European Equity Futures Reach Fresh Cycle Highs Ahead of US CPI

EUROSTOXX 50 futures bullish conditions remain intact and the contract traded higher yesterday. Futures have cleared resistance at 4043.00, the Dec 13 high and a bull trigger. The clear break represents a key short-term positive development and paves the way for gains towards 4175.50 next, the Feb 16 high. Moving average studies are in a bull-mode condition, reinforcing the current positive trend condition. Initial support lies at 3944.00. S&P E-Minis traded higher Wednesday and the contract is holding on to this week’s gains. Price has cleared resistance at the 50-day EMA and this has strengthened the short-term bullish condition. Price is approaching the 4000.00 handle where a break would open 4043.00, the Dec 15 high. Key support and the bear trigger has been defined at 3788.50, the Dec 22 low. A reversal lower and a break of this level would resume bearish activity.

• Japan's NIKKEI closed higher by 3.82 pts or +0.01% at 26449.82 and the TOPIX ended 6.93 pts higher or +0.36% at 1908.18.
• Elsewhere, in China the SHANGHAI closed higher by 1.613 pts or +0.05% at 3163.451 and the HANG SENG ended 78.05 pts higher or +0.36% at 21514.1.
• Across Europe, Germany's DAX trades higher by 69.83 pts or +0.47% at 15017.04, FTSE 100 higher by 41.7 pts or +0.54% at 7766.71, CAC 40 up 56.02 pts or +0.81% at 6980.21 and Euro Stoxx 50 up 24.3 pts or +0.59% at 4124.06.
• Dow Jones mini down 24 pts or -0.07% at 34086, S&P 500 mini down 2.25 pts or -0.06% at 3988, NASDAQ mini down 4.25 pts or -0.04% at 11473.