E-Minis Comfortably Lower Ahead Of Cash Open, But Off Fitch Downgrade-Inspired Lows

E-minis are comfortably off worst levels of the day, but the major contracts still sit 0.5-1.0% lower on the session, with the NASDAQ 100 leading losses.

• A move away from session cheaps in both oil and bonds helped e-minis to stabilise and pull away from session lows during the latter half of the London morning, after worry surrounding the one-notch U.S. sovereign credit rating downgrade from Fitch triggered risk-off price action through from the Globex re-open.
• Beats in headline figures in the quarterly earnings reports from CVS Health (although the company adjusted FY EPS guidance lower) & Humana further aided the move away from lows, before a firmer than expected ADP employment reading (and the quarterly refunding announcement from the Tsy) triggered an uptick in Tsy yields, capping the equity bid.
• Any extension lower in the S&P 500 e-mini would expose the 20-day EMA - at 4,547.38, a break there would strengthen bearish conditions. Conversely, clearance of the bull channel top (4,654.42 today) is required to resume the uptrend.
• PayPal & Qualcomm headline the after-market earnings slate.