EU indices are still consolidating this morning | TA focus on Astrazeneca

Downward trend
INDICES
Yesterday, European stocks consolidated gains made in the prior session, with the Stoxx Europe 600 Index slipping 0.6%. France's CAC lost 0.9% and the U.K.'s FTSE 100 dropped 0.8%, while Germany's DAX added 0.2%.

EUROPE ADVANCE/DECLINE
55% of STOXX 600 constituents traded lower or unchanged yesterday.
67% of the shares trade above their 20D MA vs 74% Monday (above the 20D moving average).
26% of the shares trade above their 200D MA vs 27% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 1.11pt to 30.17, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Financial Services, Technology, Basic Resource
3mths relative low: none

Europe Best 3 sectors
technology, financial services, basic resources

Europe worst 3 sectors
telecommunications, automobiles & parts, utilities

INTEREST RATE
The 10yr Bund yield rose 6bps to -0.47% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -21bps (above its 20D MA).

ECONOMIC DATA
UK 07:00: Apr Core Inflation Rate MoM, exp.: 0.1%
UK 07:00: Apr PPI Output YoY, exp.: 0.3%
UK 07:00: Apr PPI Input YoY, exp.: -2.9%
UK 07:00: Apr PPI Input MoM, exp.: -3.6%
UK 07:00: Apr PPI Output MoM, exp.: -0.2%
UK 07:00: Apr Inflation Rate MoM, exp.: 0%
UK 07:00: Apr Core Inflation Rate YoY, exp.: 1.6%
UK 07:00: Apr Inflation Rate YoY, exp.: 1.5%
UK 07:00: Apr PPI Core Output YoY, exp.: 0.9%
UK 07:00: Apr PPI Core Output MoM, exp.: 0.3%
UK 07:00: Apr Retail Price Idx YoY, exp.: 2.6%
UK 07:00: Apr Retail Price Idx MoM, exp.: 0.2%
EC 09:00: ECB Non-Monetary Policy Meeting
EC 09:00: Mar Current Account, exp.: E33.8B
EC 10:00: Apr Inflation Rate MoM final, exp.: 0.5%
EC 10:00: Apr Core Inflation Rate YoY final, exp.: 1%
EC 10:00: Apr Inflation Rate YoY final, exp.: 0.7%
FR 10:00: 3-Year BTAN auction, exp.: -0.43%
FR 10:00: 5-Year BTAN auction, exp.: -0.36%
GE 10:40: 10-Year Bund auction, exp.: -0.48%
EC 15:00: May Consumer Confidence Flash, exp.: -22.7

MORNING TRADING
In Asian trading hours, EUR/USD climbed to 1.0938 level and GBP/USD held gains at 1.2262. USD/JPY eased to 107.77. This morning, government data showed that Japan's core machinery orders slid 0.4% on month in March (-6.7% expected). AUD/USD was broadly flat at 0.6543. Earlier today, government data showed that Australia's preliminary retail sales dropped 17.9% on month in April (+8.5% in March).

Spot gold extended its rebound to $1,748 an ounce.


#UK - IRELAND#
Experian, an information services company, announced FY results: "We continued to make good financial progress during the year and revenue increased by 7% to US$5,179m (2019: US$4,861m) reflecting the improved underlying performance of ongoing activities. Operating profit for the year ended 31 March 2020 increased to US$1,185m (2019: US$1,162m). Profit before tax decreased to US$942m (2019: US$957m) due to an increase in net finance costs of US$49m. (...) Second interim dividend of 32.5 US cents per ordinary share, unchanged year-on-year, to bring the total for FY20 to 47.0 US cents per share. (...) For the month of April, the Group experienced a decline in organic revenue of (5)%. Should current trading trends continue throughout the first quarter, we estimate that Q1 organic revenue will decline in a range of (5)% to (10)%."

Royal Bank of Scotland Group, a U.K. banking group, announced the pricing of 1.6 billion dollars of senior notes in two parts: "USD 1,000,000,000 3.073% Senior Callable Fixed-to-Fixed Reset Rate Notes due 2028 and USD 600,000,000 2.359% Senior Callable Fixed-to-Fixed Reset Rate Green Notes due 2024."

Severn Trent, a water company, released full-year results: "Group turnover of £1,844 million, up £76 million (4.3%). (...) Group underlying PBIT of £570 million, down £3 million (0.6%). (...) Underlying basic EPS of 146.0 pence (up 0.1%). (...) Reported profit after tax of £159 million (down 49.6%) and basic EPS of 66.7 pence (down 50.0%) after exceptional Water Plus losses and exceptional deferred tax charge from the rate change of £91.8 million. (...) the Board has proposed a final ordinary dividend of 60.05 pence per share for 2019/20 (2018/19: 56.02 pence per share). This gives a total ordinary dividend for the year of 100.08 pence (2018/19: 93.37 pence)."

AstraZeneca, a biopharmaceutical company, said its Lynparza (olaparib) has been approved in the U.S. for treatment of homologous recombination repair (HRR) gene-mutated metastatic castration-resistant prostate cancer. From a chartist point of view, we confirm our bullish bias as the 7950 has been reached and broken up. Next target 1000p.


Source: GAIN Capital, TradingView

Marks & Spencer, a retailing group, posted full-year results: "Group profit before tax and adjusting items was 403.1 million pounds, down 21.2% on last year. The decline includes an estimated impact from Covid-19 of 51.9 million pounds in March. The profit decrease was largely due to the decline in Clothing & Home operating profit. (...) Strong Food LFL (like-for-like) revenue of 1.9% and operating profit up 11.2%. (...) The UK Clothing & Home business (...) revenue declined 8.3% overall, with LFL revenue down 6.2%, including an estimated 2.2% adverse impact from Covid-19 in March."

Great Portland Estates, a property group, released full-year results: "IFRS and EPRA NAV per share of 868 pence, up 1.8% over twelve months; (...) EPRA EPS of 22.0 pence, up 13.4%. Cash EPS of 17.9 pence, up 4.7%. (...) IFRS profit after tax of £51.8 million (2019: £49.5 million). (...) Total dividend per share of 12.6 pence, up 3.3% on 2019, including final dividend of 7.9 pence (2019: 7.9 pence)."

BT Group, a telecommunications holding company, was upgraded to "hold" from "sell" at Deutsche Bank.

Compass Group, a contract food service company, was upgraded to "buy" from "hold" at Deutsche Bank.


#GERMANY#
Deutsche Lufthansa's, an airline group, need for government aid is getting increasingly urgent, as its liquidity continues to decline, reported Reuters citing an internal letter.

Fresenius, a health care company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

Fresenius Medical Care, a dialysis services provider, was upgraded to "equalweight" from "underweight" at Morgan Stanley.


#FRANCE#
Michelin, a tire manufacturer, reported that European original equipment tires demand plunged 95% year in April and slumped 99% in North America, and replacement tires demand in these two regions was down 53% and 47% respectively. The company said "economic recovery is confirmed in China", with just a 4% decline in original equipment tires demand, while replacement tires demand was up 2%.

Renault, an automobile group, has secured a 5 billion euros state-guaranteed loan from banks, reported Reuters citing people familiar with the matter.


#BENELUX#
AB InBev, a drink and brewing company, was upgraded to "neutral" from "underweight" at JPMorgan.


#SWITZERLAND#
Lonza Group, a chemicals and biotechnology company, will announce a new CEO in late may or early June, according to Chairman Albert Baehny citing by Swiss newspaper Tages-Anzeiger.


EX-DIVIDEND
Deutsche Boerse: E2.9, Julius Baer: SF0.375

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