25 11 EU PRE OPEN

EU indices gaining some ground | TA on Sandvik

INDICES
Yesterday, European stocks also gained. The Stoxx Europe 600 rose 0.91%, Germany's DAX advanced 1.26%, France's CAC 40 increased 1.21%, and the U.K.'s FTSE 100 was up 1.55%.

EUROPE ADVANCE/DECLINE
56% of STOXX 600 constituents traded higher yesterday.
73% of the shares trade above their 20D MA vs 79% Monday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 84% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.12pt to 21.37, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Insurance, Autos, Banks, Travel & Leisure, Energy, Basic Resource
3mths relative low: Chemicals, Food & Beverage, Healthcare

Europe Best 3 sectors
energy, banks, basic resources

Europe worst 3 sectors
personal & household goods, health care, real estate

INTEREST RATE
The 10yr Bund yield was unchanged to -0.58% (below its 20D MA). The 2yr-10yr yield spread fell 1bp to -18bps (below its 20D MA).

ECONOMIC DATA
GE 08:40: Bundesbank Mauderer speech
EC 10:30: ECB Financial Stability Review
FR 12:00: Oct Jobseekers Total, exp.: 3606.3K
FR 12:00: Oct Unemployment Benefit Claims, exp.: -15.2K
GE 12:15: Bundesbank Wuermeling speech
UK 13:00: 2020 Spending Review
UK 13:00: OBR Economic and Fiscal Forecasts

MORNING TRADING
In Asian trading hours, EUR/USD rose further to 1.1904 and GBP/USD held gains at 1.3358. USD/JPY edged up to 104.51.

Spot gold was little changed at $1,806 an ounce.

#UK - IRELAND#
Melrose Industries, an investment group, posted a trading update for the four months to October 31: "Melrose is currently trading at the top end of the Board's expectations for 2020. (...) The performance of the Group in the Period reflected the faster than expected recovery in automotive markets, first seen over the summer, the continued strong performance in Nortek Air Management, and the more challenging, although currently stable, market conditions in Aerospace."

#GERMANY#
Thyssenkrupp, an industrial engineering group, was upgraded to "buy" from "hold" at Deutsche Bank.

#FRANCE#
Dassault Systemes, a software company, announced the acquisition of the remainder of cloud-native distributed SQL database company NuoDB equity, which it had a 16% ownership interest. Financial terms were not disclosed.

Air Liquide, an industrial gases supplier, was downgraded to "hold" from "buy" at HSBC.

#SPAIN#
CaixaBank and Bankia, the two Spanish banks, were downgraded to "hold" from "buy" at HSBC.

#BENELUX#
Unibail-Rodamco-Westfield, a commercial real estate company, was upgraded to "neutral" from "sell" at Goldman Sachs.

#SWEDEN#
Volvo, a vehicle manufacturer, was upgraded to "buy" from "hold" at HSBC.

Sandvik, a Swedish engineering group, was downgraded to "hold" from "buy" at HSBC.
From a technical point of view, the share has broken above the key horizontal resistance around 185SEK, given us the signal of a new up leg and allowing the share price to reach a new all-time high. the RSI is now overbought and is calling for a slight pullback towards 190SEK. Above 178.15SEK, after the correction move, targets are set at 207SEK and 220SEK in extension.

Source: TradingView, GAIN Capital

EX-DIVIDEND
Assa Abloy: SEK1.85

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.