EQUITIES: Recent Pullback for Eurostoxx 50 Futures Appears Corrective
The trend cycle in Eurostoxx 50 futures is unchanged, it remains bullish and the recent pullback appears corrective. Moving average studies are in a bull-mode position, highlighting a clear dominant uptrend. Sights are on 5516.00, the Mar 3 high and the key bull trigger. A break of this level would strengthen a bull theme. Key support to watch lies at 5249.44, the 50-day EMA. Clearance of this average would signal a possible reversal. A bullish trend condition in S&P E-Minis remains intact. Thursday’s initial gains delivered a print above 5993.50, the May 20 high and a bull trigger. The break highlights a resumption of the uptrend and maintains a price sequence of higher highs and higher lows. 6000.00 has been pierced, an extension would open 6057.00 next, the Mar 3 high. Key support lies at 5742.22, the 50-day EMA. A clear break of this average is required to highlight a reversal.
- Japan's NIKKEI closed lower by 467.88 pts or -1.22% at 37965.1 and the TOPIX ended 10.45 pts lower or -0.37% at 2801.57.
- Elsewhere, in China the SHANGHAI closed lower by 15.959 pts or -0.47% at 3347.487 and the HANG SENG ended 283.61 pts lower or -1.2% at 23289.77.
- Across Europe, Germany's DAX trades higher by 176.07 pts or +0.74% at 24108.97, FTSE 100 higher by 45.01 pts or +0.52% at 8761.43, CAC 40 up 12.19 pts or +0.16% at 7791.91 and Euro Stoxx 50 up 15.06 pts or +0.28% at 5386.16.
- Dow Jones mini down 50 pts or -0.12% at 42217, S&P 500 mini down 10.25 pts or -0.17% at 5912.5, NASDAQ mini down 44.5 pts or -0.21% at 21363.75.
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EQUITIES: Notable US Earnings for Today
US Earnings for Today, Two of the Mag 7 report after Markets:
- Pre Market: Caterpillar.
- Post Market: Meta, Microsoft, Qualcomm.
GERMANY: SPD Co-Leader Klingbeil Puts Himself Forward As Fin Min & VC
Tagesspiegel reports that co-leader of the centre-left Social Democrats (SPD), Lars Klingbeil, has put himself forward to serve as finance minister and vice chancellor in the incoming 'grand coalition' gov't with the centre-right Christian Democratic Union/Christian Social Union (CDU/CSU). NTV reports that the party's executive committee voted unanimously in favour of this position. The prospect of Kingbeil serving as finance minister and vice chancellor had previously been mooted during the course of coalition negotiations (see 'GERMANY: Coalition Deal Reached, Presentation @ 1500CET, SPD Takes Fin Min', 9 Apr 1126BST).
- Klingbeil (47), hailing from Lower Saxony, first sat in the Bundestag in 2005 before being re-elected in 2009 and serving ever since. He is viewed as a moderate within the party, hailing from the centrist, liberal Seeheim Circle, which bills itself as a 'practical and undogmatic' grouping, compared to other more overtly socialist factions.
- This comes after confirmation that the SPD's membership approved the coalition agreement with 84% approval on a turnout of 56%.
- As Tagesspiegel notes, this marks the third time that the SPD membership has been asked to approve a governing coalition (each time with the CDU/CSU). The percentage of members approving is higher than ever (76% yes in 2013, 66% yes in 2018), but the turnout is the lowest to date (higher than 78% in both cases). Some have put the low turnout down to the online-only nature of this year's vote dissuading some less tech-savvy SPD members from voting.
EQUITIES: Estoxx Risk Reversal
SX5E (19th June) 4500/5600RR, sold the put at 23.5 in 3k.
