EU indices up | TA focus on L'Oreal

,

European stocks report | AstraZeneca | Infineon Technologies | Volkswagen | EQT...

Stocks (2)

INDICES
Friday, European stocks were broadly lower. The Stoxx Europe 600 slipped 0.20%, Germany's DAX dropped 0.70%, France's CAC 40 fell 0.46%, while the U.K.'s FTSE 100 was little changed.

EUROPE ADVANCE/DECLINE
62% of STOXX 600 constituents traded lower or unchanged Friday.
64% of the shares trade above their 20D MA vs 66% Thursday (above the 20D moving average).
59% of the shares trade above their 200D MA vs 59% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.76pt to 25.62, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Industrial
3mths relative low: Food & Beverage


INTEREST RATE
The 10yr Bund yield was unchanged to -0.64% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -16bps (above its 20D MA).

ECONOMIC DATA
GE 08:00: Sep Current Account, exp.: E16.5B
GE 08:00: Sep Imports MoM s.a, exp.: 5.8%
GE 08:00: Sep Exports MoM s.a, exp.: 2.4%
GE 08:00: Sep Balance of Trade s.a, exp.: E15.7B
GE 08:00: Sep Balance of Trade, exp.: E12.8B
FR 15:00: 3-Mth BTF auction, exp.: -0.68%
FR 15:00: 12-Mth BTF auction, exp.: -0.65%
FR 15:00: 6-Mth BTF auction, exp.: -0.65%


MORNING TRADING
In Asian trading hours, EUR/USD extend its rally to 1.1890 and GBP/USD rose to 1.3180. USD/JPY edged up to 103.40.

Spot gold climbed to $1,956 an ounce.


#UK - IRELAND#
AstraZeneca, a pharmaceutical giant, said its Calquence has been approved in the E.U. for the treatment of chronic lymphocytic leukaemia.

Aviva, an international insurance firm, formed a bullish gap on a daily chart last Friday (November 6).

Anglo American, a mining company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.


#GERMANY#
Infineon Technologies, a semiconductor manufacturer, reported a 4Q net income of 109 million euros, compared with a net loss of 128 million euros in the prior quarter, and revenue rose 15% on quarter to 2.49 billion euros. The company sees 1Q 2021 revenue of 2.4 - 2.7 billion euros and full-year 2021 revenue of around 10.5 billion euros (plus or minus 5%).

Volkswagen's, an automobile group, Traton announced that it has agreed to acquire the remaining shares of Navistar not already owned for 44.50 dollars per share in cash, representing approximately 3.7 billion dollars.


#FRANCE#
Danone, a French food-processing firm, marked an INSIDE BAR last Friday (November 6) suggesting short-term bullishness ahead.

BioMerieux, a specialist in the diagnosis of infectious diseases, closed ABOVE its 21-Day Moving Average last Friday (November 6) for the first time since October 19.  

L'Oreal, a personal care company, was upgraded to "equalweight" from "underweight" at Morgan Stanley.

From a technical point of view, prices have recently escaped from a symmetrical triangle in place since June 2020. Furthermore, the stock has pulled back on the pattern's upper boundary, while the 6-month moving average has supported the stock's rebound. Above 275E, targets are set at 330E and 350E in extension.


Source: TradingView, GAIN Capital

#SCANDINAVIA#
EQT, an investment group, is planning an IPO for its 5 billion euros German software company SUSE, reported Bloomberg citing people familiar with the matter.

More from Equities

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

GAIN Capital UK Limited (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.