EQUITIES: E-Mini S&P Continues Post-US Inflation Data Advance
Eurostoxx 50 futures are holding on to this week’s gains. The break higher has resulted in a move above the 50-day EMA at 4331.70 and price is through 4371.00, the Jul 6 high. Clearance of this latter level highlights a potentially stronger bull cycle and attention turns to key resistance and the bull trigger at 4447.00, the Jul 3 high. Key support and the bear trigger has been defined at 4220.00, the Jul 7 low. A bull theme in S&P E-minis remains intact. Yesterday’s gains resulted in a break of resistance at 4498.00, the Jun 30 high. This confirms a resumption of the uptrend and maintains a bullish price sequence of higher highs and higher lows. The contract has also traded through 4500.00 and this opens 4532.08, a Fibonacci projection. First support lies at 4428.89, the 20-day EMA. Clearance of this level would be a short-term bearish development.
- Japan's NIKKEI closed higher by 475.4 pts or +1.49% at 32419.33 and the TOPIX ended 21.51 pts higher or +0.97% at 2242.99.
- Elsewhere, in China the SHANGHAI closed higher by 40.346 pts or +1.26% at 3236.48 and the HANG SENG ended 489.67 pts higher or +2.6% at 19350.62.
- Across Europe, Germany's DAX trades higher by 65.65 pts or +0.41% at 16086.76, FTSE 100 higher by 16.06 pts or +0.22% at 7430.84, CAC 40 up 38.15 pts or +0.52% at 7369.35 and Euro Stoxx 50 up 22.15 pts or +0.51% at 4381.75.
- Dow Jones mini up 76 pts or +0.22% at 34629, S&P 500 mini up 15.75 pts or +0.35% at 4523.5, NASDAQ mini up 100.5 pts or +0.65% at 15544.5.
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GILT AUCTION RESULTS: 3.25% Jan-33 Gilt
- A relatively wide tail of 1.0bp for the 10-year gilt auction (3.25% Jan-33 gilt), which also saw the LAP below the pre-auction mid-price (91.334 vs 91.339).
- The last two 10-year gilt auctions have seen tight tails of 0.2bp and stronger bid-to-covers of 2.81/3.04x (versus 2.33x today). We did see a 1.1bp tail a the February auction, however, which is more comparable to today's 1.0bp tail.
- The last couple of 10-year auctions were strong, this is a below average result and saw the price fall on the release of the result, but we are still off the lows of the day.
FED FUNDS FUTURES: FFN3 Given
FFN3 10K lots given at 94.830, with more trading on the follow before going offered at that price. Market left 94.825/94.830 at typing, with the offer thinning out after some small lifts.
GILT AUCTION RESULTS: 3.25% Jan-33 Gilt
Wide tail.
| 3.25% Jan-33 Gilt | Previous | |
| Amount | GBP3.50bln | GBP3.50bln |
| Avg yield | 4.351% | 3.849% |
| Bid-to-cover | 2.33x | 2.81x |
| Tail | 1.0bp | 0.2bp |
| Avg price | 91.410 | 95.175 |
| Low price | 91.334 | 95.163 |
| Pre-auction mid | 91.339 | 95.092 |
| Previous date | 10-May-23 |
