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.
GAIN Capital UK Limited (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.