Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index rose 0.81%, Germany's DAX 30 jumped 1.10%, France's CAC 40 gained 0.97% and the U.K.'s FTSE 100 was up 0.69%.
81% of STOXX 600 constituents traded higher yesterday.
61% of the shares trade above their 20D MA vs 48% Friday (above the 20D moving average).
58% of the shares trade above their 200D MA vs 56% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.54pt to 26.28, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Media
3mths relative low: Energy
Europe Best 3 sectors
telecommunications, travel & leisure, energy
Europe worst 3 sectors
utilities, food & beverage, personal & household goods
The 10yr Bund yield was unchanged to -0.54% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -19bps (above its 20D MA).
GE 07:00: Aug Factory Orders MoM, exp.: 2.8%
EC 08:30: Sep Construction PMI, exp.: 47.8
FR 08:30: Sep Construction PMI, exp.: 46
GE 08:30: Sep Construction PMI, exp.: 48
UK 09:30: Sep Construction PMI, exp.: 54.6
EC 09:35: ECB President Lagarde speech
EC 14:00: ECB President Lagarde speech
EC 16:30: ECB Lane speech
In Asian trading hours, EUR/USD extended its rally to 1.1795 and GBP/USD rose to 1.2999. USD/JPY eased to 105.66. AUD/USD bounced to 0.7205. This morning, the Reserve Bank of Australia kept its benchmark rate unchanged at 0.25% as expected. The central bank said it will not increase the cash rate target until progress is being made towards its objectives and continues to consider how additional monetary easing could support jobs as the economy opens up further.
Spot gold retreated to $1,911 an ounce..
#UK - IRELAND#
Victrex, a supplier of high performance polymer solutions, released a full-year trading update: "Overall, Q4 Group sales volume was down 26% to 695 tonnes (Q4 2019: 940 tonnes), with Group revenue down 27% to £55.7m (Q4 2019: £76.2m), in line with expectations. (...) For FY 2020 as a whole, Group sales volume of 3,492 tonnes was down 7% compared to the prior year (FY 2019: 3,751 tonnes), with Group revenue of £266m down 10% (FY 2019: £294m). (...) The Board expects to reinstate a dividend for FY 2020."
Source: TradingView, GAIN Capital
Ferrexpo, an iron ore company, posted a 3Q production report: "9M 2020 pellet production up 3% to 8.1MT (9M 2019: 7.9MT). 3Q 2020 pellet production down 12% to 2.5MT (2Q 2020: 2.9MT), with reduced volume due to planned pelletiser maintenance in early September 2020."
Rentokil Initial, a business services group, was downgraded to "neutral" from "buy" at Goldman Sachs.
Weir Group, an engineering company, was upgraded to "buy" from "hold" at Deutsche Bank.
K+S, a chemical group, announced that it has agreed to sell its Americas salt business bundled together as the Americas Operating Unit to Stone Canyon Industries, Mark Demetree and affiliates for 3.2 billion dollars.
Puma's, a sportswear company, shareholder Kering announced plans to sell 8.8 million shares in Puma, expecting to lower its stake in the company to about 9.8%.
Veolia, a resource management group, announced that it has acquired the 29.9% stake in French utility company Suez from Engie for 18 euros per share (dividend included). The company added: "Veolia intends, following the acquisition of the 29.9% block of Suez shares, to take control of Suez. To this end, Veolia intends to file a voluntary takeover bid for the remaining Suez shares. (...) Veolia's public offering will only take place once the Veolia project has been favorably received by Suez's board of directors, possibly after the general meeting of its shareholders."
Kering, a luxury goods company, announced the launch of the sell-down of approximately 8.8 million shares that it owns in Puma, representing about 5.9% of the share capital of Puma, through a placement to qualified investors only. The company said is expected to retain approximately 9.8% of Puma's outstanding shares after the placement.
Sika, a specialty chemical company, said it has expanded its mortar production in China with the commissioning of a new facility in Chengdu.
Telia, a Swedish telecommunications company, announced that it has agreed to sell its carrier operation Telia Carrier to Polhem Infra for 9.45 billion Swedish krona on a cash and debt free basis. In addition, the company said it has also decided to propose an additional dividend of 0.65 Swedish krona per share, bringing the total dividend for 2019 back to 2.45 Swedish krona per share, which was originally proposed in January this year.
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