EU indices mixed | TA focus on Aveva

,

European stocks report | Aveva | Daimler | Veolia | KPN...

Charts (1)

INDICES
Friday, European stocks - except for the Ibex 35 - remained buyed. The Stoxx Europe 600 Index rose 0.55%, France's CAC 40 rose 0.71% and the U.K.'s FTSE 100 added 0.65%, while Germany's DAX 30 was little changed.

EUROPE ADVANCE/DECLINE
58% of STOXX 600 constituents traded higher Friday.
73% of the shares trade above their 20D MA vs 68% Thursday (above the 20D moving average).
63% of the shares trade above their 200D MA vs 61% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.74pt to 22.24, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Travel & Leisure, Industrial
3mths relative low: none

Europe Best 3 sectors
travel & leisure, technology, basic resources

Europe worst 3 sectors
automobiles & parts, banks, construction & materials


INTEREST RATE
The 10yr Bund yield fell 3bps to -0.52% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -19bps (above its 20D MA).


ECONOMIC DATA
FR 14:00: 12-Mth BTF auction, exp.: -0.61%
FR 14:00: 3-Mth BTF auction, exp.: -0.64%
FR 14:00: 6-Mth BTF auction, exp.: -0.61%


MORNING TRADING
In Asian trading hours, EUR/USD eased to 1.1817 and GBP/USD retreated to 1.3027. USD/JPY slipped further to 105.56. This morning, official data showed that Japan's core machine orders grew 0.2% on month in August (-0.4% expected) and PPI fell 0.8% on year in September (-0.5% expected).

Spot gold fell to $1,926 an ounce.


#UK - IRELAND#
Aveva, an IT company, posted a 1H trading update: "The Group expects to report revenue of approximately £333 million for the first half of FY 2021. This is broadly in-line with the Group's plan for the shape of the year, (...) Adjusting for the previously disclosed early renewal of a significant Global Account contract, which caused a £20 million pull forward of revenue into September 2019, the organic constant currency revenue decline was 7%. Without this adjustment, the decline was 12%. (...)  the Board expects to see solid revenue growth in the second half and remains confident in the full year outlook."

From a daily point of view, the stock is excepting to bounce back on a potential rising trend line. Moreover, prices are supported by a key support on the RSI at 46%, while the 50 DMA plays a support role. Above 4600p, targets are set at the previous all-time high at 5365p and 6000p in extension.


Source: GAIN Capital, TradingView

Spectris, a supplier of precision instrumentation and controls, was upgraded to "equalweight" from "underweight" at Morgan Stanley.


#GERMANY#
Daimler, an automobile group, was upgraded to "buy" from "sell" at Goldman Sachs.


#FRANCE#
Veolia, a resource management group, said it is appealing the decision by a court in Paris, which ordered the suspension of the operation of the company's purchase of a stake in Suez from Engie , until it has informed and consulted workers' groups.

Eiffage, a civil engineering construction group, was upgraded to "buy" from "hold" at Societe Generale.


#BENELUX#
KPN, a Dutch landline and mobile telecommunications company, may be offered a takeover deal from European private equity firm EQT, reported Bloomberg citing people familiar with the matter.

Altice Europe, a telecommunications group, was upgraded to "equalweight" from "underweight" at Morgan Stanley.


#SWEDEN#
EQT, a private equity firm, is considering acquiring Dutch landline and mobile telecommunications company KPN, which has a market value of about 9.4 billion euros, 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.