03 08 EU PRE OPEN

INDICES
Friday, European stocks were broadly lower. The Stoxx Europe 600 Index dropped 0.89%, Germany's DAX 30 fell 0.54%, France's CAC 40 shed 1.43%, and the U.K.'s FTSE 100 lost 1.54%.

EUROPE ADVANCE/DECLINE
66% of STOXX 600 constituents traded lower or unchanged Friday.
28% of the shares trade above their 20D MA vs 30% Thursday (below the 20D moving average).
44% of the shares trade above their 200D MA vs 45% Thursday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.36pt to 26.66, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Financial Services, Utilities
3mths relative low: Telecom., Energy

Europe Best 3 sectors
real estate, financial services, technology

Europe worst 3 sectors
automobiles & parts, construction & materials, travel & leisure


INTEREST RATE
The 10yr Bund yield fell 4bps to -0.54% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -19bps (above its 20D MA).


ECONOMIC DATA
FR 08:50: Jul Markit Manufacturing PMI final, exp.: 52.3
GE 08:55: Jul Markit Manufacturing PMI final, exp.: 45.2
EC 09:00: Jul Markit Manufacturing PMI final, exp.: 47.4
UK 09:30: Jul Markit/CIPS Manufacturing PMI final, exp.: 50.1
FR 10:00: Jul New Car Registrations YoY, exp.: 1.2%
FR 14:00: 12-Mth BTF auction, exp.: -0.56%
FR 14:00: 3-Mth BTF auction, exp.: -0.57%
FR 14:00: 6-Mth BTF auction, exp.: -0.56%


MORNING TRADING
In Asian trading hours, strengthened further, as EUR/USD kept trading at levels below the key 1.1800. GBP/USD remained capped by the 1.3100 level. USD/JPY ran up to a high of 106.43 before retreating to levels below 106.00.

Spot gold was little changed at $1,973 an ounce.


#UK - IRELAND#
GlaxoSmithKline, a global healthcare company, announced that it and French drug firm Sanofi are in advanced discussions with the European Commission for the supply of up to 300 million doses of a COVID-19 vaccine. The Company added: "The vaccine candidate developed by Sanofi in partnership with GSK, is based on the recombinant protein-based technology used by Sanofi to produce an influenza vaccine, and GSK's established adjuvant technology. The doses would be manufactured in European countries including France, Belgium, Germany and Italy."


#GERMANY#
MTU Aero Engines, a German maker of aircraft engines, reported that 2Q net income slumped to 13 million euros (adjusted net income at 33 million euros) from 103 million euros in the prior-year period. 2Q Adjusted EBIT plunged 76.1% to 42 million euros on revenue of 776 million euros, down 30.2%.

From a daily point of view, the share price is stuck within a falling wedge since June. a break above the falling wedge, would call for a new up leg towards 187.75E and the horizontal resistance of March at 225E in extension. Alternatively, below 135E look for 118.75E and 97.75E in extension.


Source: GAIN Capital, TradingView


#FRANCE#
Societe Generale, France's third-largest bank, said that it swung to a 2Q net loss of 1.26 euros from a net income of 1.05 billion in the prior-year period. The Bank pointed out: "The Group's commercial cost of risk (expressed as a fraction of outstanding loans) amounted to 97 basis points in Q2 20, (...) or 1,279 million euros. (...) two non-cash exceptional items (...) a -684 million euros expense in respect of the goodwill impairment of the Global Markets & Investor Services CGU and a -650 million euros expense in respect of the impairment of deferred tax assets."


#SPAIN#
Santander, a major Spanish bank, said it is facing a potential Consumer Financial Protection Bureau enforcement action. Details of the potential violations are not available.


#BENELUX#
Heineken, a major Dutch brewer, reported that it swung to a 1H net loss of 297 million euros from a net income of 936 million euros in the prior-year period. 1H adjusted operating profit slumped to 827 million euros (a 53% organic decline on year) on revenue of 9.24 billion euros (down 16% organically). The Company pointed out that revenue and expenses were significantly impacted by COVID-19. It proposed not paying an interim dividend.


#ITALY#
Ferrari: 2Q results expected


#SWITZERLAND#
Novartis, a Swiss maker of pharmaceutical products, announced that the European Commission has granted the approval for Cosentyx (secukinumab) for the treatment of 
moderate-to-severe plaque psoriasis in children and adolescents.

Roche, a Swiss drug giant, reported that the European Commission has granted conditional marketing authorisation for Rozlytrek (entrectinib) for the treatment of patients with solid tumours expressing a neurotrophic tyrosine receptor kinase (NTRK) gene fusion.