Yesterday, European stocks were little changed. The Stoxx Europe 600 Index, Germany's DAX 30, France's CAC 40 and the U.K.'s FTSE 100 were all broadly flat at close.
88% of STOXX 600 constituents traded lower or unchanged Friday.
48% of the shares trade above their 20D MA vs 66% Thursday (above the 20D moving average).
49% of the shares trade above their 200D MA vs 51% Thursday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 2.26pts to 25.58, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Chemicals, Utilities
3mths relative low: Media
Europe Best 3 sectors
energy, real estate, banks
Europe worst 3 sectors
technology, telecommunications, health care
The 10yr Bund yield rose 1bp to -0.48% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -20bps (above its 20D MA).
EC 09:00: Jun M3 Money Supply YoY, exp.: 8.9%
EC 09:00: Jun Loans to Households YoY, exp.: 3%
EC 09:00: Jun Loans to Companies YoY, exp.: 7.3%
GE 09:00: Jul Ifo Current Conditions, exp.: 81.3
GE 09:00: Jul Ifo expectations, exp.: 91.4
GE 09:00: Jul Ifo Business Climate, exp.: 86.2
GE 10:45: 12-Mth Bubill auction, exp.: -0.58%
FR 11:00: Jun Jobseekers Total, exp.: 4167.4K
FR 11:00: Jun Unemployment Benefit Claims, exp.: -148.3K
FR 14:00: 12-Mth BTF auction, exp.: -0.56%
FR 14:00: 6-Mth BTF auction, exp.: -0.58%
FR 14:00: 3-Mth BTF auction, exp.: -0.57%
In Asian trading hours, EUR/USD broke above 1.1700 and GBP/USD bounced over 1.2860. USD/JPY finally crossed below the key level of 106.00.
Spot gold kept soaring, touching a high of $1,944 an ounce, and Spot Silver rocketed to $24.38.
#UK - IRELAND#
Ryanair, an European budget airline, reported that it swung to a 1Q net loss of 185 million euros from a net income of 243 million euros in the prior-year period, with revenue tumbling to 125 million euros from 2.31 billion euros. The Company said it expects a narrower net loss in the second quarter.
AstraZeneca, a pharmaceutical and medical products maker, announced plans to pay Daiichi Sankyo 6 billion dollars in total consideration for the developement of cancer treatment DS-1062.
Rolls-Royce, an aircraft engine maker, is in early talks on selling its ITP Aero unit to a private equity buyer, reported the Telegraph.
Atos, a digital solution provider, reported that 1H operating margin dropped 15.1% on year to 450 million euros on revenue of 5.63 billion euros, down 2.0% (-2.3% at constant scope and exchange rates). The Company reiterated its 2020 guidance. Separately, the Company said it has agreed to acquire EcoAct, "an internationally recognized carbon reduction strategy consulting firm", for an undisclosed sum.
From a chartist point of view, the share price broke below its previous key support from February at 74.4E. The 20DMA is reversing down above of the stock. Moreover, the RSI is capped by a short term bearish trend line. Below 79.16E, look for the horizontal supports at 73E and 67.5E in extension.
Source: GAIN Capital, TradingView
Edenred, which provides meal vouches and cards, posted 1H net income down 31.4% on year to 100 million euros and EBITDA down 17.8% to 255 million euros on revenue of 696 million euros, down 10.4% (-4.8% like-for-like). The Company added: "The gradual recovery in the second half, combined with the ongoing implementation of the Group's cost savings plan, will have a positive impact on operating leverage. (...) EBITDA target for 2020 of between 540 million euros and 610 million euros."
Michelin: 1H results expected.
LVMH: 1H results expected.
Bankinter, a Spainish bank, was downgraded to "sell" from "hold" at Societe Generale.
UCB, a biopharmaceutical firm, reported that 1H Core EPS rose 15% on year to 2.77 euros and adjusted EBITDA were up 8% to 783 million euros on revenue of 2.61 billion euros, up 12% (+9% at constant exchange rates).
Sika, which makes construction materials, was downgraded to "hold" from "buy" at HSBC.
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.