EU indices mixed | TA focus on CRH


European stocks report | Severn Trent | Remy Cointreau | Publicis...

Yesterday, European stocks closed mixed. The Stoxx Europe 600 dipped 0.08%, Germany's DAX was little changed, the U.K.'s FTSE 100 fell 0.64%, while France's CAC 40 gained 0.23%.

56% of STOXX 600 constituents traded lower or unchanged yesterday.
75% of the shares trade above their 20D MA vs 73% Tuesday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Tuesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.59pt to 20.78, a new 52w high.

3mths relative high: Travel & Leisure
3mths relative low: Chemicals, Healthcare

Europe Best 3 sectors
energy, banks, basic resources

Europe worst 3 sectors
personal & household goods, health care, real estate

The 10yr Bund yield rose 2bps to -0.56% (above its 20D MA). The 2yr-10yr yield spread fell 0bp to -18bps (below its 20D MA).

GE 08:00: Dec GfK Consumer Confidence, exp.: -3.1
FR 08:45: Nov Consumer Confidence, exp.: 94
EC 10:00: Oct M3 Money Supply YoY, exp.: 10.4%
EC 10:00: Oct Loans to Households YoY, exp.: 3.1%
EC 10:00: Oct Loans to Companies YoY, exp.: 7.1%
UK 10:00: Oct Car Production YoY, exp.: -5%
EC 13:00: ECB Lane speech
EC 13:30: ECB Monetary Policy Meeting Accounts
EC 14:00: ECB Schnabel speech

In Asian trading hours, EUR/USD climbed further to 1.1925 and GBP/USD advanced to 1.3390. USD/JPY fell to 104.30. NZD/USD held above the 0.7000 level. This morning, official data showed that New Zealand recorded a trade deficit of 501 million New Zealand dollars in October (500 million New Zealand dollars deficit expected), where exports totaled 4.78 billion New Zealand dollars (as expected).

Spot gold bounced to $1,811 an ounce.

Severn Trent, a water company, posted 1H underlying EPS declined 25.4% on year to 51.30p and revenue fell 2.5% to 888 million pounds. The company declared an interim dividend of 40.63p per share, up from 40.03p per share in the prior-year period.

CRH, an Irish building materials company, was downgraded to "sell" from "neutral" at Goldman Sachs.
From a technical point of view, the stock has validated the descending broadening wedge pattern in place since July 2020 with the breakout above the key resistance at 3117 which should trigger a new up leg towards 3430p and 3600p in extension.

Source: TradingView, GAIN Capital

Remy Cointreau, a spirits manufacturer, reported that 1H net income declined 28.1% on year to 65 million euros and current operating profit dropped 23.2% to 106 million euros on revenue of 431 million euros, down 17.8% (-16.4% organic growth). Regarding the outlook, the company stated: "The Group continues to expect a real recovery in the second half, driven by the United States and Mainland China. For financial year 2020/21, Remy Cointreau is thus forecasting positive organic growth in its Current Operating Profit."

Publicis, an advertising and public relations company, announced that Michel-Alain Proch will join the company as CFO in mid-January.

Solvay, a Belgian chemical group, was upgraded to "buy" from "hold" at Deutsche Bank.

Yara International, a Norwegian chemical company, was downgraded to "underperform" from "buy" at BofA Securities.


Imperial Brands:48p, National Grid:17p

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