EU indices consolidate | TA focus on ArcelorMittal

European stocks report | Airbus | Wendel | ArcelorMittal | Intesa Sanpaolo...

Downtrend 2

Friday, European stocks were sharply higher, with the Stoxx Europe 600 Index jumping 2.5%%. Germany's DAX 30 surged 3.4%, the U.K.'s FTSE 100 rose 2.3% and France's CAC 40 was up 3.7%.

74% of STOXX 600 constituents traded higher Friday.
90% of the shares trade above their 20D MA vs 93% Thursday (above the 20D moving average).
50% of the shares trade above their 200D MA vs 45% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.23pt to 27.89, a new 52w high.

3mths relative high: Autos, Industrial, Basic Resource
3mths relative low: Food & Beverage

Europe Best 3 sectors
banks, energy, automobiles & parts

Europe worst 3 sectors
utilities, health care, food & beverage

The 10yr Bund yield rose 3bps to -0.32% (above its 20D MA). The 2yr-10yr yield spread fell 4bps to -32bps (below its 20D MA).

GE 07:00: Apr Industrial Production MoM, exp.: -9.2%
FR 14:00: 3-Mth BTF auction, exp.: -0.52%
FR 14:00: 6-Mth BTF auction, exp.: -0.51%
FR 14:00: 12-Mth BTF auction, exp.: -0.51%


In Asian trading hours, EUR/USD rebounded to 1.1295 and GBP/USD climbed above the 1.2700 level. USD/JPY eased to 109.49 level. This morning, official data showed that Japan's final readings of first quarter annualized GDP posted -2.2% on quarter (-2.1% expected).

Spot gold bounced to $1,687 an ounce.

Plus500, an online service provider for trading Contracts for Difference, posted a trading update: "The Company has added 100,574 New Customers since the start of Q2, which is already ahead of our expectations for the entire quarter, and in excess of the 82,951 New Customers added in Q1. (...) Notwithstanding the uncertainty regarding the duration of current levels of volatility or the unquantified potential impact from regulatory changes in Australia and the relatively early stage in our financial year, revenue and profitability for the full year is currently expected to be in-line with consensus expectations."

Hays, a recruitment and human resources services provider, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

Siemens Healthineers, a healthcare company, was upgraded to "buy" from "neutral" at Citigroup.

Airbus, an aircraft manufacturer, said it has registered zero cancellations in May and no new order, with net orders standing at 299 aircraft. 

Klepierre, a shopping mall operator, was downgraded to "sell" from "neutral" at Goldman Sachs.

ArcelorMittal, a steel producer, is planning to cut 5,000 jobs at its Italian steel unit Ilva, according to Italian newspaper La Stampa.
From a chartist point of view, the share is holding above a long-term support set at 6 euros (bottoms from 2016 & 2020). Above 6, look for 17.

Source: GAIN Capital, TradingView

Intesa Sanpaolo, an Italian banking group, said it "has received prior authorization from the European Central Bank for the direct acquisition of a controlling interest, equal to at least 50% of the capital plus one share, in UBI Banca".

Carrefour: E0.23, Deutsche Wohnen: E0.9, Saint-Gobain: E1.38

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.