EU Energy Sector Specialist Commentary: Oil • O&G • Utilities • Infrastructure

Research evidence excerpt

EU Energy Sector Specialist Commentary: Oil • O&G • Utilities • Infrastructure

, Saudi Arabia struck Yemen's Hodeidah port, sending FP

~$1 higher. Heading into the weekend, leaning bullish, as I believe further escalation remains on the table even amid the

possibility of a return to negotiations.

Markets - SPX was down 44bps from the European close to finish 5bps higher on the day (7,411). The index opened and traded

around unchanged for the first 1.5 hours, to then rally, but surrendered gains into the close as Nasdaq underperformed. Software

vs semis +8.75% and L/S momentum – 5.3%. Overall volumes tracked 19% below 30 dma as oil and bitcoin sold off with

Treasuries moving higher. Real estate, materials and staples were the best sectors with tech the worst. JPM cash was better for

sale with Tech, consumer discretionary and healthcare leading the skew. Industrials, financials and staples were better to buy. The

press is looking at the pause in attacks in the Middle East, Saudi’s strikes on Yemen and China’s industrial profits. Overnight USD

is down, treasuries have rallied and commodities are higher except for oil. Today in US we have durable goods and Dallas Fed

manufacturing survey. In Europe we have Eurozone M3 and German IFO.Asia is higher except for Taiwan. Tech is leading the

way in HK and Australia. Elsewhere Chinese healthcare, Korean communication services and Japanese real estate are strong. Our

flow is better for sale , on light volumes, with Japan, India and Australia leading the skew. Korea and HK are better to buy. In the

sectors we are selling industrials and materials versus buying energy and consumer discretionary.MOVES VS FRIDAY'S

EUROPEAN CLOSE; S&P minis +25bps, Nasdaq minis +36bps, Nikkei fut -6bps, FTSE futs +18bps, Eurostoxx futs +71bps; US