Early Geopol Worry More Than Countered By Bank Earnings, E-Minis Higher Into Cash Open

Geopolitical angst centred on worry re: the potential escalation in the Israeli-Palestinian conflict tilted e-minis lower through the early rounds of European trade, before large bank earnings helped the space away from session lows.

• Fedspeak pointing to the central bank likely being done with rate hikes will have also helped.
• E-minis are now biased higher on the day as a result.
• There will also be an eye on the feed through for energy names, with crude oil notably firmer (despite the geopolitical-driven nature of the oil move).
• The 3 major e-mini futures are 0.2-0.3% higher, with the NASDAQ 100 lagging at the margins.
• As mentioned, large banks are expected to benefit from their respective pre-market quarterly earnings releases, Wells Fargo (+2.2%), J.P.Morgan (+1.3%) & Citi (+2.6%) are all indicated higher as a result.
• Dollar General is indicated over 7% higher after the company unveiled the return of a former CEO.
• Technically, the e-mini S&P 500 contract printed a higher high for a fifth consecutive session on Thursday before fading into the close. The index has narrowed in on the cluster of resistance at the 50/100-dmas for the Dec contract. Overall, a bear cycle remains in play, however downside momentum has paused in favour of a corrective rally. Pivot resistance remains above at the 50-day EMA at 4.431.80, with the medium-term outlook remaining bearish the longer price holds below this level.