Yesterday, European stocks returned to negative territory. The Stoxx Europe 600 Index fell 1.07%, Germany's DAX 30 dropped 1.14%, France's CAC 40 slid 1.33%, and the U.K.'s FTSE 100 was down 1.61%.
83% of STOXX 600 constituents traded lower or unchanged yesterday.
51% of the shares trade above their 20D MA vs 64% Wednesday (above the 20D moving average).
50% of the shares trade above their 200D MA vs 52% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 2.05pts to 24.04, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Construction
3mths relative low: none
Europe Best 3 sectors
real estate, health care, media
Europe worst 3 sectors
basic resources, banks, financial services
The 10yr Bund yield fell 1bp to -0.47% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -18bps (above its 20D MA).
UK : UK-EU Brexit Talks
UK 07:00: Jul Retail Sales MoM, exp.: 13.9%
UK 07:00: Jul Retail Sales YoY, exp.: -1.6%
UK 07:00: Jul Retail Sales ex Fuel MoM, exp.: 13.5%
UK 07:00: Jul Retail Sales ex Fuel YoY, exp.: 1.7%
UK 07:00: Jul Public Sector Net Borrowing, exp.: £-34.8B
FR 08:15: Aug Markit Composite PMI Flash, exp.: 57.3
FR 08:15: Aug Markit Services PMI Flash, exp.: 57.3
FR 08:15: Aug Markit Manufacturing PMI Flash, exp.: 52.4
GE 08:30: Aug Markit Composite PMI Flash, exp.: 55.3
GE 08:30: Aug Markit Services PMI Flash, exp.: 55.6
GE 08:30: Aug Markit Manufacturing PMI Flash, exp.: 51
EC 09:00: Aug Markit Composite PMI Flash, exp.: 54.9
EC 09:00: Aug Markit Manufacturing PMI Flash, exp.: 51.8
EC 09:00: Aug Markit Services PMI Flash, exp.: 54.7
UK 09:30: Aug Markit/CIPS Manufacturing PMI Flash, exp.: 53.3
UK 09:30: Aug Markit/CIPS UK Services PMI Flash, exp.: 56.5
UK 09:30: Aug Markit/CIPS Composite PMI Flash, exp.: 57
EC 15:00: Aug Consumer Confidence Flash, exp.: -15
In Asian trading hours, EUR/USD edged up to 1.1877 and GBP/USD rose further to 1.3236. USD/JPY remains subdued at 105.66. AUD/USD advanced to 0.7204. Earlier today, official data showed that Australia's preliminary retail sales grew 3.3% on month in July (+2.7% in June).
Spot gold climbed to $1,950 an ounce.
#UK - IRELAND#
AstraZeneca, a pharmaceutical giant, said its "Imfinzi (durvalumab) has been approved in Japan for the treatment of patients with extensive-stage small cell lung cancer".
Bayer, a pharmaceutical group, announced that it has agreed to pay 1.6 billion dollars to resolve 90% of about 39,000 total filed and unfiled U.S. Essure claims involving women who allege device-related injuries.
From a weekly point of view, the share remains within a descending channel since June 2017. Below the channel's upper boundary (set currently around 70E) look for the horizontal support of March 2020 at 44.85E and 32.15E in extension.
Source: GAIN Capital, TradingView
EMS-Chemie, a speciality chemicals company, announced that 1H net income declined 27.9% on year to 191 million Swiss franc and EBIT slid 28.2% to 227 million Swiss franc on net sales of 845 million Swiss franc, down 26.8%. Regarding the outlook, the company stated: "Based on the extraordinary market slump, EMS continues to expect net operating income (EBIT) for 2020 to be below previous year."
#SCANDINAVIA - DENMARK#
Maersk, a Danish integrated shipping company, was downgraded to "neutral" from "overweight" at JPMorgan.
Sampo, a Finnish financial company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.
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.
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.