Yesterday, European stocks still lacked momentum. The Stoxx Europe 600 declined 0.12%, Germany’s DAX was little changed, France’s CAC 40 dipped 0.08% and the U.K.’s FTSE 100 dropped 0.44%.
55% of STOXX 600 constituents traded lower or unchanged yesterday.
75% of the shares trade above their 20D MA vs 75% Wednesday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.54pt to 20.23, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Travel & Leisure
3mths relative low: none
Europe Best 3 sectors
health care, technology, travel & leisure
Europe worst 3 sectors
automobiles & parts, energy, banks
The 10yr Bund yield fell 1bp to -0.57% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -17bps (above its 20D MA).
GE 08:00: Oct Import Prices YoY, exp.: -4.3%
GE 08:00: Oct Import Prices MoM, exp.: 0.3%
UK 08:00: Nov Nationwide Housing Prices YoY, exp.: 5.8%
UK 08:00: Nov Nationwide Housing Prices MoM, exp.: 0.8%
FR 08:45: Oct Household Consumption MoM, exp.: -5.1%
FR 08:45: Oct PPI MoM, exp.: 0.2%
FR 08:45: Nov Inflation Rate MoM Prel, exp.: 0%
FR 08:45: Nov Harmonised Inflation Rate YoY Prel, exp.: 0.1%
FR 08:45: Nov Harmonised Inflation Rate MoM Prel, exp.: 0%
FR 08:45: Nov Inflation Rate YoY Prel, exp.: 0%
FR 08:45: Q3 GDP Growth Rate QoQ final, exp.: -13.7%
GE 09:10: Bundesbank Weidmann speech
EC 10:30: ECB Panetta speech
EC 11:00: Nov Consumer Confidence final, exp.: -15.5
EC 11:00: Nov Consumer Inflation expectations, exp.: 13.3
EC 11:00: Nov Economic Sentiment, exp.: 90.9
EC 11:00: Nov Industrial Sentiment, exp.: -9.6
EC 11:00: Nov Services Sentiment, exp.: -11.8
EC 11:00: ECB Schnabel speech
GE 13:00: Bundesbank Balz speech
In Asian trading hours, EUR/USD edged up to 1.1920 and GBP/USD climbed to 1.3370. USD/JPY slid to 104.00. This morning, official data showed that Japan’s Tokyo CPI fell 0.7% on year in November (-0.5% expected).
Spot gold retreated to $1,808 an ounce.
#UK – IRELAND#
AstraZeneca,a pharmaceutical giant, would start a new global Covid-19 vaccine trial as the company seeks to confirm the 90% efficacy rate showed in a portion of an existing trial, according to CEO Pascal Soriot cited by Bloomberg.
Cairn Energy, an oil and gas company, that non-executive director Nicoletta Giadrossi will succeed Ian Tyler as Chairman with effect from January 1, 2021.
Marks & Spencer, a major British retailer, was downgraded to “neutral” from “buy” at Goldman Sachs.
Pernod Ricard, an alcoholic beverages producer, was upgraded to “overweight” from “equalweight” at Morgan Stanley.
Banco Sabadell, a Spanish bank, said it had decided to terminate merger talks with rival BBVA as both parties failed to reach an agreement, according to Bloomberg.
Swiss Life, an insurance group, was upgraded to “buy” from “hold” at HSBC.
From a technical point of view, the share price is consolidating as the key horizontal resistance at 438CHF maintains pressure on prices. Furthermore, the RSI is overbought. As long as the resistance at 438p is in place, a new correction move is expected towards 390CHF and 364CHF in extension.
Adecco, a human resources services provider, was downgraded to “equalweight” from “overweight” at Morgan Stanley.
Atlas Copco: SEK3.5