EU indices down this morning | TA focus on Johnson Matthey
Philippe Delabarre June 12, 2020 3:10 AM
European stocks report | Informa | Johnson Matthey | Atlantia...
Yesterday, European stocks were heavy, with the Stoxx Europe 600 Index shedding 4.1%, Germany's DAX 30 sank 4.5%, France's CAC 40 slumped 4.7%, and the U.K.'s FTSE 100 lost 4.0%.
96% of STOXX 600 constituents traded lower or unchanged yesterday.
49% of the shares trade above their 20D MA vs 88% Wednesday (above the 20D moving average).
31% of the shares trade above their 200D MA vs 42% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 5.97pts to 36.02, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none
Europe Best 3 sectors
health care, real estate, food & beverage
Europe worst 3 sectors
automobiles & parts, banks, energy
The 10yr Bund yield fell 2bps to -0.33% (above its 20D MA). The 2yr-10yr yield spread rose 5bps to -23bps (above its 20D MA).
UK 07:00: Apr GDP YoY, exp.: -5.7%
UK 07:00: Apr Goods Trade Balance, exp.: £-12.5B
UK 07:00: Apr GDP MoM, exp.: -5.8%
UK 07:00: Apr GDP 3-Mth Avg, exp.: -2%
UK 07:00: Apr Balance of Trade, exp.: £-6.7B
UK 07:00: Apr Construction Output YoY, exp.: -7.1%
UK 07:00: Apr Industrial Production YoY, exp.: -8.2%
UK 07:00: Apr Industrial Production MoM, exp.: -4.2%
UK 07:00: Apr Manufacturing Production YoY, exp.: -9.7%
UK 07:00: Apr Manufacturing Production MoM, exp.: -4.6%
FR 07:45: May Inflation Rate MoM final, exp.: 0%
FR 07:45: May Inflation Rate YoY final, exp.: 0.3%
FR 07:45: May Harmonised Inflation Rate MoM final, exp.: 0%
FR 07:45: May Harmonised Inflation Rate YoY final, exp.: 0.4%
EC 10:00: Apr Industrial Production MoM, exp.: -11.3%
EC 10:00: Apr Industrial Production YoY, exp.: -12.9%
UK 14:00: May NIESR Monthly GDP Tracker, exp.: -11.8%
In Asian trading hours, EUR/USD was broadly flat at 1.1294 while GBP/USD fell further to 1.2567. USD/JPY remained subdued at 106.81.
Spot gold slipped to $1,725 an ounce.
#UK - IRELAND#
Informa, a business intelligence group, posted a trading update: "Our Subscriptions-related businesses provide an anchor for the Group and, in the main, continue to trade well. (...) As expected, in the two months since the First Quarter Trading Update, the Events-related businesses have not traded any physical product anywhere in the world due to COVID-19. (...) In total, £400m+ of cost savings have been identified within adjusted operating profit, including direct savings on events already cancelled and those that have switched from physical to digital."
Games Workshop Group, a manufacturer of miniature wargames, released a trading statement: "306 of our 532 stores are now open in 20 countries, (...) our recovery since re-opening has been better than expected. (...) we now estimate our sales to be c. £270 million and profit before tax for the year ended 31 May 2020 to be no less than £85 million."
Johnson Matthey, a speciality chemicals company, was downgraded to "hold" from "buy" at Deutsche Bank. From a chartist point of view, the share is challenging an overlap area (neckline of a monthly bump & reversal pattern) set around 2250p. Below 2750 (significant horizontal resistance threshold from 2017), look for 1500 and even 750p in extension.
Source: GAIN Capital, TradingView
Ferrexpo, a commodity trading and mining company, was downgraded to "sell" from "neutral" at Citigroup.
Teleperformance, an omnichannel company, was downgraded to "equalweight" from "overweight" at Morgan Stanley.
Atlantia, an infrastructure group, announced that it swung to a 1Q net loss of 10 million euros from a net profit of 157 million euros in the prior-year period, citing impact of Covid-19 pandemic on its motorway and airport operators. EBIT dropped 37% on year to 352 million euros on operating revenue of 2.21 billion euros, down 15%. The company added: "Considering the traffic figures up to this point and assuming a gradual recovery from the second half of 2020 onwards, a preliminary sensitivity analysis results in an estimated average annual decline in the Group's motorway traffic of approximately 30% and in airport traffic of approximately 50%. This would result in a potential reduction in the Group's revenue of around E3bn compared with the figure for 2019."
#SCANDINAVIA - DENMARK#
DSV Panalpina, a logistic group, was upgraded to "buy" from "neutral" at Goldman Sachs.
EQT, a Swedish investment firm, was downgraded to "sell" from "neutral" at Citigroup.
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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.