Free Trial

Slide in Stocks Puts E-mini S&P Through Key Support

  • The e-mini S&P gapped lower at the open, with the contract cracking below both the 50-DMA and 50-day EMA support. This put the index as much as 5% off the alltime highs posted in early September, with energy, financials and materials leading the way lower. Evidence of sizeable selling was prominent from the off, with NYSE's TICK Index showing some of the largest programmatic in the series' history.
  • A perfect storm of China stability concerns and the risks surrounding Wednesday's Fed rate decision worked against sentiment, pressuring equity markets globally. Markets are beginning to price in the possible macro fallout from the expected credit event surrounding Chinese real estate giant Evergrande, with contagion spread via the global banking network unsettling an already buoyant market.
  • Losses were uniform across the Atlantic, with European indices off 2% or more. The selling pressure put Germany's DAX at the lowest levels since mid-May . The UK's FTSE-100 fared better thanks to sizeable rallies in AstraZeneca (positive drug test results), but still slipped 0.8% into the close.
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.