Europe is in the red today as the scent of rotation hangs in the air. We've seen a move into cyclicals /value/post-covid recovery names funded by profit taking in recent winners. It is now four days in a row that Cyclicals have outperformed Defensives, making a new 6m relative high. Despite the sea of red, there lacks a sense of panic given volumes have remained light. Keep an eye on the VIX – testing 30 today (key resistance we are watching, 30.33 last), next target at 40. Support levels to watch include 5778 on the FTSE 100, 12341 / 12253 on the DAX and 6500 on the IBEX. Also note a weaker dollar is helping Basic Resources stocks and the sector is the only one trading up (even if just about, +0.2%).
The content on this site is available to all Redburn clients as part of Redburn Execution’s standard service. It is not considered substantive research and there are no commercial implications to viewing these pages.
Please enter your email address below to view this page. If you are still unable to access the page, please speak to your account manager.