Yesterday, European stocks closed substantially higher. The Stoxx Europe 600 jumped 3.98%, Germany's DAX surged 4.94%, France's CAC 40 soared 7.57%, and the U.K.'s FTSE 100 was up 4.67%.
77% of STOXX 600 constituents traded higher yesterday.
81% of the shares trade above their 20D MA vs 64% Friday (above the 20D moving average).
76% of the shares trade above their 200D MA vs 59% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 1.75pt to 23.86, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Media, Construction, Travel & Leisure, Industrial
3mths relative low: Telecom., Healthcare
Europe Best 3 sectors
banks, energy, insurance
Europe worst 3 sectors
health care, technology, utilities
The 10yr Bund yield rose 2bps to -0.62% (below its 20D MA). The 2yr-10yr yield spread fell 6bps to -22bps (below its 20D MA).
FR 07:30: Q3 Unemployment Rate, exp.: 7.1%
UK 08:00: Aug Employment chg, exp.: -153K
UK 08:00: Oct Claimant Count chg, exp.: 28K
UK 08:00: Sep Average Earnings excl. Bonus, exp.: 0.8%
UK 08:00: Sep Average Earnings incl. Bonus, exp.: 0%
UK 08:00: Sep Unemployment Rate, exp.: 4.5%
FR 08:45: Sep Industrial Production MoM, exp.: 1.3%
EC 11:00: Nov ZEW Economic Sentiment Idx, exp.: 52.3
GE 11:00: Nov ZEW Economic Sentiment Idx, exp.: 56.1
GE 11:00: Nov ZEW Current Conditions, exp.: -59.5
In Asian trading hours, EUR/USD rebounded to 1.1830 and GBP/USD climbed to 1.3185. USD/JPY retreated to 104.85. AUD/USD eased to 0.7277. This morning, official data showed that China's CPI grew 0.5% on year in October (+0.8% expected) while PPI dropped 2.1% (-1.9% expected).
Spot gold bounced to $1,878 an ounce.
#UK - IRELAND#
Land Securities, a commercial property group, posted 1H adjusted EPS declined 49.0% on year to 15.5p and revenue profit dropped 48.9% to 115 million pounds. EPRA net tangible assets per share was down 9.5% to 1,079p. The company proposed a dividend of 12.0p per share, down from 23.2p per share.
DCC, a sales and marketing services group, reported that 1H adjusted EPS grew 7.0% on year to 117.9p and adjusted operating profit rose 8.3% to 176 million pounds on revenue of 5.93 billion pounds, down 18.9%. The company proposed an interim dividend of 51.95p per share, up from 49.48p per share in the prior-year period.
Adidas, a sports apparel manufacturer, announced that 3Q net income dropped 15.5% on year to 546 million euros while operating profit slid 11.6% to 794 million euros on net sales of 5.96 billion euros, down 7.0% (-3.0% in currency-neutral terms). Regarding outlook, the company stated: "Overall, the company’s top line is predicted to develop similarly in Q4 as it did in Q3, implying a low- to mid-single-digit currency-neutral revenue decline. (...) Consequently, operating profit is anticipated to be between E100 million and E200 million."
Deutsche Post, a postal service and international courier service company, reported that 3Q net income rose 51.7% on year to 851 million euros and EBIT climbed 46.2% to 1.38 billion euros on revenue of 16.24 billion euros, up 4.4%.
Henkel, a chemical and consumer goods company, posted preliminary 3Q organic revenue grew 3.9% on year while it was down 2.1% in the 9-month period. Regarding full-year outlook, the company said: "Henkel expects organic sales growth of between -1.0 and -2.0 percent at Group level in fiscal 2020. (...) Adjusted earnings per preferred share (EPS) at constant exchange rates are expected to decline in the range between -18 and -22 percent."
ThyssenKrupp, an industrial engineering conglomerate, is in discussions with the German government regarding an aid package for its 5 billion euros steel business, reported Bloomberg citing people familiar with the matter.
From a technical point of view, the stock remains under pressure, capped by a declining trend line since September 2018. Below the horizontal resistance at 8E, a push towards the previous all-time low of March 2020 at 3.2E and 1.5E in extension is expected.
Source: TradingView, GAIN Capital
Unibail-Rodamco-Westfield, a commercial real estate company, said the 3.5 billion euros proposed capital increase did not gather the required two-third majority vote and the board "will have to review all possible alternatives to rapidly strengthen the Group's financial structure".
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