Observations + Charts
Europe in digestion mode while US futures are extending their gains.
Asia extending their winning streak to the 4th d, with SK leading the rally after a short-selling ban.
A slump in Treasury yields and $ also boosted risk appetite in the region.
KOSPI +5.5%, most in over 30 months, eyeing the 200dma.
Greater China also trading higher with HSI breaking the 50dma level not seen since Aug.
Japan trading at a 6-week high with NKY back >100dma – following 4 d of consecutive gains.
Elsewhere- Thailand CPI fell for the first time in more than 2 years.
Europe is in digestion mode following the first positive weekly close in 4 weeks.
EU Cyclical +45bps up for a third session now trading >50dma while EU Value basket trying to snap 5d of losses.
EU Airlines top3 over the region thanks to Ryanair earnings and outlook.
EU Banks in the green again for a 6th d in a row. SX7P >200dma. Firmer yields this AM helping a bit.
EU Autos (SXAP) also strong 5d of consecutive gains – BMW & RACE being upgraded away.
EU Luxury basket snapping 5d of gains with most of the names in the red.
Eurozone Oct final services PMI confirmed flash estimate, posting the 4h month of contraction at 47.8.
German factory orders for September posted the 2nd consecutive monthly gain.
DXY -11bp. Brent +150bp. US nat gas -360bp and -315bp in Europe. Copper prices +115bp. Bitcoin +140bp while gold -27bp.
US futures mosly higher w/ESZ3 +7.25, HIWZ3 +21.00, RTYZ3 -0.9 and NQZ3 +31.75.