Friday, European stocks were lower except for the FTSE 100 (+0.2%). The Stoxx Europe 600 Index fell 0.4%. Germany’s DAX 30 dropped 0.7%, France’s CAC 40 slipped 0.2%.

53% of STOXX 600 constituents traded lower or unchanged Friday.
34% of the shares trade above their 20D MA vs 34% Thursday (below the 20D moving average).
41% of the shares trade above their 200D MA vs 41% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.49pt to 35.17, a new 52w high.

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3mths relative high: Technology
3mths relative low: none

Europe Best 3 sectors
technology, real estate, personal & household goods

Europe worst 3 sectors
banks, telecommunications, insurance

The 10yr Bund yield fell 3bps to -0.47% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -22bps (above its 20D MA).

UK 09:30: May Net Lending to Individuals MoM, exp.: £-6.9B
UK 09:30: May Mortgage Approvals, exp.: 15.8K
UK 09:30: May Mortgage Lending, exp.: £0.3B
UK 09:30: May BoE Consumer Credit, exp.: £-7.4B
EC 10:00: Jun Consumer Confidence final, exp.: -18.8
EC 10:00: Jun Services Sentiment, exp.: -43.6
EC 10:00: Jun Industrial Sentiment, exp.: -27.5
EC 10:00: Jun Economic Sentiment, exp.: 67.5
EC 10:00: Jun Business Confidence, exp.: -2.43
EC 10:00: Jun Consumer Inflation expectations, exp.: 28.6
GE 10:45: 12-Mth Bubill auction, exp.: -0.57%
GE 13:00: Jun Harmonised Inflation Rate YoY Prel, exp.: 0.5%
GE 13:00: Jun Harmonised Inflation Rate MoM Prel, exp.: 0%
GE 13:00: Jun Inflation Rate MoM Prel, exp.: -0.1%
GE 13:00: Jun Inflation Rate YoY Prel, exp.: 0.6%
FR 14:00: 6-Mth BTF auction, exp.: -0.53%
FR 14:00: 3-Mth BTF auction, exp.: -0.55%
FR 14:00: 12-Mth BTF auction, exp.: -0.53%

In Asian trading hours, EUR/USD climbed to 1.1240 and GBP/USD rebounded to 1.2367. USD/JPY was little changed at 107.22. This morning, official data showed that Japan’s retail sales rose 2.1% on month in May (+3.0% expected).

Spot gold slipped to $1,769 an ounce.

Diageo, a beverage alcohol company, said it “will pause all paid advertising globally on major social media platforms” and “will continue to discuss with media partners how they will deal with unacceptable content”. From a chartist point of view, the share has been supported by a rising trend line drawn since 2009. Furthermore, prices bounced off this latter in last March meanwhile the RSI indicator was rebounding from its oversold area. Above 2330p, look for 3292 and 3640.

Genus, an animal genetics company, announced that Iain Ferguson, currently chairman of Crest Nicholson, will succeed Bob Lawson as Chairman in November.

Compass Group, a contract foodservice company, was upgraded to “buy” from “hold” at HSBC.

Hugo Boss, a luxury fashion house, was downgraded to “underperform” from “neutral” at Bank of America Merrill Lynch

Capgemini, an IT services provider, was downgraded to “hold” from “buy” at HSBC.

Generali, an insurance group, has approached asset management company Brightsphere Investment Group regarding a possible acquisition, reported Reuters citing people familiar with the matter.

RWE: E0.8, Total: E0.68

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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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