Yesterday, European stocks lacked momentum. The Stoxx Europe 600 eased 0.20%, Germany’s DAX edged down 0.08%, France’s CAC 40 dipped 0.07%, and the U.K.’s FTSE 100 was down 0.28%.
56% of STOXX 600 constituents traded lower or unchanged yesterday.
79% of the shares trade above their 20D MA vs 84% Friday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 1.05pt to 22.49, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Banks, Energy
3mths relative low: Chemicals, Food & Beverage, Healthcare
Europe Best 3 sectors
energy, basic resources, banks
Europe worst 3 sectors
health care, telecommunications, food & beverage
The 10yr Bund yield fell 1bp to -0.58% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -17bps (above its 20D MA).
GE 08:00: Q3 GDP Growth Rate QoQ final, exp.: -9.8%
GE 08:00: Q3 GDP Growth Rate YoY final, exp.: -11.3%
FR 08:45: Nov Business Confidence, exp.: 93
FR 08:45: Nov Business Climate Indicator, exp.: 90
GE 10:00: Nov Ifo Current Conditions, exp.: 90.3
GE 10:00: Nov Ifo expectations, exp.: 95
GE 10:00: Nov Ifo Business Climate, exp.: 92.7
UK 11:00: BoE Haskel speech
GE 11:40: 2-Year Schatz auction, exp.: -0.8%
UK 12:00: Nov CBI Distributive Trades, exp.: -23
GE 14:00: Bundesbank Mauderer speech
EC 14:15: ECB Schnabel speech
GE 17:00: Bundesbank Beermann speech
In Asian trading hours, EUR/USD edged up to 1.1845 and GBP/USD advanced to 1.3330. USD/JPY held gains at 104.55.
Spot gold extended its decline to $1,825 an ounce.
#UK – IRELAND#
Compass Group, a food service company, posted full-year underlying EPS declined 77.8% on year to 18.6p and underlying operating profit slid 69.7% to 561 million pounds on revenue of 20.2 billion pounds, down 18.8%.
CRH Plc, a building materials firm, issued a trading update: “Cumulative nine-month sales to the end of September amounted to 20.6 billion dollars, a decrease of 3% compared with the corresponding period in 2019, (…) EBITDA for the period was 3.4 billion dollars, up 1% on prior year and up 2% on a like-for-like basis (…) we expect full-year EBITDA to be in excess of 4.4 billion dollars for 2020.”
From a technical point of view, the stock is facing the key horizontal resistance around 3117p. A break above this level, would trigger the end of the trading range in place since June 2020 and would set targets towards the previous all-time high at 3430p and 3600p in extension.
Lloyds Banking Group and NatWest, the two British banks, were downgraded to “hold” from “buy” at HSBC.
Deutsche Boerse, a stock market operator, said from September 2021, the benchmark index DAX will be expanded by ten members, to a total of 40 constituents.
Natixis, an investment bank, was downgraded to “underweight” from “equalweight” at Morgan Stanley.
Novartis, a pharmaceutical giant, announced a 2.5 billion dollars share buyback plan, starting immediately and will last into the first half of 2021.
Roche, a giant drugmaker, reported that the U.S. Food and Drug Administration (FDA) has approved a supplemental New Drug Application for its Xofluza as a treatment to prevent influenza.
Credit Suisse, a banking group, said it expects to book a 450 million dollars impairment charge on York Capital Management in 4Q results. The bank added: “The capital impact of this impairment is currently estimated to reduce our 4Q20 CET1 ratio by approximately 7 basis points. This impairment does not change our existing guidance for dividends and capital distributions in 2020 and 2021.”
#SCANDINAVIA – DENMARK#
Danske Bank, a Danish bank, was downgraded to “underweight” from “equalweight” at Morgan Stanley.
Swedbank, a Nordic-Baltic banking group, was downgraded to “sell” from “neutral” at Goldman Sachs.
Hennes & Mauritz, a Swedish clothing-retail company, was upgraded to “buy” from “sell” at Goldman Sachs.
UBS Group (UBSG): $0.1825