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

A Eurex publication focused on European financial markets, produced by MNl Morning Briefing January 20th 2017 Friday throws up a muted data calendar, but the main feature of the day comes late in the European afternoon, with the inauguration of the new President in the US. The European calendar gets underway at 0700GMT, with the publication of the German December PPI data. At 0900GMT, the ECB Survey of Professional Forecasters will be published. The UK December retail sales data will be published at 0930GMT. Retails sales will almost certainly exert a positive influence on fourth quarter GDP when data for the month of December 2016 is published. Accounting for 5.6% of UK GDP, retail sales would have to fall by an unprecedented 6.9% mom for Q4 sales volumes to be unchanged from that of Q3. Analysts expect sales, including automotive fuel, to have contracted between November and December, pencilling in growth of -0.4% mom. Excluding fuel, they also saw sales volumes down by 0.4% in December. On the year, however, they forecast sales volumes to be up 6.6% on the year in December and that of sales excluding fuel to be up 7.5% yoy. In November, sales volumes were hampered by reduced fuel purchases with consumers put off hitting the pumps due to higher prices. The implied deflator for automotive fuel increased by an annual rate of 7.1% in November, the third consecutive increase, ending a run of negative outturns stretching back as far as late 2013. As such, fuel sales were down 2.2% between November and December and up just 0.4% on the year. To put this into perspective, fuel sales volumes have been expanding at an average rate of 7.1% yoy each month in 2016. Consumer spending has in part been propped up by double digit growth in consumer credit, with repayment rates at historic lows. Global Economic Trading Calendar Across the Atlantic, the calendar gets underway with the release of the Canadian CPI and retail trade data. At 1400GMT, Philadelphia Federal Reserve Bank President Harker discusses the economic outlook at New Jersey Bankers Association 6th Annual NJ Economic Leadership Forum in Somerset, N.J., with media Q&A The NY Fed GDP Nowcast is set for 1615GMT. The main event of the day comes at 1700GMT, when Donald J Trump IS inaugurated as 45th President of USA. He will give his first speech as President straight after. At 1800GMT, San Francisco Federal Reserve Bank President John C. Williams gives the closing remarks at the Bay Area Council 10th Annual Economic Forecast in San Francisco Calif., with audience Q&A. --

Markets SNAPSHOT: Below gives levels of key markets ahead of London session:- Xetra-DAX called down 2pts at the open~ - FTSE-100 called up 12pts- Wall Street called up 17pts - US 10-year note yield trades down 2.2bp to 2.452% - Bunds called up 18 ticks to 163.21 - Spot euro-dollar is up 0.15 cents, currently at $1.0679- Spot dollar-yen opens up 0.15 cents, currently at Y114.71 - Brent crude oil rises 0.15 cents, currently at $54.31 - Spot gold rises 2.66 dollars, currently at $1207.51*China Q4 GDP +6.8%, Above Expected; Output/Invest Weaker *YELLEN: WAGE GAINS SUBDUED, PICKING UP ONLY MODESTLY RECENTLY *ECON GROWTH UNLIKELY TO PICK UP MARKEDLY IN NEAR TERM US DEALER POSITIONS IN US TSYS +$21.1B TO $98.0B JAN 11 WK CHINA RATES: The Ministry of Finance announced it sold CNY10 billion in 91-daytreasury bills at a yield of 2.5218% in an auction Friday, which was higher than the last auction result of 2.5145% last Friday. CHINA RATES: The seven-day repo rate average was 2.3948% after opening at 2.25%,lower than Thursday's average of 2.6336%. The overnight repo average was2.3323%, lower than Thursday's overnight average 2.5578%. FOREX: Following the rally in the USD that received support from Fed Chair Yellen's comments early Thursday, the USD is remains gently offered with traders remaining nervous ahead of Trump's inauguration. US!0yr yields have drifted a little lower from the open and were last at 2.454 and on the lows for the day which isn't helping the USD. The DXY is also looking a little heavy and last at100.890 after opening at 101.170. The usual Asian morning retracement was noted as traders squared some positions and others looked to take advantage of better levels. Fed Chair Yellen's comments were likely to have been a factor in the USD regaining an offered tone as markets may not have liked references to adjusting monetary policy gradually and unsustainable deficits on the horizon. Japan Finance Minister Aso was noted commenting on the undesirability of rapid currency fluctuations but the comments were not market moving. The Nikkei has been relatively subdued having traded a 19040-19148 range and last at 19091.84 November..

