Friday, European stocks had a positive trading day. The Stoxx Europe 600 gained 0.52%, both Germany’s DAX and France’s CAC 40 gained 0.39%, and the U.K.’s FTSE 100 was up 0.27%.
65% of STOXX 600 constituents traded higher Friday.
84% of the shares trade above their 20D MA vs 82% Thursday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 83% Thursday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.53pt to 21.44, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: Food & Beverage
Europe Best 3 sectors
energy, basic resources, utilities
Europe worst 3 sectors
food & beverage, real estate, media
The 10yr Bund yield fell 2bps to -0.57% (above its 20D MA). The 2yr-10yr yield spread fell 0bp to -17bps (above its 20D MA).
FR 09:15: Nov Markit Composite PMI Flash, exp.: 47.5
FR 09:15: Nov Markit Services PMI Flash, exp.: 46.5
FR 09:15: Nov Markit Manufacturing PMI Flash, exp.: 51.3
GE 09:30: Nov Markit Composite PMI Flash, exp.: 55
GE 09:30: Nov Markit Services PMI Flash, exp.: 49.5
GE 09:30: Nov Markit Manufacturing PMI Flash, exp.: 58.2
EC 10:00: Nov Markit Composite PMI Flash, exp.: 50
EC 10:00: Nov Markit Services PMI Flash, exp.: 46.9
EC 10:00: Nov Markit Manufacturing PMI Flash, exp.: 54.8
UK 10:30: Nov Markit/CIPS Manufacturing PMI Flash, exp.: 53.7
UK 10:30: Nov Markit/CIPS UK Services PMI Flash, exp.: 51.4
UK 10:30: Nov Markit/CIPS Composite PMI Flash, exp.: 52.1
FR 15:00: 3-Mth BTF auction, exp.: -0.6%
FR 15:00: 12-Mth BTF auction, exp.: -0.6%
FR 15:00: 6-Mth BTF auction, exp.: -0.6%
In Asian trading hours, EUR/USD climbed to 1.1873 and GBP/USD extend its rally to 1.3322. USD/JPY eased to 103.73. NZD/USD rose to 0.6953. This morning, official data showed that New Zealand’s 3Q retail sales rose 28.0% on quarter (+19.0% expected).
Spot gold edged up to $1,873 an ounce.
#UK – IRELAND#
Aviva, an insurance company, said it has agreed to sell its entire 80% shareholding in the Italian life insurance joint venture, Aviva Vita, to its partner UBI Banca for 400 million euros.
From a technical point of view, the stock has crossed above the key overlap area around 307p. As long as 250p is support, look towards 335p and 372p in extension.
BMW, an automobile group, was downgraded to “equalweight” from “overweight” at Morgan Stanley.
Credit Agricole, a banking group, said it has launched a voluntary public tender offer of 10.50 euros per share in cash for Italian bank Credito Valtellinese, corresponding to a total investment of 737 million euros.
Danone, a food company, announced plans to deliver 1 billion euros cost savings by 2023 and to cut 1,500 to 2,000 jobs in local and global headquarters. At the same time, the company confirmed its 2020 guidance of full-year 14% recurring operating margin and the delivery of 1.8 billion euros free cash flow.
Telefonica’s, a Spanish telecommunications company, credit rating was downgraded to “BBB-” from “BBB” at S&P Global Ratings, outlook “Stable”. The rating agency said: “We now expect Telefonica’s metrics will deteriorate this year, due to lower revenue and earnings, driven by weaker year-on-year service revenue as a consequence of the pandemic and adverse currency movements affecting contributions from the Latin American business.”
Prosus, an investment group, announced that 1H core EPS rose 27.6% on year to 1.34 dollars while operating loss narrowed to 207 million dollars from 252 million dollars in the prior-year quarter. Revenue was up 53.3% on year to 2.17 billion dollars.
UniCredit, an Italian banking group, and the Italian government are in talks regarding a takeover of Monte Paschi, where the government might inject 2.5 billion euros into Monte Paschi to make the deal viable for UniCredit, reported Bloomberg citing people familiar with the matter.
Swiss Re, an insurance group, was upgraded to “buy” from “neutral” at Citigroup.
Cellnex Telecom: E0.03588