MNI INTERVIEW2: Europe Must Act To Boost Growth-ECB's Kazaks

MNI BRIEF: European Fiscal Board Calls For Fiscal Tightening

MNI BRIEF: ADP's Richardson Sees Pockets of Weakness in US Job Market

MNI NBP WATCH: Rates Held As 2024 Outlook Remains Hawkish

MNI BRIEF: NBP Holds Reference Rate At 5.75% As Expected

MNI China Daily Summary: Wednesday, July 3

US EIA:NAT GAS STORAGE +32 BCF TO 3,134 BCF JUN 28 WK

US EIA: CRUDE OIL STOCKS EX SPR -12.16M TO 448.5M JUN 28 WK

Unexpected Factory Orders Drop Further Sign Of Softening Goods Output

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Energy Weighs On European Benchmarks

EQUITIES
Credit BulletsHomepageCreditEquitiesAT&T Market NewsBank of America Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

The Euro Stoxx 50 index has lost over 1% on the day, with the futures equivalent running 52 points below settlement.

  • VG1 futures move through initial support at 4,950, but the move is only short-lived and limited (basing at 4,947.0).
  • A fresh move lower would expose next support at the 50.0% retracement of the Apr 19-May 16 bull cycle (4,936.0). That level protects the 61.8% retracement of the same move (4,894.9). A break there would present a greater bearish threat after the recent move below the 50-day EMA.
  • The energy sector has provided the most weight for the Euro Stoxx 50 index, with fresh multi-month lows for the global crude oil benchmarks the root driver there.
  • Consumer staples, healthcare and utilities see modest upticks on a sectoral basis, although upside there is very limited (2 of those sectors have some defensive properties to lean on during equity market sell offs).
  • Elsewhere, the move lower in core global FI yields weighs on financials, although bonds have moved away from best levels of the day.
  • More broadly, worry in the wake of yesterday’s U.S. economic activity data remains evident, providing a broader risk-off feel.
192 words

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.

The Euro Stoxx 50 index has lost over 1% on the day, with the futures equivalent running 52 points below settlement.

  • VG1 futures move through initial support at 4,950, but the move is only short-lived and limited (basing at 4,947.0).
  • A fresh move lower would expose next support at the 50.0% retracement of the Apr 19-May 16 bull cycle (4,936.0). That level protects the 61.8% retracement of the same move (4,894.9). A break there would present a greater bearish threat after the recent move below the 50-day EMA.
  • The energy sector has provided the most weight for the Euro Stoxx 50 index, with fresh multi-month lows for the global crude oil benchmarks the root driver there.
  • Consumer staples, healthcare and utilities see modest upticks on a sectoral basis, although upside there is very limited (2 of those sectors have some defensive properties to lean on during equity market sell offs).
  • Elsewhere, the move lower in core global FI yields weighs on financials, although bonds have moved away from best levels of the day.
  • More broadly, worry in the wake of yesterday’s U.S. economic activity data remains evident, providing a broader risk-off feel.