CAPITAL GOODS: Eaton (ETN A3/A-/NR): 1Q25 Results

Equity index futures are off lows and bonds are off highs after the U.S. cash equity open, JPY FX weakness also seen alongside those moves.

• While there hasn’t been much of a headline trigger across the major newswires, a Fox reporter has noted that “there is a TikTok deal on the table to create a new company, US majority owned short video app venture. But there's also last minute and continued concern by equity players who are raising the issue of being indemnified in perpetuity over the liability provisions in the TikTok ban law (massive if the courts and or president says there's a violation).”
• This news is probably feeding into the risk-positive price action, although it may not be the only driver.

• MNI: US FEB FACTORY ORDERS +0.6%; EX-TRANSPORT NEW ORDERS +0.4%
• US FEB DURABLE ORDERS +1.0%
• US FEB NONDEFENSE CAP GOODS ORDERS EX AIRCRAFT -0.2%

• RES 4: 112-23+ 1.618 proj of the Jan 13 - Feb 7 - Feb 12 price swing
• RES 3: 112-15   61.8% of the Sep 11 ‘24 - Jan 13 bear cycle (cont)  
• RES 2: 112-13   1.500 proj of the Jan 13 - Feb 7 - Feb 12 price swing   
• RES 1: 112-02+ Intraday high    
• PRICE:‌‌ 111-27+ @ 14:46 BST Apr 2 
• SUP 1: 110-26+ 20-day EMA 
• SUP 2: 110-11/06 50-day EMA / Low Mar 27 
• SUP 3: 110-00   High Feb 7 and a key support 
• SUP 4: 109-21+ Trendline support drawn from the Jan 13 low      

Treasury futures are holding on to their latest gains following the recovery from last week’s low of 110-06+ (Mar 27). The outlook remains bullish and attention is on key resistance at 112-01, the Mar 4 high. It has been pierced, a clear break would confirm a resumption of the uptrend and maintain a price sequence of higher highs and higher lows. This would open 112-13, a Fibonacci projection. Initial support to watch is 110-26+, the 20-day EMA.