EU indices mixed | TA focus on Novo Nordisk

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European stocks report | RSA Insurance | Allianz | Amadeus | Novo Nordisk...

Downtrend 5

INDICES
Yesterday, European stocks also remained firm. The Stoxx Europe 600 gained 1.05%, Germany's DAX jumped 1.98%, France's CAC 40 rose 1.24% and the U.K.'s FTSE 100 was up 0.39%.

EUROPE ADVANCE/DECLINE
73% of STOXX 600 constituents traded higher yesterday.
66% of the shares trade above their 20D MA vs 52% Wednesday (above the 20D moving average).
59% of the shares trade above their 200D MA vs 56% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.63pt to 26.37, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: Basic Resource

Europe Best 3 sectors
insurance, basic resources, banks

Europe worst 3 sectors
health care, technology, energy


INTEREST RATE
The 10yr Bund yield fell 2bps to -0.64% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -15bps (above its 20D MA), a new 52w high.

ECONOMIC DATA
GE 08:00: Sep Industrial Production MoM, exp.: -0.2%
FR 08:45: Sep Current Account, exp.: E-4.7B
FR 08:45: Sep Balance of Trade, exp.: E-7.7B
FR 08:45: Q3 Private Non Farm Payrolls QoQ Prel, exp.: -0.8%
UK 09:30: Oct Halifax House Price Idx MoM, exp.: 1.6%
UK 09:30: Oct Halifax House Price Idx YoY, exp.: 7.3%


MORNING TRADING
In Asian trading hours, EUR/USD held gains at 1.1830 while GBP/USD eased to 1.3134. USD/JPY remained subdued at 103.45. Early today, official data showed that Japan's household spending dropped 10.2% on year in September (-10.5% expected)

Spot gold retreated to $1,940 an ounce.


#UK - IRELAND#
RSA Insurance, a general insurance company, confirmed that it has received a proposal from Intact Financial and Tryg regarding a possible offer for the company, which comprises 685p in cash per share, plus payment by RSA of the announced interim dividend of 8p per share.

AstraZeneca, a pharmaceutical giant, said its Brilinta has been approved by the US Food and Drug Administration to reduce the risk of stroke in patients with an acute ischaemic stroke or high-risk transient ischaemic attack.


#GERMANY#
Allianz, a financial services group, announced that 3Q net income rose 5.9% on year to 2.06 billion euros while operating profit fell 2.6% to 2.91 billion euros on revenue of 31.4 billion euros, down 6.1%.


#SPAIN#
Amadeus, a major Spanish IT services provider, reported a 3Q adjusted net loss of 125 million euros, compared with an adjusted net profit of 323 million euros in the prior-year quarter, and revenue declined 70.1% on year to 419 million euros.


#DENMARK#
Novo Nordisk, a pharmaceutical group, announced that it has agreed to acquire all outstanding shares of U.S.-listed drug delivery company Emisphere Technologies for 1.35 billion dollars and to acquire related Eligen SNAC royalty stream obligations owed to MHR Fund Management, the largest shareholder of Emisphere, for 450 million dollars.

From a technical point of view, the stock has bounced back on the support of August at 400.2DKK. Moreover, volumes jumped during the last trading session. Above the bottom of August at 400DKK, targets are set at the previous all-time high of October 2020 at 467.9DKK and 490DKK in extension.




Source: TradingView, GAIN Capital

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