EU indices consolidate | TA focus on Roche


European stocks report | Investec | Covestro | Roche | Ericsson...

Trading floor 1

Yesterday, European stocks ended in the red. The Stoxx Europe 600 Index fell 0.51%, Germany's DAX 30 dropped 0.36%, France's CAC 40 slid 0.69%, and the U.K.'s FTSE 100 was down 0.47%.

62% of STOXX 600 constituents traded lower or unchanged yesterday.
60% of the shares trade above their 20D MA vs 63% Wednesday (above the 20D moving average).
59% of the shares trade above their 200D MA vs 59% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.55pt to 22.55, a new 52w high.

3mths relative high: Retail, Industrial
3mths relative low: Banks, Utilities

Europe Best 3 sectors
health care, retail, travel & leisure

Europe worst 3 sectors
banks, basic resources, media

The 10yr Bund yield fell 1bp to -0.48% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -21bps (above its 20D MA).

GE 07:00: Aug PPI YoY, exp.: -1.7%
GE 07:00: Aug PPI MoM, exp.: 0.2%
UK 07:00: Aug Retail Sales YoY, exp.: 1.4%
UK 07:00: Aug Retail Sales MoM, exp.: 3.6%
UK 07:00: Aug Retail Sales ex Fuel MoM, exp.: 2%
UK 07:00: Aug Retail Sales ex Fuel YoY, exp.: 3.1%
EC 09:00: Jul Current Account, exp.: E17.3B
EC 10:15: ECB Guindos speech
EC 15:00: ECB Schnabel speech


In Asian trading hours, EUR/USD held gains at 1.1850 while GBP/USD eased to 1.2954. USD/JPY remains subdued at 104.83. This morning, official data showed that Japan's national CPI grew 0.2% on year in August (as expected).

Spot gold bounced to $1,952 an ounce.

Investec, an international banking and wealth management group, posted a 1H trading statement: "Over the five months to 31 August 2020, third-party FUM increased by 14.1% to £51.4 billion (31 March 2020: £45.0 billion) and net inflows were positive at £391 million. (...) Adjusted earnings per share (for continuing operations) expected to be between 10.5p and 8.3p; 53% to 63% behind 1H2020 (1H2020: 22.4p), primarily due to the challenging market conditions described above and effective tax rate normalisation."

Man Group, a global active investment management firm, announced a new share buyback programme of up to 100 million dollars.
EasyJet, a low-cost airline company, announced that Kenton Jarvis, currently of Aviation, and Business Improvement Director - Markets at TUI Group, will be joining the company as CFO, replacing Andrew Findlay.

Covestro, a high-tech polymer materials manufacturer, has attracted takeover interest from Apollo Global Management, which may offer 8.2 billion euros for the company, reported Bloomberg citing people familiar with the matter.

Roche, a pharmaceutical group, said a phase 3 study of Actemra/RoActemra in hospitalised patients with COVID-19 associated pneumonia met its primary endpoint.

From a daily point of view, the share has broken above the upper end of a declining channel drawn since April. Moreover, the RSI is bullish above its neutrality area without being overbought (not before 80% on Roche). Above the horizontal resistance of August at 310CHF look for a new all-time high at 390CHF and 425CHF in extension.

Source: GAIN Capital, TradingView

Ericsson, a networking and telecommunications company, announced that it has agreed to acquire Cradlepoint, "the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions", for an enterprise value of 1.1 billion dollars.

Logitech International: SF0.794074

Build your confidence risk free

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.