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Stocks Bounce, Reinforcing 50-DMA as Key Support

EQUITIES

Equity markets across Europe and the US firmed nicely Wednesday, extending the late bounce seen in US indices on Tuesday. This reinforces the importance of the 50-dma in the e-mini S&P at 3795.96 as support, which underpinned price action nicely this week.

  • In the S&P 500, energy and industrials led gains, reflecting the surge in commodities prices as crude oil and copper hit new 2021 cycle highs. Utilities were the sole sector in the red.
  • Reflecting the reflationary theme, travel names including United Airlines, Boeing and Norwegian Cruise Lines were among the top performers, with oil refiners also trading particularly well.
  • Volatility traded heavy, reflecting in the lower VIX, which remains well within range of the lowest levels seen after the beginning of the COVID crisis in March last year.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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