Euro STOXX 50 Off Best Levels But Bulls Eye Cycle Highs

Prevailing post-U.S. data cross-market reaction sees Euro STOXX 50 futures off best levels after bulls pushed the contract to within less than 20 points of cycle highs on the back of the post-U.S. CPI pull lower in government bond yields.

• Our technical analyst has suggested that the recent rebound potentially lays the ground for a more meaningful bull cycle, with the cycle high and bull trigger presenting the next technical target (4,447.00). Conversely, the bear trigger has been defined at the Jul 7 low (4,220.00).
• The cash equivalent is still 0.8% firmer on the day, with IT & real estate leading on a sectoral basis, while materials and industrials lag.