EU indices still rise this morning TA focus on HSBC

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By :  ,  Financial Analyst

EU indices still rise this morning | TA focus on HSBC

Yesterday, European stocks were broadly higher, with the Stoxx Europe 600 Index rising 1.5%. Germany's DAX 30 surged 2.9%, and France's CAC 40 gained 2.2%. The U.K. market was closed for a bank holiday.

67% of STOXX 600 constituents traded higher yesterday.
78% of the shares trade above their 20D MA vs 63% Friday (below the 20D moving average).
31% of the shares trade above their 200D MA vs 26% Friday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.26pts to 29.16, a new 52w high.

3mths relative high: Technology
3mths relative low: Insurance, Banks

Europe Best 3 sectors
construction & materials, technology, industrial goods & services

Europe worst 3 sectors
basic resources, retail, media

The 10yr Bund yield rose 1bp to -0.49% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -18bps (above its 20D MA).

GE 07:00: Jun GfK Consumer Confidence, exp.: -23.4
FR 07:45: May Business Confidence, exp.: 82
FR 07:45: May Business Climate Indicator, exp.: 62
GE 10:40: 2-Year Schatz auction, exp.: -0.68%
UK 11:00: May CBI Distributive Trades, exp.: -55

In Asian trading hours, EUR/USD fell to 1.0894 while GBP/USD rebounded to 1.2180. USD/JPY edged up to 107.68.

Spot gold rebounded to $1,732 an ounce.

Aston Martin, a luxury sports cars manufacturer, announced that Tobias Moers, currently Chairman and CEO of Mercedes-AMG, will succeed Andy Palmer as CEO.

HSBC, a global banking group, is considering a restructuring plan, including possible sale of its U.S. business and retail network in France, reported the Financial times citing people familiar with the matter. From a chartist point of view, a rebound is expected close to the lower end of a broadening formation in place since 2009.

Source: GAIN Capital, TradingView

Mondi, a packaging and paper group, announced the appointment of Mike Powell, currently CFO of Ferguson, as new CFO.

Softcat, a provider of IT infrastructure products and services, posted a 3Q trading update: "The Company has traded satisfactorily during the period and delivered growth in revenue, gross profit and operating profit.  Cash receipts from customers have remained broadly in line with normal trends."

Kainos Group, an IT services provider, released full-year results: "Kainos achieved revenue of £178.8 million (2019: £151.3 million), representing an increase of 18%. (...) Adjusted pre-tax profit increased by 9% to £25.5 million (2019: £23.3 million). Statutory profit before tax increased by 10% to £23.2 million (2019: £21.1 million)."

Sanofi, a pharmaceutical group, announced plans to sell its equity investment in U.S. biotechnology company Regeneron Pharmaceuticals through a registered public offering and related share repurchase by Regeneron. The sale would be valued at about 13 billion dollars, according to Bloomberg.

Klepierre, a shopping mall operator, reported that it has reopened 80% of its European malls and expects to hit 90% within the next 10 days.

Iberdrola, a Spanish electric utility company, was upgraded to "buy" from "neutral" at Goldman Sachs.

Telefonica, a telecommunications company, was downgraded to "equalweight" from "overweight" at Barclays.

UniCredit, an Italian bank, was downgraded to "neutral" from "overweight" at JPMorgan.


Kone, a Finnish engineering and service company, was upgraded to "overweight" from "neutral" at JPMorgan.

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