Yesterday, European stocks closed mixed. The Stoxx Europe 600 dipped 0.08%, Germany's DAX was little changed, the U.K.'s FTSE 100 fell 0.64%, while France's CAC 40 gained 0.23%.
56% of STOXX 600 constituents traded lower or unchanged yesterday.
75% of the shares trade above their 20D MA vs 73% Tuesday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Tuesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.59pt to 20.78, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Travel & Leisure
3mths relative low: Chemicals, Healthcare
Europe Best 3 sectors
energy, banks, basic resources
Europe worst 3 sectors
personal & household goods, health care, real estate
The 10yr Bund yield rose 2bps to -0.56% (above its 20D MA). The 2yr-10yr yield spread fell 0bp to -18bps (below its 20D MA).
GE 08:00: Dec GfK Consumer Confidence, exp.: -3.1
FR 08:45: Nov Consumer Confidence, exp.: 94
EC 10:00: Oct M3 Money Supply YoY, exp.: 10.4%
EC 10:00: Oct Loans to Households YoY, exp.: 3.1%
EC 10:00: Oct Loans to Companies YoY, exp.: 7.1%
UK 10:00: Oct Car Production YoY, exp.: -5%
EC 13:00: ECB Lane speech
EC 13:30: ECB Monetary Policy Meeting Accounts
EC 14:00: ECB Schnabel speech
In Asian trading hours, EUR/USD climbed further to 1.1925 and GBP/USD advanced to 1.3390. USD/JPY fell to 104.30. NZD/USD held above the 0.7000 level. This morning, official data showed that New Zealand recorded a trade deficit of 501 million New Zealand dollars in October (500 million New Zealand dollars deficit expected), where exports totaled 4.78 billion New Zealand dollars (as expected).
Spot gold bounced to $1,811 an ounce.
#UK - IRELAND#
Severn Trent, a water company, posted 1H underlying EPS declined 25.4% on year to 51.30p and revenue fell 2.5% to 888 million pounds. The company declared an interim dividend of 40.63p per share, up from 40.03p per share in the prior-year period.
CRH, an Irish building materials company, was downgraded to "sell" from "neutral" at Goldman Sachs.
From a technical point of view, the stock has validated the descending broadening wedge pattern in place since July 2020 with the breakout above the key resistance at 3117 which should trigger a new up leg towards 3430p and 3600p in extension.
Source: TradingView, GAIN Capital
Remy Cointreau, a spirits manufacturer, reported that 1H net income declined 28.1% on year to 65 million euros and current operating profit dropped 23.2% to 106 million euros on revenue of 431 million euros, down 17.8% (-16.4% organic growth). Regarding the outlook, the company stated: "The Group continues to expect a real recovery in the second half, driven by the United States and Mainland China. For financial year 2020/21, Remy Cointreau is thus forecasting positive organic growth in its Current Operating Profit."
Publicis, an advertising and public relations company, announced that Michel-Alain Proch will join the company as CFO in mid-January.
Solvay, a Belgian chemical group, was upgraded to "buy" from "hold" at Deutsche Bank.
Yara International, a Norwegian chemical company, was downgraded to "underperform" from "buy" at BofA Securities.
Imperial Brands:48p, National Grid:17p
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.