Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index dropped 1.4%, Germany's DAX 30 lost 1.0%, France's CAC 40 slid 1.6% and U.K.'s FTSE 100 was down 0.1%.
75% of STOXX 600 constituents traded lower or unchanged yesterday.
37% of the shares trade above their 20D MA vs 48% Monday (below the 20D moving average).
53% of the shares trade above their 200D MA vs 54% Monday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 0.53pt to 28.45, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Retail, Chemicals, Autos, Industrial
3mths relative low: Energy
Europe Best 3 sectors
automobiles & parts, real estate, retail
Europe worst 3 sectors
energy, banks, technology
The 10yr Bund yield rose 1bp to -0.46% (below its 20D MA). The 2yr-10yr yield spread rose 3bps to -21bps (above its 20D MA).
GE 10:40: Year Bund Auction 10
In Asian trading hours, EUR/USD rebounded slightly to 1.1773 while GBP/USD dropped further to 1.2954. USD/JPY fell below 106.00 level.
Spot gold retreated to $1,927 an ounce.
#UK - IRELAND#
Computacenter, a computer services provider, posted 1H results: "The Group's revenues increased by 1.5 per cent to £2,462.2 million (H1 2019: £2,427.0 million) and were 0.6 per cent higher in constant currency. The Group made a profit before tax of £72.4 million, an increase of 42.5 per cent (H1 2019: £50.8 million). (...) The diluted earnings per share ('EPS') increased by 36.4 per cent to 45.3 pence for the period (H1 2019: 33.2 pence). (...) We are therefore pleased to announce an interim dividend of 12.3 pence per share (H1 2019: 10.1 pence per share). Whilst the 2019 full-year dividend was not paid, we have continued with our normal policy that the interim dividend will be approximately one third of the previous year's full dividend."
From a chartist point of view, the share escaped from a recent consolidation area. Furthermore, there is a positive participation on volumes. Above the 50DMA at 1910p look for the previous all-time high at 2324p and 2550p in extension.
Source: GAIN Capital, TradingView
Avon Rubber, a manufacturer of respiratory protection equipment, announced that it has agreed to acquire Team Wendy, a supplier of helmets and helmet liner and retention systems, for 130 million dollars on a cash-free and debt-free basis.
Verbund, Austria's major electricity provider, was downgraded to "reduce" from "hold" at HSBC.
Scor, a reinsurance company, said "Life claims are emerging better than expected and better than booked at H1 2020", and it is "very positive on the new P&C market conditions and is expecting strong growth with positive pricing dynamics".
Airbus, an aircraft manufacturer, was downgraded to "equalweight" from "overweight" at Morgan Stanley.
Sabadell, a Spanish bank, is considering strategic options, including asset disposals and merger, reported Bloomberg citing people familiar with the matter.
Ferrovial, a Spanish infrastructure group, was downgraded to "neutral" from "overweight" at JPMorgan.
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.