Yesterday, European stocks remained under pressure. The Stoxx Europe 600 Index slumped 2.08%, Germany's DAX 30 shed 2.49%, France's CAC 40 sank 2.11%, and the U.K.'s FTSE 100 was down 1.73%.
92% of STOXX 600 constituents traded lower or unchanged yesterday.
53% of the shares trade above their 20D MA vs 72% Wednesday (above the 20D moving average).
58% of the shares trade above their 200D MA vs 62% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 3.6pts to 26.84, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Industrial
3mths relative low: Insurance
Europe Best 3 sectors
real estate, travel & leisure, banks
Europe worst 3 sectors
energy, insurance, utilities
The 10yr Bund yield fell 2bps to -0.58% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -16bps (above its 20D MA).
EC 10:00: Aug Balance of Trade, exp.: E27.9B
EC 10:00: Sep Core Inflation Rate YoY final, exp.: 0.4%
EC 10:00: Sep Inflation Rate MoM final, exp.: -0.4%
EC 10:00: Sep Inflation Rate YoY final, exp.: -0.2%
In Asian trading hours, EUR/USD remained subdued at 1.1703 and GBP/USD extended its decline to 1.2888. USD/JPY retreated to 105.26.
Spot gold slipped to $1,906 an ounce.
#UK - IRELAND#
Rio Tinto, a giant metals miner, released a 3Q production report: "Pilbara operations produced 86.4 million tonnes (Rio Tinto share 71.4 million tonnes) in the third quarter of 2020, 1% lower than the same period of 2019, and 4% higher than the previous quarter. (...) Third quarter shipments of 82.1 million tonnes (Rio Tinto share 67.6 million tonnes) were 5% lower than the third quarter of 2019 with significant planned maintenance activity affecting the port during the period."
J D Wetherspoon, a pub company, posted full-year results: "Total sales in the financial year were £1,262.0m, a decrease of 30.6%. Like-for-like sales decreased by 29.5%, having increased by 5.9% in the first half. (...) Earnings per share, including shares held in trust by the employee share scheme, before exceptional items, were -27.6p (2019: 75.5p). (...) The board is not proposing a final dividend payment for the year."
LVMH, a luxury goods conglomerate, announced that 3Q revenue dropped 10% on year (-7% organic growth) to 11.96 billion euros and 9-month revenue was down 21% (-21% organic growth) to 30.35 billion euros. The company said 3Q sales reflected "a marked improvement in trends compared to the first half, notably a return to growth in Cognac and Fashion & Leather Goods (+12% organic growth)". It also added that "the decision to pay an interim dividend will be discussed".
Eurofins Scientific, a bioanalytical testing company, announced a ten-for-one stock split, effective upon the listing on Euronext Paris of the new shares expected to occur on November 19.
Saint-Gobain, a building materials supplier, was downgraded to "neutral" from "buy" at Goldman Sachs.
Just Eat Takeaway, an online food order and delivery service provider, was upgraded to "buy" from "hold" at HSBC.
Nestle, a food and drink processing conglomerate, has initiated the sale process for its 5 billion dollars North American water brands, reported Bloomberg citing people familiar with the matter.
Volvo, a vehicle manufacturer, announced that 3Q net income declined 23% on year to 5.72 billion Swedish krona and adjusted operating income dropped 34% to 7.22 billion Swedish krona on net sales of 76.85 billion Swedish krona, down 22% (-16% currency adjusted). The company said: "Towards the end of the quarter transport activity was back on roughly the same level as a year ago in most markets. This led to an improved sentiment among our customers, which is reflected in increased order intake for trucks, engines and construction equipment as well as a gradually improving service business."
From a daily point of view, the stock is trading above a rising trend line drawn since March 2020. Furthermore, the 50 DMA is playing a support role, while the Relative Strenght Index is carried by the key support at 45%. Above 165SEK, targets are set at 195SEK and 210SEK in extension.
Source: TradingView, GAIN Capital
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