EU indices up this morning | TA focus on Hennes & Mauritz

European stocks report | Aston Martin | Deutsche Lufthansa | Air France-KLM | Hennes & Mauritz...

Uptrend 2

INDICES
Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index climbed 0.7%, Germany's DAX 30 rose 0.7%, France's CAC 40 jumped 1.0%, and the U.K.'s FTSE 100 was up 0.4%.

EUROPE ADVANCE/DECLINE
69% of STOXX 600 constituents traded higher yesterday.
34% of the shares trade above their 20D MA vs 29% Wednesday (below the 20D moving average).
41% of the shares trade above their 200D MA vs 39% Wednesday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.12pts to 34.68, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none

Europe Best 3 sectors
financial services, automobiles & parts, banks


Europe worst 3 sectors
travel & leisure, real estate, media


INTEREST RATE
The 10yr Bund yield fell 3bps to -0.44% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -22bps (above its 20D MA).

ECONOMIC DATA
FR 07:45: Jun Consumer Confidence, exp.: 93
EC 09:00: May Loans to Households YoY, exp.: 3%
EC 09:00: May M3 Money Supply YoY, exp.: 8.3%
EC 09:00: May Loans to Companies YoY, exp.: 6.6%
UK 09:00: May Car Production YoY, exp.: -99.7%

MORNING TRADING
In Asian trading hours, EUR/USD was flat at 1.1220 while GBP/USD slipped to 1.2418. USD/JPY held gains at 107.19. This morning, official data showed that Japan's Tokyo CPI grew 0.3% on year in June (as expected).

Spot gold edged down to $1,761 an ounce.

#UK - IRELAND#
Aston Martin, a luxury sports cars manufacturer, released a trading statement: "Dealer stock had reduced by 617 units year-to-date to end May. (...) As expected, due to COVID-19 disruption, retail sales (dealer sales to customers) and wholesales are expected to be lower in Q2 than in Q1. (...) More than 90% of dealer network now open. (...) For the full year total wholesales are currently expected to be broadly evenly balanced between sports cars and DBX."

Weir Group, an engineering company, published a trading update: "Refinancing of US$950m RCF and £200m Term Loan, extending maturities to 2023 and 2022 respectively. (...) Minerals orders stable sequentially in Q2 to date despite Covid-19 restrictions. (...) Oil & Gas still expected to be cash generative for the full year; continuing to explore exit options."

Bunzl, a distribution and outsourcing company, was upgraded to "overweight" from "neutral" at JPMorgan.

Rentokil Initial, a business services group, was upgraded to "overweight" from "neutral" at JPMorgan.


#GERMANY#
Deutsche Lufthansa, an airline group, reported that its shareholders voted in favor of accepting the 9 billion euros bailout plan from the German government, who will establish a 20% stake in the company.


#FRANCE#
Air France-KLM's, an airline company, 3.4 billion euros aid package was approved by the French and Dutch governments, reported Reuters citing people familiar with the matter.


#SPAIN - PORTUGAL#
Iberdrola, a Spanish energy group, was downgraded to "hold" from "buy" at HSBC.

EDP, a Portuguese electric utilities company, was downgraded to "hold" from "buy" at HSBC.


#ITALY#
Enel, an energy company, was downgraded to "hold" from "buy" at HSBC.


#SWITZERLAND#
Novartis, a pharmaceutical group, announced that it has agreed to pay the U.S. regulators 347 million dollars to settle all Foreign Corrupt Practices Act investigations into its bribery law violation.


#SCANDINAVIA#
Hennes & Mauritz, a swedish clothing-retail company, posted second quarter earnings in line with estimates. The company expects 2020 net decrease of stores. From a chartist point of view, the share consolidates above the support at 131.7 swedish krona and remains on the upside since March. It is supported by its rising 50-period moving average (in blue). Above 131.7, the share aims 168.6 and 179.8 krona.


Source: GAIN Capital, TradingView


More from Equities

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.