Yesterday, European stocks lacked momentum. The Stoxx Europe 600 eased 0.20%, Germany's DAX edged down 0.08%, France's CAC 40 dipped 0.07%, and the U.K.'s FTSE 100 was down 0.28%.
56% of STOXX 600 constituents traded lower or unchanged yesterday.
79% of the shares trade above their 20D MA vs 84% Friday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 1.05pt to 22.49, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Banks, Energy
3mths relative low: Chemicals, Food & Beverage, Healthcare
Europe Best 3 sectors
energy, basic resources, banks
Europe worst 3 sectors
health care, telecommunications, food & beverage
The 10yr Bund yield fell 1bp to -0.58% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -17bps (above its 20D MA).
GE 08:00: Q3 GDP Growth Rate QoQ final, exp.: -9.8%
GE 08:00: Q3 GDP Growth Rate YoY final, exp.: -11.3%
FR 08:45: Nov Business Confidence, exp.: 93
FR 08:45: Nov Business Climate Indicator, exp.: 90
GE 10:00: Nov Ifo Current Conditions, exp.: 90.3
GE 10:00: Nov Ifo expectations, exp.: 95
GE 10:00: Nov Ifo Business Climate, exp.: 92.7
UK 11:00: BoE Haskel speech
GE 11:40: 2-Year Schatz auction, exp.: -0.8%
UK 12:00: Nov CBI Distributive Trades, exp.: -23
GE 14:00: Bundesbank Mauderer speech
EC 14:15: ECB Schnabel speech
GE 17:00: Bundesbank Beermann speech
In Asian trading hours, EUR/USD edged up to 1.1845 and GBP/USD advanced to 1.3330. USD/JPY held gains at 104.55.
Spot gold extended its decline to $1,825 an ounce.
#UK - IRELAND#
Compass Group, a food service company, posted full-year underlying EPS declined 77.8% on year to 18.6p and underlying operating profit slid 69.7% to 561 million pounds on revenue of 20.2 billion pounds, down 18.8%.
CRH Plc, a building materials firm, issued a trading update: "Cumulative nine-month sales to the end of September amounted to 20.6 billion dollars, a decrease of 3% compared with the corresponding period in 2019, (...) EBITDA for the period was 3.4 billion dollars, up 1% on prior year and up 2% on a like-for-like basis (...) we expect full-year EBITDA to be in excess of 4.4 billion dollars for 2020."
From a technical point of view, the stock is facing the key horizontal resistance around 3117p. A break above this level, would trigger the end of the trading range in place since June 2020 and would set targets towards the previous all-time high at 3430p and 3600p in extension.
Source: TradingView, GAIN CapitalLloyds Banking Group and NatWest, the two British banks, were downgraded to "hold" from "buy" at HSBC.
Deutsche Boerse, a stock market operator, said from September 2021, the benchmark index DAX will be expanded by ten members, to a total of 40 constituents.
Natixis, an investment bank, was downgraded to "underweight" from "equalweight" at Morgan Stanley.
Novartis, a pharmaceutical giant, announced a 2.5 billion dollars share buyback plan, starting immediately and will last into the first half of 2021.
Roche, a giant drugmaker, reported that the U.S. Food and Drug Administration (FDA) has approved a supplemental New Drug Application for its Xofluza as a treatment to prevent influenza.
Credit Suisse, a banking group, said it expects to book a 450 million dollars impairment charge on York Capital Management in 4Q results. The bank added: "The capital impact of this impairment is currently estimated to reduce our 4Q20 CET1 ratio by approximately 7 basis points. This impairment does not change our existing guidance for dividends and capital distributions in 2020 and 2021."
#SCANDINAVIA - DENMARK#
Danske Bank, a Danish bank, was downgraded to "underweight" from "equalweight" at Morgan Stanley.
Swedbank, a Nordic-Baltic banking group, was downgraded to "sell" from "neutral" at Goldman Sachs.
Hennes & Mauritz, a Swedish clothing-retail company, was upgraded to "buy" from "sell" at Goldman Sachs.
UBS Group (UBSG): $0.1825
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.