EU indices mixed | TA focus on Continental

,

European stocks report | TUI | Continental | Amadeus | Nexi...

Stocks (2)

INDICES
Yesterday, European stocks were slightly up. The Stoxx Europe 600 Index closed flat+, Germany's DAX 30 gained 0.61%, France's CAC 40 added 0.48% and the U.K.'s FTSE 100 was up 0.12%.

EUROPE ADVANCE/DECLINE
56% of STOXX 600 constituents traded higher yesterday.
67% of the shares trade above their 20D MA vs 61% Monday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 58% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.06pt to 25.21, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Media
3mths relative low: Energy

Europe Best 3 sectors
3mths relative high: Media, Industrial
3mths relative low: none


INTEREST RATE
The 10yr Bund yield rose 3bps to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -19bps (above its 20D MA).


ECONOMIC DATA
GE 07:00: Aug Industrial Production MoM, exp.: 1.2%
FR 07:45: Aug Current Account, exp.: E-6.2B
FR 07:45: Aug Balance of Trade, exp.: E-6.99B
UK 08:30: Sep Halifax House Price Idx MoM, exp.: 1.6%
UK 08:30: Sep Halifax House Price Idx YoY, exp.: 5.2%
EC 09:00: ECB Non-Monetary Policy Meeting
UK 09:30: Q2 Labour Productivity QoQ final, exp.: -1.3%
GE 10:40: 10-Year Bund auction, exp.: -0.5%
EC 13:10: ECB President Lagarde speech


MORNING TRADING
In Asian trading hours, EUR/USD slipped to 1.1730 while GBP/USD remained subdued at 1.2885 USD/JPY was little changed at 105.67.

Spot gold rebounded slightly to $1,881 an ounce.


#UK - IRELAND#
TUI, a travel and tourism company, announced that Sebastian Ebel, currently an executive board member, will succeed Brigit Conix as CFO with effect from January 1, 2021.

BHP Group, a giant metal group, is in talks with Tesla over a nickel supply deal, reported Bloomberg citing people familiar with the matter.

Glencore, a commodity trading and mining company, was upgraded to "neutral" from "underweight" at JPMorgan.


#GERMANY#
Continental, an automotive parts manufacturer, may sell some of its divisions as part of a restructuring plan, according to newspaper Frankfurter Allgemeine Zeitung.
From a weekly point of view, the stock has broken above a declining trend line drawn since January 2018. In addition, the share is trading above its one-year exponential moving average, while the Relative Strength Index crossed a strong resistance at 56.2%. Above the support at 79E, targets are set at the horizontal resistance at 115.6E and 133.1E in extension.


Source: TradingView, GAIN Capital

Hapag-Lloyd, a shipping and container transportation company, was upgraded to "buy" from "hold" at Deutsche Bank.


#SPAIN#
Amadeus, a Spanish IT service provider, was downgraded to "reduce" from "buy" at HSBC.


#ITALY#
Telecom Italia's, a telecommunications group, "BB+" credit rating outlook was revised to "Negative" from "Stable" by S&P Global Ratings. The rating agency said: "We expect lower revenue and earnings at Telecom Italia (TIM) will cause S&P Global Ratings-adjusted leverage to rise to 4.2x in 2020, outside our trigger for the rating."


#SWITZERLAND#
Sika, a specialty chemical company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

More from Equities

Disclaimer

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 cityindex.com.sg 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.