Yesterday, European stocks looked tired, with the Stoxx Europe 600 Index slipping 0.4%. Germany's DAX 30 fell 0.7%, France's CAC 40 dropped 1.3%, while the U.K.'s FTSE 100 was little changed.
63% of STOXX 600 constituents traded lower or unchanged yesterday.
70% of the shares trade above their 20D MA vs 76% Friday (above the 20D moving average).
25% of the shares trade above their 200D MA vs 25% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 0.24pt to 29.91, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none
Europe Best 3 sectors
health care, food & beverage, retail
Europe worst 3 sectors
basic resources, travel & leisure, banks
The 10yr Bund yield rose 1bp to -0.54% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -24bps (below its 20D MA).
In Asian trading hours, AUD/USD touched a low of 0.6429 after reports that China's government imposed a partial ban on meat imported from Australia. EUR/USD sank to 1.0782 before rebounding. GBP/USD marked a low of 1.2285. USD/JPY retreated to 107.40.
Spot gold challenged $1,700 an ounce on the upside.
#UK - IRELAND#
Land Securities Group, which buys, sells and manages commercial properties, reported full-year results: "This year, Landsec recorded a loss before tax of 837 million pounds (2019: 123 million pounds) as underlying earnings were more than offset by a fall in the value of our assets, down 8.8% (or 1,179 million pounds). The majority of the valuation deficit is attributable to our Retail segment, which suffered a 20.5% decline over the 12 months as a result of the challenging environment and ongoing structural changes, exacerbated at the year end by the early effects of Covid-19. (...) adjusted diluted earnings per share of 55.9 pence (2019: 59.7 pence), (...) Our EPRA net tangible assets per share were down 11.6% at 1,192 pence, (...) the Board is also not proposing the payment of a final dividend."
Morrison (Wm.) Supermarkets, a supermarket chain, provided a 1Q update: "For Q1 (the 14-week period from 3 February to 10 May), Group LFL (like-for-like) excluding fuel was up 5.7%, comprising contributions from retail of 5.1% and wholesale of 0.6%. Inflation during the period was broadly flat. Group LFL including fuel was down 3.9%, with fuel LFL down 39.3%, and down c.70% since lockdown, as customers are currently taking significantly fewer car journeys. Total sales were up 5.7% excluding fuel, and down 4.0% including fuel."
Standard Life Aberdeen, a global investment firm, said: "Estimated AUMA (Assets under management and administration) at 30 April 2020 was 490 billion pounds, with estimated net outflows in the first four months of the year of some 24 billion pounds, However, excluding around 25 billion pounds that relates to withdrawals by the Lloyds Banking Group, we saw estimated net inflows of some £1bn - an encouraging signal."
Deutsche Post, an international postal services provider, announced that 1Q net income shrank to 301 million euros from 746 million euros in the prior-year period on revenue of 15.49 billion euros, up 0.9% on year. The Company added: "Consolidated EBIT was 592 million euros, appreciably under the previous year's level of 1,159 million euros, (...) The negative effects of COVID-19 on Group EBIT in the reporting period totalled 210 million euros (...) StreetScooter had a negative impact on earnings."
E.ON, an energy firm, said it swung to a 1Q net loss of 327 million euros from a net income of 387 million euros in the prior-year period. The Company added: "In consideration of the COVID-19 pandemic's implications that are foreseeable today, E.ON expects the E.ON Group's 2020 adjusted EBIT to be between 3.9 billion and 4.1 billion euros and its 2020 adjusted net income to be between 1.7 billion and 1.9 billion euros."
Allianz, a financial service company, announced that 1Q net income fell 28.9% on year to 1.40 billion euros Operating profit was down 22.2% to 2.30 billion euros on revenue of 42.60 billion euros, up 5.7%. The Solvency II capitalization ratio was at 190% at the end of the first quarter of 2020, compared to 212% at year-end 2019.
Thyssenkrupp, a German industrial conglomerate, reported that 2Q net loss widened to 948 million euros from 173 million euros in the prior-year period. 2Q adjusted EBIT swung to a loss of 80 million euros from a profit of 240 million euros a year earlier. The Company warned that 3Q adjusted EBIT loss could amount to 1 billion euros.
Alstom, a rail transport equipment maker, reported that full-year net income dropped to 467 million euros from 681 million euros a year earlier on sales of 8.20 billion euros, up 1.6% on year. The Company pointed out that a reduction in train traffic caused by the coronavirus pandemic had an impact of 100 million euros on sales. It proposed no dividend distribution.
Iliad, a French telecoms firm, said 1Q revenue rose 6.9% on year to 1.38 billion euros, citing a jump in revenue of its Italian business to 150 million euros from 81 million euros a year earlier.
ENGIE, an energy firm, announced that 1Q current operating income declined 6.6% on year to 1.9 billion euros. EBITDA were down 1.8% to 3.1 billion euros on revenue of 16.5 billion euros, down 3.7%.
Source: GAIN Capital, TradingView
Swiss Life, a life insurance company, reported that 1Q fee income increased 11% on year to 453 million Swiss francs. The Company said: "Premiums came to 7.82 billion Swiss francs. The decline of 20% in local currency and the associated normalisation of premiums are (...) due to extraordinarily high single premiums in the prior year following the withdrawal of a competitor from the full insurance business in Switzerland. (...) confirms the financial targets of the "Swiss Life 2021" Group-wide programme, even in the current Covid-19 pandemic environment."
Dufry, a duty-free shops operator, said 1Q fell 24% on year to 1.44 billion Swiss francs. Sales in April plummeted 94%.
DSM: E1.63, KBC: E2.5, Telenor: NOK4.4, Thales: E2.05, Veolia Environnement: E0.5