Yesterday, European stocks ended mixed. The Stoxx Europe 600 eased 0.12%, while Germany's DAX 30 gained 0.32%, and France's CAC 40 and the U.K.'s FTSE 100 were little changed.
56% of STOXX 600 constituents traded lower or unchanged yesterday.
7% of the shares trade above their 20D MA vs 7% Wednesday (below the 20D moving average).
43% of the shares trade above their 200D MA vs 43% Wednesday (below the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.71pt to 37.55, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Travel & Leisure
3mths relative low: Insurance
Europe Best 3 sectors
energy, utilities, insurance
Europe worst 3 sectors
automobiles & parts, retail, personal & household goods
The 10yr Bund yield fell 1bp to -0.63% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -17bps (above its 20D MA).
FR 07:30: Q3 GDP Growth Rate QoQ Prel, exp.: -13.8%
GE 08:00: Sep Retail Sales YoY, exp.: 3.7%
GE 08:00: Sep Retail Sales MoM, exp.: 3.1%
GE 08:00: Q3 GDP Growth Rate QoQ Flash, exp.: -9.7%
GE 08:00: Q3 GDP Growth Rate YoY Flash, exp.: -11.3%
FR 08:45: Oct Harmonised Inflation Rate MoM Prel, exp.: -0.6%
FR 08:45: Oct Harmonised Inflation Rate YoY Prel, exp.: 0%
FR 08:45: Oct Inflation Rate YoY Prel, exp.: 0%
FR 08:45: Oct Inflation Rate MoM Prel, exp.: -0.5%
FR 08:45: Sep Household Consumption MoM, exp.: 2.3%
EC 10:00: ECB Mersch speech
EC 11:00: Q3 GDP Growth Rate YoY Flash, exp.: -14.7%
EC 11:00: Q3 GDP Growth Rate QoQ Flash, exp.: -11.8%
EC 11:00: Sep Unemployment Rate, exp.: 8.1%
EC 11:00: Oct Core Inflation Rate YoY Flash, exp.: 0.2%
EC 11:00: Oct Inflation Rate YoY Flash, exp.: -0.3%
EC 11:00: Oct Inflation Rate MoM Flash, exp.: 0.1%
EC 13:00: ECB Guindos speech
GE 15:30: Bundesbank Weidmann speech
In Asian trading hours, EUR/USD rebounded to 1.1692 and GBP/USD edged up to 1.2935. USD/JPY fell to 104.43. This morning, official data showed that Japan's jobless rate was unchanged at 3.0% in September (3.1% expected), while industrial production rose 4.0% on month (+3.0% expected).
Spot gold bounced to $1,877 an ounce.
#UK - IRELAND#
IAG, an airline group, reported that 3Q adjusted loss after tax totaled 1.21 billion euros, compared with an adjusted profit after tax of 1.01 billion euros in the prior-year quarter, and adjusted operating loss amounted to 1.30 billion euros, compared with an adjusted operating profit of 1.43 billion euros in the prior-year period.
Glencore, a commodity trading and mining company, posted 3Q production report: "Own sourced copper production of 934,700 tonnes was 81,100 tonnes (8%) lower than the comparable prior period, (...) Own source zinc production of 860,100 tonnes was 50,900 tonnes (6%) higher than the comparable prior period, (...) Own sourced nickel production of 81,800 tonnes was 7,600 tonnes (9%) lower than the comparable prior period."
From a technical point of view, the stock is under pressure after breaking the horizontal support area at 165p. Moreover, the Relative Strength Index is capped by a short term declining trend line. Below the key level at 165p, a continuation of the down move is likely towards 149p and the bottom of May at 130.3p. Alternatively, a break above 165p would call for a reversal up trend with 177.5p as first target.
Source: TradingView, GAIN Capital
Continental, an automotive parts manufacturer, said CEO Elmar Degenhart has informed the board about his intention to resign from his position effective November 30, for reasons of immediately essential preventive health care.
Total, a giant oil producer, announced 3Q adjusted net income declined 72% on year to 848 million dollars and adjusted net operating income from business segments dropped 60% to 1.46 billion dollars.
Ubisoft, a video game company, posted 1H adjusted operating income jumped to 114 million euros from 7 million euros in the prior-year period. Revenue was up 8.5% on year to 757 million euros and net booking increased 14.2% to 755 million euros. The company has lowered its full-year net booking forecast to 2.20 - 2.35 billion euros from 2.35 - 2.65 billion euros previously and adjusted operating income guidance was narrowed to 420 - 520 million euros from 400 - 600 million euros.
BBVA, a major Spanish bank, reported that 3Q net income slid 6.9% on year to 1.14 billion euros, but up from 636 million euros in 2Q, as impairment charge reduced to 928 million from 1.57 billion euros. Net interest income dropped 10.2% on year to 4.11 billion euros.
Swiss Re, an insurance group, posted a 9-month net loss of 691 million dollars, compared with a net income of 1.34 billion dollars in the prior-year period, citing a 3.00 billion dollars of COVID-19 claims and reserves. Meanwhile, net premiums earned and fee income grew 1.1% on year to 30.16 billion dollars.
Novo Nordisk, a Danish multinational pharmaceutical company, reported that 3Q net profit grew 1.0% on year to 10.30 billion Danish krone while operating profit slipped 0.1% to 12.81 billion Danish krone on net sales of 30.93 billion Danish krone, up 2.1%.
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.