Yesterday, European stocks were broadly lower while trading volumes were greatly reduced by a technical glitch at exchange operator Euronext. The Stoxx Europe 600 Index declined 0.18%, Germany's DAX 30 fell 0.42%, France's CAC 40 eased 0.13%, and the U.K.'s FTSE 100 was down 0.59%.
53% of STOXX 600 constituents traded lower or unchanged yesterday.
60% of the shares trade above their 20D MA vs 63% Friday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 60% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 1.3pt to 26.62, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Industrial
3mths relative low: none
Europe Best 3 sectors
financial services, banks, real estate
Europe worst 3 sectors
chemicals, utilities, personal & household goods
The 10yr Bund yield fell 1bp to -0.62% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -16bps (above its 20D MA).
GE 07:00: Sep PPI YoY, exp.: -1.2%
GE 07:00: Sep PPI MoM, exp.: 0%
EC 09:00: Aug Current Account, exp.: E25.5B
GE 10:40: 2-Year Schatz auction, exp.: -0.73%
On the forex front, the U.S. dollar weakened further against other major currencies, though its loss shrank at the end of the session. The ICE Dollar Index lost 0.27% to 93.43. The British pound was lifted by the European Union's comments that it was ready to intensify talks with Britain toward a trade deal. GBP/USD once breached the key 1.3000 level before closing at 1.2954, up 0.31% on day. EUR/USD jumped 0.45% to 1.1769, while USD/JPY was little changed at 105.43. AUD/USD was down for a fourth session as it dropped 0.1% to 0.7071. China's Gross Domestic Products (GDP) grew 4.9% on year in the third quarter, lower than +5.5% expected.
Meanwhile, the Chinese yuan reached a fresh 18-month high against the dollar, with USD/CNH (offshore yuan) falling 0.26% to 6.6787.
#UK - IRELAND#
BHP Group, a giant metals miner, announced that 1Q iron ore production rose 8% on year to 66 million tons and sales were up 7% to 73 million tons. The company confirmed its full-year iron ore output guidance of 244 to 253 million tons.
Next, a retailer, was upgraded to "neutral" from "sell" at Goldman Sachs.
Sartorius, a pharmaceutical and laboratory equipment supplier, reported that 9-month net income increased 37.9% on year to 211 million euros and EBITDA rose 35.3% to 489 million euros on revenue of 1.68 billion euros, up 23.9% (+25.2% at constant currency). The company said it now expects revenue growth to be at the upper end of, or slightly above, the range of 22% to 26% previously forecasted.
Remy Cointreau, a spirits group, announced that 1H revenue dropped 17.8% on year (-16.4% organic growth) to 431 million euros, with 2Q organic decline narrowing to 4.0% from 33.2% in 1Q. The company stated that it now expects 1H current operating profit to be down 25% - 30% on an organic basis, compared with 35% - 40% decline previously estimated.
Source: TradingView, GAIN Capital#SWITZERLAND#
UBS Group, a banking group, announced that 3Q net income jumped to 2.09 billion dollars from 1.05 billion dollars in the prior-year period and operating income rose 26.1% on year to 8.94 billion dollars. The bank said it has established a 1.50 billion dollars capital reserve for potential share repurchases and expects buybacks to be allowed to resume in 2021.
Swedbank, a banking group, reported that 3Q net income climbed 13% on year to 5.26 billion Swedish krona, as credit impairment reduced to 425 million Swedish krona from 1.24 billion Swedish krona in 2Q. Meanwhile, net interest income was up 2% on year to 6.71 billion Swedish krona. In addition, the bank said it is "still considering the issue of a dividend for 2019".
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