EU indices positive this morning | TA focus on Lonza Group

European stocks report | Deutsche Lufthansa | Deutsche Wohnen | Lonza Group...

Uptrend 2

INDICES
Yesterday, European stocks were lower, with the Stoxx Europe 600 Index slipping 0.7%. Germany's DAX 30 lost 0.5%, the U.K.'s FTSE 100 fell 0.6% and France's CAC 40 was down 0.2%.

EUROPE ADVANCE/DECLINE
58% of STOXX 600 constituents traded lower or unchanged yesterday.
93% of the shares trade above their 20D MA vs 93% Wednesday (above the 20D moving average).
45% of the shares trade above their 200D MA vs 46% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.95pt to 27.66, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Chemicals, Industrial
3mths relative low: none

Europe Best 3 sectors
real estate, telecommunications, banks

Europe worst 3 sectors
automobiles & parts, utilities, health care

INTEREST RATE
The 10yr Bund yield rose 6bps to -0.35% (above its 20D MA). The 2yr-10yr yield spread fell 1bp to -29bps (below its 20D MA).

ECONOMIC DATA
GE 07:00: Apr Factory Orders MoM, exp.: -15.6%
UK 08:30: May Halifax House Price Idx MoM, exp.: -0.6%
UK 08:30: May Halifax House Price Idx YoY, exp.: 2.7%
UK 09:00: UK-EU Brexit Talks

MORNING TRADING
In Asian trading hours, EUR/USD held gains at 1.1335 while GBP/USD eased to 1.2593. USD/JPY stayed above the 109.00 level. This morning, official data showed that Japan's household spending slid 11.1% on year in April (-12.8% expected).

Spot gold retreated to $1,710 an ounce.

#UK - IRELAND#
TUI, a travel and tourism company, is considering to reduce its German airline capacity by half amid cost-cutting, reported Bloomberg citing people familiar with the matter.


#GERMANY #
Deutsche Lufthansa, an airline company, will be replaced by Deutsche Wohnen, a property group, in the German Dax Index effective June 22, according to Deutsche Boerse.

Telefonica Deutschland, a telecommunications group, is nearing a deal to sell a portfolio of wireless towers to investment firm KKR & Co for 1.5 billion euros, reported Bloomberg citing people familiar with the matter.

Kion, a manufacturer of materials handling equipment, was downgraded to "hold" from "buy" at HSBC.


#FRANCE#
Legrand, an industrial group, was upgraded to "buy" from "neutral" at Goldman Sachs.


#SPAIN#
Endesa, a Spanish electric utility company, was upgraded to "equalweight" from "underweight" at Barclays.

Acciona, an infrastructure and renewable energy company, was upgraded to "neutral" from "sell" at Citigroup.


#ITALY#
Enel, an energy company, was upgraded to "overweight" from "equalweight" at Barclays.


#SWITZERLAND#
Lonza Group, a biotechnology company, announced the appointment of Pierre-Alain Ruffieux, currently Head of Global Pharma Technical Operations at Roche, as new CEO effective November 1. From a chartist point of view, the share has pushed above the upper end of an ascending broadening formation. Look for 560 & 600.


Source: GAIN Capital, TradingView

Novartis, a pharmaceutical group, said a phase 3b study of its Enerzair Breezhaler, for the treatments in uncontrolled asthma, met primary endpoint.


EX-DIVIDEND
HeidelbergCement: E0.6

More from Equities

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.