EU indices down this morning |TA focus on Ahold Delhaize

European stocks report | Persimmon | Volkswagen | Solvay | Ahold Delhaize...

Trading floor 1

Yesterday, European stocks rebounded, with the Stoxx Europe 600 Index gaining 1.3%. Germany's DAX 30 jumped 2.1%, France's CAC 40 increased 1.4%, and the U.K.'s FTSE 100 was up 1.2%.

79% of STOXX 600 constituents traded higher yesterday.
63% of the shares trade above their 20D MA vs 51% Monday (below the 20D moving average).
46% of the shares trade above their 200D MA vs 44% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.44pts to 31.34, a new 52w high.

3mths relative high: Technology
3mths relative low: Telecom

Europe Best 3 sectors
automobiles & parts, banks, basic resources

Europe worst 3 sectors
real estate, travel & leisure, construction & materials

The 10yr Bund yield fell 2bps to -0.44% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -25bps (above its 20D MA).

FR 07:45: Jun Business Confidence, exp.: 70
FR 07:45: Jun Business Climate Indicator, exp.: 59
EC 09:00: ECB Non-Monetary Policy Meeting
GE 09:00: Jun Ifo Current Conditions, exp.: 78.9
GE 09:00: Jun Ifo expectations, exp.: 80.1
GE 09:00: Jun Ifo Business Climate, exp.: 79.5
UK 09:30: BoE FPC Meeting

In Asian trading hours, EUR/USD climbed further to 1.1324 and GBP/USD edged up to 1.2527. USD/JPY remained subdued at 106.49. NZD/USD marked a day-low at 0.6445 before bouncing back to 0.6486. This morning, the Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected, stating that "the Monetary Policy Committee is prepared to provide additional stimulus as necessary".

Spot gold was little changed at $1,768 an ounce.

Persimmon, a housebuilding company, announced that Dean Finch, currently CEO of National Express, will succeed David Jenkinson as CEO at the end of the year.

EasyJet, a low-cast airline company, is facing legal claims from 10,000 customers over a cyber attack data breach, according to the Financial Times.

Petrofac, an oilfield services provider, posted a 1H trading update: "E&C financial performance for the first six months of 2020 has been significantly impacted by the deterioration in market conditions.  First half revenues are expected to be around US$1.6 billion. (...) Engineering & Production Services is also being affected by the deterioration in market conditions.  First half revenue is expected to be around US$450 million. (...) Net production is expected to be approximately 2.2 million barrels of oil equivalent (mmboe) for the first half of the year (1H 2019: 2.1 mmboe)."

Volkswagen, an automobile group, is considering acquiring car-rental company Europcar Mobility Group, which has a market value of about 390 million euros, reported Bloomberg citing people familiar with the matter.

Infineon Technologies, a semiconductor manufacturer, was upgraded to "overweight" from "neutral" at JPMorgan.

Deutsche Boerse, a stock exchange operator, was downgraded to "hold" from "buy" at HSBC.

L'Oreal, a personal care company, was upgraded was upgraded to "overweight" from "neutral" at JPMorgan.

Solvay, a chemical company, said it expects a non-cash impairment of around 1.5 billion euros due to the COVID-19. The company added: "Market headwinds increased sharply in the second quarter. (...) Group sales were down 20% in aggregate across April and May versus 2019 levels. (...) Similar demand trends are expected to continue during the month of June."

Ahold Delhaize, a retail group, announced that supervisory board member Peter Agnefjall will succeed Jan Hommen as Chairman on January 1, 2021. From a chartist point of view, the share has bypassed a resistance line drawn from November 2019 high. Above 22 (horizontal support since April 2020), look for 25 & 29 euros.

Source: GAIN Capital, TradingView

NN Group, an insurance company, said it targets to grow operating capital generation (OCG) to 1.5 billion euros in 2023 and sees mid-single digit annual growth of OCG over time.

Moncler, an Italian luxury fashion brand, was downgraded to "equalweight" from "overweight" at Morgan Stanley.

Ams, an advanced sensors manufacturer, was upgraded to "overweight" from "neutral" at JPMorgan.

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