EQUITIES: Eurostoxx 50 Futures Build on Recent Gains, Above 20-, 50-Day EMAs
Eurostoxx 50 futures maintain a positive tone and are building on recent gains. The contract has cleared the 20-day EMA and the 50-day EMA, at 5102.56. A clear break of this average would strengthen the current bull cycle and signal scope for a continuation of the corrective uptrend. This would open 5165.00 next, the Apr 3 high. Support to watch lies at 4812.00, the Apr 16 low. Clearance of this level would highlight a reversal. The recovery in the e-mini S&P continues, with a tenth consecutive session of higher highs - the longest winning streak of the year so far, underpinning the short-term positive momentum for stocks. The bull cycle that started on Apr 7, remains in play and has breached a number of important short-term resistances. The index has topped 5618.25, the 50-day EMA, opening layered resistance at 5773.25-5774.43.
- Japan's NIKKEI closed higher by 378.39 pts or +1.04% at 36830.69 and the TOPIX ended 8.34 pts higher or +0.31% at 2687.78.
- Across Europe, Germany's DAX trades higher by 358.91 pts or +1.6% at 22852.32, FTSE 100 higher by 71.45 pts or +0.84% at 8568.15, CAC 40 up 112.26 pts or +1.48% at 7705.21 and Euro Stoxx 50 up 68.18 pts or +1.32% at 5227.76.
- Dow Jones mini up 236 pts or +0.58% at 41081, S&P 500 mini up 27.75 pts or +0.49% at 5649.5, NASDAQ mini up 54.75 pts or +0.28% at 19918.75.
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GERMAN AUCTION PREVIEW: 2.50% Feb-35 Bund
This morning, Germany will hold its sixth 10-year Bund auction of the year. On offer will be E4.5bln of the 2.50% Feb-35 Bund.
- The size is in line with the last re-open of the 2.50% Feb-35 Bund on March 12.
- Recent auctions in the German 10y segment have passed smoothly, with solid bid-to-covers (in a 1.83x to 4.87x range since July), bid-to-offers (1.52x to 3.98x range since July) and the low prices above the secondary market mid-prices throughout 2024/5.
- For the last 2.50% Feb-35 Bund auction on March 12, the bid-to-cover stood at 2.12x, while the bid-to-offer came in at 1.62x.
- The next German auction will be E2bln of a (yet unspecified) Green line on April 8, while the 2.50% Feb-35 Bund will be reopened next on April 23, for E4.0bln.
- Timing: Results will be available shortly after the bidding window closes at 10:30GMT / 11:30CET.
EQUITIES: Estoxx outright call seller
SX5E (20th June) 5300c, sold at 127.60 in 6.5k vs 2.86k at 5225.00.
COMMODITIES: Gold Trend Remains Bullish Following Sequence of Record Highs
WTI futures traded sharply higher Monday. This undermines the medium-term bearish condition and instead signals scope for a continuation higher near-term. The rally has exposed the next key resistance at $72.91, the Feb 11 high. Clearance of this level would strengthen the bullish theme. On the downside, initial firm support to watch lies at $69.01, the 20-day EMA. A breach of this level would signal a potential reversal. The trend condition in Gold is unchanged, it remains bullish. The latest rally reinforces current conditions and confirms a continuation of the primary uptrend. The rally also once again, highlights fresh all-time highs for the yellow metal. Sights are on the $3151.5, a Fibonacci projection. Support to watch lies at $3004.9, the 20-day EMA. A pullback would be considered corrective.
- WTI Crude down $0.2 or -0.28% at $71.09
- Natural Gas up $0.02 or +0.48% at $3.967
- Gold spot up $20.3 or +0.65% at $3133.08
- Copper up $3.7 or +0.73% at $505.7
- Silver up $0.31 or +0.93% at $34.0041
- Platinum down $6.15 or -0.62% at $985.32
