EU indices globally flat this morning | TA focus on ENI

European stocks report | Wirecard | Deutsche Lufthansa | ENI...

Quiet session 1

Friday, European stocks closed broadly higher, with the Stoxx Europe 600 Index rising 0.6%. Both Germany's DAX 30 and France's CAC 40 rebounded 0.4%, and the U.K.'s FTSE 100 jumped 1.1%.

51% of STOXX 600 constituents traded higher Friday.
65% of the shares trade above their 20D MA vs 66% Thursday (below the 20D moving average).
42% of the shares trade above their 200D MA vs 41% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.83pts to 32.21, a new 52w high.

3mths relative high: Technology
3mths relative low: none

Europe Best 3 sectors
utilities, health care, technology

Europe worst 3 sectors
real estate, insurance, automobiles & parts

The 10yr Bund yield fell 2bps to -0.41% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -25bps (below its 20D MA).

UK 11:00: Jun CBI Industrial Trends Orders, exp.: -62
FR 14:00: 3-Mth BTF auction, exp.: -0.51%
FR 14:00: 6-Mth BTF auction, exp.: -0.51%
FR 14:00: 12-Mth BTF auction, exp.: -0.5%
EC 15:00: Jun Consumer Confidence Flash, exp.: -18.8

In Asian trading hours, EUR/USD rebounded to 1.1195 and GBP/USD bounced to 1.2374. USD/JPY edged up to 106.92.

Spot gold rallied to $1,754 an ounce.

Close Brothers Group, a merchant banking group, announced that Adrian Sainsbury, currently managing director of its banking division will succeed Preben Prebensen as CEO with effect from September 21. 

Wirecard's, a payment processor and financial services provider, said "there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist". The company has decided to withdraw the assessments of full-year 2019 and 1Q 2020 results, while adding that "potential effects on the annual financial accounts of previous years cannot be excluded". Meanwhile, the company's credit rating was downgraded to "B3", a junk rating from "Baa3" at Moody's. The rating agency said: "The downgrade of Wirecard's ratings and review for further downgrade reflect the accounting irregularities and related implications on the company's liquidity and financial profile following its failure to publish the already postponed audited consolidated accounts for 2019."

Deutsche Lufthansa's, an airline group, 9 billion euros government bailout plan may not be passed due to a lack of shareholders' support,  according to CEO Carsten Spohr cited by Bloomberg.

Arkema, a specialty chemicals firm, has begun selling process of its 1 billion euros plexiglass unit, reported Bloomberg citing people familiar with the matter.

Carrefour, a retail group, was upgraded to "overweight" from "neutral" at JPMorgan.

Siemens Gamesa, a wind turbine manufacturer, was upgraded to "overweight" from "underweight" at JPMorgan.

Eni, an oil and gas company, is considering selling its energy exploration and production assets in Pakistan, where it produces 37 billion cubic feet of natural gas annually, reported Bloomberg citing people familiar with the matter. From a chartist point of view, the share has broken down the 9E threshold in place since 2009. The bearish gap on March 9th plays a resistance role and capped the technical recovery. Furthermore, a declining trend line has been identified on the RSI indicator. Below 12, look for 5 & 4.

Source: GAIN Capital, TradingView

Tenaris, a manufacturer of steel pipes, was upgraded to "buy" from "sell".

Deutsche Telekom: E0.6, Snam: E0.1426, STMicroelectronics (STM): $0.042, Volvo: SEK5.5

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