EU indices under pressure TA on British American Tobacco

INDICES
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%.

EUROPE ADVANCE/DECLINE
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


INTEREST RATE
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).


ECONOMIC DATA
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


MORNING TRADING
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.


#FRANCE#
LVMH, a luxury goods conglomerate, is expected to report 3Q revenue after market close.


#SWITZERLAND#
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."


#NORWAY#
Norsk Hydro, an aluminum producer, was upgraded to "buy" from "hold" at Deutsche Bank.


EX-DIVIDEND
Kerry Group: E0.259, Tesco:3.2p