EU indices down this morning | TA focus on Glencore


European stocks report | IAG | Continental | Total | BBVA...

Trading floor 1

Yesterday, European stocks ended mixed. The Stoxx Europe 600 eased 0.12%, while Germany's DAX 30 gained 0.32%, and France's CAC 40 and the U.K.'s FTSE 100 were little changed.

56% of STOXX 600 constituents traded lower or unchanged yesterday.
7% of the shares trade above their 20D MA vs 7% Wednesday (below the 20D moving average).
43% of the shares trade above their 200D MA vs 43% Wednesday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.71pt to 37.55, a new 52w high.

3mths relative high: Travel & Leisure
3mths relative low: Insurance

Europe Best 3 sectors
energy, utilities, insurance

Europe worst 3 sectors
automobiles & parts, retail, personal & household goods

The 10yr Bund yield fell 1bp to -0.63% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -17bps (above its 20D MA).

FR 07:30: Q3 GDP Growth Rate QoQ Prel, exp.: -13.8%
GE 08:00: Sep Retail Sales YoY, exp.: 3.7%
GE 08:00: Sep Retail Sales MoM, exp.: 3.1%
GE 08:00: Q3 GDP Growth Rate QoQ Flash, exp.: -9.7%
GE 08:00: Q3 GDP Growth Rate YoY Flash, exp.: -11.3%
FR 08:45: Oct Harmonised Inflation Rate MoM Prel, exp.: -0.6%
FR 08:45: Oct Harmonised Inflation Rate YoY Prel, exp.: 0%
FR 08:45: Oct Inflation Rate YoY Prel, exp.: 0%
FR 08:45: Oct Inflation Rate MoM Prel, exp.: -0.5%
FR 08:45: Sep Household Consumption MoM, exp.: 2.3%
EC 10:00: ECB Mersch speech
EC 11:00: Q3 GDP Growth Rate YoY Flash, exp.: -14.7%
EC 11:00: Q3 GDP Growth Rate QoQ Flash, exp.: -11.8%
EC 11:00: Sep Unemployment Rate, exp.: 8.1%
EC 11:00: Oct Core Inflation Rate YoY Flash, exp.: 0.2%
EC 11:00: Oct Inflation Rate YoY Flash, exp.: -0.3%
EC 11:00: Oct Inflation Rate MoM Flash, exp.: 0.1%
EC 13:00: ECB Guindos speech
GE 15:30: Bundesbank Weidmann speech

In Asian trading hours, EUR/USD rebounded to 1.1692 and GBP/USD edged up to 1.2935. USD/JPY fell to 104.43. This morning, official data showed that Japan's jobless rate was unchanged at 3.0% in September (3.1% expected), while industrial production rose 4.0% on month (+3.0% expected).

Spot gold bounced to $1,877 an ounce.

IAG, an airline group, reported that 3Q adjusted loss after tax totaled 1.21 billion euros, compared with an adjusted profit after tax of 1.01 billion euros in the prior-year quarter, and adjusted operating loss amounted to 1.30 billion euros, compared with an adjusted operating profit of 1.43 billion euros in the prior-year period.

Glencore, a commodity trading and mining company, posted 3Q production report: "Own sourced copper production of 934,700 tonnes was 81,100 tonnes (8%) lower than the comparable prior period, (...) Own source zinc production of 860,100 tonnes was 50,900 tonnes (6%) higher than the comparable prior period, (...) Own sourced nickel production of 81,800 tonnes was 7,600 tonnes (9%) lower than the comparable prior period."
From a technical point of view, the stock is under pressure after breaking the horizontal support area at 165p. Moreover, the Relative Strength Index is capped by a short term declining trend line. Below the key level at 165p, a continuation of the down move is likely towards 149p and the bottom of May at 130.3p. Alternatively, a break above 165p would call for a reversal up trend with 177.5p as first target.

Source: TradingView, GAIN Capital

Continental, an automotive parts manufacturer, said CEO Elmar Degenhart has informed the board about his intention to resign from his position effective November 30, for reasons of immediately essential preventive health care.

Total, a giant oil producer, announced 3Q adjusted net income declined 72% on year to 848 million dollars and adjusted net operating income from business segments dropped 60% to 1.46 billion dollars.

Ubisoft, a video game company, posted 1H adjusted operating income jumped to 114 million euros from 7 million euros in the prior-year period. Revenue was up 8.5% on year to 757 million euros and net booking increased 14.2% to 755 million euros. The company has lowered its full-year net booking forecast to 2.20 - 2.35 billion euros from 2.35 - 2.65 billion euros previously and adjusted operating income guidance was narrowed to 420 - 520 million euros from 400 - 600 million euros.

BBVA, a major Spanish bank, reported that 3Q net income slid 6.9% on year to 1.14 billion euros, but up from 636 million euros in 2Q, as impairment charge reduced to 928 million from 1.57 billion euros. Net interest income dropped 10.2% on year to 4.11 billion euros.

Swiss Re, an insurance group, posted a 9-month net loss of 691 million dollars, compared with a net income of 1.34 billion dollars in the prior-year period, citing a 3.00 billion dollars of COVID-19 claims and reserves. Meanwhile, net premiums earned and fee income grew 1.1% on year to 30.16 billion dollars.

Novo Nordisk, a Danish multinational pharmaceutical company, reported that 3Q net profit grew 1.0% on year to 10.30 billion Danish krone while operating profit slipped 0.1% to 12.81 billion Danish krone on net sales of 30.93 billion Danish krone, up 2.1%.

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