EU indices mixed | TA focus on Continental


European stocks report | TUI | Continental | Amadeus | Nexi...

Stocks (2)

Yesterday, European stocks were slightly up. The Stoxx Europe 600 Index closed flat+, Germany's DAX 30 gained 0.61%, France's CAC 40 added 0.48% and the U.K.'s FTSE 100 was up 0.12%.

56% of STOXX 600 constituents traded higher yesterday.
67% of the shares trade above their 20D MA vs 61% Monday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 58% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.06pt to 25.21, a new 52w high.

3mths relative high: Media
3mths relative low: Energy

Europe Best 3 sectors
3mths relative high: Media, Industrial
3mths relative low: none

The 10yr Bund yield rose 3bps to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -19bps (above its 20D MA).

GE 07:00: Aug Industrial Production MoM, exp.: 1.2%
FR 07:45: Aug Current Account, exp.: E-6.2B
FR 07:45: Aug Balance of Trade, exp.: E-6.99B
UK 08:30: Sep Halifax House Price Idx MoM, exp.: 1.6%
UK 08:30: Sep Halifax House Price Idx YoY, exp.: 5.2%
EC 09:00: ECB Non-Monetary Policy Meeting
UK 09:30: Q2 Labour Productivity QoQ final, exp.: -1.3%
GE 10:40: 10-Year Bund auction, exp.: -0.5%
EC 13:10: ECB President Lagarde speech

In Asian trading hours, EUR/USD slipped to 1.1730 while GBP/USD remained subdued at 1.2885 USD/JPY was little changed at 105.67.

Spot gold rebounded slightly to $1,881 an ounce.

TUI, a travel and tourism company, announced that Sebastian Ebel, currently an executive board member, will succeed Brigit Conix as CFO with effect from January 1, 2021.

BHP Group, a giant metal group, is in talks with Tesla over a nickel supply deal, reported Bloomberg citing people familiar with the matter.

Glencore, a commodity trading and mining company, was upgraded to "neutral" from "underweight" at JPMorgan.

Continental, an automotive parts manufacturer, may sell some of its divisions as part of a restructuring plan, according to newspaper Frankfurter Allgemeine Zeitung.
From a weekly point of view, the stock has broken above a declining trend line drawn since January 2018. In addition, the share is trading above its one-year exponential moving average, while the Relative Strength Index crossed a strong resistance at 56.2%. Above the support at 79E, targets are set at the horizontal resistance at 115.6E and 133.1E in extension.

Source: TradingView, GAIN Capital

Hapag-Lloyd, a shipping and container transportation company, was upgraded to "buy" from "hold" at Deutsche Bank.

Amadeus, a Spanish IT service provider, was downgraded to "reduce" from "buy" at HSBC.

Telecom Italia's, a telecommunications group, "BB+" credit rating outlook was revised to "Negative" from "Stable" by S&P Global Ratings. The rating agency said: "We expect lower revenue and earnings at Telecom Italia (TIM) will cause S&P Global Ratings-adjusted leverage to rise to 4.2x in 2020, outside our trigger for the rating."

Sika, a specialty chemical company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

Build your confidence risk free

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.