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

Research evidence excerpt

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

ventories remain

distressed and Cushing approaches operational minimums with inventories at 18.5mb.

Markets - SPX was up ¾ % from the European close to finish 1.75 higher on the day (7,437). The index opened higher, to

consolidate over the next 2 hours, to then rally for the rest of the day to close near to the intraday highs. L/S momentum snapped

back +10% as software vs semis -8.5%. Overall volumes tracked 2% above 30 dma as treasuries rallied with both USD and oil

lower. Tech was the best performing sector with Healthcare, communication services and staples the worst. JPM cash was

considerably better to buy with tech, industrials and financials leading the skew. Healthcare, materials and staples were better for

sale. After the close Amazon +9.5%, Apple -6.3% and Reddit -10.5%. The press looks at the apparent disarmament of Hamas, the

clearing event in AI stocks and China PMIs. Overnight USD has steadied, treasuries have remained well bid and commodities are

down. Today in US we have Chicago PMIs, ECIs and Michigan confidence survey. In Europe we have Eurozone CPI.Asia

markets are higher with the exception of HK. Tech is leading the way in Japan, Taiwan, Korea and China. Australia materials are

also strong. Our flow is better to buy, on strong volumes, with Taiwan, Japan and India leading the skew. HK, China and ASEAN

are better for sale. In the sectors we are buying tech, consumer discretionary, industrials and financials versus selling staples and

energy

MOVES VS YESTERDAY'S EUROPEAN CLOSE; S&P minis +1%, Nasdaq minis +2%, Nikkei fut +2%, FTSE futs +47bps,

Eurostoxx futs +68bps; US Momentum +4bps, US Value -18bps; DXY +19bps, EUR -10bps, GBP -1bps, CHF -12bps, CNH