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Higher For Longer & Chinese Worries Weigh On E-Minis Ahead Of Cash Open

EQUITIES

The Fed’s higher for longer narrative and a negative lead from Chinese equities (centred on the latest heightening of worries re: property giant Evergrande) weighs on e-minis in pre-cash trade.

  • The 3 major e-mini contracts show 0.3% lower at typing, at/near worst levels of the day.
  • In terms of stock specifics, the weekend saw news that Hollywood writers have reached a “tentative” deal to end a strike after 146 days, watch related names (Netflix is +0.6% pre-market, Warner Brothers Discovery +1.3%)
  • Technically, a bear cycle in S&P E-minis remains in play and last week’s break lower reinforced current conditions. Price is also trading lower today. Last Thursday’s sell-off resulted in a break of support at 4,397.75, the Aug 18 low. This breach reinforces bearish conditions and signals scope for a continuation lower. Sights are on 4,318.00 next, the Jun 2 low. Initial firm resistance is 4,496.68, the 50-day EMA.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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