FRANCE: No Schedule For New Gov't As Macron To Visit Mayotte
There is still no schedule for PM Francois Bayrou to name the parties that will form his new administration or the individuals that will sit in his Council of Ministers. Bayrou is under pressure to announce his picks as soon as possible in order to seek to kick-start the French political system out of its current stasis.
- Le Monde reports that "proposals for names were made yesterday at noon", the president of the MoDem group [Bayrou's party] in the National Assembly, Marc Fesneau, announced on TF1 on Wednesday morning. "The discussions are still very advanced", he added, considering that there is a "need for teams to be able to be formed in the ministries before Christmas..."
- Earlier, outgoing Foreign Minister Bruno Retailleau added another potential complication to the gov't formation, saying that "The conditions "are not met at the moment" for [the conservative Les Republicains] to join the government,". Without Les Republicains, the Bayrou gov't risks being just the centrist parties that formed the Ensemble alliance in the legislative election comprising 164 of the 577 deputies in the National Assembly, a very vulnerable position to be in.
- The process could be drawn out further by President Emmanuel Macron's travel schedule. Under the French constitution, the president is required to formally appoint Cabinet picks in person. With Macron set to visit the overseas department of Mayotte on 19 Dec following the devastation caused by Cyclone Chido, the timeline for appointing a gov't could be pushed to the end of the week, or beyond.
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COMMODITIES: Bearish Theme in WTI Futures Remains Intact, Attention on $65.99
A bearish theme in WTI futures remains intact and the move lower from the Nov 7 high has reinforced current conditions. Attention is on $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support. For bulls, a clear reversal to the upside would instead refocus attention on the key short-term resistance at $77.70, the Oct 8 high. Clearance of this level would resume the recent uptrend. Initial firm resistance is $72.88, the Nov 7 high. The long-term trend condition in Gold is unchanged, it remains bullish and the latest pullback is considered corrective. The recent move down has resulted in a breach of the 20- and 50-day EMAs, and the metal is trading at its recent lows. The breach of the EMAs signals scope for a deeper retracement and sights are on $2511.1 next, the Sep 18 low. Firm resistance is seen at $2657.6, the 20-day EMA.
- WTI Crude up $0.25 or +0.37% at $67.28
- Natural Gas up $0.08 or +2.9% at $2.904
- Gold spot up $32.45 or +1.27% at $2595.64
- Copper up $2.3 or +0.56% at $413.05
- Silver up $0.47 or +1.57% at $30.7465
- Platinum up $15.29 or +1.62% at $957.48
EQUITIES: Move Lower in E-Mini S&P Last Week Appears Corrective
Despite recent gains, a bearish condition in Eurostoxx 50 futures remains intact. The move lower last week marks a resumption of the downtrend that started Sep 30. Price has breached 4746.94, 61.8% of the Aug 5 - Sep 30 bull cycle. This exposes 4662.12, the 76.4% retracement point. Initial firm resistance has been defined at 4961.00, Nov 6 high, where a break would highlight a reversal. The move lower last week in S&P E-Minis appears corrective. Medium-trend signals such as moving average studies, continue to highlight a dominant uptrend. The contract has traded through the 20-day EMA. The next key support to monitor is 5826.69, the 50-day EMA. A clear break of this level would signal scope for a deeper retracement. A resumption of gains would refocus attention on the bull trigger at 6053.25, the Nov 11 high.
- Japan's NIKKEI closed lower by 422.06 pts or -1.09% at 38220.85 and the TOPIX ended 19.88 pts lower or -0.73% at 2691.76.
- Elsewhere, in China the SHANGHAI closed lower by 6.877 pts or -0.21% at 3323.849 and the HANG SENG ended 150.27 pts higher or +0.77% at 19576.61.
- Across Europe, Germany's DAX trades lower by 51.65 pts or -0.27% at 19161.16, FTSE 100 higher by 12.66 pts or +0.16% at 8076.71, CAC 40 down 11.78 pts or -0.16% at 7258.27 and Euro Stoxx 50 down 22.84 pts or -0.48% at 4772.01.
- Dow Jones mini down 69 pts or -0.16% at 43499, S&P 500 mini up 2.5 pts or +0.04% at 5898.5, NASDAQ mini up 79.5 pts or +0.39% at 20571.25.
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