European stocks trade in the red ahead.....>

EQUITIES: European stocks trade in the red ahead of the NY crossover, with

German and Italian indices down 0.5-0.6% while UK, French and Spanish markets

hold slightly shallower losses of 0.2-0.3%.

- Stock markets remain defensive, with cyclicals in retreat as energy, real

estate and financials are among the largest decliners so far Wednesday. Consumer

staples is the sole sector in the green across Europe. Travel, entertainment and

transport names are among the largest individual fallers today, with Deutsche

Lufthansa, Cineworld and TUI down 3.5 - 7.0%.

- US futures are indicating mixed open today, with Dow Jones and S&P futures

lower whereas NASDAQ futures hold small gains. This leaves NASDAQ futures

looking modestly mispriced (circa 0.2%) to the upside and Dow Jones mispriced to

the downside by a similar margin on a fair value basis.

- E-mini S&P is ~30 points shy of the recovery highs and 195 points below the

alltime high. 3183.25 acts as initial support for the index, but firm technical

support is relatively few and far between until Fib retracement at 2981.74 and

the 200-dma at 3010.47.