Yesterday, European stocks remained firm. The Stoxx Europe 600 gained 0.44%, both Germany's DAX and France's CAC 40 climbed 0.52%, and the U.K.'s FTSE 100 added 0.31%.
62% of STOXX 600 constituents traded higher yesterday.
84% of the shares trade above their 20D MA vs 83% Tuesday (above the 20D moving average).
85% of the shares trade above their 200D MA vs 85% Tuesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 1.35pt to 20.9, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Insurance, Autos, Banks
3mths relative low: Healthcare
Europe Best 3 sectors
insurance, automobiles & parts, energy
Europe worst 3 sectors
health care, travel & leisure, food & beverage
The 10yr Bund yield fell 2bps to -0.56% (above its 20D MA). The 2yr-10yr yield spread fell 1bp to -17bps (above its 20D MA).
EC 09:00: ECB President Lagarde speech
EC 10:00: Sep Current Account, exp.: E21.8B
EC 11:00: Sep Construction Output YoY, exp.: -0.9%
FR 11:00: 3-Year BTAN auction, exp.: -0.64%
FR 11:00: 5-Year BTAN auction, exp.: -0.7%
UK 12:00: Nov CBI Industrial Trends Orders, exp.: -34
GE 15:30: Bundesbank Mauderer speech
GE 17:00: Bundesbank Buch speech
GE 18:00: Bundesbank Wuermeling speech
In Asian trading hours, EUR/USD slipped to 1.1845 and GBP/USD retreated to 1.3233. USD/JPY dipped to 103.78. AUD/USD fell to 0.7294 despite a stronger-than-expected jobs report. This morning, official data showed that the Australian economy added 178,800 jobs in October (-27,500 jobs expected), while jobless rate edged up to 7.0% (7.1% expected) from 6.9% in September.
Spot gold extended its decline to $1,867 an ounce.
#UK - IRELAND#
Halma, a safety equipment company, announced that 1H adjusted profit before tax fell 5% on year to 122 million pounds on revenue of 618 million pounds, down 5%. The company proposed an interim dividend of 6.87p per share, up 5%. Regarding the outlook, the company said "the Board now expects Adjusted profit before tax for FY 2020/21 to be around 5% below FY 2019/20, compared to prior guidance of 5% to 10% below FY 2019/20".
Johnson Matthey, a speciality chemicals company, posted 1H underlying profit before tax declined 53% on year to 109 million pounds and operating profit slid 43% to 151 million pounds on revenue of 6.98 billion pounds, up 2%. The company proposed an interim dividend of 20.0p per share, down from 24.5p per share in the prior-year period.
Kingfisher, a retailing group, released a 3Q trading update: "Q3 20/21 total Group sales of £3.5 billion, up 17.6% in constant currency; Group LFL sales up 17.4%. (...) Q4 20/21 Group LFL sales (to 14 November 2020) up 12.6%, largely reflecting the impact of more recent temporary lockdown measures."
Wm Morrison Supermarkets, a chain of supermarkets, was upgraded to "buy" from "sell" at Goldman Sachs.
Thyssenkrupp, an industrial engineering group, announced that full-year net loss (from continuing operations) widened to 5.55 billion euros from 1.15 billion euros in the prior year and adjusted EBIT loss (from continuing operations) increased to 1.63 billion euros from 110 million euros. Net sales (from continuing operations) were down 15% to 28.90 billion euros. The company expects FY2021 "sales growth in the low to mid single-digit percentage range" and "a significant year-on-year improvement in adjusted EBIT to a loss in the mid three-digit million euro range". In addition, the company said it sees the need for a further 7,400 jobs reduction over the next three year, after around 3,600 jobs having already been cut.
Kion Group, a manufacturer of materials handling equipment, announced plans to issue 13,108,647 new shares, equivalent to approximately 11% of the current share capital, to strengthen its financial position.
From a technical point of view, an hypothetical head and shoulders pattern is taking shape. Furthermore, the share is trading below the key resistance at 81.5E. A break below 65.E could confirm the head-and-shoulders' pattern thanks to this morning's bearish breakaway gap and trigger a new down leg towards 49.3E and 40.5E in extension.
Source: TradingView, GAIN Capital
Bouygues, an industrial group, posted 3Q net income dropped 15.4% on year to 527 million euros while current operating profit increased 22.3% to 813 million euros on revenue of 10.19 billion euros, up 0.3%.
Unibail-Rodamco-Westfield, a commercial real estate company, announced the appointment of COO Jean-Marie Tritant will succeed Christophe Cuvillier as Chairman and CEO on January 1, 2021.