prices in order to avoid anti-dumping levies.
- Finbarr Bermingham at SCMP posts on X: "Nobody I have asked seems to know anything about this. VDL's right-hand man Bjoern Seibert is not in China. Nor is her trade advisor Thomas Baert. Nor is trade commissioner Sefcovic, whose call with Wang Wentao on Tues did not resolve the EV issue. So it would be a huge shock."
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GILT AUCTION RESULTS: 1.125% Sep-35 Linker
| 1.125% Sep-35 Linker | Previous | |
| Amount | GBP1.70bln | GBP1.60bln |
| Avg yield | 1.386% | 1.268% |
| Bid-to-cover | 3.02x | 3.65x |
| Avg price | 97.512 | 98.600 |
| Pre-auction mid | 97.353 | 98.511 |
| Previous date | 02-Apr-25 |
COMMODITIES: WTI Futures Reverse Sharply From Monday's Highs
WTI futures have reversed sharply from Monday’s session high. For now, the sell-off is considered corrective and the pullback has allowed a recent overbought condition to unwind. Support to watch is at the 50-day EMA, at $64.51. It has been pierced, a clear break of it would signal scope for a deeper retracement. On the upside, initial resistance to watch is $71.39, the 50.0% retracement of the Jun 23 - 24 high-low range. A bullish theme in Gold remains intact and the latest pullback is considered corrective. Medium-term trend signals are bullish too - moving average studies are in a bull-mode position, highlighting a dominant uptrend. Resistance at $3435.6, the May 7 high, has recently been pierced. A clear break of this level would strengthen the uptrend and open $3500.1, the Apr 22 all-time high. Initial key support to monitor is $3286.2, the 50-day EMA.
- WTI Crude down $2.33 or -3.4% at $66.25
- Natural Gas down $0.07 or -1.95% at $3.626
- Gold spot down $40.29 or -1.2% at $3327.18
- Copper up $4.05 or +0.83% at $494.3
- Silver up $0.05 or +0.13% at $36.1372
- Platinum up $16.94 or +1.31% at $1314.21
EQUITIES: Trend Condition in E-Mini S&P Unchanged and Bullish
A short-term bear cycle in Eurostoxx 50 futures remains intact, however, the recovery from Monday’s low appears to be a potential reversal. The contract has traded above the 20- and 50-day EMAs. A clear break of both averages would strengthen a reversal theme and signal scope for a stronger recovery. This would open 5486.00, the May 20 high and bull trigger. On the downside, a break of yesterday’s 5194.00 low would reinstate a bearish theme. The trend condition in S&P E-Minis is unchanged, it remains bullish and this week’s strong start reinforces current conditions. Short-term resistance and a bull trigger at 6128.75, the Jun 11 high, has been pierced. A clear break of this level would confirm a resumption of the uptrend that started Apr 7. This would open the 6200.00 handle, a Fibonacci projection. Key support remains at the 50-day EMA - at 5913.50. A clear break of it would signal a reversal.
- Japan's NIKKEI closed higher by 436.47 pts or +1.14% at 38790.56 and the TOPIX ended 20.17 pts higher or +0.73% at 2781.35.
- Elsewhere, in China the SHANGHAI closed higher by 38.984 pts or +1.15% at 3420.566 and the HANG SENG ended 487.94 pts higher or +2.06% at 24177.07.
- Across Europe, Germany's DAX trades higher by 452.91 pts or +1.95% at 23723.86, FTSE 100 higher by 29.18 pts or +0.33% at 8787.32, CAC 40 up 95.5 pts or +1.27% at 7631.03 and Euro Stoxx 50 up 81.14 pts or +1.55% at 5301.36.
- Dow Jones mini up 303 pts or +0.71% at 43204, S&P 500 mini up 49 pts or +0.81% at 6126, NASDAQ mini up 231.75 pts or +1.05% at 22306.
