Stoxx Leans On Lower Yields, VG1 Futures Eye Mid-Sep High

The aggressive shunt lower in core global FI yields/ECB-dated OIS pricing (covered elsewhere) more than reversed an early blip lower in Euro Stoxx 50 futures, breaching previous month-to-date highs.

• That break allows bulls to focus on key resistance in the form of the Sep 15 high (4,359.00).
• VG1 has added ~30 points as of typing.
• The cash equivalent is ~0.7% firmer on the day,
• All of the major sectors trade higher, with health care and real estate outperforming, generally aided by rates betas.
• The IT sector lags as chip equipment makers underperform, with some pointing to spill over from legal headwinds for a U.S. producer re: ongoing supply to China.
• Volvo struggle after China’s Geely offloaded a sizeable stake in the name.
• Recently released in line with flash final Eurozone CPI prints had no impact on the space.