Friday, European stocks remained under pressure. The Stoxx Europe 600 Index fell 1.20%, Germany's DAX 30 declined 0.71%, France's CAC 40 shed 1.58%, and the U.K.'s FTSE 100 lost 1.55%.
88% of STOXX 600 constituents traded lower or unchanged Friday.
64% of the shares trade above their 20D MA vs 76% Thursday (above the 20D moving average).
53% of the shares trade above their 200D MA vs 56% Thursday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 1.18pt to 23.87, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Autos
3mths relative low: none
Europe Best 3 sectors
automobiles & parts, banks, telecommunications
Europe worst 3 sectors
travel & leisure, technology, industrial goods & services
The 10yr Bund yield rose 4bps to -0.41% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -23bps (below its 20D MA).
FR 14:00: 12-Mth BTF auction, exp.: -0.57%
FR 14:00: 3-Mth BTF auction, exp.: -0.58%
FR 14:00: 6-Mth BTF auction, exp.: -0.63%
In Asian trading hours, EUR/USD held gains at 1.1862 and GBP/USD climbed to 1.3108. USD/JPY remains subdued at 106.53. This morning, Japan's second quarter annualized GDP shrank 27.8% on quarter (-26.9% expected), the largest decline in record, according to the government.
Spot gold fell to $1,942 an ounce.
#UK - IRELAND#
Bunzl, a distribution and outsourcing company, was downgraded to "neutral" from "buy" at Goldman Sachs.
Scout24, a digital company, was downgraded to "hold" from "buy" at Societe Generale.
From a daily point of view, the share is bullish since March and is supported by a short term rising trend line after a recent consolidation area. Furthermore, the 20 DMA has played the role of support. Above 72E look for a new all-time high set at 82.9E and 87.7 in extension.
Source: GAIN Capital, TradingView
Sanofi, a pharmaceutical group, announced that it has agreed to acquire biopharmaceutical company Principia for 100 dollars per share in cash, representing an aggregate equity value of approximately 3.68 billion dollars.
Pernod Ricard, an alcoholic beverages producer, was upgraded to "overweight" from "equalweight" at Barclays.
Unibail-Rodamco-Westfield, a commercial real estate company, is planning to raise 3.5 billion euros through share sale, reported Bloomberg citing people familiar with the matter. The company issued a statement regarding the media report: "As detailed in its H1-2020 results communication, as at June 30, 2020, URW had E12.7 Bn of cash and undrawn credit facilities at its disposal. (...) As previously communicated, deleveraging is a priority for URW, (...) In addition, the Supervisory Board and Management Board continue to weigh the merits of all potential strategies to strengthen URW's financial profile in line with their respective fiduciary duties.
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