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Progress in Energy Sector Countered by Weak Discretionary Names

EQUITIES
  • European indices are mixed ahead of the NY crossover, with UK, Spanish and Italian markets in the green while the EuroStoxx50 and France's CAC-40 are in negative territory.
  • Energy names are leading the way higher, better bid on the back of the buoyant crude price into the Tuesday close. Markets have been further flattered by the lack of imminent action from the White House, who confirmed there would be no immediate reserve release from the SPR yesterday.
  • Tech and consumer discretionary names are erring less favourably, leading the weakness on the continent.
  • US futures are softer, with the e-mini S&P lower by 10 points or so ahead of the US CPI release. S&P E-minis maintain a bullish tone and this week's pullback is likely a correction. Another all-time high print was registered Nov 5. Continued gains confirm a resumption of the uptrend and the focus is on 4717.00 next, a Fibonacci projection.

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