28 09 EU PRE OPEN

INDICES
Friday, European stocks closed mixed. The Stoxx Europe 600 Index edged down 0.10%, Germany's DAX 30 dropped 1.08%, France's CAC 40 slipped 0.69%, while the U.K.'s FTSE 100 added 0.34%.


EUROPE ADVANCE/DECLINE
52% of STOXX 600 constituents traded lower or unchanged Friday.
31% of the shares trade above their 20D MA vs 29% Thursday (below the 20D moving average).
50% of the shares trade above their 200D MA vs 50% Thursday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.54pt to 27.81, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Pers. & House. Goods
3mths relative low: Telecom., Insurance, Banks, Energy

Europe Best 3 sectors
travel & leisure, media, utilities

Europe worst 3 sectors
automobiles & parts, energy, banks


INTEREST RATE
The 10yr Bund yield was unchanged to -0.5% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -18bps (above its 20D MA).


ECONOMIC DATA
GE 10:45: 12-Mth Bubill auction, exp.: -0.57%
FR 14:00: 12-Mth BTF auction, exp.: -0.58%
FR 14:00: 3-Mth BTF auction, exp.: -0.57%
FR 14:00: 6-Mth BTF auction, exp.: -0.58%


MORNING TRADING
In Asian trading hours, EUR/USD edged up to 1.1635 and GBP/USD rebounded to 1.2769. USD/JPY retreated to 105.38.

Spot gold remained subdued at $1,860 an ounce.


#UK - IRELAND#
William Hill, a bookmaker, and American resorts operator Caesars Entertainment confirmed that they are in advanced discussions concerning a possible 272p per share cash offer for William Hill, adding that "Caesars has finalised its due diligence and a further announcement will be made as and when appropriate".

GlaxoSmithKline, a pharmaceutical company, reported that the U.S. Food and Drug Administration has approved its Nucala "as the first and only biologic treatment for Hypereosinophilic Syndrome".

Aviva, an insurance group, was upgraded to "buy" from "hold" at Deutsche Bank.


#GERMANY#
Commerzbank, a banking group, announced the appointment of Manfred Knof, currently Head of Deutsche Bank's Private Bank Germany, as successor to Chairman Martin Zielke from January 1, 2021.

Daimler, an automobile group, may pick Joe Kaeser, currently a board member, to succeed chairman Manfred Bischoff next year, according to Bloomberg.


#FRANCE#
Air France-KLM's, an airline group, French arm Air France said it will operate 50% of its flight schedule planned for November and December 2020, due to the current applicable travel restrictions.

Veolia, a resource management company, confirmed that it will submit its improved offer for Engie's stake in Suez by September 30.


#BENELUX#
ArcelorMittal, a steel producer, announced that it has agreed to sell its ArcelorMittal USA to Cleveland-Cliffs for an aggregate equity value consideration of 1.4 billion dollars, with upfront cash of 505 million dollars and the remainder in the form of equity.
From a weekly point of view, the share is capped by a declining trend line drawn since May 2018. Moreover, the 52 exponential moving average plays a resistance role, while the RSI has struck against the resistance level at 56.6%. Below the overlap area at 11.7E look for the horizontal support of May at 7.9E and 6E in extension.

Source: TradingView, GAIN Capital

Galapagos and Gilead Sciences, the two pharmaceutical groups, announced that the European Commission has granted marketing authorization for Jyseleca (filgotinib) for the treatment of adults with moderate to severe active rheumathoid arthritis.


#SWITZERLAND#
Sonova, a hearing technology company, raised its 1H revenue guidance to 79% of prior year levels from 65% - 75% previously and sees an adjusted EBITA decline of 30%, both at constant exchange rates. For the full-year, the company expects revenue to reach 92% - 94% of prior year levels and an adjusted EBITA at around prior year level, both at constant exchange rates.


#DENMARK#
Chr Hansen, a bioscience company, announced that it has agreed to sell its Natural Colors Division to investment firm EQT for 800 million euros.

