Eurostoxx 50 Futures Remain Close to Friday Lows

Eurostoxx 50 futures traded sharply lower last week, clearing a number of key support levels in the process. The contract has breached 4241.00, the May 31 low. This highlights a potential reversal and signals scope for weakness towards 4208.50, a Fibonacci retracement point. On the upside, key short-term resistance is seen at 4332.30, the 50-day EMA. A break of this average would ease bearish pressure. A bull theme in S&P E-minis remains intact and the pullback last week appears to be a correction - for now. Attention is on the first support 4411.98, the 20-day EMA. Clearance of this level would strengthen a bearish threat and expose 4368.50, the Jun 26 low and a key support. The bull trigger is at 4498.00, the Jun 16 high. A clear breach of this level would confirm a resumption of the uptrend and open 4532.08, a Fibonacci projection.

• Japan's NIKKEI closed lower by 198.69 pts or -0.61% at 32189.73 and the TOPIX ended 11.57 pts lower or -0.51% at 2243.33.
• Elsewhere, in China the SHANGHAI closed higher by 7.087 pts or +0.22% at 3203.696 and the HANG SENG ended 114.02 pts higher or +0.62% at 18479.72.
• Across Europe, Germany's DAX trades higher by 39.05 pts or +0.25% at 15643.49, FTSE 100 higher by 9.77 pts or +0.13% at 7266.19, CAC 40 up 20.69 pts or +0.29% at 7132.57 and Euro Stoxx 50 up 11.47 pts or +0.27% at 4248.07.
• Dow Jones mini down 30 pts or -0.09% at 33904, S&P 500 mini down 9.75 pts or -0.22% at 4423.75, NASDAQ mini down 51.25 pts or -0.34% at 15127.75.