EU indices slightly up | TA focus on LVMH

,

European stocks report | British Land | Dunelm Group | LVMH | Iberdrola ...

Stocks (3)

INDICES
Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index advanced 1.8%, Germany's DAX 30 jumped 2.1%, France's CAC 40 and U.K.'s FTSE 100 were up 1.4%.

EUROPE ADVANCE/DECLINE
83% of STOXX 600 constituents traded higher yesterday.
57% of the shares trade above their 20D MA vs 37% Tuesday (below the 20D moving average).
56% of the shares trade above their 200D MA vs 53% Tuesday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.56pts to 25.89, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Chemicals
3mths relative low: none

Europe Best 3 sectors
telecommunications, insurance, technology

Europe worst 3 sectors
travel & leisure, retail, automobiles & parts


INTEREST RATE
The 10yr Bund yield fell 3bps to -0.5% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -23bps (below its 20D MA).


ECONOMIC DATA
FR 07:45: Jul Industrial Production MoM, exp.: 12.7%
EC 12:45: ECB Interest Rate Decision, exp.: 0%
EC 12:45: Marginal Lending Rate, exp.: 0.25%
EC 12:45: Deposit Facility Rate, exp.: -0.5%
EC 13:30: ECB Press Conference
EC 18:00: ECB President Lagarde speech

MORNING TRADING

In Asian trading hours, EUR/USD rebounded to 1.1820 while GBP/USD retreated to 1.2990. USD/JPY held above the 106.00 level. This morning, official data showed that Japan's core machine orders grew 6.3% on month in July (+2.0% expected).

Spot gold slipped to $1,946 an ounce.


#UK - IRELAND#
British Land, a property group, announced that CFO Simon Carter will succeed Chris Grigg as CEO effective on November 18.

National Grid, an electricity and gas utility company, announced the appointment of Paula Rosput Reynolds, currently Non-executive Director at General Electric and will the company on January 1, to succeed Sir Peter Gershon as Chairman.  

AstraZeneca, a pharmaceutical group, reported that its Fasenra met both co-primary endpoints in a phase 3 trial for patients with chronic rhinosinusitis with nasal polyps.

Dunelm Group, a home furnishings retailer, released full-year results: "Total revenue for the 52 weeks to 27 June 2020 fell by 3.9% to £1,057.9m (FY19: £1,100.4m). (...) Operating profit for the period was £116.0m (FY19: £126.9m). (...) PBT in the period was £109.1m (FY19: £125.9m), a reduction of £16.8m year-on-year. (...) The Board is not recommending a final dividend for FY20, to retain maximum liquidity ahead of winter peak trading."

Rio Tinto, a giant miner, was upgraded to "buy" from "neutral" at Citigroup.


#FRANCE#
LVMH's, a luxury goods producer, Chairman Bernard Arnault is seeking for help from the French government to cancel the deal to acquire Tiffany & Co, reported Bloomberg citing people familiar with the matter.
From a daily point of view, the stock is supported by a rising trendline drawn since August. Above the overlap threshold (resistance twice in May & June before becoming a support twice as well in June & August) at 363E targets are set at 450E and 473E in extension.


Source: GAIN Capital, TradingView


#SPAIN#
Iberdrola, a Spanish electric utility company, is considering acquiring energy group PPL Corp's unit in the U.K., which could be valued at 12 billion pounds, reported Bloomberg citing people familiar with the matter.


#ITALY#
UniCredit, an Italian bank, was downgraded to "hold" from "buy" at HSBC.

More from Equities

Related Articles

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.