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Rally in US Markets Puts European Indices at Session Highs Ahead of the Close

EQUITIES
  • Global equities add to the upside posted over the past 30 minutes, with the e-mini S&P on the front foot despite a second session of subpar volumes. The rally has cemented the break of the late Sep high for the index, and opens 4416.50 for direction - the 50% retracement for the Sep-Oct downleg.
  • Strength across stock markets coincides with a reversal off highs for US yields, as the 10y sheds 5bps off the recovery high posted alongside the CBOT open. All sectors across the S&P 500 are in the green with the exception of energy names, which see profit-taking on the back of the sharp Monday oil priced-based rally.
  • In currency markets, this has translated to modest USD weakness, however EUR/USD and GBP/USD are yet to make any material test on the earlier highs. As such, the risk-on trade is largely contained to equities at present, with spot gold making no meaningful test on the Monday lows.

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