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Stocks Flat-to-Higher Pre-Cash Open

EQUITIES
  • US stock futures head into the Monday cash open higher, but off the session's best levels, with Friday's highs of 4539.50 still intact ahead of the November recovery highs at 4541.25.
  • Equity market strength accompanied a modest pullback in the USD, and has shrugged off firmer oil prices and US yields holding the bulk of the recovery off the Friday low. The near-term outlook remains bullish, with resistance at 4411.88, a trendline drawn from the Jul 27 high, cleared. This reinforces upside conditions and signals scope for a climb towards 4552.38, a Fibonacci retracement.
  • A notable gain for Microsoft ahead of the open has reversed, with the stock indicated to open ~0.5% lower to erase a near 2.5% pre-market gain on the back of uncertainty surrounding their OpenAI unit and succession plans for the outgoing CEO.
  • Monday focus turns to the US 20y auction, at which any subsequent sharp move in yields could filter into equity space as well as a speech from Fed's Barkin on Fox Business at 1700GMT/1200ET.

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