EU indices still rise this morning | TA focus on HSBC
Philippe Delabarre May 26, 2020 8:07 AM
European stocks report | Aston Martin | HSBC | Sanofi...
Yesterday, European stocks were broadly higher, with the Stoxx Europe 600 Index rising 1.5%. Germany's DAX 30 surged 2.9%, and France's CAC 40 gained 2.2%. The U.K. market was closed for a bank holiday.
67% of STOXX 600 constituents traded higher yesterday.
78% of the shares trade above their 20D MA vs 63% Friday (below the 20D moving average).
31% of the shares trade above their 200D MA vs 26% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 2.26pts to 29.16, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Technology
3mths relative low: Insurance, Banks
Europe Best 3 sectors
construction & materials, technology, industrial goods & services
Europe worst 3 sectors
basic resources, retail, media
The 10yr Bund yield rose 1bp to -0.49% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -18bps (above its 20D MA).
GE 07:00: Jun GfK Consumer Confidence, exp.: -23.4
FR 07:45: May Business Confidence, exp.: 82
FR 07:45: May Business Climate Indicator, exp.: 62
GE 10:40: 2-Year Schatz auction, exp.: -0.68%
UK 11:00: May CBI Distributive Trades, exp.: -55
In Asian trading hours, EUR/USD fell to 1.0894 while GBP/USD rebounded to 1.2180. USD/JPY edged up to 107.68.
Spot gold rebounded to $1,732 an ounce.
#UK - IRELAND#
Aston Martin, a luxury sports cars manufacturer, announced that Tobias Moers, currently Chairman and CEO of Mercedes-AMG, will succeed Andy Palmer as CEO.
HSBC, a global banking group, is considering a restructuring plan, including possible sale of its U.S. business and retail network in France, reported the Financial times citing people familiar with the matter. From a chartist point of view, a rebound is expected close to the lower end of a broadening formation in place since 2009.
Source: GAIN Capital, TradingView
Mondi, a packaging and paper group, announced the appointment of Mike Powell, currently CFO of Ferguson, as new CFO.
Softcat, a provider of IT infrastructure products and services, posted a 3Q trading update: "The Company has traded satisfactorily during the period and delivered growth in revenue, gross profit and operating profit. Cash receipts from customers have remained broadly in line with normal trends."
Kainos Group, an IT services provider, released full-year results: "Kainos achieved revenue of £178.8 million (2019: £151.3 million), representing an increase of 18%. (...) Adjusted pre-tax profit increased by 9% to £25.5 million (2019: £23.3 million). Statutory profit before tax increased by 10% to £23.2 million (2019: £21.1 million)."
Sanofi, a pharmaceutical group, announced plans to sell its equity investment in U.S. biotechnology company Regeneron Pharmaceuticals through a registered public offering and related share repurchase by Regeneron. The sale would be valued at about 13 billion dollars, according to Bloomberg.
Klepierre, a shopping mall operator, reported that it has reopened 80% of its European malls and expects to hit 90% within the next 10 days.
Iberdrola, a Spanish electric utility company, was upgraded to "buy" from "neutral" at Goldman Sachs.
Telefonica, a telecommunications company, was downgraded to "equalweight" from "overweight" at Barclays.
UniCredit, an Italian bank, was downgraded to "neutral" from "overweight" at JPMorgan.
#FINLAND#Kone, a Finnish engineering and service company, was upgraded to "overweight" from "neutral" at JPMorgan.
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.