Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index rose 0.75%. Germany's DAX 30 jumped 0.99%, France's CAC 40 climbed 0.47%, while the U.K.'s FTSE 100 eased 0.46%.
69% of STOXX 600 constituents traded higher yesterday.
74% of the shares trade above their 20D MA vs 70% Friday (above the 20D moving average).
51% of the shares trade above their 200D MA vs 49% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 1.37pt to 24.21, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Chemicals, Industrial, Basic Resource
3mths relative low: Retail, Pers. & House. Goods, Food & Beverage, Media, Energy
Europe Best 3 sectors
technology, construction & materials, health care
Europe worst 3 sectors
travel & leisure, energy, media
The 10yr Bund yield rose 2bps to -0.45% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -21bps (above its 20D MA).
UK 07:00: Jun Public Sector Net Borrowing, exp.: £-54.5B
GE 10:40: 2-Year Schatz auction, exp.: -0.69%
UK 10:45: 30-Year Treasury Gilt auction, exp.: 0.67%
In Asian trading hours, EUR/USD held gains at 1.1458 and GBP/USD rose further to 1.2675. Earlier today, media reported that European Union leaders have reached an agreement on a 750 billion euros stimulus package. USD/JPY eased to 107.20.
Spot gold was flat at $1,817 an ounce.
#UK - IRELAND#
BHP Group, a giant mining group, released a full-year production report: "Total petroleum production decreased by 10 per cent to 109 MMboe, (...) Volumes are expected to decrease to between 95 and 102 MMboe in the 2021 financial year, (...) Total copper production increased by two per cent to 1,724 kt. Production of between 1,480 and 1,645 kt is expected in the 2021 financial year. (...) Total iron ore production increased by four per cent to record 248 Mt (281 Mt on a 100 per cent basis). Production of between 244 and 253 Mt (276 and 286 Mt on a 100 per cent basis) is expected in the 2021 financial year. (...) Nickel West production decreased by eight per cent to 80 kt. (...) Total nickel production is expected to increase to between 85 and 95 kt in the 2021 financial year."
From a technical point of view, the share price stands within a bullish channel since March and has escaped from a short term lateral consolidation area. Moreover, the 20 DMA is playing its role of support. Above 1641p, look for a further advance towards the horizontal resistance of August 2019 at 1873p and 2060p in extension.
Source: GAIN Capital, TradingView
Continental, an automotive parts manufacturer, reported that 2Q preliminary organic revenue was down 39.8% on year to 6.62 billion euros and adjusted EBIT margin was -9.6%, saying the results "exceed capital market expectations".
Sartorius, a laboratory equipment supplier, announced that 1H net income rose 22.4% to 124 million euros and underlying EBITDA grew 23.5% to 294 million euros on revenue of 1.06 billion euros, up 15.9% (+16.0% at constant currency).
Remy Cointreau, a wines and spirits producer, announced that 1Q revenue declined 32.8% on year to 150 million euros, down 33.2% on an organic basis. The company said: "Following this better than expected first quarter and (unchanged) expectations of a moderate decline in the second quarter, Remy Cointreau now expects Current Operating Profit to be down 35-40% on an organic basis in the first half of financial year 2020/21 (compared with previous expectations of a 45-50% decline)."
Sartorius Stedim, a biopharmaceutical company, reported that 1H net income increased 27.7% on year to 167 million euros and underlying EBITDA rose 27.8% to 262 million euros on revenue of 869 million euros, up 22.5% (+22.0% at constant currency). The company said "management now anticipates sales growth of 26% to 30% (previously 17% to 21%)".
Novartis, a pharmaceutical giant, reported that 2Q core grew 0.4% on year to 3.11 billion dollars while operating income slid 11.7% to 2.35 billion dollars on net sales of 11.35 billion dollars, down 3.5% (-1.0% at constant currency). The company said it expects full-year net sales to grow mid single digit at constant currency and core operating income to grow low double digit at constant currency.
Givaudan, a fragrances producer, posted 1H net income increased 8.7% on year to 413 million Swiss franc and EBITDA climbed 11.2% to 734 million Swiss franc on revenue of 3.22 billion Swiss franc, up 4.1% (+4.0% like-for-like).
SGS, a testing and certification services provider, reported that net income declined 54.6% on year to 171 million Swiss franc and operating income slid 52.5% to 302 million Swiss franc on revenue of 2.65 billion Swiss franc, down 20.7% (-14.9% at constant currency).
Alfa Laval, a Swedish engineering company, announced that 2Q net income fell 8% on year to 1.30 billion Swedish krona and adjusted EBITA slid 4% to 1.80 billion Swedish krona on net sales of 10.46 billion Swedish krona, down 8% (-6% adjusted for currency effects).
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.