Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.61%. Germany's DAX 30 fell 0.92%, France's CAC 40 lost 0.74%, and the U.K.'s FTSE 100 was down 1.53%.
72% of STOXX 600 constituents traded lower or unchanged yesterday.
70% of the shares trade above their 20D MA vs 77% Monday (above the 20D moving average).
45% of the shares trade above their 200D MA vs 47% Monday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 0.33pt to 27.93, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Financial Services, Chemicals
3mths relative low: Telecom., Media, Energy
Europe Best 3 sectors
automobiles & parts, health care, telecommunications
Europe worst 3 sectors
banks, construction & materials, insurance
The 10yr Bund yield was unchanged to -0.43% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -24bps (below its 20D MA).
EC 09:45: ECB Guindos speech
GE 10:40: 5-Year Bobl auction, exp.: -0.62%
UK 12:00: Supplementary Budget
EC 15:00: ECB Guindos speech
GE 18:45: Bundesbank Buch speech
In Asian trading hours, EUR/USD was little changed at 1.1274 while GBP/USD rose to 1.2550. USD/JPY held gains at 107.64.
Spot gold eased to $1,793 an ounce.
#UK - IRELAND#
AstraZeneca, a biopharmaceutical company, said its Lynparza (olaparib) has been approved in the European Union for patients with germline BRCA-mutated metastatic pancreatic cancer.
FirstGroup, a transport group, released full-year results: "Group revenue in constant currency +7.2% or +2.6% excluding the West Coast Partnership franchise (now branded Avanti West Coast) that started in December 2019; reported Group revenue +8.8%. (...) Statutory operating loss of £(152.7)m (2019: profit of £9.8m) and statutory EPS of (27.0)p (2019: (5.5)p) include the Greyhound impairment charge of £186.9m (of which £124.4m was in the first half), North American self-insurance provision of £141.3m, restructuring and reorganisation costs of £58.2m, and coronavirus-related charges of £21.5m"
Rio Tinto, a giant metals miner, was downgraded to "neutral" from "buy" at Goldman Sachs.
#GERMANY - AUSTRIA#
Deutsche Post, a package delivery company, announced that preliminary 2Q EBIT rose 16% on year to 890 million euros and full-year EBIT is expected between 3.5 - 3.8 billion euros. From a chartist point of view, the share is supported by a rising trend line drawn from March 2020 and is aiming a key horizontal resistance at 35 euros. The 20DMA should act as a trailing stop for buyers. Above 31.2 euros look for the horizontal resistance at 35 and 38.15 euros in extension.
OMV, an Austrian integrated oil and gas company, reported that 2Q hydrocarbon production fell 5.3% on year to 464,000 barrel of oil equivalent per day.
Lanxess, a chemical company, was downgraded to "sell" from "neutral" at Goldman Sachs.
Iliad, a telecommunication services provider, was downgraded to "hold" from "buy" at HSBC.
#SPAIN - PORTUGAL - GREECE#
Repsol, a fossil fuel company, said its refining margin dropped to 3.0 dollars a barrel in 2Q from 3.5 dollars a barrel in the prior-year period.
#SCANDINAVIA - DENMARK#
Nokia, a telecommunications and IT group, was downgraded to "neutral" from "overweight" at JPMorgan.
Swedish Match, a a Swedish tobacco company, was downgraded to "equalweight" from "overweight" at Barclays.
Iberdrola: E0.18792, Pernod-Ricard: E1.18
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.