E-Minis & STOXX 50 Futures Extend Bounce From Lows

S&P 500 e-minis & Euro STOXX futures continue the grind away from session lows, with the former now a little above flat on the day, while the latter is +35, more than reversing early losses.

• The richening in the short end of the U.S. Tsy curve (lower yields) has helped from a cross-market perspective, while participants have had to juggle the Chinese deflationary worry vs. expectations surrounding Chinese stimulus. Chinese equities edged away from lows into the bell, which helped turn the tide in early European trade, even as the benchmark indices finished shy of best levels (CSI 300 +0.5% & Hang Seng +0.6%).
• S&P 500 e-minis bottomed out just below their 20-day EMA, with bears failing to force a meaningful break of the level, leaving the bullish theme intact. The initial bullish technical target can be found at the Jun 30 high (4,498.00), with key support located some way below intraday lows (at 4,368.50, the Jun 26 low).
• Euro STOXX 50 futures failed to challenge Friday’s low (4,220.00), bouncing from the time of the cash open. Bulls need to overturn the 50-day EMA (4,332.30) to start turning the technical tide back in their favour after last week’s sharp move off cycle highs.