Yesterday, European stocks were broadly lower while trading volumes were greatly reduced by a technical glitch at exchange operator Euronext. The Stoxx Europe 600 Index declined 0.18%, Germany's DAX 30 fell 0.42%, France's CAC 40 eased 0.13%, and the U.K.'s FTSE 100 was down 0.59%.
53% of STOXX 600 constituents traded lower or unchanged yesterday.
60% of the shares trade above their 20D MA vs 63% Friday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 60% Friday (above the 20D moving average).
The Euro Stoxx 50 Volatility index added 1.3pt to 26.62, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Industrial
3mths relative low: none
Europe Best 3 sectors
financial services, banks, real estate
Europe worst 3 sectors
chemicals, utilities, personal & household goods
The 10yr Bund yield fell 1bp to -0.62% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -16bps (above its 20D MA).
GE 07:00: Sep PPI YoY, exp.: -1.2%
GE 07:00: Sep PPI MoM, exp.: 0%
EC 09:00: Aug Current Account, exp.: E25.5B
GE 10:40: 2-Year Schatz auction, exp.: -0.73%
On the forex front, the U.S. dollar weakened further against other major currencies, though its loss shrank at the end of the session. The ICE Dollar Index lost 0.27% to 93.43. The British pound was lifted by the European Union's comments that it was ready to intensify talks with Britain toward a trade deal. GBP/USD once breached the key 1.3000 level before closing at 1.2954, up 0.31% on day. EUR/USD jumped 0.45% to 1.1769, while USD/JPY was little changed at 105.43. AUD/USD was down for a fourth session as it dropped 0.1% to 0.7071. China's Gross Domestic Products (GDP) grew 4.9% on year in the third quarter, lower than +5.5% expected.
Meanwhile, the Chinese yuan reached a fresh 18-month high against the dollar, with USD/CNH (offshore yuan) falling 0.26% to 6.6787.
#UK - IRELAND#
BHP Group, a giant metals miner, announced that 1Q iron ore production rose 8% on year to 66 million tons and sales were up 7% to 73 million tons. The company confirmed its full-year iron ore output guidance of 244 to 253 million tons.
Next, a retailer, was upgraded to "neutral" from "sell" at Goldman Sachs.
Sartorius, a pharmaceutical and laboratory equipment supplier, reported that 9-month net income increased 37.9% on year to 211 million euros and EBITDA rose 35.3% to 489 million euros on revenue of 1.68 billion euros, up 23.9% (+25.2% at constant currency). The company said it now expects revenue growth to be at the upper end of, or slightly above, the range of 22% to 26% previously forecasted.
Remy Cointreau, a spirits group, announced that 1H revenue dropped 17.8% on year (-16.4% organic growth) to 431 million euros, with 2Q organic decline narrowing to 4.0% from 33.2% in 1Q. The company stated that it now expects 1H current operating profit to be down 25% - 30% on an organic basis, compared with 35% - 40% decline previously estimated.
Source: TradingView, GAIN Capital#SWITZERLAND#
UBS Group, a banking group, announced that 3Q net income jumped to 2.09 billion dollars from 1.05 billion dollars in the prior-year period and operating income rose 26.1% on year to 8.94 billion dollars. The bank said it has established a 1.50 billion dollars capital reserve for potential share repurchases and expects buybacks to be allowed to resume in 2021.
Swedbank, a banking group, reported that 3Q net income climbed 13% on year to 5.26 billion Swedish krona, as credit impairment reduced to 425 million Swedish krona from 1.24 billion Swedish krona in 2Q. Meanwhile, net interest income was up 2% on year to 6.71 billion Swedish krona. In addition, the bank said it is "still considering the issue of a dividend for 2019".
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.