12 11 EU PRE OPEN

INDICES
Yesterday, European stocks had another positive day. The Stoxx Europe 600 climbed 1.08%, Germany's DAX added 0.40%, France's CAC 40 increased 0.48%, and the U.K.'s FTSE 100 advanced 1.35%.

EUROPE ADVANCE/DECLINE
64% of STOXX 600 constituents traded higher yesterday.
86% of the shares trade above their 20D MA vs 78% Tuesday (above the 20D moving average).
81% of the shares trade above their 200D MA vs 79% Tuesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.95pt to 23.13, a new 52w high.

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

Europe Best 3 sectors
utilities, real estate, technology

Europe worst 3 sectors
insurance, media, construction & materials


INTEREST RATE
The 10yr Bund yield rose 2bps to -0.49% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -21bps (below its 20D MA).


ECONOMIC DATA
GE 08:00: Oct Harmonised Inflation Rate YoY final, exp.: -0.4%
GE 08:00: Oct Harmonised Inflation Rate MoM final, exp.: -0.4%
GE 08:00: Oct Inflation Rate MoM final, exp.: -0.2%
GE 08:00: Oct Inflation Rate YoY final, exp.: -0.2%
UK 08:00: Q3 Construction Orders YoY, exp.: -45%
UK 08:00: Sep Goods Trade Balance, exp.: £-9.01B
UK 08:00: Sep GDP YoY, exp.: -9.3%
UK 08:00: Sep Construction Output YoY, exp.: -13%
UK 08:00: Sep Industrial Production YoY, exp.: -6.4%
UK 08:00: Sep Industrial Production MoM, exp.: 0.3%
UK 08:00: Sep Manufacturing Production MoM, exp.: 0.7%
UK 08:00: Sep Manufacturing Production YoY, exp.: -8.4%
UK 08:00: Sep Balance of Trade, exp.: £1.4B
UK 08:00: Q3 Business Investment YoY Prel, exp.: -26.1%
UK 08:00: Q3 Business Investment QoQ Prel, exp.: -26.5%
UK 08:00: Sep GDP MoM, exp.: 2.1%
UK 08:00: Sep GDP 3-Mth Avg, exp.: 8%
UK 08:00: Q3 GDP Growth Rate YoY Prel, exp.: -21.5%
UK 08:00: Q3 GDP Growth Rate QoQ Prel, exp.: -19.8%
UK 08:00: Q3 Labour Productivity QoQ Prel, exp.: -2%
UK 09:00: BoE Gov Bailey speech
EC 10:00: ECB Economic Bulletin
FR 10:00: IEA Oil Market Report
EC 10:50: ECB Guindos speech
EC 11:00: Sep Industrial Production YoY, exp.: -7.2%
EC 11:00: Sep Industrial Production MoM, exp.: 0.7%
EC 14:00: ECB Panetta speech
UK 15:00: Oct NIESR Monthly GDP Tracker, exp.: 15.2%
EC 15:15: ECB Mersch speech
EC 16:30: ECB Schnabel speech
EC 17:45: ECB President Lagarde speech
GE 19:00: Bundesbank Mauderer speech


MORNING TRADING
In Asian trading hours, EUR/USD was little changed at 1.1778 while GBP/USD slipped to 1.3215. USD/JPY retreated to 105.30.

Spot gold bounced to $1,870 an ounce.


#UK - IRELAND#
National Grid, an electricity and gas utility company, announced that 1H underlying profit before tax slid 9% on year to 717 million pounds and underlying operating profit fell 12% to 1.15 billion pounds. The company proposed an interim dividend of 17.00p per share, up from 16.57p per share in the prior-year period.


#GERMANY#
Siemens, an industrial manufacturing conglomerate, announced that 4Q net income rose 28% on year to 1.88 billion euros and adjusted industrial businesses EBITA climbed 10% to 2.64 billion euros on revenue of 15.31 billion euros, down 6% (-3% on a comparable basis). The company proposed a dividend of 3.50 euros per share, down from 3.90 euros in the prior year. Regarding the outlook, the company stated: "Siemens expects moderate rise in net income for FY 2021 despite significant burdens from currency translation effects."

Deutsche Telekom, a telecommunications group, posted 3Q adjusted net profit grew 6.3% on year to 1.51 billion euros and adjusted EBITDA After Lease rose 49.6% to 9.69 billion euros on net revenue of 26.39 billion euros, up 31.9%. The company has raised its full-year adjusted EBITDA AL guidance to "at least 35 billion euros" from "around 34 billion euros" previously.

Merck KGaA, a science and technology company, reported that 3Q adjusted EPS jumped 73.3% on year to 2.34 euros and adjusted EBITDA rose 53.0% to 1.70 billion euros on net sales of 4.45 billion euros, up 9.7% (+7.2% organically). For the full-year, the company expects  organic net sales to grow 4% - 5% to 17.10 - 17.50 billion euros and adjusted EBITDA to increase by 6% - 8% to 5.05 - 5.25 billion euros.

From a technical point of view, the stock remains supported by a bullish trend line in place since June 2020 and its rising 50DMA. Furthermore, the RSI is trading above the key support at 45.25%. Above 126E, look towards the previous top of November at 140.35E and 145E in extension.

#BENELUX#
KBC, a financial group, posted 3Q net income increased 13.9% on year to 697 million euros on net interest income of 1.12 billion euros, down 4.4%.


#ITALY#
Generali, an insurance company, announced that 9-month adjusted net profit declined 12.1% on year to 1.48 billion euros while gross written premiums grew 0.3% to 51.99 billion euros. Meanwhile, the company said, subject to a positive regulatory position, it intends to distribute the second tranche of the 2019 dividend in 2021.


EX-DIVIDEND
Equinor (EQNR): $0.09, Ferguson (FERG): $2.082, Glaxosmithkline:19p, Royal Dutch Shell (RDSA): $0.1665