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%.
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.
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
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).
FR 07:45: May Industrial Production MoM, exp.: -20.1%
FR 09:00: IEA Oil Market Report
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.
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.
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.”
Amadeus IT: E0.5994