RENEWABLES: UK Morning Wind Forecast

Reuters sources report that "Chinese rare earth magnet companies have been facing tighter scrutiny on export license applications since September, even before Beijing's move last week to expand controls over the critical minerals used in magnets".

• The report then notes that "the lengthier reviews magnet makers face raise questions about whether China, the top global supplier, is seeking to throttle back magnet shipments, contrary to its commitment to speed up exports in a trade truce with the U.S. in May, to further tighten its grip on the products essential in military and commercial technology".
• This helps keep the risk-off tone intact, underpinning bonds and the broader USD, while weighing on equities.
• Markets remain hyper-sensitive to trade-related headlines in light of the recent escalation in the Sino-U.S. trade war.

• RES 4: 107.348 50.0% retracement of Apr 7 - Sep 25 bear leg (cont.)  
• RES 3: 107.247 38.2% retracement of Apr 7 - Sep 25 bear leg (cont.)
• RES 2: 107.225 High Aug 27 and a bull trigger
• RES 1: 107.200 Intraday high  
• PRICE: 107.195 @ 08:34 BST Oct 14
• SUP 1: 107.085/037 Low Oct 10 / 20-day EMA   
• SUP 2: 106.965/920 Low Oct 6 / Low Sep 25 and the bear trigger  
• SUP 3: 106.907 1.618 proj of the the Aug 27 - Sep 2 - 8 price swing
• SUP 4: 106.900 Round number support

Schatz futures traded sharply higher Friday and the contract has started this week on a bullish note. Today’s gains have delivered a print above 107.910, strengthening a bullish condition. This signal scope for a climb towards 107.225 next, the Aug 27 high and the next key resistance point.  Initial firm support to watch lies at 107.037, the 20-day EMA. A breach of this average would undermine the uptrend.

SX7E (19th Dec) 220/205/190p fly, bought for 2.05 in ~3.2k.