EU indices are still consolidating this morning | TA focus on Astrazeneca
Philippe Delabarre May 20, 2020 8:09 AM
European stocks report | Experian | Astrazeneca | Deutsche Lufthansa | Michelin...
Yesterday, European stocks consolidated gains made in the prior session, with the Stoxx Europe 600 Index slipping 0.6%. France's CAC lost 0.9% and the U.K.'s FTSE 100 dropped 0.8%, while Germany's DAX added 0.2%.
55% of STOXX 600 constituents traded lower or unchanged yesterday.
67% of the shares trade above their 20D MA vs 74% Monday (above the 20D moving average).
26% of the shares trade above their 200D MA vs 27% Monday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 1.11pt to 30.17, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Financial Services, Technology, Basic Resource
3mths relative low: none
Europe Best 3 sectors
technology, financial services, basic resources
Europe worst 3 sectors
telecommunications, automobiles & parts, utilities
The 10yr Bund yield rose 6bps to -0.47% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -21bps (above its 20D MA).
UK 07:00: Apr Core Inflation Rate MoM, exp.: 0.1%
UK 07:00: Apr PPI Output YoY, exp.: 0.3%
UK 07:00: Apr PPI Input YoY, exp.: -2.9%
UK 07:00: Apr PPI Input MoM, exp.: -3.6%
UK 07:00: Apr PPI Output MoM, exp.: -0.2%
UK 07:00: Apr Inflation Rate MoM, exp.: 0%
UK 07:00: Apr Core Inflation Rate YoY, exp.: 1.6%
UK 07:00: Apr Inflation Rate YoY, exp.: 1.5%
UK 07:00: Apr PPI Core Output YoY, exp.: 0.9%
UK 07:00: Apr PPI Core Output MoM, exp.: 0.3%
UK 07:00: Apr Retail Price Idx YoY, exp.: 2.6%
UK 07:00: Apr Retail Price Idx MoM, exp.: 0.2%
EC 09:00: ECB Non-Monetary Policy Meeting
EC 09:00: Mar Current Account, exp.: E33.8B
EC 10:00: Apr Inflation Rate MoM final, exp.: 0.5%
EC 10:00: Apr Core Inflation Rate YoY final, exp.: 1%
EC 10:00: Apr Inflation Rate YoY final, exp.: 0.7%
FR 10:00: 3-Year BTAN auction, exp.: -0.43%
FR 10:00: 5-Year BTAN auction, exp.: -0.36%
GE 10:40: 10-Year Bund auction, exp.: -0.48%
EC 15:00: May Consumer Confidence Flash, exp.: -22.7
In Asian trading hours, EUR/USD climbed to 1.0938 level and GBP/USD held gains at 1.2262. USD/JPY eased to 107.77. This morning, government data showed that Japan's core machinery orders slid 0.4% on month in March (-6.7% expected). AUD/USD was broadly flat at 0.6543. Earlier today, government data showed that Australia's preliminary retail sales dropped 17.9% on month in April (+8.5% in March).
Spot gold extended its rebound to $1,748 an ounce.
#UK - IRELAND#
Experian, an information services company, announced FY results: "We continued to make good financial progress during the year and revenue increased by 7% to US$5,179m (2019: US$4,861m) reflecting the improved underlying performance of ongoing activities. Operating profit for the year ended 31 March 2020 increased to US$1,185m (2019: US$1,162m). Profit before tax decreased to US$942m (2019: US$957m) due to an increase in net finance costs of US$49m. (...) Second interim dividend of 32.5 US cents per ordinary share, unchanged year-on-year, to bring the total for FY20 to 47.0 US cents per share. (...) For the month of April, the Group experienced a decline in organic revenue of (5)%. Should current trading trends continue throughout the first quarter, we estimate that Q1 organic revenue will decline in a range of (5)% to (10)%."
Royal Bank of Scotland Group, a U.K. banking group, announced the pricing of 1.6 billion dollars of senior notes in two parts: "USD 1,000,000,000 3.073% Senior Callable Fixed-to-Fixed Reset Rate Notes due 2028 and USD 600,000,000 2.359% Senior Callable Fixed-to-Fixed Reset Rate Green Notes due 2024."
Severn Trent, a water company, released full-year results: "Group turnover of £1,844 million, up £76 million (4.3%). (...) Group underlying PBIT of £570 million, down £3 million (0.6%). (...) Underlying basic EPS of 146.0 pence (up 0.1%). (...) Reported profit after tax of £159 million (down 49.6%) and basic EPS of 66.7 pence (down 50.0%) after exceptional Water Plus losses and exceptional deferred tax charge from the rate change of £91.8 million. (...) the Board has proposed a final ordinary dividend of 60.05 pence per share for 2019/20 (2018/19: 56.02 pence per share). This gives a total ordinary dividend for the year of 100.08 pence (2018/19: 93.37 pence)."
AstraZeneca, a biopharmaceutical company, said its Lynparza (olaparib) has been approved in the U.S. for treatment of homologous recombination repair (HRR) gene-mutated metastatic castration-resistant prostate cancer. From a chartist point of view, we confirm our bullish bias as the 7950 has been reached and broken up. Next target 1000p.
Source: GAIN Capital, TradingView
Marks & Spencer, a retailing group, posted full-year results: "Group profit before tax and adjusting items was 403.1 million pounds, down 21.2% on last year. The decline includes an estimated impact from Covid-19 of 51.9 million pounds in March. The profit decrease was largely due to the decline in Clothing & Home operating profit. (...) Strong Food LFL (like-for-like) revenue of 1.9% and operating profit up 11.2%. (...) The UK Clothing & Home business (...) revenue declined 8.3% overall, with LFL revenue down 6.2%, including an estimated 2.2% adverse impact from Covid-19 in March."
Great Portland Estates, a property group, released full-year results: "IFRS and EPRA NAV per share of 868 pence, up 1.8% over twelve months; (...) EPRA EPS of 22.0 pence, up 13.4%. Cash EPS of 17.9 pence, up 4.7%. (...) IFRS profit after tax of £51.8 million (2019: £49.5 million). (...) Total dividend per share of 12.6 pence, up 3.3% on 2019, including final dividend of 7.9 pence (2019: 7.9 pence)."
BT Group, a telecommunications holding company, was upgraded to "hold" from "sell" at Deutsche Bank.
Compass Group, a contract food service company, was upgraded to "buy" from "hold" at Deutsche Bank.
Deutsche Lufthansa's, an airline group, need for government aid is getting increasingly urgent, as its liquidity continues to decline, reported Reuters citing an internal letter.
Fresenius, a health care company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.
Fresenius Medical Care, a dialysis services provider, was upgraded to "equalweight" from "underweight" at Morgan Stanley.
Michelin, a tire manufacturer, reported that European original equipment tires demand plunged 95% year in April and slumped 99% in North America, and replacement tires demand in these two regions was down 53% and 47% respectively. The company said "economic recovery is confirmed in China", with just a 4% decline in original equipment tires demand, while replacement tires demand was up 2%.
Renault, an automobile group, has secured a 5 billion euros state-guaranteed loan from banks, reported Reuters citing people familiar with the matter.
AB InBev, a drink and brewing company, was upgraded to "neutral" from "underweight" at JPMorgan.
Lonza Group, a chemicals and biotechnology company, will announce a new CEO in late may or early June, according to Chairman Albert Baehny citing by Swiss newspaper Tages-Anzeiger.
Deutsche Boerse: E2.9, Julius Baer: SF0.375
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