EU indices slightly up | TA focus on Julius Baer


European stocks report | AstraZeneca | Volkswagen | Philips | Julius Baer ...

Stocks (1)

Friday, European stocks were still in positive territory. The Stoxx Europe 600 Index rebounded 1.26%, Germany's DAX 30 rose 1.62%, France's CAC 40 jumped 2.03%, and the U.K.'s FTSE 100 was up 1.49%.

76% of STOXX 600 constituents traded higher Friday.
63% of the shares trade above their 20D MA vs 53% Thursday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 58% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.53pt to 25.32, a new 52w high.

3mths relative high: Pers. & House. Goods, Media, Industrial
3mths relative low: Insurance

Europe Best 3 sectors
automobiles & parts, personal & household goods, banks

Europe worst 3 sectors
real estate, telecommunications, travel & leisure

The 10yr Bund yield fell 3bps to -0.61% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -15bps (above its 20D MA), a new 3mths high.

EC 10:00: Aug Construction Output YoY, exp.: -3.8%
FR 14:00: 12-Mth BTF auction, exp.: -0.63%
FR 14:00: 6-Mth BTF auction, exp.: -0.64%
FR 14:00: 3-Mth BTF auction, exp.: -0.66%

On Sunday, House Speaker Nancy Pelosi called on the government to reconcile remaining disputes on stimulus legislation within 48 hours in an attempt to pass a bill before the 2020 election. Comments by Pelosi helped in raising market optimism about progress on an agreed deal between the government and Congress. U.S. stock index futures jumped in early Asian trading hours on Monday. During Asian sessions, EUR/USD was little changed at 1.1715 while GBP/USD advanced to 1.2937. USD/JPY was broadly flat at 105.37. This morning, official data showed that Japan's exports fell 4.9% on year in September (-2.4% expected) and imports declined 17.2% (-21.4% on year expected). AUD/USD marked a day-high near 0.7108 before easing back to 0.7095. Earlier today, government data showed that China's 3Q GDP grew 4.9% on year (+5.5% expected), while industrial production rose 6.9% in September (+5.8% expected) and retail sales increased 3.3% (+1.7% expected).

Spot gold edged up to $1,901 an ounce.

AstraZeneca, a pharmaceutical group, said its Trixeo Aerosphere has been recommended for approval in the European Union by the Committee for Medicinal Products for Human Use (CHMP) for the maintenance treatment of chronic obstructive pulmonary disease. At the same time, its Forxiga has also been recommended for approval by CHMP in the region for the treatment of symptomatic chronic heart failure.

Volkswagen's, an automobile group, Traton announced that it has agreed to acquire the remaining stake in American trucks and diesel engines company Navistar for 44.50 dollars per share, representing about 3.7 billion dollars.

Philips, a Dutch multinational conglomerate, announced that 3Q net income jumped 63% on year to 340 million euros and EBITA grew 32% to 769 million euros on revenue of 4.98 billion euros, up 6% (+10% on a comparable basis). The company said it targets an acceleration of the average annual comparable sales growth to 5-6% for the 2021-2025 period, but expects a low-single-digit growth for 2021.

Julius Baer, a Swiss private bank, said assets under management rose 3% on quarter (-3% on year) to 413 billion Swiss franc in 3Q and annualized growth of net new money inflows was close to 4% in the 9-month period, compared with 2.3% in 1H and 2.8% for full-year 2019.

From a weekly point of view, the consolidation channel's upward breakout would call for a new measured move up to 50CHF at least (horizontal resistance from April 2019) and 56.5CHF in extension (neckline of a 2017/2018 head-and-shoulders pattern and upper end of a bearish gap set on 2018, July 23rd).

Source: TradingView, GAIN Capital

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.