EQUITIES: Europe Enters Bear Market as Energy Prices Punish Consumers
Mar-07 18:07
- A number of European indices entered a bear market at the Monday close, with the DAX and EuroStoxx50 closing over 20% off the 2022 highs. Energy prices spiked sharply, with WTI and Brent crude futures gapping higher on reports that the US are considering dropping Russian oil & gas products from their energy mix entirely - a move that could swiftly be replicated by other Western partners.
- As a result, consumption-oriented stocks were hit hard, with both consumer staples and consumer discretionary names among the poorest performing sectors across Europe. Financials also put out a poor session, with flattening curves and distorted monetary policy expectations working against perceived future interest margins.
- In US equity space, S&P E-minis traded above the 20-day EMA at 4386.89 last Thursday, but failed to hold above - this marks a bearish development. Broader trend signals remain bearish and a deeper pullback would open the 4101.75 key support handle and bear trigger.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
USDCAD TECHS: Remains Above Support
Feb-04 21:00
- RES 4: 1.2964 High Dec 20 and a key resistance
- RES 3: 1.2924 High Dec 22
- RES 2: 1.2843 76.4% retracement of the Dec 20 - Jan 19 sell-off
- RES 1: 1.2797/2814 High Jan 28 / High Jan 6 and a key resistance
- PRICE: 1.2781 @ 16:10 GMT Feb 4
- SUP 1: 1.2650 Low Jan 27/Feb 2
- SUP 2: 1.2560 Low Jan 26
- SUP 3: 1.2451/48 Low Jan 19 / 76.4% of the Oct - Dec rally
- SUP 4: 1.2387 Low Nov 10
The USDCAD outlook remains bullish and Friday’s gains reinforce this theme, suggesting the recent corrective pullback is over. A positive theme follows the recovery from 1.2451, Jan 19 low. Price has traded above the 50-day EMA and the break has resulted in a move through 1.2768, 61.8% of the Dec 20 - Jan 19 sell-off. This has opened 1.2843, the 76.4% value. Initial firm support lies at 1.2560, Jan 26 low. First support is at 1.2650, Jan 27 and Feb 2 low.
US TSY FUTURES: BLOCK, 5Y Sale
Feb-04 20:59
- -5,000 FVH 118-11.75, through 118-12 post-time bid at 1538:28ET
US TSY OPTIONS: Large Post-Close
Feb-04 20:56
10Y Ratio Put spd/spd at 1517:25ET:
- -4,616 TYH 127/128.5 put spds vs. TYJ 124/126 put spds on a 4x5 ratio, 2-59 net cr
