Equity Futures Fail to Find Support From Credit Suisse Takeover

The Eurostoxx 50 futures outlook remains bearish following recent weakness and the contract is trading lower today. Recent short-term gains were considered corrective. The break of the 4000.00 handle signals scope for weakness towards 3865.00, the Jan 4 low and further out towards the 3800.00 handle. Initial resistance is seen at 4129.90, the 20-day EMA. Key resistance has been defined at 4268.00, the Mar 6 high. The trend condition in S&P E-Minis remains bearish and recent short-term gains appear to be a correction. Price has recently cleared a key short-term support at 3960.75, Mar 2 low to confirm a resumption of the bear cycle that has been in place since Feb 2. The move lower signals scope for an extension towards 3822.00 next, the Dec 22 low. Initial firm resistance is seen at 4026.76, the 50-day EMA. A break of this EMA would alter the picture.

• Japan's NIKKEI closed lower by 388.12 pts or -1.42% at 26945.67 and the TOPIX ended 30.12 pts lower or -1.54% at 1929.3.
• Elsewhere, in China the SHANGHAI closed lower by 15.636 pts or -0.48% at 3234.91 and the HANG SENG ended 517.88 pts lower or -2.65% at 19000.71.
• Across Europe, Germany's DAX trades lower by 129.3 pts or -0.88% at 14638.16, FTSE 100 lower by 80.84 pts or -1.1% at 7254.71, CAC 40 down 38.09 pts or -0.55% at 6884.9 and Euro Stoxx 50 down 26.31 pts or -0.65% at 4038.68.
• Dow Jones mini down 186 pts or -0.58% at 31887, S&P 500 mini down 18.75 pts or -0.48% at 3928.75, NASDAQ mini down 32 pts or -0.25% at 12614.25.