STOXX Firms Further

European equities outperform their U.S. peers, with some weakness for tech giant Nviida limiting any rallies in NY.

• European equities benefitted from supportive policies surrounding the Chinese equity market, although mainland Chinese stocks finished sharply off their opening highs, still comfortably firmer on the day.
• The STOXX 50 index is ~1.4% firmer, while the futures equivalent sits ~60 points higher on the day.
• IT names outperform on a sectoral basis, while real estate names struggle after reports flagging a potential German move re: further limiting rent increase limits.
• A bearish trend condition in Euro STOXX 50 futures remains intact and last Thursday’s sharp sell-off reinforces this theme. The move lower signals the end of the recent corrective bounce between Aug 18 - 24. Key support and the bear trigger lies at 4,187.00, the Aug 8 low. A break of this level would confirm a resumption of the downtrend. Resistance to watch is 4,331.50, the 50-day EMA.