EU indices under pressure | TA on British American Tobacco

,

European stocks report | Mondi | British American Tobacco | Roche...

Downtrend 1

INDICES
Yesterday, European stocks were mixed. The Stoxx Europe 600 Index edged down 0.09%, France's CAC 40 eased 0.12%, and the U.K.'s FTSE 100 declined 0.58%, while Germany's DAX 30 edged up 0.07%.

EUROPE ADVANCE/DECLINE
48% of STOXX 600 constituents traded lower or unchanged yesterday.
72% of the shares trade above their 20D MA vs 69% Tuesday (above the 20D moving average).
62% of the shares trade above their 200D MA vs 63% Tuesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.69pt to 22.94, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Industrial
3mths relative low: Insurance

Europe Best 3 sectors
utilities, energy, basic resources

Europe worst 3 sectors
health care, food & beverage, retail


INTEREST RATE
The 10yr Bund yield fell 1bp to -0.56% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -16bps (above its 20D MA).


ECONOMIC DATA
FR 07:45: Sep Inflation Rate YoY final, exp.: 0.2%
FR 07:45: Sep Inflation Rate MoM final, exp.: -0.1%
FR 07:45: Sep Harmonised Inflation Rate YoY final, exp.: 0.2%
FR 07:45: Sep Harmonised Inflation Rate MoM final, exp.: -0.1%
FR 10:00: 3-Year BTAN auction, exp.: -0.64%
FR 10:00: 5-Year BTAN auction, exp.: -0.53%
EC 17:00: ECB President Lagarde speech


MORNING TRADING
In Asian trading hours, EUR/USD was little changed at 1.1745 while GBP/USD held gains at 1.3012. USD/JPY edged up to 105.25. AUD/USD slid to 0.7129. This morning, official data showed that the Australian economy shed 29,500 jobs in September (-40,000 jobs expected) and jobless rate edged up to 6.9% (7.0% expected) from 6.8% in August.

Spot gold fell to $1,895 an ounce.


#UK - IRELAND#
Mondi, a packaging and paper group, released a 3Q trading update: "Underlying EBITDA for the third quarter of 2020 was E306 million, down 20% on the comparable prior year period (Q3 2019: E383 million), as lower average selling prices and negative currency effects more than offset lower costs. Compared to the second quarter of 2020 ('sequentially'), underlying EBITDA was down 13% (Q2 2020: E353 million)."

British American Tobacco, a cigarettes manufacturer, announced that Luc Jobin will succeed Richard Burrows as Chairman with effect from the conclusion of its annual general meeting on April 28, 2021.
From a weekly point of view, the stock is trading within a symmetrical triangle drawn since January 2020, the upper boundary of the triangle represents a declining trend line drawn since June 2017, and the lower one represents a support area in place since January 2019. Below 3310p, look for the previous low of January 2019 at 2333p and 1500p in extension.


Source: GAIN Capital, TradingView

Schroders, an international asset management company, reported that 3Q assets under management rose to 536.3 billion pounds as of September 30 from 525.8 billion pounds on July 1.


#FRANCE#
LVMH, a luxury goods conglomerate, is expected to report 3Q revenue after market close.


#SWITZERLAND#
Roche, a research-intensive healthcare company, announced that 3Q revenue dropped 6% on year (+1% at constant exchange rate) to 14.70 billion Swiss franc and 9-month revenue was down 5% (+1% at constant exchange rate) to 43.98 billion Swiss franc. The company confirmed its full-year outlook, stating: "Sales are expected to grow in the low- to mid-single digit range, at constant exchange rates. Core earnings per share are targeted to grow broadly in line with sales, at constant exchange rates. Roche expects to increase its dividend in Swiss francs further."


#NORWAY#
Norsk Hydro, an aluminum producer, was upgraded to "buy" from "hold" at Deutsche Bank.


EX-DIVIDEND
Kerry Group: E0.259, Tesco:3.2p

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.