Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index increased 0.66%, Germany's DAX 30 added 0.18%, France's CAC 40 rose 0.32%, and the U.K.'s FTSE 100 jumped 1.32%.
70% of STOXX 600 constituents traded higher yesterday.
59% of the shares trade above their 20D MA vs 55% Monday (above the 20D moving average).
58% of the shares trade above their 200D MA vs 57% Monday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.45pt to 22.12, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Retail, Pers. & House. Goods
3mths relative low: Banks
Europe Best 3 sectors
retail, basic resources, health care
Europe worst 3 sectors
banks, financial services, automobiles & parts
The 10yr Bund yield was unchanged to -0.48% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -21bps (above its 20D MA).
UK 07:00: Aug Retail Price Idx YoY, exp.: 1.6%
UK 07:00: Aug Retail Price Idx MoM, exp.: 0.5%
UK 07:00: Aug PPI Input YoY, exp.: -5.7%
UK 07:00: Aug PPI Input MoM, exp.: 1.8%
UK 07:00: Aug PPI Output YoY, exp.: -0.9%
UK 07:00: Aug PPI Output MoM, exp.: 0.3%
UK 07:00: Aug Inflation Rate MoM, exp.: 0.4%
UK 07:00: Aug Core Inflation Rate YoY, exp.: 1.8%
UK 07:00: Aug Inflation Rate YoY, exp.: 1%
UK 07:00: Aug PPI Core Output MoM, exp.: -0.1%
UK 07:00: Aug PPI Core Output YoY, exp.: 0.1%
UK 07:00: Aug Core Inflation Rate MoM, exp.: 0.4%
EC 10:00: Jul Balance of Trade, exp.: E21.2B
GE 10:40: 30-Year Bund auction, exp.: -0.05%
In Asian trading hours, EUR/USD was little changed at 1.1848 while GBP/USD extended its rally to 1.2906. USD/JPY fell further to 105.30.
Spot gold rebounded to $1,958 an ounce.
#UK - IRELAND#
Redrow, a housebuilder, reported full-year results: "Turnover for the year was down by 37% to £1.34bn (2019: £2.11bn). (...) The significantly reduced turnover combined with substantial costs attributable to COVID-19 and impairments associated with the decision to scale back the London business, resulted in a loss in the second half and pre-tax profits reducing to £140m (2019: £406m) for the year. (...) The Group secured 4,222 private reservations in the year with a value of £1.61bn (2019: £1.67bn). As a result of the Group's strong sales performance earlier in the year, and the significant shortfall in legal completions due to the COVID-19 lockdown, the Group entered the new financial year with a record order book of £1.42bn (2019: £1.02bn)."
Plus500, an online trading services provider, posted a trading update: "The operational momentum achieved during H1 2020 has continued into the second half to date, with Plus500 making excellent progress across all key commercial and financial performance metrics. (...) Revenue, in particular Customer Income, has remained strong in H2 2020 to date, supported by further growth in the Company's Active Customer base."
Wm Morrison Supermarkets, a supermarket chain, was downgraded to "underweight" from "neutral" at JPMorgan.
RSA Insurance Group, a general insurance company, was upgraded to "buy" from "hold" at HSBC.
From a daily point of view, the share was supported by a rising channel drawn since June. The September 15th trading day has allowed the title to break above the channel's upper boundary (with increasing volumes). Furthermore, the 50 DMA plays a support role. Above 440p (key overlap threshold), targets are set at 535.5p and then the previous top of February 2020 at 585.5p.
Source: GAIN Capital, TradingView
Brenntag, a chemical distribution company, said it now expects full-year operating EBITDA to be between 1.00 billion euros and 1.04 billion euros, compared with 1.00 billion euros in the prior year.
Casino, a mass-market retail group, was downgraded to "neutral" from "overweight" at JPMorgan.
Inditex, a Spanish clothing company, announced that 2Q net income declined 73.8% on year to 214 million euros and EBITDA dropped 44.4% to 1 billion euros on net sales of 4.7 billion euros, down 31.9%. The company said "during the second quarter 2020 the Group's performance saw a turning point laying the foundation for a return to normal trading conditions".
Bankia, a Spanish bank, was downgraded to "neutral" from "buy" at Citigroup.
Ahold Delhaize, a grocery retail company, was upgraded to "neutral" from "underweight" at JPMorgan.
Svenska Handelsbanken, a Swedish bank, was upgraded to "overweight" from "underweight" at Morgan Stanley.
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