EU Indices slightly down this morning | TA focus on Vivendi

European stocks report 20 April 2020: Polymetal | EssilorLuxottica | Vivendi | Philips...

Trading floor 3

Friday, European stocks rebounded further, with the Stoxx Europe 600 Index gaining 2.6%. Germany's DAX 30 climbed 3.2%, the U.K.'s FTSE 100 increased 2.8%. and France's CAC 40 jumped 3.4%.

90% of STOXX 600 constituents traded higher Friday.
85% of the shares trade above their 20D MA vs 74% Thursday (above the 20D moving average).
20% of the shares trade above their 200D MA vs 17% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.06pts to 41.2, a new 52w high.

3mths relative high: none
3mths relative low: Real Estate

Europe Best 3 sectors
travel & leisure, automobiles & parts, industrial goods & services

Europe worst 3 sectors
utilities, telecommunications, health care

The 10yr Bund yield fell 1bp to -0.47% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -21bps (above its 20D MA).

GE 07:00: Mar PPI YoY, exp.: -0.1%
GE 07:00: Mar PPI MoM, exp.: -0.4%
EC 09:00: Feb Current Account, exp.: E8.7B
EC 10:00: Feb Balance of Trade, exp.: E1.3B
FR 14:00: 6-Mth BTF auction, exp.: -0.45%
FR 14:00: 3-Mth BTF auction, exp.: -0.48%
FR 14:00: 12-Mth BTF auction, exp.: -0.43%

In Asian trading hours, EUR/USD edged down to 1.0865 and GBP/USD dropped to 1.2483. USD/JPY bounced to 107.80. This morning, official data showed that Japan's exports declined 11.7% on year in March (-9.4% estimated). NZD/USD eased to 0.6015. Earlier today, official data showed that New Zealand's CPI grew 2.5% on year in the first quarter (+2.1% expected).

Spot gold remained subdued at $1,680 an ounce.

Polymetal, a precious metals mining company, posted a 1Q production report: "The Company's Q1 gold equivalent (GE) production grew by 5% y-o-y to 391 Koz. (...) Quarterly revenue increased by 9% y-o-y to US$ 494 million on the back of higher gold prices. Sales volumes decreased by 7% y-o-y due to the COVID-related slowdown of concentrate shipments to China, which have fully normalised since early March. (...) The Company confirms its 2020 production guidance of 1.6 Moz of GE."

Plus500, an online service provider for trading Contracts for Difference, announced that CEO Asaf Elimelech has decided to step down from his position, while COO David Zruia will assume the role of interim CEO with immediate effect.

Diageo, an alcoholic beverages company, was downgraded to "equalweight" from "overweight" at Morgan Stanley. 

Prudential, an insurance group, was downgraded to "hold" from "buy" at HSBC.

EssilorLuxottica, an eyecare conglomerate, announced that it has decided to not propose a dividend distribution for 2019, saying: "If the recovery is solid enough, the Board of Directors may propose a special dividend payment before the end of 2020."

Vivendi, a mass media conglomerate, announced that 1Q revenue increased 11.8% on year (+4.4% organic growth) to 3.87 billion euros. The company said the coronavirus pandemic had a limited impact in 1Q, though 2Q results are expected to be affected by the current health crisis.

Source: GAIN Capital, TradingView

Total, an oil giant, was downgraded to "equalweight" from "overweight" at Morgan Stanley.

Philips, a health technology company, announced that 1Q net income slumped to 30 million euros from 162 million euros in the prior-year period and adjusted EBITDA dropped 14% on year to 495 million euros on revenue of 4.16 billion euros, broadly flat (-2% on a comparable basis). The company stated: "For the full year 2020 we aim to achieve a modest comparable sales growth and Adjusted EBITA margin improvement. Given the current uncertainty and volatility, we will not provide more specific guidance for 2020 at this time."

Novartis, a pharmaceutical group, said it has reached an agreement with the U.S. Food and Drug Administration to proceed with a phase 3 clinical trial to evaluate the use of hydroxychloroquine for the treatment of hospitalized patients with COVID-19 disease. Meanwhile, the company announced the acquisition of Amblyotech, an U.S. software startup, for an undisclosed fee.

Airbus Group: E1.8, Ferrari: E1.13, UniCredit: E0.63

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