EM ASIA CREDIT: SK Hynix: S&P positive tones on credit
(HYUELE, Baa2pos/BBBpos/BBBpos)
"*S&PGRBulletin:SK Hynix To Maintain Robust Profitability" - BBG
Following SK Hynix’s Q3 results yesterday, S&P has raised its EBITDA expectations for 2025-26 from KRW 48-49T to KRW 52-53T. The agency also noted higher capex for 2026, as guided by the company, which will reduce operating cash flows for 2026 to KRW13T, down from KRW21T in 2025. That said, the firm is projected to achieve a net cash position on an adjusted basis in the first half of 2026, driven by strong operating performance. Overall a positive read post results.
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EUROZONE ISSUANCE: EGB Supply Daily
Germany is scheduled to hold an auction today, while Spain and France are both scheduled to hold auctions tomorrow. We pencil in issuance of E22.2bln for the week, around half of last week’s E43.3bln. We expect Ireland’s Q4 funding plan this morning (expecting 0-1 auctions).We received the Q4 funding plans from Finland (two bond auctions) and Portugal (auctions for the year completed).
- Germany will kick off Q4 issuance today with E5bln of the 10-year 2.60% Aug-35 Bund (ISIN: DE000BU2Z056) on offer.
- Spain will look to hold a Bono / Obli / ObliEi auction tomorrow. E4.5-5.5bln of nominals will be on offer including the on-the-run 2.70% Jan-30 Bono (ISIN: ES0000012O00) alongside the new long 7-year 3.00% Jan-33 Obli (ISIN: ES0000012P74) and the 1.00% Jul-42 Green Obli (ISIN: ES0000012J07). E250-750mln of the 1.15% Nov-36 Obli-Ei (ISIN: ES0000012O18) will also be on offer.
- France will conclude the week’s issuance tomorrow with a LT OAT auction. A first reopening of the 10-year 3.50% Nov-35 OAT (ISIN: FR0014012II5), the off-the-run 1.25% May-36 OAT (ISIN: FR0013154044), the 0.50% Jun-44 Green OAT (ISIN: FR0014002JM6) and the 4.00% Apr-60 OAT (ISIN: FR0010870956) will be on offer.
EUROSTOXX50 TECHS: (Z5) Trend Needle Points North
- RES 4: 5600.00 Round number resistance
- RES 3: 5575.00 High Mar 3 (cont.) and a key resistance
- RES 2: 5564.82 0.764 proj of the Aug 1 - 22 - Sep 2 price swing
- RES 1: 5561.00 High Sep 30
- PRICE: 5536.00 @ 06:34 BST Oct 1
- SUP 1: 5452.19/5366.00 20-day EMA / Low Sep 17
- SUP 2: 5302.00 Low Sep 2 and a key short-term support
- SUP 3: 5262.18 76.4% retracement of the Aug 1 - 22 bull leg
- SUP 4: 5181.00 Low Aug 1 and key support
Eurostoxx 50 futures maintain a bullish theme. This week’s gains have resulted in a breach of key resistance and the bull trigger at 5525.00, the Aug 22 high. The break confirms a resumption of the uptrend and paves the way for a climb towards 5564.82, a Fibonacci projection. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend. Initial firm support lies at 5452.19, the 20-day EMA.
EURGBP TECHS: Attention Is On The Bull Trigger
- RES 4: 0.8835 High May 3 2023
- RES 3: 0.8800 Round number resistance
- RES 2: 0.8769 High Jul 28 and the bull trigger
- RES 1: 0.8751 High Sep 25
- PRICE: 0.8735 @ 06:43 BST Oct 1
- SUP 1: 0.8667/8597 50-day EMA / Low Aug 14 and the bear trigger
- SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg
EURGBP is unchanged and continues to trade closer to its recent highs. A bullish theme remains intact. The latest recovery paves the way for an extension towards the bull trigger at 0.8769, the Jul 28 high. Clearance of this level would strengthen the bull theme. Support to watch lies at 0.8597, the Aug 14 low. A breach of this level would instead reinstate a recent bearish threat. First support is 0.8667, the 50-day EMA.
