Yesterday, European stocks saw a beef gain, with the Stoxx Europe 600 index up 4.1%. Germany’s DAX 30 rose 5.7%, France’s CAC 40 jumped 5.2%, and Britain’s FTSE 100 rose 4.3%.
EUROPA AVANCE / DECLINE
97% of STOXX 600 ingredients traded higher yesterday.
74% of the shares are trading above their 20D MA versus 36% Friday (below the 20D moving average).
27% of shares are trading above their 200D MA versus 23% Friday (above 20D moving average).
The Euro Stoxx 50 Volatility Index eased 5.41 points to 29.06, a new 52w high.
SECTORS vs STOXX 600
3mths relatively high: Basic resources
3mths relatively low: Real estate
Europe Best 3 sectors
basic resources, cars & parts, travel and leisure
Europe’s worst 3 sectors
healthcare, retail, telecommunications
10 year Bottom Yield increased 1 bp to -0.53% (below its 20D MA). The 2-year to 10-year yield fell 3bps to -22bps (below its 20D MA).
UK 07:00: Mar average revenue excl. Bonus, Exp: 2.9%
UK 07:00: Mar average income incl. Bonus, Exp: 2.8%
UK 07:00: Mar Unemployment rate, exp: 4%
UK 07:00: Apr Complaint Count chg, exp .: 12.2K
UK 07:00: Feb Employment rate, exp: 172K
UK 09:30: Q1 Labor Productivity QoQ Prel, exp: 0.3%
EC 10am: May ZEW Economic Sentiment Idx, Exp .: 25.2
EC 10:00: Mar Construction Output YoY, Exp: -0.9%
GE 10:00 am: May ZEW Current conditions, exp .: -91.5
GE 10am: May ZEW Economic Sentiment Idx, Exp .: 28.2
During the Asian trading period, the EUR / USD held above the 1.0900 level, while the GBP / USD rose further to 1.2203. USD / JPY advanced to 107.40.
Spot gold rose to $ 1,739 per share. Ounce.
#UK – IRELAND#
Imperial Brands, a tobacco company, reported that 1H operating profit fell 19.6% year-on-year to £ 925 million on revenue of £ 14.67 billion. The company added: “The reported earnings per. The share was 55.6 pence (2019: 71.2 pence) down 21.9%, (…) Adjusted earnings per share. actual prices), (…) we are disappointed with these results, (…) we have declared an intermediate dividend of 41.70 pence per share (62.56 pence a year earlier). (…) COVID-19 has so far only had a small impact on trade, but we expect this to be more pronounced in the second half due to the continued pressure on our duty-free and travel retail business. “
Compass Group, a food business contract, released 1H results: “Organic revenue increased by approx. 6% in the five months to February and decreased by 20.4% in March, resulting in 1.6% organic revenue growth in the six months to March. (…) Underlying operating profit was £ 854 million (2019: £ 951 million), down 10.2%. (…) On a constant currency basis, underlying basic earnings per share fell. Shares by 12.1% to 37.6 pence (2019: 42.8 pence). (…) Today we have announced a non-pre-emptive equity investment of new ordinary shares aimed at gross proceeds of approximately £ 2.0bn. “
Antofagasta, a giant copper producer, said it has decided to reduce its final yield in 2019 by $ 0.163 per share. Shares at $ 0.071 per share. From a chartist standpoint, the stock continues to target the top end of a declining channel in place since June 2018, targeting 950p.
DCC, a sales and marketing group, announced full-year results: “Overall, Group revenue fell 3.1% to £ 14.8 billion, driven primarily by the lower oil price prevailing during the year. (…) Consolidated operating profit increased by 7.3% (7.6% on a constant currency basis) to £ 494.3m. (…) Profit before tax decreased by 4.9% to £ 311.5m (…) Adjusted earnings per Share increased by 1.3% to 362.64 pence, (…) The Board of Directors proposes an increase of 2.6% in the final dividend to 95.79 pence per share. Share, which, when added to the interim dividend of 49.48 pence per share. gives a total dividend for the year of 145.27 pence per share. “
Homeserve, a home repair and heating service company, released full-year results: “Double-digit revenue growth (up 13% to £ 1.1 billion) and profit (adjusted pre-tax profit rose 12% to £ 181.0 million) (…) The Board of Directors proposes a final dividend of 17.8 pence to take the total dividend for the year to 23.6 pence, an increase of 10%. “
William Hill, a bookmaker, was upgraded to “overweight” from “equilibrium” at Morgan Stanley.
Thyssenkrupp, an industrial energy and steel production group, said it was “exploring possible partnerships and consolidation opportunities” for its steel and marine systems.
Hannover Re, an insurance group, was upgraded to “hold” from “reduce” at HSBC.
Talanx, an insurance company, was upgraded to “buy” from “hold” at HSBC.
Air France-KLM, an airline group, announced plans to gradually resume flights to approx. 15% of normal capacity for its French unit Air France by the end of June.
Remy Cointreau, a liquor maker, was downgraded to “neutral” from “purchases” from Goldman Sachs.
Siemens Gamesa Renewable Energy, an engineering firm, was downgraded to “neutral” from “purchases” at Goldman Sachs.
Telecom Italia, a telecommunications group, announced that 1Q net income jumped to € 560 million from € 165 million in the previous period, while EBITDA fell 10.8% year-on-year to € 1.74 billion on revenue of € 3.96 billion, down 11.3%. At the same time, the company reported that it is in talks to sell a minority stake in INWIT to a consortium led by Ardian Infrastructure and Canson Capital Partners. The company could possibly sell a 16% stake for $ 1.5 billion, reports Bloomberg, referring to people familiar with the matter.
Sonova, a provider of hearing care solutions, reported that adjusted net income for the full year increased 1.5% compared to the previous year to Swiss francs 476 million, and adjusted EBITDA increased 4.5% to Swiss francs 62 on a turnover of 2 , 92 billion Swiss francs, up 5.6% (+8.7% in local currencies).
Julius Baer, a private bank, announced that annual assets under management fell 8% year-on-year to Swiss francs 392 billion in April, while CET1 ratio dropped to 13.8% from 14.0% at the end of the year 2019.