EU indices mixed | TA focus on Schneider Electric

,

European stocks report | Barclays | Deutsche Bank | Santander | Glaxosmithkline | Sanofi | Schneider Electric...

Stocks (1)

INDICES
Yesterday, European stocks closed mixed. The Stoxx Europe 600 Index rebounded 0.42%, the U.K.'s FTSE 100 gained 0.40%, while France's CAC 40 declined 0.22%, and Germany's DAX 30 ended flat for a second day.

EUROPE ADVANCE/DECLINE
54% of STOXX 600 constituents traded higher yesterday.
47% of the shares trade above their 20D MA vs 46% Monday (below the 20D moving average).
49% of the shares trade above their 200D MA vs 49% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.84pt to 24.4, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Utilities
3mths relative low: Telecom., Energy

Europe Best 3 sectors
real estate, food & beverage, travel & leisure

Europe worst 3 sectors
basic resources, financial services, technology


INTEREST RATE
The 10yr Bund yield fell 4bps to -0.49% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -18bps (above its 20D MA).


ECONOMIC DATA
GE 07:00: Jun Import Prices MoM, exp.: 0.3%
GE 07:00: Jun Import Prices YoY, exp.: -7%
FR 07:45: Jul Consumer Confidence, exp.: 97
EC 09:00: ECB Non-Monetary Policy Meeting
UK 09:30: Jun Mortgage Lending, exp.: £1.22B
UK 09:30: Jun Net Lending to Individuals MoM, exp.: £-3.4B
UK 09:30: Jun BoE Consumer Credit, exp.: £-4.597B
UK 09:30: Jun Mortgage Approvals, exp.: 9.3K


MORNING TRADING
In Asian trading hours, spot gold traded at $1,953 an ounce lacking momentum for pushing higher. EUR/USD traded higher at 1.1730, while GBP/USD edged lower to 1.2922. USD/JPY kept struggling to keep the 105.00 level. AUD/USD remained elevated at 0.7166.


#UK - IRELAND#
Barclays, a British banking group, issued 1H results: "Despite the impacts of the COVID-19 pandemic, Barclays delivered a H120 Group profit before tax of 1.3 billion pounds (H119: 3.0 billion pounds), resulting in a return on tangible equity (RoTE) of 2.9% (H119: 9.1%) and earnings per share (EPS) of 4.0 pence (H119: 12.1 pence). Pre-provision profits (profit before tax excluding credit impairment charges) increased 27% to 5.0 billion pounds, while credit impairment charges increased to 3.7 billion pounds (H119: 0.9 billion pounds)."

Glaxosmithkline, a global healthcare company, announced that it and Sanofi have reached an agreement with the U.K. government for the supply of up to 60 million doses of a COVID-19 vaccine. The Company added: "The vaccine candidate, developed by Sanofi in partnership with GSK, is based on the recombinant protein-based technology used by Sanofi to produce an influenza vaccine, and GSK's established pandemic adjuvant technology.

Smith & Nephew, an advanced medical devices firm, reported 1H results: "Our first half revenue was 2,035 million dollars (H1 2019: 2,485 million dollars), down 18.1% on a reported growth basis (...) Trading profit was 172 million dollars in the first half (H1 2019: 532 million dollars). The trading profit margin, at 8.5% (H1 2019: 21.4%), was down significantly year-on year as previously guided. (...) Adjusted earnings per share was 13.4 cents (H1 2019: 45.8 cents per share). (...) The interim dividend is 14.4 cents per share, in line with 2019."


#GERMANY#
Deutsche Bank, a German bank, posted a 2Q profit of 61 million euros, compared to a loss of 3.15 billion euros in the prior-year period. The Bank said it set aside 761 million euros in provisions to cover credit losses. The Bank's CEO said: "In a challenging environment we grew revenues and continued to reduce costs, and we're fully on track to meet all our targets." 

BASF, a chemical company, said it swung to a 2Q net loss of 878 million euros from a profit of 5.95 billion in the prior-year period which was then boosted by the spin-off of its Wintershall oil-and-gas unit. 2Q sales declined to 12.68 billion euros from 14.48 billion euros last year.

Deutsche Boerse: 2Q results expected


#FRANCE#
Sanofi, a pharmaceutical firm, reported that 2Q Business EPS increased 3.2% to 1.28 euro and Business net income was up 3.6% to 1.60 billion euros on net sales of 8.21 billion euros, down 4.9% (-3.4% at constant exchange rates). On the outlook it said: "Sanofi now expects 2020 business EPS to grow between 6% and 7% at CER."

Schneider Electric, which makes electrical power products, announced that 1H net income declined 22% on year to 775 million euros and Adjusted EBITA were down 19.6% to 1.58 billion euros on revenue of 11.58 billion euros, down 12.3% (-10.5% organic decline). The Co said: "The Group sets targets for 2020 as follows: Revenue expected to be between -7% to -10% organic (...) Adjusted EBITA margin between 14.5% to 15.0% (including scope and FX based on current estimation)."

From a chartist point of view, the stock price is supported by a rising trend line drawn since March. The share is trading above of its rising 20 and 50 DMAs. Above 93.64E look for the previous all-time high at 105.5E and 115E in extension.


Source: GAIN Capital, TradingView

Teleperformance, 1H results expected


#SPAIN#
Santander, a Spanish bank, posted a first-half net loss of 10.8 billion euros, compared to a net income of 3.2 billion euros in the prior-year period, citing impairments caused by the coronavirus pandemic. 


#BENELUX#
Vopak, a Dutch tank-storage firm, reported that 2Q net income rose to 116 million euros from 106 million euros in the prior-year period on revenue of 292 million euros, down 7.7% on year.


#ITALY#
Salvatore Ferragamo, a clothing and accessories company, reported that 1H revenue plunged 46.9% on year (at constant exchange rates) to 377 million euros.

Snam: 2Q results expected.

Enel: 1H results expected.


#SWITZERLAND#
Roche, a Swiss drug maker, reported that a Phase 3 study on Actemra/RoActemra (tocilizumab) did not meet its primary endpoint of improved clinical status in hospitalized adult patients with severe Covid-19 associated pneumonia.

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