Friday, European stocks were modestly higher. The Stoxx Europe 600 Index rose 0.29%, Germany's DAX 30 climbed 0.66%, and both France's CAC 40 and the U.K.'s FTSE 100 edged up 0.1%.
65% of STOXX 600 constituents traded higher Friday.
50% of the shares trade above their 20D MA vs 45% Thursday (below the 20D moving average).
49% of the shares trade above their 200D MA vs 47% Thursday (below the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.74pt to 24.2, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Financial Services, Construction, Industrial
3mths relative low: none
Europe Best 3 sectors
telecommunications, technology, media
Europe worst 3 sectors
basic resources, energy, banks
The 10yr Bund yield fell 3bps to -0.53% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -17bps (above its 20D MA).
FR 14:00: 12-Mth BTF auction, exp.: -0.56%
FR 14:00: 6-Mth BTF auction, exp.: -0.59%
FR 14:00: 3-Mth BTF auction, exp.: -0.57%
In Asian trading hours, EUR/USD edged up to 1.1793 and GBP/USD bounced to 1.3072. USD/JPY retreated to 105.78. AUD/USD climbed to 0.7166. This morning, official data showed that China's CPI grew 2.7% on year in July (+2.6% expected), while PPI dropped 2.4% (-2.5% expected).
Spot gold fell further to $2,029 an ounce.
#UK - IRELAND#
Rolls-Royce's, an engineering group, credit rating was downgraded to "BB+", a junk rating, from "BBB-" at Fitch, outlook "Negative". The rating agency said: "The downgrade reflects expectations of a materially greater free cash outflow for 2020 of around GBP4.1 billion. We therefore forecast gross debt to rise in 2020-2023, resulting in leverage metrics remaining outside of their sensitivities until at least 2022. All these result in a financial profile that is no longer representative of an investment-grade rating which, combined with a weakening business profile driven by an under-performing and structurally smaller civil aerospace division, have led to our assessment of a 'BB+' rating."
Ocado Group, an online grocery retailer, was downgraded to "underweight" from "equalweight" at Barclays.
Suez, a water and waste company, is in early talks to sell its 3.5 billion dollars waste management business to German retailer Schwarz Group, reported Bloomberg citing people familiar with the matter.
Atlantia, an infrastructure group, said it has started exclusive talks with private equity firm Partners Group for the sale of a 49% stake in Telepass.
From a daily point of view, the share formed a bullish abandonned baby between the 10th and 15th July on strong volume, developing a short-queeze psychology. Above 11.2E look for the horizontal resistance at 17.8E and 19.4E in extension.
Source: GAIN Capital, TradingView
Tenaris, a steel pipes manufacturer, was downgraded to "underweight" from "equalweight" at Barclays.
Roche, a multinational healthcare company, said a phase 3 trial of etrolizumab failed to meet its primary endpoint versus placebo as maintenance therapy in people with ulcerative colitis. Meanwhile, the company reported that the U.S. Food and Drug Administration has approved Evrysdi for the treatment of spinal muscular atrophy in adults and children 2 months of age and older.
Equinor, a Norwegian energy company, announced the appointment of Anders Opedal, currently Executive Vice President Technology, Projects and Drilling, as new president and CEO from November 2.
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.