Stoxx 50 Futures Below 4,800 For First Time Since Mid-August, 4-Week Rally Set To End

A heavy start for European equities, Stoxx 50 futures are ~40 points lower, below 4,800 for the first time since mid-August.

• Next support comes in at the 50.0% retracement of the Aug 5-Sep 3 bull cycle (4,747.00).
• The index is on track to halt a run of 4-consecutive weekly gains.
• Soft industrial production data out of Germany and France will be feeding into the move.
• Set up for the U.S. NFP release may also be factoring in, with this week’s already-released U.S. labor market data soft to inline vs. expectations.
• This is probably best reflected in the move lower in BBG’s “whisper number” covering the NFP print, which has fell from 165K to 152K over the past couple of days.
• Also note that the Dutch government has published new export controls impacting some of ASML’s machines. This will be applying some pressure to the tech giant.
• Meanwhile, the latest move lower in yields will be weighing on financials.