EQUITIES: Recent Gains for Eurostoxx 50 Futures Result in Breach of Resistance
A bull cycle in the Eurostoxx 50 futures contract remains intact and the contract traded higher on Wednesday. Recent gains have resulted in a breach of 5054.00, the Jan 8 high, to confirm a resumption of the uptrend. The focus is on a climb towards 5261.57, a Fibonacci projection point. Key short-term support has been defined at 4931.00, the Jan 13 low. Initial firm support lies at 5053.69, the 20-day EMA. S&P E-Minis have traded higher this week, marking an extension of last week’s bull phase. Gains undermine a recent bearish theme. The contract has traded through the 50-day EMA and note that resistance at 6107.50, the Dec 26 high, has been breached. The clear break strengthens a bullish theme and opens 6178.75, the Dec 6 high and key resistance. Initial firm support to watch is 5961.75, the Jan 16 low.
- Japan's NIKKEI closed higher by 312.62 pts or +0.79% at 39958.87 and the TOPIX ended 14.55 pts higher or +0.53% at 2751.74.
- Elsewhere, in China the SHANGHAI closed higher by 16.54 pts or +0.51% at 3230.164 and the HANG SENG ended 78.21 pts lower or -0.4% at 19700.56.
- Across Europe, Germany's DAX trades higher by 27.38 pts or +0.13% at 21281.14, FTSE 100 lower by 8.76 pts or -0.1% at 8536.19, CAC 40 up 6.01 pts or +0.08% at 7843.41 and Euro Stoxx 50 down 11.57 pts or -0.22% at 5194.26.
- Dow Jones mini down 30 pts or -0.07% at 44323, S&P 500 mini down 14.5 pts or -0.24% at 6106, NASDAQ mini down 116.5 pts or -0.53% at 21884.75.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FOREX: FX OPTION EXPIRY
Of note:
EURUSD 1.31bn at 1.0400 (fri).
- EURUSD: 1.0400 (590mln).
- USDJPY: 157.00 (431mln).
- USDCNY: 7.2814 (600mln).
GILTS: Testing session low
- The UK 10yr Yield remains higher today, futures underperforms the US Treasuries.
- The Yield managed a 4.651% high this Month, the highest print since November 2023.
- Looking further out, the 2023 high is situated at 4.752%, this was also the highest print since late 2008.
- Today, reference 92.23, would equate to 90.72.
CROSS ASSET: MONTH END EXTENSION (update)
This should be a non event for Year End, they are small, and only the lower liquidity could get Govies moving, but unlikely, as investors turn their attention to 2025.
Bloomberg Bonds:
- US Tsys: +0.07yr (small, average).
- EU Govies: +0.04yr (small).
- UK Govies: -0.02yr (non event).
MS Bonds:
- US Tsys: +0.05yr (small).
- EU Govies: +0.03yr (small).
- UK Govies: To contract (non event).
Barclays FX:
- Their Quarter rebalancing model only shows a Weak Dollar Buying signal.
