EU CONSUMER STAPLES: Nestle: 3Q Results

• RES 4: 6750.50 2.000 proj of the Aug 20 - 28 - Sep 2 price swing
• RES 3: 6748.50 1.236 proj of the Aug 1 - 15 - 20 price swing
• RES 2: 6712.33 1.764 proj of the Aug 20 - 28 - Sep 2 price swing     
• RES 1: 6700.00 Round number resistance 
• PRICE: 6686.75 @ 07:25 BST Sep 16
• SUP 1: 6559.62 20-day EMA
• SUP 2: 6506.50 Low Sep 5 
• SUP 3: 6452.53 50-day EMA 
• SUP 4: 6417.25 Low Aug 12 

A bull cycle in S&P E-Minis remains intact and the contract has started this week on a bullish note. Fresh cycle highs reinforce current bullish conditions. The move higher confirms a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. Sights are on the 6700.00 handle next and 6712.33, a Fibonacci projection. On the downside, initial support to watch is 6559.62, the 20-day EMA.

• The Dollar was mostly on the back foot overnight and the Greenback has seen some continued downside going into the European Cash Govie open.
• At a new broader low against the EUR, GBP. JPY, CAD, NZD, CNH, CNY, CHF, NOK, SEK, INR, KRW, TWD, SGD, CZK and PLN.
• The Yen is the early best performer within G10 currencies, but the first support in USDJPY is still further out, down to 146.21 Low Aug 14.
• The NOK and the AUD are still the best performing currencies so far in September and the USDNOK is now looking to test the Psychological 9.8000 level.
• The AUDUSD is still just short of the level noted at 0.6688, the November high.
• As noted Yesterday, Year To Date, the SEK holds the crown, the Stokkie is now up 19.50% vs 18.64% Yesterday Morning on the Year.
• Next Immediate support comes at 9.2307, the March 2022 low (prices are according to Bloomberg).

Slovakia, Germany, Finland, Greece, Spain and France are all scheduled to hold auctions this week while Italy has announced a buyback. We pencil in gross issuance of E27.5bln for the week, down marginally from last week’s E28.0bln. However, redemptions pick up substantially leaving net flow for the week negative.

For the full MNI EGB Supply Daily with look ahead to this week and next week's issuance, click here

• Slovakia will kick issuance off for the week this morning with a SlovGB auction (which is being held on a Tuesday rather than the usual Monday due to a public holiday). As expected, only one of the four lines on offer will have a maturity of 15 years or greater: Slovakia will be looking to sell the 3.625% Jun-33 SlovGB (ISIN: SK4000023230), the 3.75% Feb-35 SlovGB (ISIN: SK4000022539), the 0.375% Apr-36 SlovGB (ISIN: SK4000018958) and the 4.00% Feb-43 SlovGB (ISIN: SK4000022547).
• Germany will then look to hold an auction with E4.5bln of the 2.20% Oct-30 Bobl (ISIN: DE000BU25059) on offer.
• Finland will conclude issuance for today with a conventional auction, looking to sell up to a combined E1.5bln of the 0.75% Apr-31 RFGB (ISIN: FI4000148630) and the 3.00% Sep-35 RFGB (ISIN: FI4000587415.
• Greece will potentially come to the market tomorrow with a GGB auction scheduled. The decision surrounding the bond on offer (or the cancellation) will be announced today. However, we note that of the seven auctions planned for 2025 so far, only two have been held. Most of the recent auction cancellations have been made earlier on Friday.
• Italy will look to hold a buyback tomorrow with a combined up to E5.0bln of 2026 bonds eligible for repurchase via Banca d’Italia. The MEF will look to buy the 3.50% Jan-26 BTP (ISIN IT0005514473), the 4.50% Mar-26 BTP (ISIN IT0004644735), the 0% Apr-26 BTP (ISIN IT0005437147), the 1.60% Jun-26 BTP (ISIN IT0005170839), the 0% Aug-26 BTP (ISIN IT0005454241) and the Apr-26 CCTeu (ISIN IT0005428617).
• Germany will return to the market tomorrow to hold a 30-year Bund auction with E1.5bln of the 2.90% Aug-56 Bund (ISIN: DE000BU2D012) on offer alongside E1.0bln of the 1.25% Aug-48 Bund (ISIN: DE0001102432).