Market News & Analysis
EU indices up this morning | TA focus on L'Oreal
Philippe Delabarre June 19, 2020 5:30 PM
Yesterday, European stocks came under pressure, with the Stoxx Europe 600 Index falling 0.7%. Both Germany's DAX 30 and France's CAC 40 were down 0.8%, and the U.K.'s FTSE 100 lost 0.5%.
63% of STOXX 600 constituents traded lower or unchanged yesterday.
66% of the shares trade above their 20D MA vs 73% Wednesday (below the 20D moving average).
41% of the shares trade above their 200D MA vs 41% Wednesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0.31pt to 35.05, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: Technology
3mths relative low: Telecom
Europe Best 3 sectors
travel & leisure, chemicals, real estate
Europe worst 3 sectors
basic resources, media, industrial goods & services
The 10yr Bund yield rose 4bps to -0.39% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -24bps (above its 20D MA).
GE 07:00: May PPI YoY, exp.: -1.9%
GE 07:00: May PPI MoM, exp.: -0.7%
UK 07:00: May Retail Sales MoM, exp.: -18.1%
UK 07:00: May Retail Sales YoY, exp.: -22.6%
UK 07:00: May Retail Sales ex Fuel MoM, exp.: -15.2%
UK 07:00: May Retail Sales ex Fuel YoY, exp.: -18.4%
UK 07:00: May Public Sector Net Borrowing, exp.: £-61.36B
EC 09:00: Apr Current Account, exp.: E40.7B
In Asian trading hours, EUR/USD was broadly flat at 1.1210 while GBP/USD remains subdued at 1.2428. USD/JPY remains below the 107.00 level.
Spot gold advanced to $1,725 an ounce.
#UK - IRELAND#
John Wood Group, an energy services company, posted a 1H trading update: "On a like for like basis, (...) first half revenues will be down around 11% on H1 2019. (...) Reflecting the timing of macro challenges, the fall in H1 revenues was heavily weighted to the second quarter. Revenue in the second quarter is expected to be $2.0bn. (...) Adjusted EBITDA on a like for like basis will be down around 19% with margins down c70bps. (...) Order book at the end of May was $7.0bn, down c11% since December 2019, of which c$3.5bn is due to be delivered in 2020. During April and May, we booked new orders of $1.3bn."
William Hill, a bookmaker, was upgraded to "overweight" from "neutral" at JPMorgan.
Wirecard, a payment processor and financial services provider, announced the suspension of management board member Jan Marsalek with immediate effect on a revocable basis until June 30. At the same time, the company said James Freis has been appointed with immediate effect as member of the management board responsible for compliance. Previously, the company said EY informed it that an audit certificate for the annual financial statements for fiscal year 2019 requires additional audits.
L'Oreal, a personal care company, said it has agreed to acquire Thayers Natural Remedies, an U.S. natural skincare brand which recorded sales of 44 million dollars in 2019, from Henry Thayer. Financial terms were not disclosed. From a chartist point of view, the share is supported by a rising trend line drawn from March 2020 and is trading all-time highs (no more resistance threshold). Above 260.9, look for 300.
Source: GAIN Capital, TradingView
ING Groep, a banking and financial services corporation, announced that credit risk officer Steven van Rijswijk will succeed Ralph Hamers as CEO and Chairman, effective July 1.
Swedbank, a banking group, was upgraded to "overweight" from "underweight" at JPMorgan.
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