E-Minis Off Lows Ahead Of Cash Open

E-minis head towards the cash equity open a little shy of best levels but 0.1-0.4% firmer on the day.

• Property sector support measures in a couple of lower tier Chinese cities and BBG source reports surrounding official efforts to escalate yuan intervention have helped soothe the initial risk-off impulse seen in early Asia-Pac hours.
• Chinese and HK equities firmed into their respective closes, pre-CNY source report, helping e-minis away from lows.
• U.S. data was mixed and did little to de-rail the uptick in equities, while Tsys moving away from session cheaps after some bear steepening of the curve was seen has helped.
• Initial earnings-related pre-market gains for Walmart have been unwound, with the flagging of potential risks and headwinds detracting from the beats in the headline corporate metrics.
• Technically, a bearish theme in S&P 500 e-minis remains intact. The contract’s clear downside breakout signals scope for a continuation lower and opens 4,400.00 next. Initial firm resistance to watch is at the 20-day EMA - at 4,506.36.