Equities Update

Volumes remain appalling and the market clearly lacks a theme to trade on. As the market stalls, we think a new theme is developing in equities. We’ve rallied up here believing “Fed is done” and with futures pricing in cuts this year, “slowing growth” might take center stage.

Housing data is very important as roughly 70 percent of US GDP is consumer-related. US consumers have been on a 4-year spending spree funded by home equity and so if housing continues to weaken, cyclical groups stand to underperform.

DAX: support at 5750, a close below targets 5550. Must break 5847 to rally further. Daily technicals bearish.
FTSE: 5880 should continue to offer support. If broken, 5650 is possible. Daily technical bullish.

Watch out for US existing home sales data at 14.00 GMT today.