EM ASIA CREDIT: Vanke (VNKRLE, Caa1/B/B) bonds up despite downgrade by Moody's
"*MOODY'S DOWNGRADES CHINA VANKE'S RATINGS TO B3/CAA1" - BBG
"*VANKE IS SAID TO HAVE PREPARED CASH FOR YUAN BOND PAYMENT" - BBG
- Moody's downgraded Vanke senior unsecured ratings two notches this morning to Caa1, outlook negative. S&P and Fitch have them on single B, and overall I don't expect Moody's action to be a driver of valuations. This aside, we are seeing headlines that Vanke is in a position to pay its 2.95% CNY bond due 27th Jan., which is supporting $ valuations. The $ VNKRLE 3 ½ 11/12/29 is +3pts at the time of writing.
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AUDUSD TECHS: Bearish Extension
- RES 4: 0.6688 High Nov 7 and a reversal trigger
- RES 3: 0.6582 High Nov 12
- RES 2: 0.6523 50-day EMA
- RES 1: 0.6433 20-day EMA
- PRICE: 0.6314 @ 08:03 GMT Dec 18
- SUP 1: 0.6300 Round number support
- SUP 3: 0.6270 Low Oct 26 ‘23
- SUP 3: 0.6259 1.000 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 4: 0.6210 Low Oct 21 ‘22
The trend needle in AUDUSD continues to point south and this week’s fresh cycle lows reinforce current conditions. The move down maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. The break lower opens 0.6259 next, a Fibonacci projection. Initial firm resistance to watch is 0.6433, the 20-day EMA.
MNI: FINAL REMINDER: MNI Webcast with ECB's Philip Lane Today At 1000CET
You are invited to listen to an MNI Webcast with Philip R. Lane, Chief Economist and Member of the Executive Board of the European Central Bank.
Details below:
- Topic of discussion: 'Eurozone economy and the ECB's monetary policy'
- Date: Wednesday 18 December
- Time: 9am - 1030am London; 10am - 1130am Frankfurt
- This event is on the record and will run as a Zoom Webinar
To register please go to: MNI Webcast Registration
EQUITY TECHS: E-MINI S&P: (H5) Bulls Pause For Breath
- RES 4: 6184.00 1.236 proj of the Aug 5 - Sep 3 - 9 price swing
- RES 3: 6200.00 Round number resistance
- RES 2: 6194.19 1.236 proj of the Aug 5 - Sep 3 - 9 price swing
- RES 1: 6178.75 High Dec 6 and the bull trigger
- PRICE: 6134.75 @ 07:45 GMT Dec 18
- SUP 1: 6105.41 20-day EMA
- SUP 2: 6043.00/6014.78 Low Nov 26 / 50-day EMA
- SUP 3: 5970.25 Low Nov 21
- SUP 4: 5921.00 Low Nov 19
The S&P E-Minis outlook remains bullish and the latest shallow pullback is considered corrective and marks a pause in the uptrend. Recent gains confirmed a resumption of the trend. Note that moving average studies are in a bull-mode set-up, highlighting a dominant uptrend and positive market sentiment. A continuation higher would open 6194.19, a Fibonacci projection. Initial support to watch lies at 6105.41, the 20-day EMA.
