US-EU: Trade Commissioner Speaks On Tariffs, Could Delay Retaliation In April

• The maturity is a little shorter than we had expected, we had looked for a new 12-year 2037 SlovGB to launch via syndication in February.
• Historically, Slovakia left its first syndication of the year until April but there has been a February syndication in each of the past two years.
• We pencil in a transaction size of E2.5-3.5bln.

• BTP/Bund spread has cleared that initial 106.00bps level earlier, is now gaining some traction through 105.00bps, testing 104.00bps at present.
• Investors will be looking at the Psychological 100.00bps level for the next support, although better will be seen nearer the ~97.7bps area. the September 2021 low.

(Chart source: MNI/Bloomberg).

• In the equity space, S&P E-Minis continue to climb and the contract maintains a firmer tone. Attention is on resistance at 6162.25, the Jan 24 high. Clearance of this level would expose the key resistance at 6178.75, the Dec 6 ‘24 high. A move above this hurdle would resume the primary uptrend.On the downside, initial key support has been defined at 6014.00, the Feb 10 low. A break would highlight a bearish development. First support lies at 6075.54, the 20-day EMA.
• The trend needle in EUROSTOXX 50 futures remains bullish. The move higher last week confirmed once again, a resumption of the uptrend that started on Nov 21 ‘24. Moving average studies are in a bull mode set-up too, highlighting a dominant uptrend. A major resistance at 5525.00, the March 2000 all-time high (cont), has been pierced. A clear break of it would highlight a key bullish technical breach. This would open 5552.90 2.764, a projection of the Dec 20 ‘24 - Jan 8 - 13 price swing.  Support to watch is 5325.83, the 20-day EMA.