26 08 EU PRE OPEN

INDICES
Yesterday, European stocks lacked upward momentum. The Stoxx Europe 600 Index declined 0.30% and the U.K.'s FTSE 100 shed 1.11%, while both Germany's DAX 30 and France's CAC 40 were broadly flat at close.

EUROPE ADVANCE/DECLINE
63% of STOXX 600 constituents traded lower or unchanged yesterday.
65% of the shares trade above their 20D MA vs 74% Monday (above the 20D moving average).
54% of the shares trade above their 200D MA vs 55% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.25pt to 23.36, a new 52w high.

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

Europe Best 3 sectors
travel & leisure, technology, retail

Europe worst 3 sectors
energy, basic resources, construction & materials


INTEREST RATE
The 10yr Bund yield rose 2bps to -0.49% (below its 20D MA). The 2yr-10yr yield spread fell 4bps to -22bps (below its 20D MA).


ECONOMIC DATA
FR 07:45: Aug Consumer Confidence, exp.: 94
FR 11:00: Jul Jobseekers Total, exp.: 3964.7K
FR 11:00: Jul Unemployment Benefit Claims, exp.: -202.7K
UK 11:45: 10-Year Treasury Gilt auction, exp.: 0.14%
EC 14:00: ECB Schnabel speech
UK 17:00: BoE Haldane speech


MORNING TRADING
In Asian trading hours, EUR/USD retreated to 1.1818 and GBP/USD fell to 1.3135. USD/JPY rose further to 106.47.

Spot gold was edged up to $1,929 an ounce.


#UK - IRELAND#
Polymetal, a precious metals mining company, released 1H results: "Revenue in 1H 2020 increased by 21% to US$ 1,135 million compared to 1H 2019 (year-on-year) on the back of higher gold and silver prices. Gold equivalent (GE) production was 723 Koz, an increase of 4% year-on-year. Gold sales were 595 Koz, down 1% year-on-year, (...) All-in Sustaining Cash Costs (AISC) amounted to US$ 880/GE oz, down 3% year-on-year, (...) Adjusted EBITDA was US$ 616 million, an increase of 53% year-on-year, (...) Net earnings were US$ 381 million (1H 2019: US$ 153 million), with basic EPS of US$ 0.81 per share (1H 2019: US$ 0.33 per share), An interim dividend of US$ 0.40 per share (1H 2019: US$ 0.20 per share) representing 50% of the Group's underlying net earnings for 1H 2020 has been approved by the Board in accordance with the dividend policy."

Royal Dutch Shell, an oil giant, was downgraded to "underweight" from "equalweight" at Barclays.

From a technical point of view, the share is capped by a short term trend line since the end of June. Furthermore, the 50 DMA is playing the role of resistance above the stock. Below 1257p look for the horizontal resistance at 1023.4 and the previous all-time low at 946p in extension.

Source: GAIN Capital, TradingView

Signature Aviation was downgraded to "neutral" from "overweight" at JPMorgan.

Inchcape, an automotive distributor and retailer, was upgraded to "overweight" from "neutral" at JPMorgan.


#GERMANY#
Aroundtown, a real estate group, announced that FFO I per share (after perpetual) grew 5% on year to 0.20 euro and adjusted EBITDA rose 38% to 500 million euros on net rental income of 502 million euros, up 40%. Regarding the outlook, the company stated: "For full year 2020 the FFO I after perpetual is expected to be in the range of E460-E485 million, E0.34-E0.36 per share."


#FRANCE#
Eiffage, a civil engineering construction company, is expected to report 2Q results after market close.


#SPAIN#
Repsol, a Spanish fossil fuel company, was upgraded to "equalweight" from "underweight" at Barclays.


#SWITZERLAND#
Novartis, a pharmaceutical group, said a phase 3 study of asciminib (ABL001), an investigational treatment specifically targeting the ABL myristoyl pocket (STAMP), met its primary endpoint.


#NORWAY#
Mowi, a Norwegian seafood company, announced that 2Q net income plunged 62.9% on year to 52 million euros and operational EBIT declined 53.3% to 99 million euros on operational revenue of 911 million euros, down 10.8%.

Equinor, a Norwegian energy company, was downgraded to "equalweight" from "overweight" at Barclays.