EU indices slightly up | TA focus on Associated British Foods


European stocks report | B&M European | Associated British Foods | Volkswagen...

Stocks (2)

Yesterday, European stocks were mixed. The Stoxx Europe 50 slipped 0.1%, Germany's DAX slid 0.5% and France's CAC 40 fell 0.2%, while the U.K.'s FTSE 100 advanced 0.4%.

48% of STOXX 600 constituents traded higher yesterday.
61% of the shares trade above their 20D MA vs 66% Wednesday (below the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.38pt to 21.32, a new 52w high.

3mths relative high: Financial Services, Banks, Travel & Leisure, Basic Resources
3mths relative low: Chemicals, Food & Beverage, Healthcare

Europe Best 3 sectors
energy, food & beverage, travel & leisure

Europe worst 3 sectors
banks, chemicals, basic resources

The 10yr Bund yield rose 1bp to -0.52% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -18bps (above its 20D MA).

GE 08:00: Oct Factory Orders MoM, exp.: 0.5%
FR 08:45: Oct Budget Balance, exp.: E-161.6B
EC 09:30: Nov Construction PMI, exp.: 44.9
FR 09:30: Nov Construction PMI, exp.: 42.7
GE 09:30: Nov Construction PMI, exp.: 45.2
UK 10:00: Nov New Car Sales YoY, exp.: -1.6%
UK 10:30: Nov Construction PMI, exp.: 53.1

In Asian trading hours, EUR/USD was little changed 1.2143 and GBP/USD held gains at 1.3452. USD/JPY remained subdued at 103.85.

Spot gold climbed to $1,843 an ounce.

B&M European, a variety store chain, released a 3Q trading update: "Over the first 9 weeks of Q3 at B&M UK stores, there has been a steadily improving customer count and like-for-like ("LFL") sales growth has been slightly ahead of H1, but is expected to moderate over the balance of the financial year. Accordingly, the Group now expects adjusted EBITDA (on a pre-IFRS 16 basis) for the twelve months to 27 March 2021 ("FY21") to be in the range of £600m to £650m. The analysts' consensus estimate for FY21 adjusted EBITDA (on a pre-IFRS 16 basis) is currently £571m."

Associated British Foods, a food processing and retailing company, issued a trading update: "Our estimate for the loss of sales for the announced periods of closure this Autumn is now some £430m. The operating costs of the stores which were closed were reduced by some 25% during this period of closure. (...) Notwithstanding the currently announced periods of restriction, we continue to expect Primark sales and profit to be higher this financial year compared to last."

From a technical point of view, the stock has escaped from a double bottom pattern with a neckline at 2130p. The share price is likely to consolidate in a first time towards the key area at 2130p-2140p, which would be a good entry zone with 2390p and 2730p as targets.

Source: TradingView, GAIN Capital

Land Securities Group, a commercial property group, reported that it has agreed to sell 1 & 2 New Ludgate to Sun Venture for a cash consideration of 552 million pounds.

SSE, an energy group, said it has agreed to sell a 10% stake in the first two phases of Dogger Bank Wind Farm to Eni for an equity consideration of 203 million pounds.

EasyJet, a budget airline, was upgraded to "buy" from "hold" at Deutsche Bank.

Volkswagen, an automobile group, CEO Herbert Diess plans to fulfill his term and dismissed rumors that he might step down, according to German news magazine Wirtschaftswoche.

Remy Cointreau, a wines and spirits company, said it has sold its shares in the Passoa SAS joint venture to Lucas Bols Amsterdam for 71 million euros.

Coloplast: DKK13

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.