EU indices consolidate | TA focus on Roche


European stocks report | Investec | Covestro | Roche | Ericsson...

Trading floor 1

Yesterday, European stocks ended in the red. The Stoxx Europe 600 Index fell 0.51%, Germany's DAX 30 dropped 0.36%, France's CAC 40 slid 0.69%, and the U.K.'s FTSE 100 was down 0.47%.

62% of STOXX 600 constituents traded lower or unchanged yesterday.
60% of the shares trade above their 20D MA vs 63% Wednesday (above the 20D moving average).
59% of the shares trade above their 200D MA vs 59% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.55pt to 22.55, a new 52w high.

3mths relative high: Retail, Industrial
3mths relative low: Banks, Utilities

Europe Best 3 sectors
health care, retail, travel & leisure

Europe worst 3 sectors
banks, basic resources, media

The 10yr Bund yield fell 1bp to -0.48% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -21bps (above its 20D MA).

GE 07:00: Aug PPI YoY, exp.: -1.7%
GE 07:00: Aug PPI MoM, exp.: 0.2%
UK 07:00: Aug Retail Sales YoY, exp.: 1.4%
UK 07:00: Aug Retail Sales MoM, exp.: 3.6%
UK 07:00: Aug Retail Sales ex Fuel MoM, exp.: 2%
UK 07:00: Aug Retail Sales ex Fuel YoY, exp.: 3.1%
EC 09:00: Jul Current Account, exp.: E17.3B
EC 10:15: ECB Guindos speech
EC 15:00: ECB Schnabel speech


In Asian trading hours, EUR/USD held gains at 1.1850 while GBP/USD eased to 1.2954. USD/JPY remains subdued at 104.83. This morning, official data showed that Japan's national CPI grew 0.2% on year in August (as expected).

Spot gold bounced to $1,952 an ounce.

Investec, an international banking and wealth management group, posted a 1H trading statement: "Over the five months to 31 August 2020, third-party FUM increased by 14.1% to £51.4 billion (31 March 2020: £45.0 billion) and net inflows were positive at £391 million. (...) Adjusted earnings per share (for continuing operations) expected to be between 10.5p and 8.3p; 53% to 63% behind 1H2020 (1H2020: 22.4p), primarily due to the challenging market conditions described above and effective tax rate normalisation."

Man Group, a global active investment management firm, announced a new share buyback programme of up to 100 million dollars.
EasyJet, a low-cost airline company, announced that Kenton Jarvis, currently of Aviation, and Business Improvement Director - Markets at TUI Group, will be joining the company as CFO, replacing Andrew Findlay.

Covestro, a high-tech polymer materials manufacturer, has attracted takeover interest from Apollo Global Management, which may offer 8.2 billion euros for the company, reported Bloomberg citing people familiar with the matter.

Roche, a pharmaceutical group, said a phase 3 study of Actemra/RoActemra in hospitalised patients with COVID-19 associated pneumonia met its primary endpoint.

From a daily point of view, the share has broken above the upper end of a declining channel drawn since April. Moreover, the RSI is bullish above its neutrality area without being overbought (not before 80% on Roche). Above the horizontal resistance of August at 310CHF look for a new all-time high at 390CHF and 425CHF in extension.

Source: GAIN Capital, TradingView

Ericsson, a networking and telecommunications company, announced that it has agreed to acquire Cradlepoint, "the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions", for an enterprise value of 1.1 billion dollars.

Logitech International: SF0.794074

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account