At Best Levels Of The Day Into NY Trade

E-minis have lent on the latest PBoC RRR cut, another move higher in crude oil prices and general bond market reaction to the ECB’s ‘dovish hike’ (which could be the last of the tightening cycle) in pre-cash trade.

• An expectation-beating raft of U.S. retail sales, PPI and initial jobless claims data (albeit with negative revisions for retail sales data) did apply some brief pressure to Tsys and e-minis, before the bid in both resumed.
• That leaves the 3 major contracts 0.6-0.7% above settlement levels, with the S&P 500 e-mini topping 4,490.
• One area of focus will be Arm’s return to public markets on Thursday (with some indications that shares will go live at 10:20 NY/15:20 London). BBG note that at the IPO price, Arm is valued at ~$54.5bn, with the IPO oversubscribed more than 10x, pricing at the top end of the range.
• Retail trader favourite AMC is indicated higher after a successful equity raising.
• HP moves lower pre-market after Berkshire Hathaway revealed a sale of a little over $150mn of equities.
• Technically, gains in the S&P 500 e-mini are considered corrective and a bear cycle remains in play. Key resistance has been defined at 4,597.50, the Sep 1 high where a break is required to reinstate the recent bullish theme. A stronger resumption of weakness would signal scope for a move towards the key support and bear trigger at 4,397.75, the Aug 18 low. Clearance of this support would strengthen the bearish case.