EU indices globally slightly down | TA focus on Diageo


European stocks report | Diageo | Genus | Generali...

Downtrend 5

Friday, European stocks were lower except for the FTSE 100 (+0.2%). The Stoxx Europe 600 Index fell 0.4%. Germany's DAX 30 dropped 0.7%, France's CAC 40 slipped 0.2%.

53% of STOXX 600 constituents traded lower or unchanged Friday.
34% of the shares trade above their 20D MA vs 34% Thursday (below the 20D moving average).
41% of the shares trade above their 200D MA vs 41% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.49pt to 35.17, a new 52w high.

3mths relative high: Technology
3mths relative low: none

Europe Best 3 sectors
technology, real estate, personal & household goods

Europe worst 3 sectors
banks, telecommunications, insurance

The 10yr Bund yield fell 3bps to -0.47% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -22bps (above its 20D MA).

UK 09:30: May Net Lending to Individuals MoM, exp.: £-6.9B
UK 09:30: May Mortgage Approvals, exp.: 15.8K
UK 09:30: May Mortgage Lending, exp.: £0.3B
UK 09:30: May BoE Consumer Credit, exp.: £-7.4B
EC 10:00: Jun Consumer Confidence final, exp.: -18.8
EC 10:00: Jun Services Sentiment, exp.: -43.6
EC 10:00: Jun Industrial Sentiment, exp.: -27.5
EC 10:00: Jun Economic Sentiment, exp.: 67.5
EC 10:00: Jun Business Confidence, exp.: -2.43
EC 10:00: Jun Consumer Inflation expectations, exp.: 28.6
GE 10:45: 12-Mth Bubill auction, exp.: -0.57%
GE 13:00: Jun Harmonised Inflation Rate YoY Prel, exp.: 0.5%
GE 13:00: Jun Harmonised Inflation Rate MoM Prel, exp.: 0%
GE 13:00: Jun Inflation Rate MoM Prel, exp.: -0.1%
GE 13:00: Jun Inflation Rate YoY Prel, exp.: 0.6%
FR 14:00: 6-Mth BTF auction, exp.: -0.53%
FR 14:00: 3-Mth BTF auction, exp.: -0.55%
FR 14:00: 12-Mth BTF auction, exp.: -0.53%

In Asian trading hours, EUR/USD climbed to 1.1240 and GBP/USD rebounded to 1.2367. USD/JPY was little changed at 107.22. This morning, official data showed that Japan's retail sales rose 2.1% on month in May (+3.0% expected).

Spot gold slipped to $1,769 an ounce.

Diageo, a beverage alcohol company, said it "will pause all paid advertising globally on major social media platforms" and "will continue to discuss with media partners how they will deal with unacceptable content". From a chartist point of view, the share has been supported by a rising trend line drawn since 2009. Furthermore, prices bounced off this latter in last March meanwhile the RSI indicator was rebounding from its oversold area. Above 2330p, look for 3292 and 3640.

Source: GAIN Capital, TradingView

Genus, an animal genetics company, announced that Iain Ferguson, currently chairman of Crest Nicholson, will succeed Bob Lawson as Chairman in November.

Compass Group, a contract foodservice company, was upgraded to "buy" from "hold" at HSBC.

Hugo Boss, a luxury fashion house, was downgraded to "underperform" from "neutral" at Bank of America Merrill Lynch

Capgemini, an IT services provider, was downgraded to "hold" from "buy" at HSBC.

Generali, an insurance group, has approached asset management company Brightsphere Investment Group regarding a possible acquisition, reported Reuters citing people familiar with the matter.

RWE: E0.8, Total: E0.68

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.