Technical Analysis BUND: (H17) 162.47 Support Confirms Significance *RES 4: 164.48 100-DMA *RES 3: 163.92 Hourly resistance Jan 17 *RES 2: 163.58 Hourly resistance Jan 18 *RES 1: 163.15 Hourly resistance Jan 18 *PREVIOUS CLOSE: 163.04 *SUP 1: 162.62 Low Jan 19 *SUP 2: 162.47 Low Jan 9 *SUP 3: 162.04 Low Dec 19 *SUP 4: 160.80 Low Dec 12 *COMMENTARY: The correction lower from the failed attempt to challenge the 100-DMA resulted in a dip below the 55-DMA (162.92) only to bounce from ahead of the 162.47 support. Bears still need a close below 162.47 to end bullish hopes and confirm a return in focus to the 159.91-160.80 region. Bulls continue to look for a close above 163.92 to see immediate shift to the 100-DMA. Overall bulls need a close above 165.26 to confirm a bullish bias and initially target 166.84. EUROSTOXX: Bollinger Bands Hint At Breakout *RES 4: 3345.20 High Dec 17 2015 *RES 3: 3334.44 2017 High Jan 3 2017 *RES 2: 3326.31 High Jan 9 *RES 1: 3306.12 High Jan 19 *PREVIOUS CLOSE: 3290.33 *SUP 1: 3259.27 Low Dec 22 *SUP 2: 3239.87 Low Dec 16 *SUP 3: 3222.43 100-WMA *SUP 4: 3206.82 High Dec 12 now support *COMMENTARY: Oscillation around the 21-DMA (3295.75) continues with bulls now needing a close above 3306.12 to see focus return to the 3326.31-3345.20 region. Bulls continue look for a close above 3345.20 to reconfirm a bullish bias and target 3524.04 Dec 2015 monthly highs. Initial support is now noted at 3282.53 with bears needing a close below to pressure the key 3259.77 with a close below needed to end bullish hopes and shift focus back to 3141.42-3178.88.

Eurex Exchange. An exchange for the better. As one of the world s leading derivatives exchanges we offer a broad range of international benchmark products. We operate the most liquid EUR fixed income derivatives markets, provide the broadest range of equity index derivatives worldwide and are the platform of choice for European equity derivatives. In addition, we cover derivatives on dividends, volatility and ETFs. All on one single platform. Innovative and reliable technology supplies about 400 participants and 7,500 traders in 35 countries with access to more than 2,000 products across nine traditional and alternative asset classes. Essential Macroeconomic and Market Intelligence MNI is the leading provider of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets. Our credibility for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of journalists in 12 bureaus across America, Asia, and Europe truly set us apart from other news sources. Our markets reporting staff includes former fixed-income and currency traders and strategists who know the markets, while our macroeconomic policy and data correspondents combine economics expertise with rigorous financial journalism. MNI is a wholly owned subsidiary of Hale Global Contact MNI: Nick Shamim, Managing Editor + 44 207 862 7494, nick.shamim@mni-news.com MNI Sales uksales@marketnews.com nysales@marketnews.com Eurex is part of Deutsche Börse Group.

