22 10 EU PRE OPEN

INDICES
Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index fell 1.29%, Germany's DAX 30 sank 1.41%, France's CAC 40 declined 1.53%, and the U.K.'s FTSE 100 shed 1.91%.


EUROPE ADVANCE/DECLINE
88% of STOXX 600 constituents traded lower or unchanged yesterday.
41% of the shares trade above their 20D MA vs 61% Tuesday (above the 20D moving average).
56% of the shares trade above their 200D MA vs 61% Tuesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 1.82pt to 29.45, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Retail, Autos, Media
3mths relative low: Energy

Europe Best 3 sectors
travel & leisure, food & beverage, personal & household goods

Europe worst 3 sectors
media, technology, automobiles & parts


INTEREST RATE
The 10yr Bund yield rose 2bps to -0.61% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -19bps (below its 20D MA).


ECONOMIC DATA
GE 07:00: Nov GfK Consumer Confidence, exp.: -1.6
FR 07:45: Oct Business Confidence, exp.: 96
FR 07:45: Oct Business Climate Indicator, exp.: 92
EC 08:00: ECB Panetta speech
UK 09:30: BoE Haldane speech
UK 10:25: BoE Gov Bailey speech
UK 11:00: Oct CBI Industrial Trends Orders, exp.: -48
UK 11:00: Q4 CBI Business Optimism Idx, exp.: -100%
EC 15:00: Oct Consumer Confidence Flash, exp.: -13.9
UK 00:01: Oct Gfk Consumer Confidence, exp.: -25


MORNING TRADING
In Asian trading hours, the U.S. dollar regained strength, as EUR/USD retreated to 1.1842 and GBP/USD eased to 1.3127. USD/JPY bounced to 104.70.

Spot gold dropped to $1,913 an ounce.


#UK - IRELAND#
IAG, an airline group, posted 3Q preliminary results and update: "Total revenue declined by 83 per cent to E1.2 billion compared to E7.3 billion last year. Operating result before exceptional items was a E1.3 billion loss compared to a E1.4 billion profit last year. (...) In response to the high uncertainty of the current environment, IAG now plans for capacity in 4Q 2020 to be no more than 30 per cent compared to 2019. As a result, the Group no longer expects to reach breakeven in terms of Net cash flows from operating activities during 4Q 2020."

Unilever, a consumer goods company, reported that 3Q underlying revenue rose 4.4% on year to 12.9 billion euros and 9-month revenue was up 1.4% to 38.6 billion euros. The company declared a quarterly dividend of 0.4104 euro per share.

Anglo American, a multinational mining group, released a 3Q production report: "Rough diamond production decreased by 4% to 7.2 million carats driven by planned reductions in production to reflect the lower demand for rough diamonds due to the Covid-19 pandemic. (...) Copper production increased by 4% to 165,700 tonnes, driven by strong plant performance at Collahuasi. (...) Platinum production decreased by 2% to 516,500 ounces and palladium production was flat at 352,200 ounces."


#FRANCE#
Pernod Ricard, an alcoholic beverages producer, announced that 1Q net sales dropped 10.0% on year to 2.24 billion euros, down 5.6% on an organic basis. The company said 2Q is expected to still be strongly impacted by Covid-19, but sees net sales returning to growth in 2H.

Hermes, a high fashion luxury goods manufacturer, posted 3Q revenue grew 4.2% on year (+6.9% at constant exchange rates) to 1.80 billion euros, citing "the momentum in Asia and a significant improvement in all other geographical areas". Meanwhile, 9-month revenue was down 14.4% (-14.0% at constant exchange rates) to 4.29 billion euros.