13 11 EU PRE OPEN

EU indices slightly down | TA on B&M European Value Retail

INDICES
Yesterday, European stocks were broadly under pressure. The Stoxx Europe 600 dropped 1.1%, Germany's DAX slid 1.2%, France's CAC 40 declined 1.5%, and the U.K.'s FTSE 100 fell 0.7%.

EUROPE ADVANCE/DECLINE
62% of STOXX 600 constituents traded lower or unchanged yesterday.
87% of the shares trade above their 20D MA vs 86% Wednesday (above the 20D moving average).
82% of the shares trade above their 200D MA vs 81% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.18pt to 23.3, a new 52w high.

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

Europe Best 3 sectors
telecommunications, technology, health care

Europe worst 3 sectors
banks, retail, basic resources

INTEREST RATE
The 10yr Bund yield fell 2bps to -0.51% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -19bps (below its 20D MA).

ECONOMIC DATA
GE 08:00: Oct Wholesale Prices YoY, exp.: -1.8%
GE 08:00: Oct Wholesale Prices MoM, exp.: 0%
GE 08:15: Bundesbank Mauderer speech
FR 08:45: Oct Harmonised Inflation Rate YoY final, exp.: 0%
FR 08:45: Oct Harmonised Inflation Rate MoM final, exp.: -0.6%
FR 08:45: Oct Inflation Rate YoY final, exp.: 0%
FR 08:45: Oct Inflation Rate MoM final, exp.: -0.5%
EC 11:00: Q3 GDP Growth Rate QoQ 2nd Est, exp.: -11.8%
EC 11:00: Q3 GDP Growth Rate YoY 2nd Est, exp.: -14.8%
EC 11:00: Q3 Employment chg YoY Prel, exp.: -3.1%
EC 11:00: Q3 Employment chg QoQ Prel, exp.: -2.9%
EC 11:00: Sep Balance of Trade, exp.: E14.7B
GE 11:00: Bundesbank Weidmann speech
GE 15:00: Bundesbank Mauderer speech
UK 15:00: BoE Tenreyro speech
UK 17:00: BoE Gov Bailey speech

MORNING TRADING
In Asian trading hours, EUR/USD was steady at 1.1805 while GBP/USD remained subdued at 1.3113. USD/JPY fell further to 104.91.

Spot gold edged up to $1,878 an ounce.

#UK - IRELAND#
B&M European Value Retail, a variety store chain, was downgraded to "neutral" from "buy" at Goldman Sachs.
From a technical point of view, the stock has escaped from a right-angled descending broadening wedge pattern in place since February 2018, which triggered a new up leg. Above, 432p, targets are set at 600p and 650p in extension.

Source: TradingView, GAIN Capital

#GERMANY#
Hapag-Lloyd, a shipping and container transportation company, announced that 3Q net profit jumped to 252 million euros from 150 million euros in the prior-year quarter and EBITDA rose 37.2% on year to 347 million euros on revenue of 3.00 billion euros, down 7.5%.

Deutsche Wohnen, a property group, reported that 9-month FFO I fell 1.2% on year to 422 million euros and EBITDA dropped 9.4% to 508 million euros on rental income of 635 million euros, up 1.9%.

#FRANCE#
EDF, an energy company, reported that organic revenue fell 1.8% on year to 14.1 billion euros and was down 4.0% in the 9-month period.

Airbus, an aircraft manufacturer, was upgraded to "neutral" from "underweight" at JPMorgan.

#BENELUX#
Ageas, a Belgian insurance company, posted 3Q net income declined 25% on year to 203 million euros while 9-month net income was up 13% to 994 million euros.

#SWITZERLAND#
ABB: the automation technology company's credit rating was downgraded to "A-" from "A" at S&P Global Ratings, outlook "Stable". The rating agency said: "Softness in ABB's automotive and discrete manufacturing end markets, due to the COVID-19-led recession, will lead to weaker operating performance than we expected, which will take at least 18-24 months to return to prepandemic levels."

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