Published by Eurex Frankfurt AG Mergenthalerallee 61 65760 Frankfurt / Main Germany Eurex Zürich AG Selnaustrasse 30 8021 Zurich Switzerland www.eurexchange.com ARBN Number Eurex Frankfurt AG ARBN 100 999 764 Eurex, 2016 Deutsche Börse AG (DBAG), Clearstream Banking AG (Clearstream), Eurex Frankfurt AG, Eurex Clearing AG (Eurex Clearing) as well as Eurex Bonds GmbH (Eurex Bonds) and Eurex Repo GmbH (Eurex Repo) are corporate entities and are registered under German law. Eurex Zürich AG is a corporate entity and is registered under Swiss law. Clearstream Banking S.A. is a corporate entity and is registered under Luxembourg law. U.S. Exchange Holdings, Inc. and International Securities Exchange Holdings, Inc. (ISE) are corporate entities and are registered under U.S. American law. Eurex Frankfurt AG (Eurex) is the administrating and operating institution of Eurex Deutschland. Eurex Deutschland and Eurex Zürich AG are in the following referred to as the Eurex Exchanges. All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof (other than certain trademarks and service marks listed below) are owned by DBAG and its affiliates and subsidiaries including, without limitation, all patent, registered design, copyright, trademark and service mark rights. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication DBAG, Clearstream, Eurex, Eurex Clearing, Eurex Bonds, Eurex Repo as well as the Eurex Exchanges and their respective servants and agents (a) do not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication. This publication is published for information purposes only and shall not constitute investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. Eurex and Eurex Clearing offer services directly to members of the Eurex exchanges respectively to clearing members of Eurex Clearing. Those who desire to trade any products available on the Eurex market or who desire to offer and sell any such products to others or who desire to possess a clearing license of Eurex Clearing in order to participate in the clearing process provided by Eurex Clearing, should consider legal and regulatory requirements of those jurisdictions relevant to them, as well as the risks associated with such products, before doing so. Eurex derivatives are currently not available for offer, sale or trading in the United States or by United States persons (other than EURO STOXX 50 Index Futures, EURO STOXX 50 ex Financials Index Futures, EURO STOXX Select Dividend 30 Index Futures, EURO STOXX Index Futures, EURO STOXX Large/Mid/Small Index Futures, STOXX Europe 50 Index Futures, STOXX Europe 600 Index Futures, STOXX Europe 600 Banks/Industrial Goods & Services/Insurance/Media/Travel & Leisure/Utilities Futures, STOXX Europe Large/Mid/Small 200 Index Futures, Dow Jones Global Titans 50 Index SM Futures (EUR & USD), DAX /MDAX /TecDAX Futures, SMIM Futures, SLI Swiss Leader Index Futures, MSCI World/Europe/ Europe Value/Europe Growth/Emerging Markets/Emerging Markets Latin America/Emerging Markets EMEA/Emerging Markets Asia/China Free/India/Japan/Malaysia/South Africa/Thailand/AC Asia Pacific ex Japan Index Futures, TA-25 Index Futures, Daily Futures on TAIEX VFutures, VSTOXX Futures, Gold and Silver Futures as well as Eurex agriculture, property and interest rate derivatives). Trademarks and Service Marks Buxl, DAX, DivDAX, eb.rexx, Eurex, Eurex Bonds, Eurex Repo, Eurex Strategy Wizard SM, Euro GC Pooling, FDAX, FWB, GC Pooling,, GCPI, MDAX, ODAX, SDAX, TecDAX, USD GC Pooling,VDAX, VDAX-NEW and Xetra are registered trademarks of DBAG. All MSCI indexes are service marks and the exclusive property of MSCI Barra. ATX, ATX five, CECE and RDX are registered trademarks of Vienna Stock Exchange AG. IPD UK Annual All Property Index is a registered trademark of Investment Property Databank Ltd. IPD and has been licensed for the use by Eurex for derivatives. SLI, SMI and SMIM are registered trademarks of SIX Swiss Exchange AG. The STOXX indexes, the data included therein and the trademarks used in the index names are the intellectual property of STOXX Limited and/or its licensors Eurex derivatives based on the STOXX indexes are in no way sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor its licensors shall have any liability with respect thereto. Dow Jones, Dow Jones Global Titans 50 Index SM and Dow Jones Sector Titans Indexes SM are service marks of Dow Jones & Company, Inc. All derivatives based on these indexes are not sponsored, endorsed, sold or promoted by Dow Jones & Company, Inc. Dow Jones & Company, Inc. does not make any representation regarding the advisability of trading or of investing in such products. Bloomberg Commodity Index SM and any related sub-indexes are service marks of Bloomberg L.P. All references to London Gold and Silver Fixing prices are used with the permission of The London Gold Market Fixing Limited as well as The London Silver Market Fixing Limited, which for the avoidance of doubt has no involvement with and accepts no responsibility whatsoever for the underlying product to which the Fixing prices may be referenced.pcs and Property Claim Services are registered trademarks of ISO Services, Inc. Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc. Taiwan Futures Exchange and TAIFEX are registered trademarks of Taiwan Futures Exchange Corporation. Taiwan Stock Exchange, TWSE and TAIEX are the registered trademarks of Taiwan Stock Exchange Corporation BSE and SENSEX are trademarks/service marks of Bombay Stock Exchange (BSE) and all rights accruing from the same, statutory or otherwise, wholly vest with BSE. Any violation of the above would constitute an offence under the laws of India and international treaties governing the same. The names of other companies and third party products may be trademarks or service marks of their respective owners.