INDICES
Yesterday, European stocks were broadly lower. The Stoxx Europe 600 Index dropped 0.77%. Germany’s DAX 30 was little changed, France’s CAC 40 sank 1.21%, and the U.K.’s FTSE 100 was down 1.73%.

EUROPE ADVANCE/DECLINE
78% of STOXX 600 constituents traded lower or unchanged yesterday.
46% of the shares trade above their 20D MA vs 61% Wednesday (above the 20D moving average).
42% of the shares trade above their 200D MA vs 45% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.88pt to 30.45, a new 52w high.

- advertisement -

SECTORS vs STOXX 600
3mths relative high: Chemicals, Technology
3mths relative low: Telecom., Media, Energy

Europe Best 3 sectors
technology, basic resources, health care

Europe worst 3 sectors
energy, banks, utilities

INTEREST RATE
The 10yr Bund yield fell 1bp 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: May Industrial Production MoM, exp.: -20.1%
FR 09:00: IEA Oil Market Report

MORNING TRADING

In Asian trading hours, EUR/USD fell further to 1.1271 and GBP/USD slid to 1.2586. USD/JPY slipped to 107.09. This morning, official data showed that Japan’s PPI dropped 1.6% on year in June (-2.0% expected).

Spot gold remained subdued at $1,802 an ounce.

#UK – IRELAND#
Great Portland Estates, a property developer, released a trading update for the quarter to June 30: “69% of June rent collected to date including amounts covered by rent deposits; 82% of March rent now collected including drawn deposits; (…) £4.3 million of new rent signed in quarter. Market lettings 4.4% ahead of March 2020 ERV.”

RSA Insurance Group, a general insurance company, was downgraded to “hold” from “buy” at HSBC.

#GERMANY – AUSTRIA#
GEA Group, a food processing technology company, was downgraded to “neutral” from “buy” at Goldman Sachs.

#BENELUX#
ING Groep, a financial group, plans to close 42 branch offices out of a total of 170 in Netherlands, according to Dutch newspaper Telegraaf. From a chartist point of view, the share consolidates in a bearish channel and is trying to push below the key overlap at 6 euros. Moreover, the RSI is capped since june by a declining trend line. Below 5.4 euros look towards the horizontal support at 4.5 euros and 3.5 euros in extension.

#SWITZERLAND#
EMS Chemie, a speciality chemicals group, reported that 1H EBIT declined 27.6% on year to 229 million Swiss franc on net sales of 849 million Swiss franc, down 26.4% (-21.6% organic growth). The company said: “Based on the extraordinary market slump, EMS continues to expect net operating income (EBIT) for 2020 to be below previous year.”

EX-DIVIDEND
Amadeus IT: E0.5994

Previous articleEUR/USD Stays Below 1.1300 As Risk Appetite Shrinks
Next articleStuck In A Lifeboat With A Peloton Bike
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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.