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Stoxx A Little Higher, Positive External Leads Help

EQUITIES

Euro Stoxx 50 futures run out of steam ahead of YtD bests, showing as high as 4,585.00, before backing off to 4,561.00 last. Session lows of 4,553.00 were posted on the pullback.

  • The cash equivalent is +0.3% on the day, with positive leads from the U.S. & Asia eyed.
  • The IT sector outperforms, aided by a recovery off last week’s low in HK listings of Tencent & NetEase. A reminder that the tail end of last week saw both names pressured on the back of fresh Chinese restrictions for the gaming sector. The subsequent approval of various games (seen on Monday) allowed the names to stabilise on Wednesday.
  • Communication services is the only major sector to show lower, with DTE struggling.
  • Technically, a bullish theme in Euro Stoxx 50 futures remains intact and the latest pullback appears to be a correction. Recent gains confirmed a resumption of the uptrend. Moving average studies are in a bull-mode position too, signalling a rising trend cycle. The focus is on 4,636.70, a long-term Fibonacci retracement, although YtD highs (4,595.00) present some interest ahead of there. Support to watch is 4,513.70, the 20-day EMA.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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