EU indices positive this morning | TA focus on Lonza Group

European stocks report | Deutsche Lufthansa | Deutsche Wohnen | Lonza Group...

Uptrend 2

INDICES
Yesterday, European stocks were lower, with the Stoxx Europe 600 Index slipping 0.7%. Germany's DAX 30 lost 0.5%, the U.K.'s FTSE 100 fell 0.6% and France's CAC 40 was down 0.2%.

EUROPE ADVANCE/DECLINE
58% of STOXX 600 constituents traded lower or unchanged yesterday.
93% of the shares trade above their 20D MA vs 93% Wednesday (above the 20D moving average).
45% of the shares trade above their 200D MA vs 46% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.95pt to 27.66, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Chemicals, Industrial
3mths relative low: none

Europe Best 3 sectors
real estate, telecommunications, banks

Europe worst 3 sectors
automobiles & parts, utilities, health care

INTEREST RATE
The 10yr Bund yield rose 6bps to -0.35% (above its 20D MA). The 2yr-10yr yield spread fell 1bp to -29bps (below its 20D MA).

ECONOMIC DATA
GE 07:00: Apr Factory Orders MoM, exp.: -15.6%
UK 08:30: May Halifax House Price Idx MoM, exp.: -0.6%
UK 08:30: May Halifax House Price Idx YoY, exp.: 2.7%
UK 09:00: UK-EU Brexit Talks

MORNING TRADING
In Asian trading hours, EUR/USD held gains at 1.1335 while GBP/USD eased to 1.2593. USD/JPY stayed above the 109.00 level. This morning, official data showed that Japan's household spending slid 11.1% on year in April (-12.8% expected).

Spot gold retreated to $1,710 an ounce.

#UK - IRELAND#
TUI, a travel and tourism company, is considering to reduce its German airline capacity by half amid cost-cutting, reported Bloomberg citing people familiar with the matter.


#GERMANY #
Deutsche Lufthansa, an airline company, will be replaced by Deutsche Wohnen, a property group, in the German Dax Index effective June 22, according to Deutsche Boerse.

Telefonica Deutschland, a telecommunications group, is nearing a deal to sell a portfolio of wireless towers to investment firm KKR & Co for 1.5 billion euros, reported Bloomberg citing people familiar with the matter.

Kion, a manufacturer of materials handling equipment, was downgraded to "hold" from "buy" at HSBC.


#FRANCE#
Legrand, an industrial group, was upgraded to "buy" from "neutral" at Goldman Sachs.


#SPAIN#
Endesa, a Spanish electric utility company, was upgraded to "equalweight" from "underweight" at Barclays.

Acciona, an infrastructure and renewable energy company, was upgraded to "neutral" from "sell" at Citigroup.


#ITALY#
Enel, an energy company, was upgraded to "overweight" from "equalweight" at Barclays.


#SWITZERLAND#
Lonza Group, a biotechnology company, announced the appointment of Pierre-Alain Ruffieux, currently Head of Global Pharma Technical Operations at Roche, as new CEO effective November 1. From a chartist point of view, the share has pushed above the upper end of an ascending broadening formation. Look for 560 & 600.


Source: GAIN Capital, TradingView

Novartis, a pharmaceutical group, said a phase 3b study of its Enerzair Breezhaler, for the treatments in uncontrolled asthma, met primary endpoint.


EX-DIVIDEND
HeidelbergCement: E0.6

More from Equities

Disclaimer

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.

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.