FRANCE AUCTION RESULTS: MT OATs

The trend structure in WTI futures remains bullish and recent gains reinforce current conditions. The latest strong impulsive climb has resulted in a breach of $75.91, the Oct 8 high. Attention is on $79.48, the Apr 12 ‘24 high. A clear break of this hurdle would strengthen the bullish theme and open 80.63, a Fibonacci projection. On the downside, a reversal lower would expose the 20-day EMA, at $73.89, a key short-term support. Gold is trading higher today. The yellow metal has pierced resistance at 2726.2, the Dec 12 high and a key short-term resistance. A clear breach of this hurdle would strengthen a bullish theme and signal scope for an extension higher near-term. This would expose $2790.1, the Oct 31 all-time high. On the downside, first support to watch is $2653.4, the 50-day EMA. A reversal lower and a breach of this average would reinstate a bearish threat.

• WTI Crude down $1.34 or -1.72% at $76.48
• Natural Gas down $0.07 or -1.77% at $3.878
• Gold spot up $14.5 or +0.54% at $2724.01
• Copper down $8.5 or -1.95% at $428.25
• Silver down $0.07 or -0.22% at $30.4855
• Platinum down $8.37 or -0.88% at $938.87

A bull cycle in the Eurostoxx 50 futures contract remains intact. Last week’s climb resulted in a breach of 5054.00, the Jan 8 high, to confirm a resumption of the uptrend. The contract is holding on to its gains. The focus is on a climb towards 5215.87, a Fibonacci projection point. Key short-term support has been defined at 4931.00, the Jan 13 low. A break of this level would be bearish. S&P E-Minis are trading higher, marking an extension of last week’s bull phase. The move higher undermines the recent bearish theme. The contract has traded through the 50-day EMA and attention is on resistance at 6107.50, the Dec 26 high. Clearance of 6107.50 would strengthen a bullish theme. Key support has been defined at 5809.00, the Jan 13 low. A reversal lower and a breach of this level would reinstate a bear theme.

• Japan's NIKKEI closed higher by 125.48 pts or +0.32% at 39027.98 and the TOPIX ended 2.23 pts higher or +0.08% at 2713.5.
• Elsewhere, in China the SHANGHAI closed lower by 1.755 pts or -0.05% at 3242.623 and the HANG SENG ended 180.74 pts higher or +0.91% at 20106.55.
• Across Europe, Germany's DAX trades lower by 24.6 pts or -0.12% at 20967.06, FTSE 100 higher by 11.59 pts or +0.14% at 8532.26, CAC 40 up 7.73 pts or +0.1% at 7741.23 and Euro Stoxx 50 down 2.57 pts or -0.05% at 5161.87.
• Dow Jones mini up 138 pts or +0.32% at 43835, S&P 500 mini up 21.5 pts or +0.36% at 6055, NASDAQ mini up 89.5 pts or +0.41% at 21685.

• Spread set 4.25% Sep-39 gilt +4.00bp (Guidance was +4.00/+4.25bps)
• Size: GBP Benchmark (MNI expect GBP5.0-6.5bln)
• Books in excess of GBP115bln (inc JLN interest of GBP7bln)
• Expected Settlement Date: 22-January-2025 (T+1)
• ISIN: GB00BQC82D08
• Joint Leads: DB (B&D / DM) / JPM / MS / Nomura / RBC CM
• Timing: Books to close at 10:00GMT, today’s business

From market source