EU indices under pressure | TA focus on Adidas

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European stocks report | Siemens | Adidas | EDF |Telecom Italia...

Downtrend 5

INDICES
Friday, European stocks were broadly higher. The Stoxx Europe 600 Index rose 0.62%, Germany's DAX 30 climbed 0.82%, France's CAC 40 jumped 1.20% and the U.K.'s FTSE 100 was up 1.29%.

EUROPE ADVANCE/DECLINE
71% of STOXX 600 constituents traded higher Friday.
45% of the shares trade above their 20D MA vs 40% Thursday (below the 20D moving average).
60% of the shares trade above their 200D MA vs 57% Thursday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.83pt to 28.16, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Autos, Industrial
3mths relative low: Healthcare

Europe Best 3 sectors
travel & leisure, automobiles & parts, banks

Europe worst 3 sectors
technology, basic resources, chemicals


INTEREST RATE
The 10yr Bund yield rose 2bps to -0.57% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -18bps (below its 20D MA).


ECONOMIC DATA
GE 10:00: Oct Ifo expectations, exp.: 97.7
GE 10:00: Oct Ifo Current Conditions, exp.: 89.2
GE 10:00: Oct Ifo Business Climate, exp.: 93.4
FR 14:00: 12-Mth BTF auction, exp.: -0.65%
FR 14:00: 3-Mth BTF auction, exp.: -0.69%
FR 14:00: 6-Mth BTF auction, exp.: -0.68%


MORNING TRADING
In Asian trading hours, EUR/USD eased to 1.1836 and GBP/USD dropped further to 1.3025. USD/JPY edged up to 104.83.

Spot gold fell to $1,900 an ounce.


#GERMANY#
Siemens, an industrial manufacturing company, is nearing a deal to sell its mechanical drive unit to Carlyle Group for 2 billion euros, reported Bloomberg citing people familiar with the matter.

Adidas, a multinational apparel company, was downgraded to "hold" from "buy" at HSBC.
From a daily point of view, the stock price is supported by a rising trend line drawn since March 2020. In addition, the Relative Strength Index is trading above the key horizontal support area at 45%. Above 265.5E, targets are set at the horizontal resistance at 290E and at the previous all-time high of January 2020 at 317.5E in extension.


Source: TradingView, GAIN Capital


#FRANCE#
EDF, an electric utility company, was upgraded to "buy" from "hold" at HSBC.


#PORTUGAL#
Galp Energia, a Portuguese oil and gas company, is expected to report 3Q results.


#ITALY#
Telecom Italia, an Italian telecommunications company, is planning a 5 billion euros fiber project in Italy, according to Bloomberg.

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