EU indices down again| TA focus on Deutsche Post


European stocks report | AstraZeneca | Deutsche Post | Delivery Hero | FirstGroup ...

Downtrend 6

Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.61%. Germany's DAX 30 fell 0.92%, France's CAC 40 lost 0.74%, and the U.K.'s FTSE 100 was down 1.53%.

72% of STOXX 600 constituents traded lower or unchanged yesterday.
70% of the shares trade above their 20D MA vs 77% Monday (above the 20D moving average).
45% of the shares trade above their 200D MA vs 47% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.33pt to 27.93, a new 52w high.

3mths relative high: Financial Services, Chemicals
3mths relative low: Telecom., Media, Energy

Europe Best 3 sectors
automobiles & parts, health care, telecommunications

Europe worst 3 sectors
banks, construction & materials, insurance

The 10yr Bund yield was unchanged to -0.43% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -24bps (below its 20D MA).

EC 09:45: ECB Guindos speech
GE 10:40: 5-Year Bobl auction, exp.: -0.62%
UK 12:00: Supplementary Budget
EC 15:00: ECB Guindos speech
GE 18:45: Bundesbank Buch speech

In Asian trading hours, EUR/USD was little changed at 1.1274 while GBP/USD rose to 1.2550. USD/JPY held gains at 107.64.

Spot gold eased to $1,793 an ounce.

AstraZeneca, a biopharmaceutical company, said its Lynparza (olaparib) has been approved in the European Union for patients with germline BRCA-mutated metastatic pancreatic cancer.

Victrex, a supplier of high performance polymer, posted a 3Q trading statement: "Q3 Group sales volume was down 12% to 805 tonnes (Q3 2019: 912 tonnes), with Group revenue down 18% to £58.8m (Q3 2019: £72.0m) reflecting mix as a key driver. On a year to date basis, (to the end of Q3) Group sales volume of 2,797 tonnes is broadly in line with the prior year (2019 YTD: 2,811 tonnes), with YTD Group revenue of £210.3m down 3% (YTD 2019: £217.8m)."

FirstGroup, a transport group, released full-year results: "Group revenue in constant currency +7.2% or +2.6% excluding the West Coast Partnership franchise (now branded Avanti West Coast) that started in December 2019; reported Group revenue +8.8%. (...) Statutory operating loss of £(152.7)m (2019: profit of £9.8m) and statutory EPS of (27.0)p (2019: (5.5)p) include the Greyhound impairment charge of £186.9m (of which £124.4m was in the first half), North American self-insurance provision of £141.3m, restructuring and reorganisation costs of £58.2m, and coronavirus-related charges of £21.5m"

Rio Tinto, a giant metals miner, was downgraded to "neutral" from "buy" at Goldman Sachs.

Deutsche Post, a package delivery company, announced that preliminary 2Q EBIT rose 16% on year to 890 million euros and full-year EBIT is expected between 3.5 - 3.8 billion euros. From a chartist point of view, the share is supported by a rising trend line drawn from March 2020 and is aiming a key horizontal resistance at 35 euros. The 20DMA should act as a trailing stop for buyers. Above 31.2 euros look for the horizontal resistance at 35 and 38.15 euros in extension.

Source: GAIN Capital, TradingView

Delivery Hero, an online food-delivery service provider, said it has launched the issue of convertible bonds and is targeting gross proceeds in the amount of up to 1.5 billion euros. The company added that it intends to use the proceeds for general corporate purposes and to take advantage of attractive investment opportunities that may arise.

OMV, an Austrian integrated oil and gas company, reported that 2Q hydrocarbon production fell 5.3% on year to 464,000 barrel of oil equivalent per day.

Lanxess, a chemical company, was downgraded to "sell" from "neutral" at Goldman Sachs.

Iliad, a telecommunication services provider, was downgraded to "hold" from "buy" at HSBC.

Repsol, a fossil fuel company, said its refining margin dropped to 3.0 dollars a barrel in 2Q from 3.5 dollars a barrel in the prior-year period.

Nokia, a telecommunications and IT group, was downgraded to "neutral" from "overweight" at JPMorgan.

Swedish Match, a a Swedish tobacco company, was downgraded to "equalweight" from "overweight" at Barclays.

Iberdrola: E0.18792, Pernod-Ricard: E1.18

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