16 11 EU PRE OPEN

EU indices on the upside | TA on Kingspan

INDICES
Friday, European stocks closed mixed. The Stoxx Europe 600 was little changed, Germany's DAX gained 0.18%, France's CAC 40 added 0.33%, while the U.K.'s FTSE 100 dropped 0.36%.

EUROPE ADVANCE/DECLINE
54% of STOXX 600 constituents traded higher Friday.
86% of the shares trade above their 20D MA vs 87% Thursday (above the 20D moving average).
82% of the shares trade above their 200D MA vs 82% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.16pt to 23.14, a new 52w high.

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

Europe Best 3 sectors
insurance, banks, automobiles & parts

Europe worst 3 sectors
media, personal & household goods, telecommunications

INTEREST RATE
The 10yr Bund yield fell 3bps to -0.54% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -18bps (below its 20D MA).

ECONOMIC DATA
FR 15:00: 12-Mth BTF auction, exp.: -0.63%
FR 15:00: 3-Mth BTF auction, exp.: -0.64%
FR 15:00: 6-Mth BTF auction, exp.: -0.63%

MORNING TRADING
In Asian trading hours, EUR/USD extended its rally to 1.1852 and GBP/USD advanced further to 1.3227. USD/JPY fell to 104.51. This morning, official data showed that Japan's 3Q annualized GDP rose 21.4% on quarter (+18.9% expected). AUD/USD climbed to 0.7292. Earlier today, government data showed that China's industrial production grew 6.9% on year in October (+6.7% expected).

Spot gold rose to $1,896 an ounce.

#UK - IRELAND#
Smiths Group, a technology company, issued a 1Q trading statement: "Revenue for the three months ended 31 October for Continuing Operations was down (2)% on an underlying basis. This underpins the Group's confidence in meeting market expectations for the full year."

Kingspan, a building materials company, posted a 9-month trading update: "Sales in the nine month period to 30 September were E3.27bn, down 5% on the same period in the prior year with sales growth of 1% in the third quarter. Underlying sales (pre currency and acquisitions) were down 10% in the year to date and by 6% in the third quarter. (...) we expect to deliver a full year trading profit marginally ahead of 2019."

From a technical point of view, the stock remains supported by a rising trend line in place since March 2020. Furthermore, the RSI is bouncing back on its neutrality area around 50%. Above, 72p, a continuation of the bullish trend is expected, towards the previous all-time high at 84.65p and 92p in extension.

Source: TradingView, GAIN Capital

#GERMANY#
Continental, an automotive parts manufacturer, was upgraded to "equalweight" from "underweight" at Barclays.

#SPAIN#
BBVA, a Spanish bank, and American company PNC Financial Services Group announced that they have agreed on a deal where PNC will acquire BBVA's U.S. business BBVA USA Bancshares for a purchase price of 11.6 billion dollars.

#SWITZERLAND#
Sonova, a hearing care company, posted 1H EPS declined 41.5% on year to 3.25 Swiss franc and EBIT slid 4.6% to 230 million Swiss franc on revenue of 1.07 billion Swiss franc, down 25.0% (-20.9% in local currencies).

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