EQUITIES: Estoxx put spread

WTI futures are holding on to their recent gains. The recovery since Sep 9, appears - for now - to be a correction. The 20-day EMA, at $70.28, has been pierced. The next key resistance to watch is $72.38, the 50-day EMA. Note that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend. A reversal lower would refocus attention on $64.61, the Sep 10 low and bear trigger. A bullish structure in Gold remains intact and the metal has traded, once again, to a fresh all-time high. The move higher confirms a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull-mode set-up, highlighting a clear uptrend and positive market sentiment. The focus is on $2642.7 next, a Fibonacci projection. Firm support lies at $2547.5, the 20-day EMA.

• WTI Crude up $1.34 or +1.9% at $71.64
• Natural Gas up $0.03 or +1.26% at $2.648
• Gold spot down $0.25 or -0.01% at $2628.78
• Copper up $10.1 or +2.32% at $444.8
• Silver up $0.2 or +0.66% at $30.907
• Platinum up $9.21 or +0.96% at $969.72

Eurostoxx 50 futures traded higher last week as the contract extended the recovery from the Sep 10 low. It is still possible that recent gains are corrective. MA studies are in a bear-mode position and this highlights a downtrend. A reversal lower would refocus attention on key support at 4757.00, the Sep 6 / 10 lows. Key resistance is 5024.00, the Sep 3 high. A break would cancel a bearish theme and strengthen bullish conditions. A bull cycle in S&P E-Minis remains in play and last week’s gains reinforce the current bullish condition. The contract has traded through a key and major resistance at 5785.00, the Jul 16 high and a bull trigger. A clear break of this hurdle would confirm a resumption of the long-term uptrend. Sights are on the 5800.00 handle next. First key support is 5615.51, the 50-day EMA. Initial support lies at 5668.73, the 20-day EMA.

• Japan's NIKKEI closed higher by 216.68 pts or +0.57% at 37940.59 and the TOPIX ended 14.38 pts higher or +0.54% at 2656.73.
• Elsewhere, in China the SHANGHAI closed higher by 114.207 pts or +4.15% at 2863.125 and the HANG SENG ended 753.45 pts higher or +4.13% at 19000.56.
• Across Europe, Germany's DAX trades higher by 159.33 pts or +0.85% at 19006.28, FTSE 100 higher by 33.93 pts or +0.41% at 8293.72, CAC 40 up 120.19 pts or +1.6% at 7628.27 and Euro Stoxx 50 up 63.93 pts or +1.31% at 4949.5.
• Dow Jones mini up 79 pts or +0.19% at 42583, S&P 500 mini up 14.75 pts or +0.26% at 5791.75, NASDAQ mini up 82.25 pts or +0.41% at 20164.

{EU} EQUITIES: European stocks have benefitted from the Chinese monetary stimulus package deployed overnight.

• Euro Stoxx 50 futures have added ~1.2% since yesterday’s settlement, 12 points off session highs.
• The Sep 19 high (4,985.00) presents immediate technical resistance.
• The consumer sector outperforms given its links to China (discretionary rallies more than staples in sub-index terms). Elsewhere, material, industrial and energy names also perform well, once again given their links to Chinese demand.
• Utilities is the only sector to trade lower, with the defensive nature of the sector likely driving the underperformance during this morning’s strong equity rally.