EU indices mixed | TA focus on Thyssenkrupp


European stocks report | Essentra | Bayer | Thyssenkrupp ...

Stocks (3)

Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index dropped 0.8%, Germany's DAX 30 lost 0.7%, France's CAC 40 slid 0.6% and the U.K.'s FTSE 100 was down 0.8%.

77% of STOXX 600 constituents traded lower or unchanged yesterday.
63% of the shares trade above their 20D MA vs 73% Wednesday (above the 20D moving average).
54% of the shares trade above their 200D MA vs 55% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 1.56pt to 23.56, a new 52w high.

3mths relative high: Industrial
3mths relative low: Healthcare

Europe Best 3 sectors
travel & leisure, media, personal & household good

Europe worst 3 sectors
basic resources, real estate, health care

The 10yr Bund yield rose 2bps to -0.42% (above its 20D MA). The 2yr-10yr yield spread fell 2bps to -25bps (below its 20D MA).

GE 07:00: Jul Import Prices YoY, exp.: -5.1%
GE 07:00: Jul Import Prices MoM, exp.: 0.6%
GE 07:00: Sep GfK Consumer Confidence, exp.: -30%
FR 07:45: Jul Household Consumption MoM, exp.: 9%
FR 07:45: Q2 GDP Growth Rate QoQ final, exp.: -5.9%
FR 07:45: Aug Inflation Rate MoM Prel, exp.: 0.4%
FR 07:45: Aug Harmonised Inflation Rate MoM Prel, exp.: 0.4%
FR 07:45: Aug Harmonised Inflation Rate YoY Prel, exp.: 0.9%
FR 07:45: Jul PPI MoM, exp.: 0.7%
FR 07:45: Aug Inflation Rate YoY Prel, exp.: 0.8%
EC 10:00: Aug Consumer Confidence final, exp.: -15
EC 10:00: Aug Consumer Inflation expectations, exp.: 17.5
EC 10:00: Aug Economic Sentiment, exp.: 82.3
EC 10:00: Aug Industrial Sentiment, exp.: -16.2
EC 10:00: Aug Services Sentiment, exp.: -26.1
UK 14:05: BoE Gov Bailey speech

In Asian trading hours, EUR/USD bounced to 1.1831 and GBP/USD climbed to 1.3224. USD/JPY rose further to 106.81 before facing a drop as Japanese Prime Minister Shinzo Abe plans to resign due to health reasons, according to NHK.

Spot gold rebounded to $1,934 an ounce.

Essentra, a supplier of plastic and fibre products, posted 1H results: "HY 2020 revenue decreased 11.5% (-11.7% at constant exchange) to £448.4m. On a LFL basis, revenue decreased 8.5%. (...) On an adjusted basis, operating profit was down 40.0% (-40.0% at constant FX) at £29.0m. (...) On an adjusted basis, net income of £17.2m was down 48.0% (48.4% at constant FX) and adjusted basic earnings per share decreased by 48.3% (48.5% at constant FX) to 6.2p."

Bayer's, a pharmaceutical group, 11 billion dollars U.S. settlement deal risks partial collapse, as U.S. District Judge Vince Chhabria said he is concerned the company has "manipulated" the settlement process since announcing its plan in June to resolve 125,000 cases related to its weedkillers, according to Bloomberg. The judge will revisit in a month whether to keep the litigation on hold for settlement talks to continue or to let more trials proceed.

Thyssenkrupp, an industrial engineering group, was downgraded to "underweight" from "equalweight" at Morgan Stanley.
From a weekly point of view, the share is capped by a bearish trend line drawn since September 2018. Furthermore the 50 DMA is playing a resistance role above the stock. Below the overlap area at 9.25E look for the horizontal resistance at 3.9E and 3.28E in extension.

Source: GAIN Capital, TradingView

Fraport, an airport operator, was downgraded to "hold" from "buy" at Deutsche Bank.

Prysmian, a manufacturer of electric power transmission and telecommunications cables, was upgraded to "overweight" from "neutral" at JPMorgan.

Deutsche Post: E1.15, Fresenius Medical Care: E1.2

More from Equities


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 for the complete Risk Disclosure Statement.

Important Notice:

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.