EU indices positive this morning | TA focus on FLSmidth & Co


European stocks report | BP | Bayer | Novartis | FLSmidth & Co ...

Uptrend 2


Yesterday, European stocks rebounded. The Stoxx Europe 600 Index jumped 2.05%, Germany's DAX 30 surged 2.71%, France's CAC 40 rose 1.93%, and the U.K.'s FTSE 100 climbed 2.29%.

86% of STOXX 600 constituents traded higher yesterday.
43% of the shares trade above their 20D MA vs 28% Friday (below the 20D moving average).
48% of the shares trade above their 200D MA vs 44% Friday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.91pt to 25.76, a new 52w high.

3mths relative high: Financial Services, Industrial
3mths relative low: Telecom.

Europe Best 3 sectors
automobiles & parts, media, construction & materials

Europe worst 3 sectors
real estate, food & beverage, telecommunications

The 10yr Bund yield rose 2bps to -0.52% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -17bps (above its 20D MA).

FR 07:45: Jun Budget Balance, exp.: E-117.9B
EC 10:00: Jun PPI YoY, exp.: -5%
EC 10:00: Jun PPI MoM, exp.: -0.6%

In Asian trading hours, major currencies rebounded against the U.S. dollar. EUR/USD climbed higher nearing 1.1770, GBP/USD was at elevated levels around 1.3075. USD/JPY managed to stay above 106.00. AUD/USD advanced to levels above 0.7130. As expected, Australia's central bank kept its key interest rate unchanged at 0.25%. Official data showed that Australia's June Retail Sales grew 2.7% on month (+2.4% expected) and Exports increased 3% (+4% expected).

Spot gold was little changed at $1,973 an ounce.

BP, oil major, announced 2Q results: "Underlying replacement cost loss for the quarter was 6.7 billion dollars, compared with a profit of 2.8 billion dollars for the same period a year earlier. The result was driven primarily by non-cash Upstream exploration write-offs - 6.5 billion dollars after tax (...) combined with the impact of lower oil and gas prices and very weak refining margins, reduced oil and gas production and much lower demand for fuels and lubricants. Oil trading delivered an exceptionally strong result. (...) A dividend of 5.25 cents per share was announced for the quarter, compared to 10.5 cents per share for the previous quarter."

Bayer, a German healthcare giant, said it swung to a 2Q net loss of 9.55 billion euros from a net income of 404 million euros in the prior-year period, citing net special charges of 12.51 billion euros. 2Q EBITDA before special items increased 5.6% on year to 2.88 billion euros on sales of 10.05 billion euros, up 2.5% on a currency- and portfolio-adjusted basis. The Company lowered its forecast on full-year EBITDA before special items to 12.1 billion euros from 12.3-12.6 billion euros previously and that on Core earnings per share to 6.70-6.90 euros from 7.00-7.20 euros.

Hugo Boss, a German premium-apparel company, announced that it swung to a 2Q net loss of 186 million euros from a net income of 52 million euros in the prior-year period on sales of 275 million euros, down 59% on year. The Company said: "Retail sales trends during the second quarter have shown a sequential improvement month by month. This positive trend has also continued so far in Q3, as HUGO BOSS has recorded further improvements in its global retail operations during the month of July."

Fraport, the operator of Frankfurt airport, posted a 1H net loss of 231 million euros, compared with a net income of 165 million euros in the prior-year period on revenue of 911 million euros, down 49% on year. The Company pointed out: "Frankfurt Airport's passenger traffic plummeted by 94.4% year-on-year in the April-to-June 2020 period, while falling by a total of 63.8% during the entire first half."

Infineon Technologies, a semiconductors maker, reported that it swung to a 3Q net loss of 128 million euros from a net income of 224 million euros in the prior-year period.

DSM, a Dutch nutrition and health company, reported that 1H net income fell to 270 million euros from 401 million euros in the prior-year period. 1H Adjusted EBITDA eased 4.3% on year to 825 million euros on sales of 4.53 billion euros, slightly lower than 4.57 billion euros a year earlier.

Novartis, a Swiss maker of pharmaceutical products, reported positive results from a Phase 2 trial of Kymriah (tisagenlecleucel) in patients with relapsed or refractory follicular lymphoma.

FLSmidth & Co, a machinery firm, reported that 2Q EBITA decreased 73% on year to 131 million Danish Krone on revenue of 3.85 billion Danish Krone, down 30%. The Company said: "The clear majority of the revenue decline was attributable to COVID-19, but the change was also a result of a lower backlog entering the year."
From a weekly point of view, the stock remains within a bearish channel since June 2018. Below 214.7 krone, targets are set at 170 Krone and 134.30 krone in extension.

Source: GAIN Capital, TradingView

More from Equities


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.