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By :  ,  Financial Analyst

EU indices under pressure | TA focus on Compass Group

Yesterday, European stocks closed higher. The Stoxx Europe 600 Index gained 0.32%, Germany's DAX 30 added 0.15%, France's CAC 40 climbed 0.18%, and the U.K.'s FTSE 100 rose 0.61%.

60% of STOXX 600 constituents traded higher yesterday.
65% of the shares trade above their 20D MA vs 64% Friday (above the 20D moving average).
54% of the shares trade above their 200D MA vs 53% Friday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.08pt to 22.78, a new 52w high.

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

Europe Best 3 sectors
basic resources, health care, technology

Europe worst 3 sectors
travel & leisure, banks, telecommunications

The 10yr Bund yield fell 1bp to -0.42% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -21bps (below its 20D MA).

UK 11:45: 30-Year Treasury Gilt auction, exp.: 0.68%

In Asian trading hours, EUR/USD climbed further to 1.1894 and GBP/USD rose to 1.3135. USD/JPY slid to 105.64

Spot gold advanced to $1,995 an ounce.

BHP Group, a giant miner, announced that full-year underlying net income from continuing operations fell 4% on year to 9.06 billion dollars and underlying EBITDA dropped 5% to 22.07 billion dollars on operating revenue of 42.93 billion dollars, down 3%. The company said: "Capital and exploration expenditure of approximately US$7 billion is now expected for the 2021 financial year and is approximately US$1 billion lower than previous guidance predominantly due to the deferral of a number of our petroleum projects in order to maximise value."

Persimmon, a housebuilding company, released 1H results: "Total revenues for the first half of the year were £1.19bn (2019: £1.75bn), with new housing revenues of £1.10bn being 33% lower than the prior period (£1.65bn). (...) Underlying operating profit for the Group was £293.2m (2019: £510.1m). (...) The Group generated a profit before tax of £292.4m in the period (2019: £509.3m). (...) The Board is pleased to announce a modest interim dividend of 40p per share."

Compass Group, a contract food service company, announced that of Ian Meakins, previously CEO of Ferguson Plc, will take over as Chairman on December 1.
From a chartist point of view, the share has escaped above from a descending triangle drawn since May. Above 1000p look for the horizontal resistance at 1336p and 1454p in extension. Alternatively, a break below 1000p would call for a new bearish potential with target set at 866p .

Source: GAIN Capital, TradingView

John Wood Group, an energy services company, reported that it swung to a 1H net loss of 11 million dollars from a net profit of 13 million dollars in the prior-year period and adjusted EBITDA dropped 20.6% on year to 305 million dollars on revenue of 4.09 billion dollars, down 14.7% (-11.5% on a like-for-like basis). 

Veolia, an environmental services company, said it has agreed to acquire Suez RV OSIS, "which specializes in the maintenance of sanitation networks and infrastructure and on-site industrial services", from the Suez Group for an expected transaction price of 298 million euros.

Intesa Sanpaolo, an Italian banking group, may join Euronext and the Italian government to bid for Borsa Italiana, reported Bloomberg citing people familiar with the matter.

Geberit, sanitary parts supplier, reported that 1H net income slid 13.9% on year to 315 million Swiss franc and EBIT dropped 10.5% to 386 million euros on net sales of 1.47 billion euros, down 9.8% (-4.5% currency-adjusted). The company said: "Management expects currency-adjusted net sales in the second half of the year slightly below the level of the second half of 2019."

Pandora, a Danish jewellery manufacturer and retailer, announced that 2Q organic revenue dropped 38% on year to 2.88 billion Danish krone. The company said: "Pandora continues to consider the future macroeconomic environment and COVID-19 development as highly uncertain. (...) The continued local spikes in incident rates and inherent commercial impact from social distancing are expected to continue to negatively impact revenue in the second half of the year. Pandora expects organic growth to be -14% to -20% in 2020. The full-year EBIT-margin is expected to be between 16% and 19%."
Related tags: Commodities Forex Equities

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