Yesterday, European stocks closed mixed. The Stoxx Europe 600 dipped 0.08%, Germany's DAX was little changed, the U.K.'s FTSE 100 fell 0.64%, while France's CAC 40 gained 0.23%.
56% of STOXX 600 constituents traded lower or unchanged yesterday.
75% of the shares trade above their 20D MA vs 73% Tuesday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Tuesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.59pt to 20.78, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Travel & Leisure
3mths relative low: Chemicals, Healthcare
Europe Best 3 sectors
energy, banks, basic resources
Europe worst 3 sectors
personal & household goods, health care, real estate
The 10yr Bund yield rose 2bps to -0.56% (above its 20D MA). The 2yr-10yr yield spread fell 0bp to -18bps (below its 20D MA).
GE 08:00: Dec GfK Consumer Confidence, exp.: -3.1
FR 08:45: Nov Consumer Confidence, exp.: 94
EC 10:00: Oct M3 Money Supply YoY, exp.: 10.4%
EC 10:00: Oct Loans to Households YoY, exp.: 3.1%
EC 10:00: Oct Loans to Companies YoY, exp.: 7.1%
UK 10:00: Oct Car Production YoY, exp.: -5%
EC 13:00: ECB Lane speech
EC 13:30: ECB Monetary Policy Meeting Accounts
EC 14:00: ECB Schnabel speech
In Asian trading hours, EUR/USD climbed further to 1.1925 and GBP/USD advanced to 1.3390. USD/JPY fell to 104.30. NZD/USD held above the 0.7000 level. This morning, official data showed that New Zealand recorded a trade deficit of 501 million New Zealand dollars in October (500 million New Zealand dollars deficit expected), where exports totaled 4.78 billion New Zealand dollars (as expected).
Spot gold bounced to $1,811 an ounce.
#UK - IRELAND#
Severn Trent, a water company, posted 1H underlying EPS declined 25.4% on year to 51.30p and revenue fell 2.5% to 888 million pounds. The company declared an interim dividend of 40.63p per share, up from 40.03p per share in the prior-year period.
CRH, an Irish building materials company, was downgraded to "sell" from "neutral" at Goldman Sachs.
From a technical point of view, the stock has validated the descending broadening wedge pattern in place since July 2020 with the breakout above the key resistance at 3117 which should trigger a new up leg towards 3430p and 3600p in extension.
Source: TradingView, GAIN Capital
Remy Cointreau, a spirits manufacturer, reported that 1H net income declined 28.1% on year to 65 million euros and current operating profit dropped 23.2% to 106 million euros on revenue of 431 million euros, down 17.8% (-16.4% organic growth). Regarding the outlook, the company stated: "The Group continues to expect a real recovery in the second half, driven by the United States and Mainland China. For financial year 2020/21, Remy Cointreau is thus forecasting positive organic growth in its Current Operating Profit."
Publicis, an advertising and public relations company, announced that Michel-Alain Proch will join the company as CFO in mid-January.
Solvay, a Belgian chemical group, was upgraded to "buy" from "hold" at Deutsche Bank.
Yara International, a Norwegian chemical company, was downgraded to "underperform" from "buy" at BofA Securities.
Imperial Brands:48p, National Grid:17p
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.