INDICES
Friday, European stocks closed mixed. The Stoxx Europe 600 Index edged down 0.10%, Germany's DAX 30 dropped 1.08%, France's CAC 40 slipped 0.69%, while the U.K.'s FTSE 100 added 0.34%.


EUROPE ADVANCE/DECLINE
52% of STOXX 600 constituents traded lower or unchanged Friday.
31% of the shares trade above their 20D MA vs 29% Thursday (below the 20D moving average).
50% of the shares trade above their 200D MA vs 50% Thursday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.54pt to 27.81, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Pers. & House. Goods
3mths relative low: Telecom., Insurance, Banks, Energy

Europe Best 3 sectors
travel & leisure, media, utilities

Europe worst 3 sectors
automobiles & parts, energy, banks


INTEREST RATE
The 10yr Bund yield was unchanged to -0.5% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -18bps (above its 20D MA).


ECONOMIC DATA
GE 10:45: 12-Mth Bubill auction, exp.: -0.57%
FR 14:00: 12-Mth BTF auction, exp.: -0.58%
FR 14:00: 3-Mth BTF auction, exp.: -0.57%
FR 14:00: 6-Mth BTF auction, exp.: -0.58%


MORNING TRADING
In Asian trading hours, EUR/USD edged up to 1.1635 and GBP/USD rebounded to 1.2769. USD/JPY retreated to 105.38.

Spot gold remained subdued at $1,860 an ounce.


#UK - IRELAND#
William Hill, a bookmaker, and American resorts operator Caesars Entertainment confirmed that they are in advanced discussions concerning a possible 272p per share cash offer for William Hill, adding that "Caesars has finalised its due diligence and a further announcement will be made as and when appropriate".

GlaxoSmithKline, a pharmaceutical company, reported that the U.S. Food and Drug Administration has approved its Nucala "as the first and only biologic treatment for Hypereosinophilic Syndrome".

Aviva, an insurance group, was upgraded to "buy" from "hold" at Deutsche Bank.


#GERMANY#
Commerzbank, a banking group, announced the appointment of Manfred Knof, currently Head of Deutsche Bank's Private Bank Germany, as successor to Chairman Martin Zielke from January 1, 2021.

Daimler, an automobile group, may pick Joe Kaeser, currently a board member, to succeed chairman Manfred Bischoff next year, according to Bloomberg.


#FRANCE#
Air France-KLM's, an airline group, French arm Air France said it will operate 50% of its flight schedule planned for November and December 2020, due to the current applicable travel restrictions.

Veolia, a resource management company, confirmed that it will submit its improved offer for Engie's stake in Suez by September 30.


#BENELUX#
ArcelorMittal, a steel producer, announced that it has agreed to sell its ArcelorMittal USA to Cleveland-Cliffs for an aggregate equity value consideration of 1.4 billion dollars, with upfront cash of 505 million dollars and the remainder in the form of equity.
From a weekly point of view, the share is capped by a declining trend line drawn since May 2018. Moreover, the 52 exponential moving average plays a resistance role, while the RSI has struck against the resistance level at 56.6%. Below the overlap area at 11.7E look for the horizontal support of May at 7.9E and 6E in extension.

Source: TradingView, GAIN Capital

Galapagos and Gilead Sciences, the two pharmaceutical groups, announced that the European Commission has granted marketing authorization for Jyseleca (filgotinib) for the treatment of adults with moderate to severe active rheumathoid arthritis.


#SWITZERLAND#
Sonova, a hearing technology company, raised its 1H revenue guidance to 79% of prior year levels from 65% - 75% previously and sees an adjusted EBITA decline of 30%, both at constant exchange rates. For the full-year, the company expects revenue to reach 92% - 94% of prior year levels and an adjusted EBITA at around prior year level, both at constant exchange rates.


#DENMARK#
Chr Hansen, a bioscience company, announced that it has agreed to sell its Natural Colors Division to investment firm EQT for 800 million euros.