EQUITIES: Higher In Asia After Crude Retreat
Virtually all Asia-Pac equity indices trade higher on a positive lead from U.S. and European markets, with the largest rallies observed in Japanese and Chinese benchmarks. Energy-related stocks across the region broadly lagged peers, tracking a pullback in major crude benchmarks on Wednesday.
- The Nikkei 225 has added 4.0% at writing, snapping a 4-day streak of losses, and is on track to record its largest daily gain in nearly ~21 months. Virtually all sub-indices within the index trade firmer at writing, with 221 of the 225 constituents recording gains. The largest gains were observed in materials and real estate, while energy and utilities brought up the rear.
- The CSI300 is 1.9% better off at writing, led by gains in richly valued consumer staples and healthcare equities. The index has risen off 20-month lows recorded on Wednesday, coming as several dozen Chinese large-caps were noted to have taken the unusual step of announcing corporate performance this week, ahead of expectations. The move has been broadly interpreted as being meant to “soothe” investor nerves, with state media also observed to have published articles emphasising the strength and stability of the Chinese economy on Thursday.
- U.S. e-mini equity index futures deal 0.2% to 0.3% softer at typing.
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SCHATZ TECHS: (H2) Bearish Focus
- RES 4: 111.996 50-day EMA
- RES 3: 111.870 High Feb 3
- RES 2: 111.857 20-day EMA
- RES 1: 111.615 High Jan 4
- PRICE: 111.440 @ 05:17 GMT Feb 8
- SUP 1: 111.250/208 Low Feb 7 / 2.50 proj of Dec 20-Jan 19-24 swing
- SUP 2: 111.185 Low Jun 26, 2015 (cont)
- SUP 3: 111.140 Low Jun 11, 2015 (cont)
- SUP 4: 111.090 Low Jun 10, 2015 (cont)
Schatz futures sold off sharply last week as the downtrend accelerated. Bears remain firmly in control despite yesterday’s bounce off the day low. The Jan 31 sell-off resulted in a break of 111.890, Jan 19 low and a bear trigger. This confirmed a resumption of the downtrend. Moving average conditions remain bearish too. The focus is on 111.208 next, a Fibonacci projection. Friday’s high of 111.615 marks initial resistance.
BOBL TECHS: (H2) Needle Still Points South
- RES 4: 132.940 50-day EMA
- RES 3: 132.216 20-day EMA
- RES 2: 132.060 High Feb 3
- RES 1: 131.150 High Jan 4
- PRICE: 130.410 @ 05:06 GMT Feb 8
- SUP 1: 130.240 Low Feb 7
- SUP 2: 130.000 Psychological round number
- SUP 3: 129.460 High Dec 7, 2015 (cont) (cont)
- SUP 4: 129.020 Low Dec 7, 2015 (sont)
Bobl futures remain bearish following last week's sharp sell-off and futures traded lower yesterday. Last week’s breach of support at 132.40, Jan 19 low, confirmed a resumption of the underlying downtrend and resumed the bearish price sequence of lower lows and lower highs. Moving averages also point south. Attention is on the psychological 130.00 handle next, the Oct 5, 2018 low (cont). Friday’s high of 131.150 is the first resistance.
BUND TECHS: (H2) Path Of Least Resistance Remains Down
- RES 4: 171.07 High Jan 24 and key short-term resistance
- RES 3: 170.58 50-day EMA
- RES 2: 169.08 20-day EMA
- RES 1: 167.00/168.81 High Feb 4 / High Feb 3
- PRICE: 166.20 @ 05:09 GMT Feb 5
- SUP 1: 165.38 Low Feb 7
- SUP 2: 165.24 Low May 7, 2019 (cont)
- SUP 3: 164.82 Low May 3, 2019 (cont)
- SUP 4: 164.33 Low Apr 18, 2019 (cont)
Bund futures remain in a clear downtrend and traded lower again yesterday. Futures cleared the 168.00 handle last week, reinforcing bearish conditions and maintaining a bearish price sequence of lower lows and lower highs. Moving average conditions are in a bear mode too highlighting current sentiment. Scope is seen for a move towards 165.24 next, May 7 2019 low on the continuation chart. Friday’s high of 167.00 marks initial resistance.
