Market News & Analysis
EU indices significantly up | this morning TA focus on Airbus
Philippe Delabarre May 8, 2020 3:22 PM
Yesterday, European stocks were broadly higher, with the Stoxx Europe 600 Index gaining 1.1%. Both Germany's DAX 30 and the U.K.'s FTSE 100 increased 1.4%, and France's CAC 40 was up 1.5%.
79% of STOXX 600 constituents traded higher yesterday.
70% of the shares trade above their 20D MA vs 59% Wednesday (below the 20D moving average).
24% of the shares trade above their 200D MA vs 22% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 2.38pts to 32.43, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none
Europe Best 3 sectors
retail, basic resources, financial services
Europe worst 3 sectors
health care, automobiles & parts, telecommunications
The 10yr Bund yield rose 7bps to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -21bps (above its 20D MA).
FR : Victory in Europe Day
UK : May Day Bank Holiday
GE 07:00: Mar Balance of Trade, exp.: E20.8B
GE 07:00: Mar Balance of Trade s.a, exp.: E21.6B
GE 07:00: Mar Exports MoM s.a, exp.: 1.3%
GE 07:00: Mar Imports MoM s.a, exp.: -1.6%
GE 07:00: Mar Current Account, exp.: E23.7B
EC 09:00: Eurogroup Video Conference
In Asian trading hours, EUR/USD climbed further to 1.0848 and GBP/USD advanced to 1.2401. USD/JPY was little changed at 106.34. This morning, government data showed that Japan's household spending dropped 6.0% on year in March (-6.5% estimated).
Spot gold extended its rally to $1,719 an ounce.
#UK - IRELAND#
U.K. stock market is closed for Early May Bank Holiday.
The German Federal Statistical Office reported a trade surplus of 17.4 billion euros in March (18.8 billion euros surplus expected), where exports dropped 11.8% on month (-5.0% expected) and imports slid 5.1% (-4.0% expected).
Airbus, an aircraft manufacturer, reported that it logged net orders for 9 commercial aircraft from its A320 production line from Avolon in April, and total net orders (after cancellations) stood at 299 aircraft, compared with 290 aircraft in March.
Source: GAIN Capital, TradingView
Euronext, a stock exchange operator, reported that total cash market transaction value rose 17.5% on year in April and equity derivatives volume increased 26.1%.
Ferrovial, a sustainable infrastructure operator, reported that 1Q net loss widened to 111 million euros from 98 million euros in the prior-year period, citing a 39 million euros provision for the Airports division due to the COVID-19. Meanwhile, EBITDA totaled 75 million euros, compared with an EBITDA loss of 231 million euros last year, on revenue of 1.38 billion euros, up 12%.
ING Groep, a banking and financial services group, announced that 1Q net income dropped 40.1% on year to 670 million euros, as loan loss provisions jumped to 661 million euros from 207 million euros in the prior-year period. Meanwhile, net interest income grew 0.5% to 3.50 billion euros, while CET1 ratio fell to 14.0% from 14.7% in the same quarter last year.
Galapagos, a pharmaceutical research company, posted 1Q net loss widened to 51 million euros from 49 million euros in the prior-year period, while operating loss narrowed 45 million euros from 53 million euros on revenue of 98 million euros, up from 33 million euros.
Leonardo, an aerospace and defense company, said it swung to a 1Q net loss of 59 million euros from a net profit of 77 million euros in the prior-year period and EBIT sank 80.8% on year to 30 million euros on revenue of 2.59 billion euros, down 4.9%. The company announced the suspension of its 2020 guidance previous disclosed in March due to the COVID-19.
Swiss Re's, an insurance group, "AA-" credit rating outlook was revised to "Negative" from "Stable" at S&P Global Ratings. The rating agency said: "The negative outlook indicates the possibility that we could lower the ratings by one notch if the underwriting performance of Swiss Re's P/C business does not perform broadly in line with our expectations."
Alcon: SF0.19, Hennes & Mauritz: SEK4.9
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.