INDICES
Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index climbed 0.7%, Germany’s DAX 30 rose 0.7%, France’s CAC 40 jumped 1.0%, and the U.K.’s FTSE 100 was up 0.4%.

EUROPE ADVANCE/DECLINE
69% of STOXX 600 constituents traded higher yesterday.
34% of the shares trade above their 20D MA vs 29% Wednesday (below the 20D moving average).
41% of the shares trade above their 200D MA vs 39% Wednesday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.12pts to 34.68, a new 52w high.

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SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none

Europe Best 3 sectors
financial services, automobiles & parts, banks

Europe worst 3 sectors
travel & leisure, real estate, media

INTEREST RATE
The 10yr Bund yield fell 3bps to -0.44% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -22bps (above its 20D MA).

ECONOMIC DATA
FR 07:45: Jun Consumer Confidence, exp.: 93
EC 09:00: May Loans to Households YoY, exp.: 3%
EC 09:00: May M3 Money Supply YoY, exp.: 8.3%
EC 09:00: May Loans to Companies YoY, exp.: 6.6%
UK 09:00: May Car Production YoY, exp.: -99.7%

MORNING TRADING
In Asian trading hours, EUR/USD was flat at 1.1220 while GBP/USD slipped to 1.2418. USD/JPY held gains at 107.19. This morning, official data showed that Japan’s Tokyo CPI grew 0.3% on year in June (as expected).

Spot gold edged down to $1,761 an ounce.

#UK – IRELAND#
Aston Martin, a luxury sports cars manufacturer, released a trading statement: “Dealer stock had reduced by 617 units year-to-date to end May. (…) As expected, due to COVID-19 disruption, retail sales (dealer sales to customers) and wholesales are expected to be lower in Q2 than in Q1. (…) More than 90% of dealer network now open. (…) For the full year total wholesales are currently expected to be broadly evenly balanced between sports cars and DBX.”

Weir Group, an engineering company, published a trading update: “Refinancing of US$950m RCF and £200m Term Loan, extending maturities to 2023 and 2022 respectively. (…) Minerals orders stable sequentially in Q2 to date despite Covid-19 restrictions. (…) Oil & Gas still expected to be cash generative for the full year; continuing to explore exit options.”

Bunzl, a distribution and outsourcing company, was upgraded to “overweight” from “neutral” at JPMorgan.

Rentokil Initial, a business services group, was upgraded to “overweight” from “neutral” at JPMorgan.

#GERMANY#
Deutsche Lufthansa, an airline group, reported that its shareholders voted in favor of accepting the 9 billion euros bailout plan from the German government, who will establish a 20% stake in the company.

#FRANCE#
Air France-KLM’s, an airline company, 3.4 billion euros aid package was approved by the French and Dutch governments, reported Reuters citing people familiar with the matter.

#SPAIN – PORTUGAL#
Iberdrola, a Spanish energy group, was downgraded to “hold” from “buy” at HSBC.

EDP, a Portuguese electric utilities company, was downgraded to “hold” from “buy” at HSBC.

#ITALY#
Enel, an energy company, was downgraded to “hold” from “buy” at HSBC.

#SWITZERLAND#
Novartis, a pharmaceutical group, announced that it has agreed to pay the U.S. regulators 347 million dollars to settle all Foreign Corrupt Practices Act investigations into its bribery law violation.

#SCANDINAVIA#
Hennes & Mauritz, a swedish clothing-retail company, posted second quarter earnings in line with estimates. The company expects 2020 net decrease of stores. From a chartist point of view, the share consolidates above the support at 131.7 swedish krona and remains on the upside since March. It is supported by its rising 50-period moving average (in blue). Above 131.7, the share aims 168.6 and 179.8 krona.

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DISCLAIMER: 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 of sale of any currency. 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. 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.

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