EM CEEMEA CREDIT: TAQAUH: Expansion in UK, neutral read for credit
Abu Dhabi National Energy Co (TAQAUH; Aa3/-/AA)
Expansion in UK, neutral read for credit
- UAE’s highly-rated, integrated utility champion TAQA announced in a press release it has acquired UK-based Transmission Investment (TI), operating offshore transmission (OFTO) assets. No financial details provided. We view the move as part of the Co.’s overall expansion strategy, with neutral take on the credit profile.
- For context, our screen feeds show TAQAUH 4.375 Oct31 charting at z+118bp area, in line with YtD spread range (source: Bloomberg data).
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EQUITY TECHS: E-MINI S&P: (M5) Unwinding An Oversold Condition
- RES 4: 5967.23 50-day EMA
- RES 3: 5864.25 Low Jan 13 and a recent breakout level
- RES 2: 5847.41 20-day EMA
- RES 1: 5759.75 High Mar 17
- PRICE: 5718.00 @ 07:22 GMT Mar 18
- SUP 1: 5559.75 Low Mar 13 and the bear trigger
- SUP 2: 5483.50 2.00 proj of the Dec 6 ‘24 - Jan 13 - Feb 19 swing
- SUP 3: 5396.00 2.236 proj of the Dec 6 ‘24 - Jan 13 - Feb 19 swing
- SUP 4: 5341.87 2.382 proj of the Dec 6 ‘24 - Jan 13 - Feb 19 swing
The trend condition in S&P E-Minis remains bearish and fresh cycle lows last week reinforced current conditions. Moving average studies are in a bear-mode set-up highlighting a dominant downtrend. Sights are on 5483.50, a Fibonacci projection. Note that the short-term trend condition is oversold. Recent gains are considered corrective and the bounce is allowing this set-up to unwind. Firm resistance to watch is 5967.23, the 50-day EMA.
AUDUSD TECHS: Approaching Key Resistance
- RES 4: 0.6429 High Dec 12 ‘24
- RES 3: 0.6414 38.2% retracement of the Sep 30 ‘24 - Feb 3 bear leg
- RES 2: 0.6409 High Feb 21 and a bull trigger
- RES 1: 0.6391 High Mar 17
- PRICE: 0.6380 @ 07:29 GMT Mar 18
- SUP 1: 0.6308 20-day EMA
- SUP 2: 0.6259/6187 Low Mar 11 / Low Feb 4
- SUP 3: 0.6171/6088 Low Feb 4 / 3 and a key support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
A short-term bullish theme in AUDUSD remains intact and Monday’s gains reinforce this theme. Sights are on the key resistance at 0.6409, the Feb 21 high. Clearance of this hurdle would strengthen a bull cycle and confirm a resumption of the uptrend that started Feb 3. On the downside, a move below key short-term support at 0.6187, the Mar 4 low, is required to reinstate a bear threat. First support to watch is 0.6259, the Mar 11 low.
BUNDS: German lawmaker's vote is the main focus Today
- It was a very tight 12 ticks range for Bund overnight finding some offers post Cash, and while the main event this Week is on the FOMC Tomorrow, the major focus today will on the German Vote, which will allow spending on Defence, Infrastructures, and Green Projects.
- Debate is set to start at 09.00GMT and last for some 3 hours, after a vote on the Amendments is set to begin from 13.00GMT.
- Technically for Bund, the Next resistance seen at 128.33 was untested Yesterday and remains the initial area of interest.
- Support is seen at 127.18, followed by the 2.95% level in Yield.
- The only Data releases for Today are the German ZEW, and Canadian CPI.
- SUPPLY: UK 2028 £4.25bn (equates to 12.9k Gilt) should have a limited impact, Finland 10s, 12s (won't impact Bund), US Sells $13bn of 20yr reopening.
- SPEAKERS: ECB Rehn (@MNI), Escriva (x2), Villeroy.
