EU indices slightly down | TA focus on Intesa Sanpaolo


European stocks report | SSE | RSA Insurance Group | Deutsche Boerse | Maersk...

Yesterday, European stocks were mixed at close. The Stoxx Europe 600 declined 0.24%, Germany's DAX was little changed, France's CAC 40 gained 0.21%, while the U.K.'s FTSE 100 dropped 0.87%.

54% of STOXX 600 constituents traded lower or unchanged yesterday.
83% of the shares trade above their 20D MA vs 86% Monday (above the 20D moving average).
85% of the shares trade above their 200D MA vs 85% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.13pt to 22.25, a new 52w high.

3mths relative high: Insurance, Autos, Banks
3mths relative low: Chemicals, Healthcare

Europe Best 3 sectors
insurance, automobiles & parts, energy

Europe worst 3 sectors
health care, travel & leisure, food & beverage

The 10yr Bund yield was unchanged to -0.55% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -16bps (above its 20D MA).

UK 08:00: Oct Retail Price Idx YoY, exp.: 1.1%
UK 08:00: Oct Retail Price Idx MoM, exp.: 0.3%
UK 08:00: Oct PPI Core Output MoM, exp.: 0.2%
UK 08:00: Oct PPI Core Output YoY, exp.: 0.3%
UK 08:00: Oct PPI Output MoM, exp.: -0.1%
UK 08:00: Oct PPI Input YoY, exp.: -3.7%
UK 08:00: Oct PPI Input MoM, exp.: 1.1%
UK 08:00: Oct PPI Output YoY, exp.: -0.9%
UK 08:00: Oct Inflation Rate MoM, exp.: 0.4%
UK 08:00: Oct Core Inflation Rate YoY, exp.: 1.3%
UK 08:00: Oct Inflation Rate YoY, exp.: 0.5%
UK 08:00: Oct Core Inflation Rate MoM, exp.: 0.6%
EC 09:00: ECB Non-Monetary Policy Meeting
GE 09:30: Bundesbank Balz speech
EC 11:00: Oct Inflation Rate MoM final, exp.: 0.1%
EC 11:00: Oct Core Inflation Rate YoY final, exp.: 0.2%
EC 11:00: Oct Inflation Rate YoY final, exp.: -0.3%
UK 11:30: BoE Haldane speech
GE 11:40: 10-Year Bund auction, exp.: -0.51%

In Asian trading hours, EUR/USD eased to 1.1858 while GBP/USD held gains at 1.3251. USD/JPY remained subdued at 104.15. This morning, official data showed that Japan's exports fell 0.2% on year in October (-4.5% expected) and imports dropped 13.3% (-8.8% expected).

Spot gold extended its decline to $1,876 an ounce.

SSE, an energy company, announced that 1H adjusted EPS dropped 34% on year to 11.9p and adjusted operating profit (from continuing operations) slid 15% to 418 million pounds. The company added: "SSE has today announced an interim dividend of 24.4p per share with an intention to recommend a full-year dividend of 80p per share plus RPI inflation. (...) Adjusted earnings per share for 2020/21 is currently forecast to be in the range of 75p to 85p including a gain on disposal of a stake in Dogger Bank offshore wind farm."

British Land, a property group, reported that 1H underlying EPS declined 34.8% on year to 10.5p and underlying profit dropped 29.6% to 107 million pounds. The company proposed an interim dividend of 8.40p per share, down from 15.97p per share in the prior-year period.

RSA Insurance Group, a general insurance company, said Intact Financial has agreed to offer 685p per share in cash to buy the company, which represent a premium of approximately 51% to the closing price of 460 pence per RSA Share on November 4.

Croda International, a speciality chemicals company, said it has agreed to acquire fragrances and flavours company Iberchem for a total consideration of 820 million euros on a debt-free, cash-free basis.

Compass Group, a contract food service company, was downgraded to "neutral" from "buy" at Goldman Sachs.

Deutsche Boerse, a stock exchange operator, said it has agreed to acquire a majority share of approximately 80% in proxy advisory firm Institutional Shareholder Services, valuing it at 2.275 billion dollars for 100% of the business (cash and debt free).

Air France-KLM, an aircraft manufacturer, is seeking to raise 6 billion euros to strengthen its balance sheet, including contributions from the French and Dutch governments, according to French newspaper Le Monde.

Intesa Sanpaolo, an Italian banking group, was upgraded to "buy" from "neutral" at Goldman Sachs.

From a technical point of view, the stock is facing a key horizontal resistance around 1.9E. As long as the level at 2E is not crossed, look towards 1.67E and 1.4E in extension. Alternatively, a break above 2E would call for a new up leg with 2.24E as first target.

Source: TradingView, GAIN Capital

UBS, a Swiss banking group, was downgraded to "neutral" from "buy" at Goldman Sachs.

Lindt & Spruengli, a Swiss chocolatier and confectionery company, was upgraded to "buy" from "sell" at Goldman Sachs.

Maersk, a Danish integrated shipping company, posted 3Q underlying profit (from continuing operations) jumped to 1.04 billion dollars from 0.45 billion dollars in the prior-year quarter and EBITDA rose 38.7% on year to 2.30 billion dollars on revenue of 9.92 billion dollars, down 1.4%. The company has raised its full-year adjusted EBITDA guidance to 8.0 - 8.5 billion dollars from 7.5 - 8.0 billion dollars previously, and has decided to initiate a new 10 billion Danish krone share buy-back programme.

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