Friday, European stocks closed mixed. The Stoxx Europe 600 was little changed, Germany's DAX gained 0.18%, France's CAC 40 added 0.33%, while the U.K.'s FTSE 100 dropped 0.36%.
54% of STOXX 600 constituents traded higher Friday.
86% of the shares trade above their 20D MA vs 87% Thursday (above the 20D moving average).
82% of the shares trade above their 200D MA vs 82% Thursday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.16pt to 23.14, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: Chemicals
Europe Best 3 sectors
insurance, banks, automobiles & parts
Europe worst 3 sectors
media, personal & household goods, telecommunications
The 10yr Bund yield fell 3bps to -0.54% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -18bps (below its 20D MA).
FR 15:00: 12-Mth BTF auction, exp.: -0.63%
FR 15:00: 3-Mth BTF auction, exp.: -0.64%
FR 15:00: 6-Mth BTF auction, exp.: -0.63%
In Asian trading hours, EUR/USD extended its rally to 1.1852 and GBP/USD advanced further to 1.3227. USD/JPY fell to 104.51. This morning, official data showed that Japan's 3Q annualized GDP rose 21.4% on quarter (+18.9% expected). AUD/USD climbed to 0.7292. Earlier today, government data showed that China's industrial production grew 6.9% on year in October (+6.7% expected).
Spot gold rose to $1,896 an ounce.
#UK - IRELAND#
Smiths Group, a technology company, issued a 1Q trading statement: "Revenue for the three months ended 31 October for Continuing Operations was down (2)% on an underlying basis. This underpins the Group's confidence in meeting market expectations for the full year."
Kingspan, a building materials company, posted a 9-month trading update: "Sales in the nine month period to 30 September were E3.27bn, down 5% on the same period in the prior year with sales growth of 1% in the third quarter. Underlying sales (pre currency and acquisitions) were down 10% in the year to date and by 6% in the third quarter. (...) we expect to deliver a full year trading profit marginally ahead of 2019."
From a technical point of view, the stock remains supported by a rising trend line in place since March 2020. Furthermore, the RSI is bouncing back on its neutrality area around 50%. Above, 72p, a continuation of the bullish trend is expected, towards the previous all-time high at 84.65p and 92p in extension.
Source: TradingView, GAIN Capital
Continental, an automotive parts manufacturer, was upgraded to "equalweight" from "underweight" at Barclays.
BBVA, a Spanish bank, and American company PNC Financial Services Group announced that they have agreed on a deal where PNC will acquire BBVA's U.S. business BBVA USA Bancshares for a purchase price of 11.6 billion dollars.
Sonova, a hearing care company, posted 1H EPS declined 41.5% on year to 3.25 Swiss franc and EBIT slid 4.6% to 230 million Swiss franc on revenue of 1.07 billion Swiss franc, down 25.0% (-20.9% in local currencies).
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.