Stoxx 50 On The Defensive

Euro Stoxx 50 futures are ~0.3% lower on the day, with the cash equivalent shedding a similar amount.

• Euro Stoxx 50 futures bulls once again failed to breach 4,520.00 (the level represents the high of the day), with the contract pulling back from best levels after the cash open.
• Initial resistance remains located at the Jan 11 high (4,536.00). Clearance of this level would highlight a potential reversal of the recent pullback and a resumption of the primary technical uptrend. Last week’s low (4,402.00) represents a key short-term support. A break there would deepen recent bearish pressure and open the Nov 28 low (4,370.00).
• The contract had initially turned bid on BBG source reports flagging meaningful policymaker support for the Chinese equity market, before the BoJ post-decision press conference pushed core global bond yields higher, weighing on wider equity indices. Questions surrounding how effective any Chinese policymaker support will be also limited gains.
• Utilities lead the move lower from a sectoral standpoint, while the energy and consumer discretionary sectors are the only major groups to trade higher.
• Pre-market earnings have dominated on the news flow side.
• Ericsson and Logitech provided mixed earnings results and underwhelming guidance ahead of the open, both names trade lower.
• Swatch flagged an upbeat ’24 outlook alongside soft earnings metrics, the name is lower on the day.