Yesterday, European stocks were deeply in the red. The Stoxx Europe 600 Index dropped 1.81%, Germany's DAX 30 plunged 3.71%, France's CAC 40 lost 1.90% and the U.K.'s FTSE 100 was down 1.16%.
92% of STOXX 600 constituents traded lower or unchanged yesterday.
26% of the shares trade above their 20D MA vs 45% Friday (below the 20D moving average).
52% of the shares trade above their 200D MA vs 60% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 3.6pts to 31.76, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Autos, Media, Utilities
3mths relative low: Technology, Energy
Europe Best 3 sectors
travel & leisure, automobiles & parts, banks
Europe worst 3 sectors
technology, basic resources, chemicals
The 10yr Bund yield fell 1bp to -0.57% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -18bps (below its 20D MA).
FR 08:45: Sep PPI MoM, exp.: 0.1%
EC 10:00: Sep Loans to Companies YoY, exp.: 7.1%
EC 10:00: Sep M3 Money Supply YoY, exp.: 9.5%
EC 10:00: Sep Loans to Households YoY, exp.: 3%
FR 12:00: Sep Unemployment Benefit Claims, exp.: -171K
FR 12:00: Sep Jobseekers Total, exp.: 3621.5K
UK 12:00: Oct CBI Distributive Trades, exp.: 11
In Asian trading hours, EUR/USD rebounded to 1.1820 and GBP/USD bounced to 1.3035. USD/JPY slipped to 104.70.
Spot gold climbed to $1,909 an ounce.
#UK - IRELAND#
BP, an oil giant, reported that 3Q underlying replacement cost profit slumped to 86 million dollars from 2.25 billion dollars in the prior-year period, and compared with an underlying replacement cost loss of 6.68 billion dollars in the prior quarter. The company said: "Compared to the previous quarter, the result benefitted from the absence of significant exploration write-offs and recovering oil and gas prices and demand. This was partly offset by a significantly lower oil trading result. (...) A dividend of 5.25 cents per share was announced for the quarter."
Orange, a telecommunications group, was upgraded to "equalweight" from "underweight" at Morgan Stanley.
Santander, a Spanish bank, announced that 3Q underlying profit dropped 18% on year to 1.75 billion euros on net interest income of 7.77 billion, up 1%. The bank stated: "The bank has improved its outlook on cost of credit in 2020 to c.1.3% from its previous guidance of 1.4-1.5%, due to the positive trends in customer behaviour and better macro forecasts. This better outlook, paired with strong cost control, give the bank reason to expect an underlying profit of around E5 billion for the year."
Novartis, a Swiss multinational pharmaceutical group, posted 3Q core net income rose 8% on year to 3.47 billion dollars and core operating income increased 9% to 4.07 billion dollars on net sales of 12.26 billion dollars, up 1% (flat at constant currency). The company has raised its full-year core operating income growth forecast to "low double digit to mid teens" from "low double digit" previously and expects net sales to grow mid single digit.
From a technical point of view, the stock is rebounding from the lower end of the short term trading range at 75CHF. As long as this key level is support, readers may consider the potential for opening long positions with the overlap area at 79.3CHF and the previous top of September at 84CHF as targets. Alternatively, a break below 75CHF would call for a new down leg towards 69.9CHF.
Source: TradingView, GAIN Capital
UPM-Kymmene, a Finnish forest industry company, is expected to report 3Q results.
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.