Market News & Analysis
EU indices significantly up | this morning TA focus on Airbus
Philippe Delabarre May 8, 2020 8:22 AM
Yesterday, European stocks were broadly higher, with the Stoxx Europe 600 Index gaining 1.1%. Both Germany's DAX 30 and the U.K.'s FTSE 100 increased 1.4%, and France's CAC 40 was up 1.5%.
79% of STOXX 600 constituents traded higher yesterday.
70% of the shares trade above their 20D MA vs 59% Wednesday (below the 20D moving average).
24% of the shares trade above their 200D MA vs 22% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 2.38pts to 32.43, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none
Europe Best 3 sectors
retail, basic resources, financial services
Europe worst 3 sectors
health care, automobiles & parts, telecommunications
The 10yr Bund yield rose 7bps to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -21bps (above its 20D MA).
FR : Victory in Europe Day
UK : May Day Bank Holiday
GE 07:00: Mar Balance of Trade, exp.: E20.8B
GE 07:00: Mar Balance of Trade s.a, exp.: E21.6B
GE 07:00: Mar Exports MoM s.a, exp.: 1.3%
GE 07:00: Mar Imports MoM s.a, exp.: -1.6%
GE 07:00: Mar Current Account, exp.: E23.7B
EC 09:00: Eurogroup Video Conference
In Asian trading hours, EUR/USD climbed further to 1.0848 and GBP/USD advanced to 1.2401. USD/JPY was little changed at 106.34. This morning, government data showed that Japan's household spending dropped 6.0% on year in March (-6.5% estimated).
Spot gold extended its rally to $1,719 an ounce.
#UK - IRELAND#
U.K. stock market is closed for Early May Bank Holiday.
The German Federal Statistical Office reported a trade surplus of 17.4 billion euros in March (18.8 billion euros surplus expected), where exports dropped 11.8% on month (-5.0% expected) and imports slid 5.1% (-4.0% expected).
Airbus, an aircraft manufacturer, reported that it logged net orders for 9 commercial aircraft from its A320 production line from Avolon in April, and total net orders (after cancellations) stood at 299 aircraft, compared with 290 aircraft in March.
Source: GAIN Capital, TradingView
Euronext, a stock exchange operator, reported that total cash market transaction value rose 17.5% on year in April and equity derivatives volume increased 26.1%.
Ferrovial, a sustainable infrastructure operator, reported that 1Q net loss widened to 111 million euros from 98 million euros in the prior-year period, citing a 39 million euros provision for the Airports division due to the COVID-19. Meanwhile, EBITDA totaled 75 million euros, compared with an EBITDA loss of 231 million euros last year, on revenue of 1.38 billion euros, up 12%.
ING Groep, a banking and financial services group, announced that 1Q net income dropped 40.1% on year to 670 million euros, as loan loss provisions jumped to 661 million euros from 207 million euros in the prior-year period. Meanwhile, net interest income grew 0.5% to 3.50 billion euros, while CET1 ratio fell to 14.0% from 14.7% in the same quarter last year.
Galapagos, a pharmaceutical research company, posted 1Q net loss widened to 51 million euros from 49 million euros in the prior-year period, while operating loss narrowed 45 million euros from 53 million euros on revenue of 98 million euros, up from 33 million euros.
Leonardo, an aerospace and defense company, said it swung to a 1Q net loss of 59 million euros from a net profit of 77 million euros in the prior-year period and EBIT sank 80.8% on year to 30 million euros on revenue of 2.59 billion euros, down 4.9%. The company announced the suspension of its 2020 guidance previous disclosed in March due to the COVID-19.
Swiss Re's, an insurance group, "AA-" credit rating outlook was revised to "Negative" from "Stable" at S&P Global Ratings. The rating agency said: "The negative outlook indicates the possibility that we could lower the ratings by one notch if the underwriting performance of Swiss Re's P/C business does not perform broadly in line with our expectations."
Alcon: SF0.19, Hennes & Mauritz: SEK4.9
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