EU indices down this morning | TA focus on Johnson Matthey
Philippe Delabarre June 12, 2020 3:10 PM
European stocks report | Informa | Johnson Matthey | Atlantia...
Yesterday, European stocks were heavy, with the Stoxx Europe 600 Index shedding 4.1%, Germany's DAX 30 sank 4.5%, France's CAC 40 slumped 4.7%, and the U.K.'s FTSE 100 lost 4.0%.
96% of STOXX 600 constituents traded lower or unchanged yesterday.
49% of the shares trade above their 20D MA vs 88% Wednesday (above the 20D moving average).
31% of the shares trade above their 200D MA vs 42% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 5.97pts to 36.02, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none
Europe Best 3 sectors
health care, real estate, food & beverage
Europe worst 3 sectors
automobiles & parts, banks, energy
The 10yr Bund yield fell 2bps to -0.33% (above its 20D MA). The 2yr-10yr yield spread rose 5bps to -23bps (above its 20D MA).
UK 07:00: Apr GDP YoY, exp.: -5.7%
UK 07:00: Apr Goods Trade Balance, exp.: £-12.5B
UK 07:00: Apr GDP MoM, exp.: -5.8%
UK 07:00: Apr GDP 3-Mth Avg, exp.: -2%
UK 07:00: Apr Balance of Trade, exp.: £-6.7B
UK 07:00: Apr Construction Output YoY, exp.: -7.1%
UK 07:00: Apr Industrial Production YoY, exp.: -8.2%
UK 07:00: Apr Industrial Production MoM, exp.: -4.2%
UK 07:00: Apr Manufacturing Production YoY, exp.: -9.7%
UK 07:00: Apr Manufacturing Production MoM, exp.: -4.6%
FR 07:45: May Inflation Rate MoM final, exp.: 0%
FR 07:45: May Inflation Rate YoY final, exp.: 0.3%
FR 07:45: May Harmonised Inflation Rate MoM final, exp.: 0%
FR 07:45: May Harmonised Inflation Rate YoY final, exp.: 0.4%
EC 10:00: Apr Industrial Production MoM, exp.: -11.3%
EC 10:00: Apr Industrial Production YoY, exp.: -12.9%
UK 14:00: May NIESR Monthly GDP Tracker, exp.: -11.8%
In Asian trading hours, EUR/USD was broadly flat at 1.1294 while GBP/USD fell further to 1.2567. USD/JPY remained subdued at 106.81.
Spot gold slipped to $1,725 an ounce.
#UK - IRELAND#
Informa, a business intelligence group, posted a trading update: "Our Subscriptions-related businesses provide an anchor for the Group and, in the main, continue to trade well. (...) As expected, in the two months since the First Quarter Trading Update, the Events-related businesses have not traded any physical product anywhere in the world due to COVID-19. (...) In total, £400m+ of cost savings have been identified within adjusted operating profit, including direct savings on events already cancelled and those that have switched from physical to digital."
Games Workshop Group, a manufacturer of miniature wargames, released a trading statement: "306 of our 532 stores are now open in 20 countries, (...) our recovery since re-opening has been better than expected. (...) we now estimate our sales to be c. £270 million and profit before tax for the year ended 31 May 2020 to be no less than £85 million."
Johnson Matthey, a speciality chemicals company, was downgraded to "hold" from "buy" at Deutsche Bank. From a chartist point of view, the share is challenging an overlap area (neckline of a monthly bump & reversal pattern) set around 2250p. Below 2750 (significant horizontal resistance threshold from 2017), look for 1500 and even 750p in extension.
Source: GAIN Capital, TradingView
Ferrexpo, a commodity trading and mining company, was downgraded to "sell" from "neutral" at Citigroup.
Teleperformance, an omnichannel company, was downgraded to "equalweight" from "overweight" at Morgan Stanley.
Atlantia, an infrastructure group, announced that it swung to a 1Q net loss of 10 million euros from a net profit of 157 million euros in the prior-year period, citing impact of Covid-19 pandemic on its motorway and airport operators. EBIT dropped 37% on year to 352 million euros on operating revenue of 2.21 billion euros, down 15%. The company added: "Considering the traffic figures up to this point and assuming a gradual recovery from the second half of 2020 onwards, a preliminary sensitivity analysis results in an estimated average annual decline in the Group's motorway traffic of approximately 30% and in airport traffic of approximately 50%. This would result in a potential reduction in the Group's revenue of around E3bn compared with the figure for 2019."
#SCANDINAVIA - DENMARK#
DSV Panalpina, a logistic group, was upgraded to "buy" from "neutral" at Goldman Sachs.
EQT, a Swedish investment firm, was downgraded to "sell" from "neutral" at Citigroup.
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.