Yesterday, European stocks saw beefy gains, with the Stoxx Europe 600 Index surging 4.1%. Germany's DAX 30 soared 5.7%, France's CAC 40 jumped 5.2%, and the U.K.'s FTSE 100 was up 4.3%.
97% of STOXX 600 constituents traded higher yesterday.
74% of the shares trade above their 20D MA vs 36% Friday (below the 20D moving average).
27% of the shares trade above their 200D MA vs 23% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 5.41pts to 29.06, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Basic Resources
3mths relative low: Real Estate
Europe Best 3 sectors
basic resources, automobiles & parts, travel & leisure
Europe worst 3 sectors
health care, retail, telecommunications
The 10yr Bund yield rose 1bp to -0.53% (below its 20D MA). The 2yr-10yr yield spread fell 3bps to -22bps (below its 20D MA).
UK 07:00: Mar Average Earnings excl. Bonus, exp.: 2.9%
UK 07:00: Mar Average Earnings incl. Bonus, exp.: 2.8%
UK 07:00: Mar Unemployment Rate, exp.: 4%
UK 07:00: Apr Claimant Count chg, exp.: 12.2K
UK 07:00: Feb Employment chg, exp.: 172K
UK 09:30: Q1 Labour Productivity QoQ Prel, exp.: 0.3%
EC 10:00: May ZEW Economic Sentiment Idx, exp.: 25.2
EC 10:00: Mar Construction Output YoY, exp.: -0.9%
GE 10:00: May ZEW Current Conditions, exp.: -91.5
GE 10:00: May ZEW Economic Sentiment Idx, exp.: 28.2
In Asian trading hours, EUR/USD held above 1.0900 level while GBP/USD climbed further to 1.2203. USD/JPY advanced to 107.40.
Spot gold rebounded to $1,739 an ounce.
#UK - IRELAND#
Imperial Brands, a tobacco company, reported that 1H operating profit dropped 19.6% on year to 925 million pounds on revenue of 14.67 billion pounds. The Company added: "Reported earnings per share was 55.6 pence (2019: 71.2 pence) down 21.9%, (...) Adjusted earnings per share were 103.0 pence (2019: 115.6 pence), down 9.2% at constant currency (down 10.9% at actual rates), (...) we are disappointed with these results, (...) we have declared an interim dividend of 41.70 pence per share (62.56 pence a year earlier). (...) COVID-19 has so far had only a small impact on trading but we expect this to be more pronounced in the second half due to continued pressures on our duty free and travel retail business."
Compass Group, a contract food service company, released 1H results: "Organic revenue grew by around 6% for the five months to February and declined by 20.4% in March, resulting in 1.6% organic revenue growth for the six months to March. (...) Underlying operating profit was £854 million (2019: £951 million), a decrease of 10.2%. (...) On a constant currency basis, the underlying basic earnings per share decreased by 12.1% to 37.6 pence (2019: 42.8 pence). (...) Today we have announced a non-pre-emptive equity placing of new ordinary shares targeting gross proceeds of approximately £2.0 billion."
Antofagasta, a giant copper producer, said it has decided to reduce 2019 final dividend by 0.163 dollar per share to 0.071 dollar per share, citing COVID-19 impact. From a chartist point of view, the share continues to aim the upper end of a declining channel in place since June 2018, targeting 950p.
Source: GAIN Capital, TradingView
DCC, a sales and marketing group, announced full-year results: "Overall, Group revenue decreased by 3.1% to £14.8 billion primarily driven by the lower oil price that prevailed during the year. (...) Group adjusted operating profit increased by 7.3% (7.6% on a constant currency basis) to £494.3 million, (...) Profit before tax decreased by 4.9% to £311.5 million. (...) Adjusted earnings per share increased by 1.3% to 362.64 pence, (...) The Board is proposing a 2.6% increase in the final dividend to 95.79 pence per share, which, when added to the interim dividend of 49.48 pence per share, gives a total dividend for the year of 145.27 pence per share."
Homeserve, a home repair and heating installation service firm, posted full-year results: "Double digit growth in revenue (up 13% to 1.1 billion pounds) and profits (adjusted profit before tax up 12% to 181.0 million pounds) (...) The Board proposes a final dividend of 17.8 pence, to take the total dividend for the year to 23.6 pence, up 10%."
William Hill, a bookmaker, was upgraded to "overweight" from "equalweight" at Morgan Stanley.
Thyssenkrupp, an industrial engineering and steel production group, said it is "exploring possible partnerships and consolidation options" for its Steel and Marine Systems businesses.
Hannover Re, an insurance group, was upgraded to "hold" from "reduce" at HSBC.
Talanx, an insurance company, was upgraded to "buy" from "hold" at HSBC.
Air France-KLM, an airline group, announced plans to gradually resume flights to about 15% of normal capacity for its French unit Air France before the end of June.
Remy Cointreau, a spirits manufacturer, was downgraded to "neutral" from "buy" at Goldman Sachs.
Siemens Gamesa Renewable Energy, an engineering company, was downgraded to "neutral" from "buy" at Goldman Sachs.
Telecom Italia, a telecommunications group, announced that 1Q net income jumped to 560 million euros from 165 million euros in the prior-year period while EBITDA dropped 10.8% on year to 1.74 billion euros on revenue of 3.96 billion euros, down 11.3%. At the same time, the company reported that it is in talks to sell a minority stake in INWIT to a consortium led by Ardian Infrastructure and Canson Capital Partners. The company may sell about a 16% stake for 1.5 billion euros, reported Bloomberg citing people familiar with the matter.
Sonova, hearing care solutions provider, reported that full-year adjusted net income grew 1.5% on year to 476 million Swiss franc and adjusted EBITDA increased 4.5% to 621 million Swiss franc on revenue of 2.92 billion Swiss franc, up 5.6% (+8.7% in local currencies).
Julius Baer, a private bank, announced that year-to-date assets under management declined 8% on year to 392 billion Swiss franc at the of April, while CET1 ratio fell to 13.8% from 14.0% at end-2019.