Yesterday, European stocks were mixed. The Stoxx Europe 600 Index edged down 0.09%, France's CAC 40 eased 0.12%, and the U.K.'s FTSE 100 declined 0.58%, while Germany's DAX 30 edged up 0.07%.
48% of STOXX 600 constituents traded lower or unchanged yesterday.
72% of the shares trade above their 20D MA vs 69% Tuesday (above the 20D moving average).
62% of the shares trade above their 200D MA vs 63% Tuesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 0.69pt to 22.94, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Industrial
3mths relative low: Insurance
Europe Best 3 sectors
utilities, energy, basic resources
Europe worst 3 sectors
health care, food & beverage, retail
The 10yr Bund yield fell 1bp to -0.56% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -16bps (above its 20D MA).
FR 07:45: Sep Inflation Rate YoY final, exp.: 0.2%
FR 07:45: Sep Inflation Rate MoM final, exp.: -0.1%
FR 07:45: Sep Harmonised Inflation Rate YoY final, exp.: 0.2%
FR 07:45: Sep Harmonised Inflation Rate MoM final, exp.: -0.1%
FR 10:00: 3-Year BTAN auction, exp.: -0.64%
FR 10:00: 5-Year BTAN auction, exp.: -0.53%
EC 17:00: ECB President Lagarde speech
In Asian trading hours, EUR/USD was little changed at 1.1745 while GBP/USD held gains at 1.3012. USD/JPY edged up to 105.25. AUD/USD slid to 0.7129. This morning, official data showed that the Australian economy shed 29,500 jobs in September (-40,000 jobs expected) and jobless rate edged up to 6.9% (7.0% expected) from 6.8% in August.
Spot gold fell to $1,895 an ounce.
#UK - IRELAND#
Mondi, a packaging and paper group, released a 3Q trading update: "Underlying EBITDA for the third quarter of 2020 was E306 million, down 20% on the comparable prior year period (Q3 2019: E383 million), as lower average selling prices and negative currency effects more than offset lower costs. Compared to the second quarter of 2020 ('sequentially'), underlying EBITDA was down 13% (Q2 2020: E353 million)."
British American Tobacco, a cigarettes manufacturer, announced that Luc Jobin will succeed Richard Burrows as Chairman with effect from the conclusion of its annual general meeting on April 28, 2021.
From a weekly point of view, the stock is trading within a symmetrical triangle drawn since January 2020, the upper boundary of the triangle represents a declining trend line drawn since June 2017, and the lower one represents a support area in place since January 2019. Below 3310p, look for the previous low of January 2019 at 2333p and 1500p in extension.
Source: GAIN Capital, TradingView
Schroders, an international asset management company, reported that 3Q assets under management rose to 536.3 billion pounds as of September 30 from 525.8 billion pounds on July 1.
LVMH, a luxury goods conglomerate, is expected to report 3Q revenue after market close.
Roche, a research-intensive healthcare company, announced that 3Q revenue dropped 6% on year (+1% at constant exchange rate) to 14.70 billion Swiss franc and 9-month revenue was down 5% (+1% at constant exchange rate) to 43.98 billion Swiss franc. The company confirmed its full-year outlook, stating: "Sales are expected to grow in the low- to mid-single digit range, at constant exchange rates. Core earnings per share are targeted to grow broadly in line with sales, at constant exchange rates. Roche expects to increase its dividend in Swiss francs further."
Norsk Hydro, an aluminum producer, was upgraded to "buy" from "hold" at Deutsche Bank.
Kerry Group: E0.259, Tesco:3.2p
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.