EQUITIES: Estoxx call spread

WTI & Brent have registered the highest levels seen since August, factoring into the weakness in core global FI markets.

• Next resistance of note in WTI located at $79.59, while resistance in Brent is seen at $83.79.
• Our commodities team continues to point to the deepening of U.S. sanctions against Russia as the major bullish factor for crude oil, although Platts have noted that sanctioned barrels still seem to find a way to market.
• Demand for Middle East crude is also noted, as judged by benchmark premiums paid.
• The bid in European natural gas prices will also be having a hawkish impact on EUR STIRs, factoring into EGB weakness.

SFRU5 95.62/95.50ps sold at 3.5 in 9k.

The Foreign Ministers of Japan and South Korea have agreed to expand bilateral relations and continue trilateral cooperation with the United States, in the first meeting between the pair since the political crisis triggered by the impeachment of South Korean President Yoon Suk-yeol in December. 

• Reuters notes that ROK Foreign Minister, Cho Tae-yul, said South Korea and Japan, “agreed to deepen cooperation in various fields,” expressing “deep concern” over North Korea and Russia's military cooperation.
• Cho added: “I believe trilateral cooperation with US  will continue under the Trump administration.”
• Japanese Foreign Minister Takeshi Iwaya said, “Trilateral cooperation with US more important than ever given the current global situation.”
• Iwaya, who is also set to meet acting South Korean President Choi Sang-mok this week, said he “plans to raise importance of trilateral cooperation to the incoming Trump administration.” Iwaya added: “Cho and I discussed future-oriented cooperation between South Korea, Japan and China.”
• The meeting suggests that significant steps towards bilateral rapprochement between South Korea and Japan, led by the administration of US President Joe Biden, may prove durable despite the departure of the three leaders who signed a historic trilateral security pact with the US at Camp David in August 2023.
• The comments may calm fears that Seoul’s political crisis could trigger a retraction of foreign policy connected with the unpopular administrations of Yoon and former Japanese Prime Minister Fumio Kishida, including support for Ukraine and bilateral cooperation regarding North Korea.