EQUITIES: EuroStoxx Rally Could Signal Start of Correction
A short-term reversal in S&P E-Minis on Wednesday highlights the start of what appears to be a corrective cycle. The trend condition has been oversold following recent weakness and the move higher is allowing this set-up to unwind. Eurostoxx 50 futures have traded in an extremely volatile manner this week and rallied sharply higher from this week’s lows. The climb highlights the start of a corrective cycle and if this is correct, marks an unwinding of the recent oversold trend condition.
- Japan's NIKKEI closed lower by 1023.42 pts or -2.96% at 33585.58 and the TOPIX ended 72.49 pts lower or -2.85% at 2466.91.
- Elsewhere, in China the SHANGHAI closed higher by 14.589 pts or +0.45% at 3238.227 and the HANG SENG ended 232.91 pts higher or +1.13% at 20914.69.
- Across Europe, Germany's DAX trades lower by 369.17 pts or -1.8% at 20199.17, FTSE 100 lower by 36.18 pts or -0.46% at 7874.79, CAC 40 down 91.04 pts or -1.28% at 7042.92 and Euro Stoxx 50 down 70.76 pts or -1.47% at 4751.91.
- Dow Jones mini down 231 pts or -0.58% at 39564, S&P 500 mini down 21.25 pts or -0.4% at 5333.75, NASDAQ mini down 79 pts or -0.43% at 18418.
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FOREX: FX Exchange traded Roll pace
Expiry Next Monday the 17th.
- EUR: 36%.
- GBP: 33%.
- JPY: 45% (above pace).
- CHF: 32%.
- CAD: 33%.
- AUD: 42%.
- NZD: 44% (above pace).
- SEK: 54% (above pace).
- NOK: 47% (above pace).
EURIBOR OPTIONS: Put fly buyer
ERJ5 97.6875/97.62/97.5625p fly, bought for 0.75 in 10k.
BUNDS: /SWAPS: Modest Bid On Green's Reaffirming Fiscal Position Fades
A modest bid in German bonds on the back of Habeck reaffirming the known stance of the Greens when it comes to debt brake reform.
- While the Greens continue to voice their well-documented concerns surrounding defence spending, the door to fiscal negotiations and a deal in the immediate term seems to remain open.
- That explains the limited market reaction in German paper, with the major futures contracts already back from their knee-jerk highs.
- Long end ASWS vs. 3-month Euribor similarly muted, widening by ~0.5bp before fading.
