OUTLOOK: Price Signal Summary - Bull-Mode Phase In EUROSTOXX50 Futures Intact
Feb-12 10:41
- In the equity space, price action on Feb 3 in the S&P E-Minis contract S&P E-Minis contract, continues to highlight a possible short-term reversal threat. If correct, it suggests that the latest bounce is a correction. A resumption of weakness would open 5892.37, the 76.4% retracement of the Aug 5 - Dec 6 bull leg. On the upside, a stronger rally would expose key resistance at 6178.75, the Dec 6 ‘24 high. Clearance of this hurdle would resume the primary uptrend.
- EUROSTOXX 50 futures traded higher Tuesday and the contract is holding on to its gains. The move higher confirms once again, a resumption of the uptrend that started on Nov 21 ‘24. Moving average studies are in a bull mode set-up too, highlighting a dominant uptrend. The focus is on 5434.10 next, a 2.236 projection of the Dec 20 - Jan 8 - Jan 13 price swing. Initial firm support to watch lies at 5243.32, the 20-day EMA.
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EQUITIES: FTSE Block trades
Jan-13 10:41
FTSE Block trades, suggest buyers, multiple clips:
- Z H5 4.16k total at 8218.00.
- Z H5 2.5k total at 8217.00.
GILTS: Recoveries Remain Shallow
Jan-13 10:38
Gilts remain under pressure, with Chancellor Reeves’ weekend comments doing little to promote confidence.
- Futures breach initial support at last week’s low (89.00), basing at 88.96, before a bounce to 89.25 last.
- Yields little changed to 4bp higher, 50s relatively resolute.
- 10s as high as 4.901% this morning vs. last week’s high of 4.921%.
- 30s got near last week’s multi-decade high (5.473%), topping out at 5.469%.
- 10-Year gilt/Bunds little changed on the day, around 225bp.
- BoE-dated OIS shows 46bp of cuts through year-end vs. 49bp late on Friday. Last week’s extremes of ~39bp untested.
- SONIA futures 0.5-5.5 lower, last week’s lows intact.
- GBP750mln of short-dated APF sales from the BoE due this afternoon.
- CPI data (Wednesday) headlines the domestic calendar this week. That reading will be much more consequential for markets than the monthly GDP (Thursday) and retail sales (Friday) data.
- We will provide the usual data preview and review around the CPI release.
- Comments from BoE dovish dissenter Taylor (Wednesday) also eyed.
EURIBOR OPTIONS: Put fly
Jan-13 10:38
ERG5 97.87/97.75/97.62p fly, bought for 0.75 in 2k.
