EQUITIES: This Week's Gains Bolster Bullish Outlook for Eurostoxx Futures
A bullish theme in Eurostoxx 50 futures remains intact. Gains this week reinforce current bullish conditions. The contract is extending the recent breach of 5263.01, 76.4% of the Mar 3 - Apr 7 bear leg. The continuation higher signals scope for a climb towards 5516.00, the Mar 3 high and the key bull trigger. Initial firm support to watch lies at 5171.52, the 50-day EMA. Clearance of this level would signal a possible reversal. A bullish trend condition in S&P E-Minis remains intact and this week’s appreciation reinforces current conditions. Price also continues to trade at its latest highs. The contract has cleared an important resistance at 5837.25, the Mar 25 high and a bull trigger. This strengthens the bullish theme, paving the way for a continuation near-term. Sights are on the 6000.00 handle next. Initial firm support to watch lies at 5669.26, the 50-day EMA.
- Japan's NIKKEI closed lower by 1.79 pts or 0% at 37753.72 and the TOPIX ended 1.49 pts higher or +0.05% at 2740.45.
- Elsewhere, in China the SHANGHAI closed lower by 13.359 pts or -0.4% at 3367.462 and the HANG SENG ended 108.11 pts lower or -0.46% at 23345.05.
- Across Europe, Germany's DAX trades higher by 169.66 pts or +0.72% at 23867.05, FTSE 100 higher by 31.81 pts or +0.37% at 8665.68, CAC 40 up 42.93 pts or +0.55% at 7896.41 and Euro Stoxx 50 up 28.38 pts or +0.52% at 5440.66.
- Dow Jones mini up 144 pts or +0.34% at 42529, S&P 500 mini up 15 pts or +0.25% at 5948.25, NASDAQ mini up 56.75 pts or +0.27% at 21458.25.
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US-CHINA: BBG-China Open To Talks If Trump 'Shows Respect' & 'Consistency'
(MNI) London - Bloomberg reports that according to Chinese officials, China is open to talks on trade if US President Donald Trump "shows respect" and names a point person for negotiations. Wire headlines claim "China wants Trump to rein in cabinet members, show consistency". Says that talks with the US should address concerns on sanctions and other issues. These headlines chime with other comments from the Chinese gov't that have said Beijing is seeking to address trade issues with Washington, D.C., in a constructive manner.
- The two sides may now be engaged in a standoff, waiting for the other to make the first call. On 11 Apr, CNN reported, "Two senior White House officials tell CNN that the US will not reach out to China first. Trump has told his team that China must be the first to make the move, as the White House believes it is Beijing that has chosen to retaliate and further escalate the trade war."
- BNN Bloomberg wrote on 15 Apr, "China will only engage in talks with the U.S. if its leaders show respect toward Beijing, according to a former top Chinese economic official. “If the U.S. wants China to totally accept the U.S. proposal, to accept the U.S. conditionality, I think there’s no negotiation,” Zhu Guangyao, who was China’s Vice Minister of Finance from 2010 to 2018, said in an interview in Singapore."
EQUITIES: Equity Option Expiry Thursday
Equity Options Expiries are Tomorrow (Thursday), because Markets are closed for Easter Friday. In Notional terms:
US:
- SPX; $1.42T vs $1.37T Monday.
- NDX: $48.08bn vs $43.13bn.
- Amazon: $17.05bn vs $14.18bn.
- Apple: $20.12bn vs $16.24bn.
EU:
- SX5E: €137.90bn vs €134.84bn.
- SX7E: €11.46bn vs €11.29bn.
- DAX: €31.30bn vs €30.06bn.
- FTSE: £11.14bn vs £11.07bn.
CROSS ASSET: Equities Off Lows As China Outlines Requirements For Trade Talks
Equities rally, bonds sell off and oil firms as BBG sources note that “China wants to see a number of steps from President Donald Trump’s administration before it will agree to trade talks, including showing more respect by reining in disparaging remarks by members of his cabinet”,
- The piece also notes that “other conditions include a more consistent U.S. position” and suggests that they want to conduct negotiations with a “point person” (akin to what was seen in Trump’s first term).
- A second round rally in equities then kicks in, with markets focused on the potential avenues to trade talks, despite some hurdles remaining.
