EU indices slightly down | TA on B&M European Value Retail

,

European stocks report | Hapag-Lloyd | Airbus | EDF | Ageas...

Trading floor 1

INDICES
Yesterday, European stocks were broadly under pressure. The Stoxx Europe 600 dropped 1.1%, Germany's DAX slid 1.2%, France's CAC 40 declined 1.5%, and the U.K.'s FTSE 100 fell 0.7%.

EUROPE ADVANCE/DECLINE
62% of STOXX 600 constituents traded lower or unchanged yesterday.
87% of the shares trade above their 20D MA vs 86% Wednesday (above the 20D moving average).
82% of the shares trade above their 200D MA vs 81% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.18pt to 23.3, a new 52w high.

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

Europe Best 3 sectors
telecommunications, technology, health care

Europe worst 3 sectors
banks, retail, basic resources


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

ECONOMIC DATA
GE 08:00: Oct Wholesale Prices YoY, exp.: -1.8%
GE 08:00: Oct Wholesale Prices MoM, exp.: 0%
GE 08:15: Bundesbank Mauderer speech
FR 08:45: Oct Harmonised Inflation Rate YoY final, exp.: 0%
FR 08:45: Oct Harmonised Inflation Rate MoM final, exp.: -0.6%
FR 08:45: Oct Inflation Rate YoY final, exp.: 0%
FR 08:45: Oct Inflation Rate MoM final, exp.: -0.5%
EC 11:00: Q3 GDP Growth Rate QoQ 2nd Est, exp.: -11.8%
EC 11:00: Q3 GDP Growth Rate YoY 2nd Est, exp.: -14.8%
EC 11:00: Q3 Employment chg YoY Prel, exp.: -3.1%
EC 11:00: Q3 Employment chg QoQ Prel, exp.: -2.9%
EC 11:00: Sep Balance of Trade, exp.: E14.7B
GE 11:00: Bundesbank Weidmann speech
GE 15:00: Bundesbank Mauderer speech
UK 15:00: BoE Tenreyro speech
UK 17:00: BoE Gov Bailey speech


MORNING TRADING
In Asian trading hours, EUR/USD was steady at 1.1805 while GBP/USD remained subdued at 1.3113. USD/JPY fell further to 104.91.

Spot gold edged up to $1,878 an ounce.


#UK - IRELAND#
B&M European Value Retail, a variety store chain, was downgraded to "neutral" from "buy" at Goldman Sachs.
From a technical point of view, the stock has escaped from a right-angled descending broadening wedge pattern in place since February 2018, which triggered a new up leg. Above, 432p, targets are set at 600p and 650p in extension.


Source: TradingView, GAIN Capital


#GERMANY#
Hapag-Lloyd, a shipping and container transportation company, announced that 3Q net profit jumped to 252 million euros from 150 million euros in the prior-year quarter and EBITDA rose 37.2% on year to 347 million euros on revenue of 3.00 billion euros, down 7.5%.

Deutsche Wohnen, a property group, reported that 9-month FFO I fell 1.2% on year to 422 million euros and EBITDA dropped 9.4% to 508 million euros on rental income of 635 million euros, up 1.9%.


#FRANCE#
EDF, an energy company, reported that organic revenue fell 1.8% on year to 14.1 billion euros and was down 4.0% in the 9-month period.

Airbus, an aircraft manufacturer, was upgraded to "neutral" from "underweight" at JPMorgan.


#BENELUX#
Ageas, a Belgian insurance company, posted 3Q net income declined 25% on year to 203 million euros while 9-month net income was up 13% to 994 million euros.


#SWITZERLAND#
ABB: the automation technology company's credit rating was downgraded to "A-" from "A" at S&P Global Ratings, outlook "Stable". The rating agency said: "Softness in ABB's automotive and discrete manufacturing end markets, due to the COVID-19-led recession, will lead to weaker operating performance than we expected, which will take at least 18-24 months to return to prepandemic levels."

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.