Yesterday, European stocks were largely higher, with the Stoxx Europe 600 index up 1.0%. Germany’s DAX 30 rose 1.3%, the UK’s FTSE 100 advanced 1.1% and France’s CAC 40 rose 0.9%.
EUROPA AVANCE / DECLINE
67% of STOXX 600 ingredients traded higher yesterday.
68% of the shares are trading above their 20D MA versus 67% on Tuesday (below the 20D moving average).
28% of shares are trading above their 200D MA versus 26% Tuesday (above 20D moving average).
The Euro Stoxx 50 Volatility Index eased 1.06 pts to 29.11, a new 52w high.
SECTORS vs STOXX 600
3mths relatively high: Technology
3mths relatively low: Real estate
Europe Best 3 sectors
technology, chemicals, energy
Europe’s worst 3 sectors
real estate, insurance, financial services
The 10-year Base Yield was unchanged at -0.46% (above its 20D MA). The 2-year to 10-year yield increased 0bp to -20bps (above its 20D MA).
FR 08:15: May Markit Composite PMI Flash, Exp .: 11.1
FR 08:15: May Markit Manufacturing PMI Flash, Exp .: 31.5
FR 08:15: May Markit Services PMI Flash, Exp .: 10.2
GE 08:30: May Markit Composite PMI Flash, Exp .: 17.4
GE 08:30: May Markit Services PMI Flash, Exp .: 16.2
GE 08:30: May Markit Manufacturing PMI Flash, Exp .: 34.5
EC 09:00: May Markit Composite PMI Flash, Exp .: 13.6
EC 09:00: May Markit Services PMI Flash, Exp .: 12
EC 09:00: May Markit Manufacturing PMI Flash, Exp .: 33.4
UK 09:30: May Markit / CIPS Production PMI Flash, Exp .: 32.6
UK 09:30: May Markit / CIPS UK Services PMI Flash, Exp .: 13.4
UK 09:30: May Markit / CIPS Composite PMI Flash, Exp .: 13.8
UK 11am: May CBI Industrial Trends Orders, Exp .: -56
In Asian trading times, EUR / USD eased to 1.0960 and GBP / USD fell to 1.2199. USD / JPY had a gain of 107.66. This morning, official data showed that Japan had a trade deficit of 996 billion yen in April (projected 503 billion yen deficit), with exports falling 21.9% year-on-year (-22.2% expected) and imports slipping 7, 2% (-13.2% expected).
Spot gold slipped to $ 1,744 per share. Ounce.
#UK – IRELAND#
Whitbread, a hotel and restaurant company, released preliminary full-year results: “Statutory revenue rose 1.1% to £ 2,072m. (…) Adjusted profit before tax decreased by 8.2% to £ 358m, (…) Adjusted basic earnings per share. Shares rose 12.6% to 193.6p. “Meanwhile, the company announced plans to raise a gross proceeds of about £ 1 billion, however, a 1 for 2 fully signed rights issue.
Intertek Group, a product testing and certification company, released a trading update for the period January 1 to April 30: “Resilient trading performance with Revenue on £ 882m, down 4.6% year-on-year (YoY) both on a constant and actual basis rates with similar earnings (LfL) decreased by 4.9% compared to the year at constant currency. (…) The rate at which the global pandemic has unfolded and the broad-based nature of the shutdown initiatives in each country make it difficult to attempt any precise guidance, and it is too early to quantify the impact of the Coronavirus for 2020. “
Aviva, an insurance group, released a 1Q operating update: “Sales of new business (PVNBP) increased 28% to £ 12.3 billion (1Q19: £ 9.6 billion) and value of new business (VNB) increased 18% to £ 311 million (1Q19: £ 263 million); (…) The total net written premium increased 3% to £ 2.4bn. (…) Based on analysis per However, as of April 30, our estimate of COVID-19 related claims in our non-life insurance companies, which includes reported and projected claims, is $ 160 million. £ net after reinsurance; (…) Early 2Q20 trends have seen a new surge in sales in many of our businesses due to the worldwide government’s enforced containment measures. (…) Sales volumes for the full year are likely to remain below expectations. “
Easyjet, a low-cost airline group, said it will resume flights on June 15, adding: “We will continue to refine our planning and capacity expectations for the rest of 2020, which will be confirmed in due time, while we also continues our focus on minimizing cash burn. “
Tate & Lyle, a food and beverage provider, reported full-year EPS increased 8% year-on-year to 57.8p and adjusted pre-tax profit increased 4% to £ 331m on revenue of £ 2.88bn. The company proposed a dividend of 29.6p per share. Share, up from 29.4 per cent the previous year.
Deutsche Lufthansa, an airline, confirmed that it is in advanced talks with the German government’s economic stabilization fund about a support package of up to 9 billion euros, where the fund can take a 20% stake in the company’s increased share capital.
Amadeus, an IT service provider, was downgraded to “keep” from “purchases” at Deutsche Bank.
Altice Europe, a telecommunications company, reported that 1Q adjusted EBITDA increased 1.0% year-on-year to EUR 1.30 billion on revenue of EUR 3.51 billion, up 3.6% (+ 3.1% constant currency).
Galapagos, a pharmaceutical research firm, said its Filgotinib achieved all primary endpoints in a phase 2b / 3 trial to treat patients with moderate to severe active ulcerative colitis.
Generali, an insurance group, announced that 1Q net income fell 81.7% a year to 113 million euros, citing a 655 million euro net write-down on investments caused by Covid-19. Meanwhile, operating profit rose 7.6% to € 1.45 billion on gross premiums of € 19.16 billion, up 0.3%.
Logitech International, a manufacturer of computer equipment and software, was downgraded to “neutral” from “overweight” at JPMorgan.
Intertek Group: 71.6p, SAP: E1.58, Tesco: 6.5p