European Benchmarks Tick Lower

Euro Stoxx 50 futures are a touch lower to start the week (-0.4%), with Friday’s pull back from rejection ahead of 4,800 extending a little.

• The contract remains in a bull cycle, with round number resistance at 4,800 presenting the next upside target.
• Firm support comes in a the 20-day EMA (4,664.80).
• Talk of continued/escalated Middle East tension continues to do the rounds when it comes to broader risk appetite.
• Spill over from what many deemed to be an underwhelming post-LNY session for Chinese stocks may also be filtering in (despite the CSI 300 adding over 1% and closing at best levels).
• Sectorally, the IT sector leads the way lower, with a late Friday downtick in the NASDAQ 100 not helping there.
• More granularly, Forvia benefits from the restructuring/earnings news flow.
• Santander moves higher on the back of its buyback and dividend announcement.
• Rheimnetall benefits from news re: a JV with a Ukrainian partner.