Yesterday, European stocks closed mixed. The Stoxx Europe 600 Index rebounded 0.20%, Germany's DAX 30 rose 0.41% and the U.K.'s FTSE 100 was up 0.43%, while France's CAC 40 declined 0.40%.
55% of STOXX 600 constituents traded higher yesterday.
29% of the shares trade above their 20D MA vs 26% Monday (below the 20D moving average).
51% of the shares trade above their 200D MA vs 51% Monday (below the 20D moving average).
The Euro Stoxx 50 Volatility index eased 1.77pt to 28.11, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Pers. & House. Goods
3mths relative low: Insurance, Banks
Europe Best 3 sectors
energy, automobiles & parts, technology
Europe worst 3 sectors
insurance, travel & leisure, basic resources
The 10yr Bund yield fell 5bps to -0.53% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -21bps (above its 20D MA).
GE 07:00: Oct GfK Consumer Confidence, exp.: -1.8
FR 08:15: Sep Markit Composite PMI Flash, exp.: 51.6
FR 08:15: Sep Markit Services PMI Flash, exp.: 51.5
FR 08:15: Sep Markit Manufacturing PMI Flash, exp.: 49.8
GE 08:30: Sep Markit Composite PMI Flash, exp.: 54.4
GE 08:30: Sep Markit Services PMI Flash, exp.: 52.5
GE 08:30: Sep Markit Manufacturing PMI Flash, exp.: 52.2
EC 09:00: ECB Non-Monetary Policy Meeting
EC 09:00: Sep Markit Composite PMI Flash, exp.: 51.9
EC 09:00: Sep Markit Services PMI Flash, exp.: 50.5
EC 09:00: Sep Markit Manufacturing PMI Flash, exp.: 51.7
UK 09:30: Sep Markit/CIPS Manufacturing PMI Flash, exp.: 55.2
UK 09:30: Sep Markit/CIPS UK Services PMI Flash, exp.: 58.8
UK 09:30: Sep Markit/CIPS Composite PMI Flash, exp.: 59.1
In Asian trading hours, the U.S. dollar strengthened further, as EUR/USD slid to 1.1680 and GBP/USD slipped to 1.2721. USD/JPY held gains at 105.12. NZD/USD fell further to 0.6620. This morning, the Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected. RBNZ said "further monetary stimulus may be needed", citing "a severe and prolonged economic downturn".
Spot gold was little changed at $1,901 an ounce.
#UK - IRELAND#
Halma, a manufacturer of hazard detection and life protection products, posted a trading update for the period from April 1 to date: "At the end of the first quarter we reported that revenue was 13% lower than last year on an organic constant currency basis. Since then, the Group's revenue trends have gradually improved, (...) Order intake was ahead of revenue albeit marginally down on the same period last year. (...) the Board continues to expect Adjusted profit before tax for FY2021 to be 5%-10% below FY2020 and more weighted to the second half than in previous years." Separately, the company announced that Paul Walker has indicated his intention to retire from his role as Chairman by July.
RELX, a provider of information-based analytics and decision tools, announced that Paul Walker, currently Chairman of Halma, will succeed Sir Anthony Habgood as Chairman.
Fresenius, a health care group, was upgraded to "overweight" from "equalweight" at Barclays.
Wacker Chemie, a chemical company, was upgraded to "buy" from "hold" at HSBC.
Veolia, a resource management company, is ready to engage in discussion with Engie regarding its proposal to acquire Engie's stake in Suez, according to news agency Agence France-Presse.
Sanofi and GlaxoSmithKline, the two pharmaceutical groups, said they have signed agreements with the Canadian government to supply up to 72 million doses of adjuvanted COVID-19 vaccine. Financial terms were not disclosed.
Orpea, a dependency care company, announced that 1H net income declined 36.3% on year to 73 million euros and EBITDA dropped 5.5% to 439 million euros on revenue of 1.90 billion euros, up 3.5%.
Proximus, a mobile telecommunications company, was downgraded to "neutral" from "buy" at Citigroup.
From a chartist point of view, the share is capped by a short term declining trend line since June. Furthermore, the 50 DMA is playing a resistance role, while a resistance at 49% maintains the RSI. Above the overlap at 17.5E look for 13.6E and 9.2E in extension.
Source: TradingView, GAIN Capital
Snam, an energy infrastructure company, was upgraded to "buy" from "sell" at Goldman Sachs.
Coloplast, a medical devices manufacturer, was downgraded to "underweight" from "equalweight" at Barclays.
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.