EU indices mixed | TA focus on Thyssenkrupp

,

European stocks report | Land Securities | Adidas | Deutsche Post | Unibail-Rodamco-Westfield...

Stocks (3)

INDICES
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%.

EUROPE ADVANCE/DECLINE
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


INTEREST RATE
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).

ECONOMIC DATA
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


MORNING TRADING
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.


#GERMANY#
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


#BENELUX#
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".

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.