EU indices strongly up |TA focus on Airbus

European stocks report | AstraZeneca | Deutsche Lufthansa | Airbus | Mediobanca...

Uptrend 2

INDICES
Friday, European stocks were broadly lower on Friday, with the Stoxx Europe 600 Index falling 1.4%. Germany's DAX 30 lost 1.7%, the U.K.'s FTSE 100 sank 2.3% and France's CAC 40 was down 1.6%.

EUROPE ADVANCE/DECLINE
73% of STOXX 600 constituents traded lower or unchanged Friday.
87% of the shares trade above their 20D MA vs 92% Thursday (above the 20D moving average).
34% of the shares trade above their 200D MA vs 36% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 2.12pts to 31.13, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none

Europe Best 3 sectors
technology, utilities, telecommunications

Europe worst 3 sectors
travel & leisure, banks, automobiles & parts

INTEREST RATE
The 10yr Bund yield fell 1bp to -0.42% (above its 20D MA). The 2yr-10yr yield spread rose 0bp to -21bps (below its 20D MA).

ECONOMIC DATA
FR 08:50: May Markit Manufacturing PMI final, exp.: 31.5
GE 08:55: May Markit Manufacturing PMI final, exp.: 34.5
EC 09:00: May Markit Manufacturing PMI final, exp.: 33.4
UK 09:30: May Markit/CIPS Manufacturing PMI final, exp.: 32.6
FR 14:00: 6-Mth BTF auction, exp.: -0.52%
FR 14:00: 3-Mth BTF auction, exp.: -0.53%
FR 14:00: 12-Mth BTF auction, exp.: -0.52%

MORNING TRADING
In Asian trading hours, EUR/USD advanced to 1.1139 and GBP/USD rose to 1.2408. USD/JPY eased to 107.69.  This morning, government data showed that Japan's first quarter capital spending increased 4.3% on year (-5.0% expected).

Spot gold climbed to $1,739 an ounce.

#UK - IRELAND#
AstraZeneca, a pharmaceutical group, said its "Brilinta (ticagrelor) has been approved in the U.S. to reduce the risk of a first heart attack or stroke in high-risk patients with coronary artery disease (CAD), the most common type of heart disease".

Associated British Foods, a food processing and retailing company, post a COVID-19 update: "As at today, Primark is trading in 112 stores which represent 34 percent of our total selling space. Primark is now working to re-open all its stores in England on 15 June, following the recent announcement by the UK Government. At that date we expect to be operating from 281 stores representing 79 percent of total selling space. We await further guidance for the stores in Northern Ireland, Wales and Scotland and anticipate openings in late June."


#GERMANY#
Deutsche Lufthansa, an airline group, would accept the German government's 9 billion euros bailout conditions, which have been agreed by the European Union, reported Bloomberg citing people familiar with the matter.


#FRANCE#
Airbus, an aircraft manufacturer, is considering extra measures to address the COVID-19 impact, including adjusting the production rates for its A320-series jet, reported Bloomberg citing people familiar with the matter. From a chartist point of view, the confirmation of a bump and reversal pattern has reversed the previous long-term bullish trend. A decline towards 40 and even 20 in extension is possible. 


Source: GAIN Capital, TradingView


#SPAIN#
Siemens Gamesa, a renewable energy company, said it has received the firm order from Ailes Marines, an affiliate of Iberdrola, to supply and build the 496 MW Bay of Saint Brieuc offshore wind power plant. Financial terms were not disclosed.


#ITALY#
Mediobanca's, an Italian investment bank, shareholder and Italian billionaire Leonardo Del Vecchio has requested authorization from the European Central Bank to raise his stake in the bank to 20% from 10%, reported Bloomberg citing people familiar with the matter.


#SWITZERLAND#
Temenos, an enterprise software company, was downgraded to "hold" from "buy" at Deutsche Bank.


#SCANDINAVIA - DENMARK#
Nokia, a telecommunications group, was upgraded to "overweight" from "neutral" at JPMorgan.

AP Moller Maersk, a Danish integrated shipping company, was upgraded to "overweight" from "neutral" at JPMorgan.

Neste, a Finnish oil refining company, was downgraded to "equalweight" from "overweight" at Barclays.


EX-DIVIDEND
Legrand: E1.34

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.