EU indices mostly red | TA focus on Atos


European stocks report | Ryanair | AstraZeneca | UCB | Atos | Edenred...

Downtrend 4

Yesterday, European stocks were little changed. The Stoxx Europe 600 Index, Germany's DAX 30, France's CAC 40 and the U.K.'s FTSE 100 were all broadly flat at close.

88% of STOXX 600 constituents traded lower or unchanged Friday.
48% of the shares trade above their 20D MA vs 66% Thursday (above the 20D moving average).
49% of the shares trade above their 200D MA vs 51% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 2.26pts to 25.58, a new 52w high.

3mths relative high: Chemicals, Utilities
3mths relative low: Media

Europe Best 3 sectors
energy, real estate, banks

Europe worst 3 sectors
technology, telecommunications, health care

The 10yr Bund yield rose 1bp to -0.48% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -20bps (above its 20D MA).

EC 09:00: Jun M3 Money Supply YoY, exp.: 8.9%
EC 09:00: Jun Loans to Households YoY, exp.: 3%
EC 09:00: Jun Loans to Companies YoY, exp.: 7.3%
GE 09:00: Jul Ifo Current Conditions, exp.: 81.3
GE 09:00: Jul Ifo expectations, exp.: 91.4
GE 09:00: Jul Ifo Business Climate, exp.: 86.2
GE 10:45: 12-Mth Bubill auction, exp.: -0.58%
FR 11:00: Jun Jobseekers Total, exp.: 4167.4K
FR 11:00: Jun Unemployment Benefit Claims, exp.: -148.3K
FR 14:00: 12-Mth BTF auction, exp.: -0.56%
FR 14:00: 6-Mth BTF auction, exp.: -0.58%
FR 14:00: 3-Mth BTF auction, exp.: -0.57%

In Asian trading hours, EUR/USD broke above 1.1700 and GBP/USD bounced over 1.2860. USD/JPY finally crossed below the key level of 106.00.

Spot gold kept soaring, touching a high of $1,944 an ounce, and Spot Silver rocketed to $24.38.

Ryanair, an European budget airline, reported that it swung to a 1Q net loss of 185 million euros from a net income of 243 million euros in the prior-year period, with revenue tumbling to 125 million euros from 2.31 billion euros. The Company said it expects a narrower net loss in the second quarter.  

AstraZeneca, a pharmaceutical and medical products maker, announced plans to pay Daiichi Sankyo 6 billion dollars in total consideration for the developement of cancer treatment DS-1062.

Rolls-Royce, an aircraft engine maker, is in early talks on selling its ITP Aero unit to a private equity buyer, reported the Telegraph.

Atos, a digital solution provider, reported that 1H operating margin dropped 15.1% on year to 450 million euros on revenue of 5.63 billion euros, down 2.0% (-2.3% at constant scope and exchange rates). The Company reiterated its 2020 guidance. Separately, the Company said it has agreed to acquire EcoAct, "an internationally recognized carbon reduction strategy consulting firm", for an undisclosed sum.

From a chartist point of view, the share price broke below its previous key support from February at 74.4E. The 20DMA is reversing down above of the stock. Moreover, the RSI is capped by a short term bearish trend line. Below 79.16E, look for the horizontal supports at 73E and 67.5E in extension.

Source: GAIN Capital, TradingView

Edenred, which provides meal vouches and cards, posted 1H net income down 31.4% on year to 100 million euros and EBITDA down 17.8% to 255 million euros on revenue of 696 million euros, down 10.4% (-4.8% like-for-like). The Company added: "The gradual recovery in the second half, combined with the ongoing implementation of the Group's cost savings plan, will have a positive impact on operating leverage. (...) EBITDA target for 2020 of between 540 million euros and 610 million euros."

Michelin: 1H results expected.

LVMH: 1H results expected.

Bankinter, a Spainish bank, was downgraded to "sell" from "hold" at Societe Generale.

UCB, a biopharmaceutical firm, reported that 1H Core EPS rose 15% on year to 2.77 euros and adjusted EBITDA were up 8% to 783 million euros on revenue of 2.61 billion euros, up 12% (+9% at constant exchange rates).

Sika, which makes construction materials, was downgraded to "hold" from "buy" at HSBC.

More from Equities

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 or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account