Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index jumped 1.00%. Germany's DAX 30 increased 1.32%, France's CAC 40 gained 1.73%, and the U.K.'s FTSE 100 was up 1.33%.
86% of STOXX 600 constituents traded higher yesterday.
68% of the shares trade above their 20D MA vs 59% Friday (above the 20D moving average).
46% of the shares trade above their 200D MA vs 44% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 1.29pt to 27.14, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Chemicals, Technology
3mths relative low: Telecom., Retail, Media
Europe Best 3 sectors
chemicals, travel & leisure, basic resources
Europe worst 3 sectors
real estate, food & beverage, media
The 10yr Bund yield was unchanged to -0.47% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -24bps (below its 20D MA).
FR : Bastille Day
GE 07:00: Jun Harmonised Inflation Rate MoM final, exp.: 0.4%
GE 07:00: Jun Harmonised Inflation Rate YoY final, exp.: 0.5%
GE 07:00: Jun Inflation Rate MoM final, exp.: -0.1%
GE 07:00: Jun Inflation Rate YoY final, exp.: 0.6%
UK 07:00: May GDP 3-Mth Avg, exp.: -10.4%
UK 07:00: May GDP MoM, exp.: -20.4%
UK 07:00: May Industrial Production YoY, exp.: -24.4%
UK 07:00: May Industrial Production MoM, exp.: -20.3%
UK 07:00: May Manufacturing Production MoM, exp.: -24.3%
UK 07:00: May Manufacturing Production YoY, exp.: -28.5%
UK 07:00: May Construction Output YoY, exp.: -44%
UK 07:00: May Balance of Trade, exp.: £0.31B
UK 07:00: May GDP YoY, exp.: -24.5%
UK 07:00: May Goods Trade Balance, exp.: £-7.49B
EC 10:00: May Industrial Production YoY, exp.: -28%
EC 10:00: May Industrial Production MoM, exp.: -17.1%
EC 10:00: Jul ZEW Economic Sentiment Idx, exp.: 58.6
GE 10:00: Jul ZEW Current Conditions, exp.: -83.1
GE 10:00: Jul ZEW Economic Sentiment Idx, exp.: 63.4
UK 14:00: Q2 NIESR Monthly GDP Tracker, exp.: -17.6%
In Asian trading hours, EUR/USD eased to 1.1338 and GBP/USD dropped further to 1.2542. USD/JPY slipped to 107.20. AUD/USD fell to 0.6934. This morning, official data showed that China's June exports grew 4.3% on year in yuan terms (+3.5% expected) and imports rose 6.2% (-4.7% expected).
Spot gold slid to $1,797 an ounce.
#UK - IRELAND#
Halma, a hazard detection and life protection products maker, reported full-year results: "Revenue increased by 11% to £1,338m (2019: £1,211m), (...) We estimate that the adverse impact of COVID-19 during the final quarter was a reduction of approximately 1% on full year revenue. (...) Statutory profit before taxation increased by 8% to £224.1m (2019: £206.7m). (...) The Board is recommending a 3.8% increase in the final dividend to 9.96p per share (2019: 9.60p per share), which together with the 6.54p per share interim dividend gives a total dividend per share of 16.50p (2019: 15.71p), up 5.0% in total. (...) We currently expect Adjusted1 profit before tax for the year to 31 March 2021 to be 5%-10% below that achieved in the 2020 financial year."
Ocado, an online grocery retailer, released 1H results: "Group revenue for the period has grown by 23.2% in comparison to 1H 2019 revenue of £882.3 million. (...) EBITDA before the impact of exceptional items for the period was £19.8 million (1H 2019: £30.7 million). (...) As a result of the above and exceptional items of £39.1 million, the statutory loss before tax for the period was £40.6 million (1H 2019: loss of £147.4 million)."
Ashmore, an investment group, posted a 4Q trading update: "Assets under management increased by US$6.8 billion over the quarter, reflecting positive investment performance of US$9.0 billion and net outflows of US$2.2 billion." From a chartist point of view, the share has consolidated since June due to a short term bearish trendline. The daily Relative Strength Index (RSI, 14) rebounded above its support at 45. Moreover, the 20 and 50-DMA are in support of the stock. Above 396p look for the horizontal resistance at 450.2p and 488p in extension.
Source: GAIN Capital, TradingView
Scor, an reinsurance company, was upgraded to "equalweight" from "underweight" at Morgan Stanley.
SKF, a Swedish bearing and seal manufacturing company, was upgraded to "buy" from "sell" at Goldman Sachs.
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