EU indices consolidate | TA focus on ArcelorMittal

European stocks report | Airbus | Wendel | ArcelorMittal | Intesa Sanpaolo...

Downtrend 2

Friday, European stocks were sharply higher, with the Stoxx Europe 600 Index jumping 2.5%%. Germany's DAX 30 surged 3.4%, the U.K.'s FTSE 100 rose 2.3% and France's CAC 40 was up 3.7%.

74% of STOXX 600 constituents traded higher Friday.
90% of the shares trade above their 20D MA vs 93% Thursday (above the 20D moving average).
50% of the shares trade above their 200D MA vs 45% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.23pt to 27.89, a new 52w high.

3mths relative high: Autos, Industrial, Basic Resource
3mths relative low: Food & Beverage

Europe Best 3 sectors
banks, energy, automobiles & parts

Europe worst 3 sectors
utilities, health care, food & beverage

The 10yr Bund yield rose 3bps to -0.32% (above its 20D MA). The 2yr-10yr yield spread fell 4bps to -32bps (below its 20D MA).

GE 07:00: Apr Industrial Production MoM, exp.: -9.2%
FR 14:00: 3-Mth BTF auction, exp.: -0.52%
FR 14:00: 6-Mth BTF auction, exp.: -0.51%
FR 14:00: 12-Mth BTF auction, exp.: -0.51%


In Asian trading hours, EUR/USD rebounded to 1.1295 and GBP/USD climbed above the 1.2700 level. USD/JPY eased to 109.49 level. This morning, official data showed that Japan's final readings of first quarter annualized GDP posted -2.2% on quarter (-2.1% expected).

Spot gold bounced to $1,687 an ounce.

Plus500, an online service provider for trading Contracts for Difference, posted a trading update: "The Company has added 100,574 New Customers since the start of Q2, which is already ahead of our expectations for the entire quarter, and in excess of the 82,951 New Customers added in Q1. (...) Notwithstanding the uncertainty regarding the duration of current levels of volatility or the unquantified potential impact from regulatory changes in Australia and the relatively early stage in our financial year, revenue and profitability for the full year is currently expected to be in-line with consensus expectations."

Hays, a recruitment and human resources services provider, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

Siemens Healthineers, a healthcare company, was upgraded to "buy" from "neutral" at Citigroup.

Airbus, an aircraft manufacturer, said it has registered zero cancellations in May and no new order, with net orders standing at 299 aircraft. 

Klepierre, a shopping mall operator, was downgraded to "sell" from "neutral" at Goldman Sachs.

ArcelorMittal, a steel producer, is planning to cut 5,000 jobs at its Italian steel unit Ilva, according to Italian newspaper La Stampa.
From a chartist point of view, the share is holding above a long-term support set at 6 euros (bottoms from 2016 & 2020). Above 6, look for 17.

Source: GAIN Capital, TradingView

Intesa Sanpaolo, an Italian banking group, said it "has received prior authorization from the European Central Bank for the direct acquisition of a controlling interest, equal to at least 50% of the capital plus one share, in UBI Banca".

Carrefour: E0.23, Deutsche Wohnen: E0.9, Saint-Gobain: E1.38

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.