Free Trial

CPI Knocks E-Minis Back To Unchanged Levels, Resistance In S&P 500 Contract Holds

EQUITIES

E-minis move away from session bests on the uptick in Tsy yields/contained hawkish steepening of the FOMC-dated OIS curve post-CPI, leaving the 3 major contracts little changed to 0.1% higher ahead of the NY cash open.

  • Firmer Chinese equities (on the back of China’s sovereign wealth fund boosting bank equity exposure, along with plans to expand those holdings further) and a fresh bid in European benchmarks had aided e-minis pre-data.
  • Stock-specific news saw Delta Airlines beat on EPS, although the company trimmed its FY EPS view (to roughly match/marginally top median analyst exp.). The name is indicated 3.2% higher pre-market.
  • Target is indicated 2.7% higher after receiving a brokerage rating upgrade at BofA.
  • Also note overnight news from the FT, which flagged “short sellers and other market participants will have to quickly disclose deals to borrow securities under rules expected to be adopted by U.S. financial watchdogs this week as part of a broad regulatory push for greater market transparency.”
  • Technically, a bear cycle remains in play despite recent gains, with the pre-data rally topping out as bulls failed to breach pivot resistance at the 50-day EMA (4,431.80), with the medium-term outlook remaining bearish the longer price holds below this level.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.