A Eurex publication focused on European financial markets, produced by MNl

Morning Briefing

March 29th 2016

European markets return from the There is no UK data set for The Conference Board consumer Easter break Tuesday, although the publication, but the Bank of confidence numbers will be released data calendar is muted. England's Financial Policy at 1400GMT. Committee releases its latest policy Early European data sees the Italian statement. ISTST business and consumer confidence data set for release at The market will likely focus on any The level of consumer confidence is 0800GMT. comments the FPC makes with expected to rise to 94.0 in March regard to the buy-to-let market, after after falling back to 92.2 in February. At the same time, the EMU M3 Chancellor Osborne said last week The preliminary Michigan Sentiment money supply data will be released Index fell to 90.0 in March from 91.7 by the ECB. that the Committee would likely get in February. extended powers in that area later in San Francisco Federal Reserve 2016. The Dallas Fed Services Survey will Bank President John Williams will be published at 1430GMT. deliver a speech on monetary policy The US calendar kicks off at and the global outlook, in Singapore, 1145GMT, with the release of the At 1600GMT, Federal Reserve Chair starting at 0915GMT. RetailEcon-GS Store Sales. At Janet Yellen will give a keynote 1230GMT, the Canadian Industrial speech to the Economic Club of New Product and Raw Material Price York. At 1700GMT, Dallas Federal Index will cross the wires. Reserve Bank President Rob Kaplan participates in a moderated Q&A, in The latest Redbook Retail Sales Austin, Texas. Index will be published at 1255GMT, with the S&P Case-Shiller Home Price Index expected at 1300GMT.

Global Economic Trading Calendar

Markets

FOREX: A relatively calm morning so At the new 2016 highs of 17,648.94 PRECIOUS METALS: All centers far in the Asia-Pacific, the US dollar and 2,056.60, posted March 22, the resume full operation today after the suffering a mild bout of weakness at DJIA and S&P 500 were nicely Easter break and Far Eastern trading the start of the day following soft US above their Dec 31 closes of this morning has seen cautions trade data overnight. Regional 17,425.03 and 2,043.94. In contrast, likely due to the proximity of month / traded lower but not overly so, and the Nasdaq Composite's high of quarter, and for some, financial year risk sentiment was largely steady. 4,835.599, seen March 22, was still end. Interest has been patchy and Cross-related demand kept the well below its 2016 year-end close of movement has been on well below aussie and dollar-yen supported but 5,007.411. From the 2016 low of average turnover. Japanese Feb. neither unit managed to mark any 1,810.10, seen Feb. 11, to the 2016 Retail Sales fell 2.3% m-o-m (vs - strong gains. Dollar-yen last at high seen March 22 at 2,056.60, the 0.9% expected) and the JPY Y113.48 compared with a Y113.45 S&P 500 was up 13.6%. Traders see consequently weakened against the US close last night. It traded a range initial S&P 500 support at 2,005- USD, gold drifting lower over the of Y113.23 to Y113.66 through the 2,010 (March 15-16 lows). commensurate period. The PBoC morning today. Aussie-dollar marked sets today's Yuan Central Parity a $0.7537 to $0.7566 range today US TSYS: It appears that quarter- Rate at 6.5060 (vs 6.5232 yesterday) and was last at $0.7569, vs. $0.7545 end/month-end/Japanese fiscal year- while the Shanghai Composite Index overnight. Euro-dollar last at $1.1199 end is keeping the market devoid of opened -0.04% lower (2,956.71) and in a $1.1184 to $1.1202 range so far. any meaningful flows traders say, was -1.13% lower (2,924.45) at 0330 The pair closed at $1.1196 last night with the market easing to session GMT. Volume in the COMEX April in the US. lows on light volumes. Volumes gold contract (GCJ6) is still remain low with cash only seeing marginally in excess of June (GCM6) some ~$2.17 bln change hands with ahead of First Notice Day on April US INDEX FUTURES: US 10yr futures currently down 5.5-ticks 1st, while July NYMEX platinum index futures are trading slightly at 129-075. (PLN6) has edged ahead of April higher despite Asian equity markets (PLJ6). posting modest losses, with the JAPAN STOCKS: Japanese stocks market awaiting Janet Yellen's have rebounded from their opening OIL: WTI crude oil futures for May'16 speech later in the day. Currently the lows to close for lunch only slightly delivery last down $0.17 at $39.22 Jun'16 e-mini S&P futures are lower on the session. The early per barrel, after a $39.15 to $39.48 trading up 1.50 points at 2,029.25, weakness was due to a number of range in Asia today, on very low the Jun'16 e-mini Nasdaq futures are Topix companies going ex- volume ahead of the crucial Payrolls trading up 3.50 points at 4,393.00, today, with Bloomberg data noting data in the US this week. Despite while the Jun'16 e-mini Dow futures that some 1505 of the 1931 Indonesia agreeing to join in the are trading up 5 points at 17,453. companies in the Topix index went Doha meeting of producers next ex-dividend which equates to a month (April 17th), a more pressing US STOCKS CLOSE: US stocks negative 13.2-point impact on the concern is the expectation of another have struggled all day closed mixed index. The Nikkei has closed for rise in the weekly DOE/EIA inventory Monday. The DJIA closed up 0.11% lunch down 0.16% or 27.83 points at data Wednesday. The $40 mark at 17,535.39, the Nasdaq Composite 17,106.54, while the Topix is down remains a pivot point and for now is down 0.14% at 4,766.787 and the 0.28% or 3.91 points at 1,377.94. capping rallies as seen Monday. S&P 500 closed up 0.05% at . Support remains a distant mark 2,037.05. around the $35 area.

Technical Analysis

BUND: (M16) Pressuring Key Resistance

*RES 4: 165.83 High Mar 2 (continuation) *RES 3: 164.00 Monthly High Feb 29 *RES 2: 163.97 Bollinger band top *RES 1: 163.40 High Mar 10

*PREVIOUS CLOSE: 163.04

*SUP 1: 162.19 Low Mar 21 *SUP 2: 161.80 High Mar 16 now support *SUP 3: 161.72 Rising daily trend line *SUP 4: 161.12 55-DMA

*COMMENTARY: Having remained supported around the 162.19 level last week has provided bulls with a fresh base that sees immediate pressure on the 163.40 resistance level and bulls firmly focused on the 163.40-00 region. Daily studies still have room to move before becoming O/B. Bears now need a close below 162.19 to ease bullish pressure and below the rising daily trend line to shift immediate focus back to 160.81-161.12.

EUROSTOXX: 2951.13 Support Key Today

*RES 4: 3198.84 61.8% Fibonacci retracement 3524.04-2972.73 *RES 3: 3195.79 High Jan 5 *RES 2: 3130.46 High Jan 7, 100-DMA *RES 1: 3089.58 High Mar 17

*PREVIOUS CLOSE: 2986.73

*SUP 1: 2959.34 55-DMA *SUP 2: 2951.13 High Feb 26 now support *SUP 3: 2914.53 Bollinger band base *SUP 4: 2879.60 Low Feb 29

*COMMENTARY: The index closed the week on a heavy note with immediate focus on the 2951.13-2959.34 region where the 55-DMA is located. Bears continue to look for a close below 2951.13 to confirm a break of the 55-DMA and to shift overall focus back to tests of the 2016 low (2672.73) although initial focus with shift to the 2879.60 support. Bulls now need a close above the 100-DMA to reconfirm a bullish bias and initially target 3195.79-3253.88.

Eurex Futures Market Close

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