EU indices consolidate TA focus on Sanofi

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By :  ,  Financial Analyst

EU indices consolidate | TA focus on Sanofi

Friday, European stocks were broadly higher. The Stoxx Europe 600 climbed 0.5%, Germany's DAX advanced 0.4%, France's CAC 40 rose 0.6%, and the U.K.'s FTSE 100 gained 0.1%.

65% of STOXX 600 constituents traded higher Friday.
75% of the shares trade above their 20D MA vs 75% Thursday (above the 20D moving average).
85% of the shares trade above their 200D MA vs 84% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.16pt to 20.08, a new 52w high.

3mths relative high: none
3mths relative low: none

Europe Best 3 sectors
technology, utilities, energy

Europe worst 3 sectors
real estate, insurance, personal & household goods

The 10yr Bund yield fell 2bps to -0.59% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -17bps (above its 20D MA).

UK 10:30: Oct Net Lending to Individuals MoM, exp.: £4.2B
UK 10:30: Oct BoE Consumer Credit, exp.: £-0.6B
UK 10:30: Oct Mortgage Approvals, exp.: 91.5K
UK 10:30: Oct Mortgage Lending, exp.: £4.8B
GE 14:00: Nov Inflation Rate MoM Prel, exp.: 0.1%
GE 14:00: Nov Harmonised Inflation Rate YoY Prel, exp.: -0.5%
GE 14:00: Nov Harmonised Inflation Rate MoM Prel, exp.: 0%
GE 14:00: Nov Inflation Rate YoY Prel, exp.: -0.2%
FR 15:00: 6-Mth BTF auction, exp.: -0.62%
FR 15:00: 12-Mth BTF auction, exp.: -0.62%
FR 15:00: 3-Mth BTF auction, exp.: -0.63%

In Asian trading hours, EUR/USD held gains at 1.1970 and GBP/USD rebounded to 1.3341. USD/JPY fell further to 103.90. This morning, government data showed that Japan's industrial production rose 3.8% on month in October (+2.2% expected), and retail sales grew 0.4% (+0.5% expected). AUD/USD climbed to 0.7393. Earlier today, China's official Manufacturing PMI rose to 52.1 in November (51.5 expected) from 51.4 in October and Non-manufacturing PMI climbed to 56.4 (56.0 expected) from 56.2.

Spot gold extended its decline to $1,773 an ounce.

AstraZeneca, a pharmaceutical giant, said its Forxiga (dapagliflozin) has been approved in Japan for the treatment of patients with chronic heart failure who are receiving standard of care.

WPP, a transformation company, said it has proposed to acquire the remaining shares in WPP AUNZ, which it currently holds a stake of approximately 61.5%, for 0.55 Australian dollars per share, representing approximately 181 million Australian dollars.

HSBC, a global banking group, is planning to exit from U.S. retail banking, reported the Financial times citing people familiar with the matter.

Standard Life Aberdeen, an investment company, is seeking to sell its Parmenion unit, a platform servicing independent financial advisers, for 150 to 200 million pounds, according to Sky News.

BP, an oil giant, has broken below a bearish rising wedge pattern on November 27 on a daily chart. The company was downgraded to "hold" from "buy" at HSBC.

Sanofi, a pharmaceutical company, said the European Commission has extended the marketing authorization for Dupixent (dupilumab) in the European Union to include children 6 to 11 years of age with severe atopic dermatitis who are candidates for systemic therapy.
From a technical point of view, the stock remains under pressure below a declining trend line in place since August 2020. Below the key resistance at 87.5E, look for a new correction move towards 82.6E and the previous bottom at 76.7E in extension.

Source: TradingView, GAIN Capital

ABN Amro, a Dutch bank, said it targets costs no higher than 4.7 billion euros in 2024, reflecting 700 million euros of further cost savings, and expects a further reduction of staff of around 15% by 2024.

UniCredit's, an Italian bank, board members held an unscheduled meeting Sunday to discuss CEO Jean Pierre Mustier's future ahead of the expiration of his term in April, reported Bloomberg citing people familiar with the matter.

Rockwool International, a Danish manufacturer of mineral wool products, was downgraded to "underweight" from "equalweight" at Morgan Stanley.

Related tags: Equities Indices Commodities

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