09 09 EU PRE OPEN

INDICES
Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index dropped 1.4%, Germany's DAX 30 lost 1.0%, France's CAC 40 slid 1.6% and U.K.'s FTSE 100 was down 0.1%.

EUROPE ADVANCE/DECLINE
75% of STOXX 600 constituents traded lower or unchanged yesterday.
37% of the shares trade above their 20D MA vs 48% Monday (below the 20D moving average).
53% of the shares trade above their 200D MA vs 54% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.53pt to 28.45, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Retail, Chemicals, Autos, Industrial
3mths relative low: Energy

Europe Best 3 sectors
automobiles & parts, real estate, retail

Europe worst 3 sectors
energy, banks, technology


INTEREST RATE
The 10yr Bund yield rose 1bp to -0.46% (below its 20D MA). The 2yr-10yr yield spread rose 3bps to -21bps (above its 20D MA).


ECONOMIC DATA
GE 10:40: Year Bund Auction 10


MORNING TRADING
In Asian trading hours, EUR/USD rebounded slightly to 1.1773 while GBP/USD dropped further to 1.2954. USD/JPY fell below 106.00 level.

Spot gold retreated to $1,927 an ounce.


#UK - IRELAND#
Computacenter, a computer services provider, posted 1H results: "The Group's revenues increased by 1.5 per cent to £2,462.2 million (H1 2019: £2,427.0 million) and were 0.6 per cent higher in constant currency. The Group made a profit before tax of £72.4 million, an increase of 42.5 per cent (H1 2019: £50.8 million). (...) The diluted earnings per share ('EPS') increased by 36.4 per cent to 45.3 pence for the period (H1 2019: 33.2 pence). (...) We are therefore pleased to announce an interim dividend of 12.3 pence per share (H1 2019: 10.1 pence per share). Whilst the 2019 full-year dividend was not paid, we have continued with our normal policy that the interim dividend will be approximately one third of the previous year's full dividend."

From a chartist point of view, the share escaped from a recent consolidation area. Furthermore, there is a positive participation on volumes. Above the 50DMA at 1910p look for the previous all-time high at 2324p and 2550p in extension.

Source: GAIN Capital, TradingView

Avon Rubber, a manufacturer of respiratory protection equipment, announced that it has agreed to acquire Team Wendy, a supplier of helmets and helmet liner and retention systems, for 130 million dollars on a cash-free and debt-free basis.


#AUSTRIA#
Verbund, Austria's major electricity provider, was downgraded to "reduce" from "hold" at HSBC.


#FRANCE#
Scor, a reinsurance company, said "Life claims are emerging better than expected and better than booked at H1 2020", and it is "very positive on the new P&C market conditions and is expecting strong growth with positive pricing dynamics".

Airbus, an aircraft manufacturer, was downgraded to "equalweight" from "overweight" at Morgan Stanley.


#SPAIN#
Sabadell, a Spanish bank, is considering strategic options, including asset disposals and merger, reported Bloomberg citing people familiar with the matter.

Ferrovial, a Spanish infrastructure group, was downgraded to "neutral" from "overweight" at JPMorgan.


EX-DIVIDEND
Bouygues: E1.7