EM ASIA CREDIT: POSCO Holdings (POHANG, Baa1/A-/NR) outlook goes negative
POSCO Holdings (POHANG, Baa1/A-/NR)
"*S&P: POSCO RATING A- ; OUTLOOK NEGATIVE" - BBG
- In summary, S&P changes the outlook to negative as oversupply in the sector, challenges in its EV business as well as high levels of debt may strain credit metrics. Neutral for spreads.
- In the last few trading sessions Steel makers have been seeing some relief, mostly in Equity markets, with the Alaska pipeline, increased defence spending and Chain stimulus supporting an argument for more steel demand.
- It is also worth noting that South Korea has announced it is making plans to apply tariffs on the Chinese steel industry, and duties on specific suppliers.
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Historical bullets
SILVER TECHS: Trading At Its Recent Highs
- RES 4: $34.903 - High Oct 23 and the bull trigger
- RES 3: $33.125 - High Nov 1
- RES 2: $32.338 - High Dec 12 and a key resistance
- RES 1: $31.737 - High Jan 30
- PRICE: $31.479 @ 08:05 GMT Feb 4
- SUP 1: $29.704/28.748 - Low Jan 27 / Low Dec 19 and bear trigger
- SUP 2: $28.446 - 76.4% retracement of the Aug 8 - Oct 23 bull cycle
- SUP 3: $27.686 - Low Sep 6
- SUP 4: $26.451 - Low Aug 8
Silver continues to trade at its recent highs. A bear cycle that started on Oct 23 last year remains in play and recent gains are considered corrective. However, the latest move higher does suggest scope for a continuation near-term. An extension would expose key resistance at $32.338, the Dec 12 high. Clearance of this level would highlight a reversal. Support to watch is $29.704, the Jan 27 low, and $28.748, the Dec 19 low and the bear trigger.
USDCAD TECHS: Trend Structure Remains Bullish
- RES 4: 1.5000 Psychological round number
- RES 3: 1.4948 High Mar 2003
- RES 2: 1.4814 High Apr 2003
- RES 1: 1.4600/1.4793 Round number resistance / High Feb 3
- PRICE: 1.4435 @ 08:03 GMT Feb 4
- SUP 1: 1.4398 20-day EMA
- SUP 2: 1.4290 50-day EMA
- SUP 3: 1.4261 Low Jan 20 and a key support
- SUP 4: 1.4178 High Nov 6 ‘24
USDCAD traded sharply higher Monday, before reversing lower into the close. Despite the pullback, Monday’s gains reinforce and strengthen bullish conditions. The break higher has confirmed a resumption of the uptrend and sets the scene for a climb towards 1.4814 next, the Apr 2003 high. Moving average studies remain in a bull-mode position highlighting a dominant uptrend. Initial firm support to watch is 1.4398, the 20-day EMA (pierced).
GILTS: Opening calls
Gilt calls, 92.70/92.74 range.
