EU indices down this morning |TA focus on Ahold Delhaize

European stocks report | Persimmon | Volkswagen | Solvay | Ahold Delhaize...

Trading floor 1

INDICES
Yesterday, European stocks rebounded, with the Stoxx Europe 600 Index gaining 1.3%. Germany's DAX 30 jumped 2.1%, France's CAC 40 increased 1.4%, and the U.K.'s FTSE 100 was up 1.2%.

EUROPE ADVANCE/DECLINE
79% of STOXX 600 constituents traded higher yesterday.
63% of the shares trade above their 20D MA vs 51% Monday (below the 20D moving average).
46% of the shares trade above their 200D MA vs 44% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.44pts to 31.34, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Technology
3mths relative low: Telecom

Europe Best 3 sectors
automobiles & parts, banks, basic resources

Europe worst 3 sectors
real estate, travel & leisure, construction & materials


INTEREST RATE
The 10yr Bund yield fell 2bps to -0.44% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -25bps (above its 20D MA).

ECONOMIC DATA
FR 07:45: Jun Business Confidence, exp.: 70
FR 07:45: Jun Business Climate Indicator, exp.: 59
EC 09:00: ECB Non-Monetary Policy Meeting
GE 09:00: Jun Ifo Current Conditions, exp.: 78.9
GE 09:00: Jun Ifo expectations, exp.: 80.1
GE 09:00: Jun Ifo Business Climate, exp.: 79.5
UK 09:30: BoE FPC Meeting

MORNING TRADING
In Asian trading hours, EUR/USD climbed further to 1.1324 and GBP/USD edged up to 1.2527. USD/JPY remained subdued at 106.49. NZD/USD marked a day-low at 0.6445 before bouncing back to 0.6486. This morning, the Reserve Bank of New Zealand kept its benchmark rate unchanged at 0.25% as expected, stating that "the Monetary Policy Committee is prepared to provide additional stimulus as necessary".

Spot gold was little changed at $1,768 an ounce.


#UK - IRELAND#
Persimmon, a housebuilding company, announced that Dean Finch, currently CEO of National Express, will succeed David Jenkinson as CEO at the end of the year.

EasyJet, a low-cast airline company, is facing legal claims from 10,000 customers over a cyber attack data breach, according to the Financial Times.

Petrofac, an oilfield services provider, posted a 1H trading update: "E&C financial performance for the first six months of 2020 has been significantly impacted by the deterioration in market conditions.  First half revenues are expected to be around US$1.6 billion. (...) Engineering & Production Services is also being affected by the deterioration in market conditions.  First half revenue is expected to be around US$450 million. (...) Net production is expected to be approximately 2.2 million barrels of oil equivalent (mmboe) for the first half of the year (1H 2019: 2.1 mmboe)."


#GERMANY#
Volkswagen, an automobile group, is considering acquiring car-rental company Europcar Mobility Group, which has a market value of about 390 million euros, reported Bloomberg citing people familiar with the matter.

Infineon Technologies, a semiconductor manufacturer, was upgraded to "overweight" from "neutral" at JPMorgan.

Deutsche Boerse, a stock exchange operator, was downgraded to "hold" from "buy" at HSBC.


#FRANCE#
L'Oreal, a personal care company, was upgraded was upgraded to "overweight" from "neutral" at JPMorgan.


#BENELUX#
Solvay, a chemical company, said it expects a non-cash impairment of around 1.5 billion euros due to the COVID-19. The company added: "Market headwinds increased sharply in the second quarter. (...) Group sales were down 20% in aggregate across April and May versus 2019 levels. (...) Similar demand trends are expected to continue during the month of June."

Ahold Delhaize, a retail group, announced that supervisory board member Peter Agnefjall will succeed Jan Hommen as Chairman on January 1, 2021. From a chartist point of view, the share has bypassed a resistance line drawn from November 2019 high. Above 22 (horizontal support since April 2020), look for 25 & 29 euros.


Source: GAIN Capital, TradingView

NN Group, an insurance company, said it targets to grow operating capital generation (OCG) to 1.5 billion euros in 2023 and sees mid-single digit annual growth of OCG over time.


#ITALY#
Moncler, an Italian luxury fashion brand, was downgraded to "equalweight" from "overweight" at Morgan Stanley.


#SWITZERLAND#
Ams, an advanced sensors manufacturer, was upgraded to "overweight" from "neutral" at JPMorgan.

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