HomeContributorsFundamental AnalysisEU Indices Still Mixed | TA Focus On Engie

EU Indices Still Mixed | TA Focus On Engie

INDICES
Yesterday, European stocks were mixed. The Stoxx Europe 50 fell 0.1%, Germany’s DAX dropped 0.5% and France’s CAC 40 was little changed, while the U.K.’s FTSE 100 surged 1.2%.

EUROPE ADVANCE/DECLINE
56% of STOXX 600 constituents traded lower or unchanged yesterday.
66% of the shares trade above their 20D MA vs 71% Tuesday (below the 20D moving average).
84% of the shares trade above their 200D MA vs 85% Tuesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.39pt to 21.69, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Financial Services, Banks, Basic Resource
3mths relative low: Food & Beverage

Europe Best 3 sectors
basic resources, banks, energy

Europe worst 3 sectors
chemicals, retail, travel & leisure

INTEREST RATE
The 10yr Bund yield rose 4bps to -0.53% (above its 20D MA). The 2yr-10yr yield spread fell 1bp to -20bps (below its 20D MA).

ECONOMIC DATA
EC 09:00: ECB General Council Meeting
FR 09:50: Nov Markit Services PMI final, exp.: 46.5
FR 09:50: Nov Markit Composite PMI final, exp.: 47.5
GE 09:55: Nov Markit Services PMI final, exp.: 49.5
GE 09:55: Nov Markit Composite PMI final, exp.: 55
EC 10:00: Nov Markit Composite PMI final, exp.: 50
EC 10:00: Nov Markit Services PMI final, exp.: 46.9
UK 10:30: Nov Markit/CIPS UK Services PMI final, exp.: 51.4
UK 10:30: Nov Markit/CIPS Composite PMI final, exp.: 52.1
EC 11:00: Oct Retail Sales MoM, exp.: -2%
EC 11:00: Oct Retail Sales YoY, exp.: 2.2%
FR 11:00: 3-Year BTAN auction, exp.: -0.71%
FR 11:00: 5-Year BTAN auction, exp.: -0.62%
FR 11:00: 10-Year OAT auction, exp.: -0.38%
FR 11:00: Oct Retail Sales MoM, exp.: -4.5%
FR 11:00: Oct Retail Sales YoY, exp.: 2.7%

MORNING TRADING
In Asian trading hours, EUR/USD was firm at 1.2118 and GBP/USD edged up to 1.3376. USD/JPY was little changed at 104.46. AUD/USD eased to 0.7411. Earlier today, official data showed that Australia’s trade surplus totaled 7.46 billion Australian dollars in October (5.80 billion Australian dollars expected).

Spot gold slipped to $1,829 an ounce.

#UK – IRELAND#
Sainsbury, a chain of supermarkets, said it has chosen to forgo the business rates relief on Sainsbury’s stores granted by the UK Government and the Devolved Administrations since March. The company stated: “Including business rates payments within underlying profit before tax1 (UPBT), we now expect UPBT of at least ÂŁ270 million for the financial year to March 2021. This includes the assumption that we will now forgo approximately ÂŁ410 million of business rates relief.”

Phoenix Group, an insurance services provider, posted a trading update: “ÂŁ1,713 million of cash generation1 in 2020 (2019: ÂŁ707 million) exceeding the upper end of the 2020 cash generation target range of ÂŁ1.5 billion – ÂŁ1.6 billion. (…) Solvency II surplus increased by ÂŁ0.6 billion to ÂŁ5.0 billion2 as at 30 September 2020 from ÂŁ4.4 billion3 at 30 June 2020 on a pro-forma basis.”

#GERMANY#
Henkel, a chemical and consumer goods company, was upgraded to “overweight” from “neutral” at JPMorgan.

#FRANCE#
Engie, an electric utility company, is planning to sell some of its services businesses for about 5 billion euros, reported Bloomberg citing people familiar with the matter.

From a technical point of view, the stock has broken the former horizontal key resistance around 12.2E, which contained the share price since June 2020. Furthermore, on the RSI, a break of the key level at 65% could confirm the continuation of the bullish mood. Above 11.55E, look towards 13.15E and 14.3E in extension.

Vivendi’s, a media conglomerate, “BBB” credit rating outlook was revised to “Negative” from “Stable” by S&P Global Ratings. The rating agency said: “French media group Vivendi S.A. is contemplating the disposal of nearly half of Universal Music Group (UMG)-its largest earnings contributor and fastest-growing business–over the next 18 months. We see a risk that the group’s business profile could weaken, if the proceeds are not reinvested in assets that are of equivalent quality and have similar growth prospects.”

Danone, a food company, was downgraded to “neutral” from “overweight” at JPMorgan.

#SWITZERLAND#
SGS, a testing and certification services provider, was upgraded to “overweight” from “equalweight” at Morgan Stanley.

EX-DIVIDEND
3I Group:17.5p, Credit Suisse: SF0.0694, Telia: SEK0.65

 

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