Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index advanced 1.8%, Germany's DAX 30 jumped 2.1%, France's CAC 40 and U.K.'s FTSE 100 were up 1.4%.
83% of STOXX 600 constituents traded higher yesterday.
57% of the shares trade above their 20D MA vs 37% Tuesday (below the 20D moving average).
56% of the shares trade above their 200D MA vs 53% Tuesday (below the 20D moving average).
The Euro Stoxx 50 Volatility index eased 2.56pts to 25.89, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Chemicals
3mths relative low: none
Europe Best 3 sectors
telecommunications, insurance, technology
Europe worst 3 sectors
travel & leisure, retail, automobiles & parts
The 10yr Bund yield fell 3bps to -0.5% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -23bps (below its 20D MA).
FR 07:45: Jul Industrial Production MoM, exp.: 12.7%
EC 12:45: ECB Interest Rate Decision, exp.: 0%
EC 12:45: Marginal Lending Rate, exp.: 0.25%
EC 12:45: Deposit Facility Rate, exp.: -0.5%
EC 13:30: ECB Press Conference
EC 18:00: ECB President Lagarde speech
In Asian trading hours, EUR/USD rebounded to 1.1820 while GBP/USD retreated to 1.2990. USD/JPY held above the 106.00 level. This morning, official data showed that Japan's core machine orders grew 6.3% on month in July (+2.0% expected).
Spot gold slipped to $1,946 an ounce.
#UK - IRELAND#
British Land, a property group, announced that CFO Simon Carter will succeed Chris Grigg as CEO effective on November 18.
National Grid, an electricity and gas utility company, announced the appointment of Paula Rosput Reynolds, currently Non-executive Director at General Electric and will the company on January 1, to succeed Sir Peter Gershon as Chairman.
AstraZeneca, a pharmaceutical group, reported that its Fasenra met both co-primary endpoints in a phase 3 trial for patients with chronic rhinosinusitis with nasal polyps.
Dunelm Group, a home furnishings retailer, released full-year results: "Total revenue for the 52 weeks to 27 June 2020 fell by 3.9% to £1,057.9m (FY19: £1,100.4m). (...) Operating profit for the period was £116.0m (FY19: £126.9m). (...) PBT in the period was £109.1m (FY19: £125.9m), a reduction of £16.8m year-on-year. (...) The Board is not recommending a final dividend for FY20, to retain maximum liquidity ahead of winter peak trading."
Rio Tinto, a giant miner, was upgraded to "buy" from "neutral" at Citigroup.
LVMH's, a luxury goods producer, Chairman Bernard Arnault is seeking for help from the French government to cancel the deal to acquire Tiffany & Co, reported Bloomberg citing people familiar with the matter.
From a daily point of view, the stock is supported by a rising trendline drawn since August. Above the overlap threshold (resistance twice in May & June before becoming a support twice as well in June & August) at 363E targets are set at 450E and 473E in extension.
Source: GAIN Capital, TradingView
Iberdrola, a Spanish electric utility company, is considering acquiring energy group PPL Corp's unit in the U.K., which could be valued at 12 billion pounds, reported Bloomberg citing people familiar with the matter.
UniCredit, an Italian bank, was downgraded to "hold" from "buy" at HSBC.
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.