EU indices slightly up | TA focus on Julius Baer


European stocks report | AstraZeneca | Volkswagen | Philips | Julius Baer ...

Stocks (1)

Friday, European stocks were still in positive territory. The Stoxx Europe 600 Index rebounded 1.26%, Germany's DAX 30 rose 1.62%, France's CAC 40 jumped 2.03%, and the U.K.'s FTSE 100 was up 1.49%.

76% of STOXX 600 constituents traded higher Friday.
63% of the shares trade above their 20D MA vs 53% Thursday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 58% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.53pt to 25.32, a new 52w high.

3mths relative high: Pers. & House. Goods, Media, Industrial
3mths relative low: Insurance

Europe Best 3 sectors
automobiles & parts, personal & household goods, banks

Europe worst 3 sectors
real estate, telecommunications, travel & leisure

The 10yr Bund yield fell 3bps to -0.61% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -15bps (above its 20D MA), a new 3mths high.

EC 10:00: Aug Construction Output YoY, exp.: -3.8%
FR 14:00: 12-Mth BTF auction, exp.: -0.63%
FR 14:00: 6-Mth BTF auction, exp.: -0.64%
FR 14:00: 3-Mth BTF auction, exp.: -0.66%

On Sunday, House Speaker Nancy Pelosi called on the government to reconcile remaining disputes on stimulus legislation within 48 hours in an attempt to pass a bill before the 2020 election. Comments by Pelosi helped in raising market optimism about progress on an agreed deal between the government and Congress. U.S. stock index futures jumped in early Asian trading hours on Monday. During Asian sessions, EUR/USD was little changed at 1.1715 while GBP/USD advanced to 1.2937. USD/JPY was broadly flat at 105.37. This morning, official data showed that Japan's exports fell 4.9% on year in September (-2.4% expected) and imports declined 17.2% (-21.4% on year expected). AUD/USD marked a day-high near 0.7108 before easing back to 0.7095. Earlier today, government data showed that China's 3Q GDP grew 4.9% on year (+5.5% expected), while industrial production rose 6.9% in September (+5.8% expected) and retail sales increased 3.3% (+1.7% expected).

Spot gold edged up to $1,901 an ounce.

AstraZeneca, a pharmaceutical group, said its Trixeo Aerosphere has been recommended for approval in the European Union by the Committee for Medicinal Products for Human Use (CHMP) for the maintenance treatment of chronic obstructive pulmonary disease. At the same time, its Forxiga has also been recommended for approval by CHMP in the region for the treatment of symptomatic chronic heart failure.

Volkswagen's, an automobile group, Traton announced that it has agreed to acquire the remaining stake in American trucks and diesel engines company Navistar for 44.50 dollars per share, representing about 3.7 billion dollars.

Philips, a Dutch multinational conglomerate, announced that 3Q net income jumped 63% on year to 340 million euros and EBITA grew 32% to 769 million euros on revenue of 4.98 billion euros, up 6% (+10% on a comparable basis). The company said it targets an acceleration of the average annual comparable sales growth to 5-6% for the 2021-2025 period, but expects a low-single-digit growth for 2021.

Julius Baer, a Swiss private bank, said assets under management rose 3% on quarter (-3% on year) to 413 billion Swiss franc in 3Q and annualized growth of net new money inflows was close to 4% in the 9-month period, compared with 2.3% in 1H and 2.8% for full-year 2019.

From a weekly point of view, the consolidation channel's upward breakout would call for a new measured move up to 50CHF at least (horizontal resistance from April 2019) and 56.5CHF in extension (neckline of a 2017/2018 head-and-shoulders pattern and upper end of a bearish gap set on 2018, July 23rd).

Source: TradingView, GAIN Capital

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