02 12 EU PRE OPEN

EU indices consolidate | TA focus on AB InBev

INDICES
Yesterday, European stocks were broadly higher. The Stoxx Europe 50 climbed 0.9%, Germany's DAX advanced 0.7%, France's CAC 40 rose 1.1%, and the U.K.'s FTSE 100 jumped 1.9%.

EUROPE ADVANCE/DECLINE
64% of STOXX 600 constituents traded higher yesterday.
71% of the shares trade above their 20D MA vs 70% Monday (below the 20D moving average).
85% of the shares trade above their 200D MA vs 84% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.61pt to 21.3, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Travel & Leisure, Basic Resource
3mths relative low: none

Europe Best 3 sectors
technology, utilities, energy

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

INTEREST RATE
The 10yr Bund yield rose 2bps to -0.57% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -19bps (below its 20D MA).

ECONOMIC DATA
GE 08:00: Oct Retail Sales MoM, exp.: -2.2%
GE 08:00: Oct Retail Sales YoY, exp.: 6.5%
EC 09:00: ECB Non-Monetary Policy Meeting
UK 10:30: BoE FPC Meeting
EC 11:00: Oct Unemployment Rate, exp.: 8.3%
EC 11:00: Oct PPI MoM, exp.: 0.3%
EC 11:00: Oct PPI YoY, exp.: -2.4%
GE 11:40: 5-Year Bobl auction, exp.: -0.85%
EC 15:00: ECB Lane speech

MORNING TRADING
In Asian trading hours, EUR/USD held gains at 1.2072 while GBP/USD eased to 1.3415. USD/JPY edged up to 104.42. AUD/USD slipped to 0.7373. Earlier today, official data showed that Australia's 3Q GDP fell 3.8% on year (-4.4% expected).

Spot gold retreated to $1,809 an ounce.

#UK - IRELAND#
Wizz Air, a low-cost airline, reported that passenger number declined 84.7% on year to 456,487 in November and the load factor dropped 24.5 percentage points to 68.2%.

Royal Dutch Shell, a giant oil producer, was upgraded to "overweight" from "neutral" at JPMorgan.

#GERMANY#
Volkswagen's, an automobile group, supervisory board will continue to meet in the coming days to discuss about CEO Herbert Diess's term and selections for top management posts, reported Bloomberg citing people familiar with the matter.

Allianz, a financial services group, has agreed to acquire Australian bank Westpac's general insurance business for 725 million Australian dollars, according to a statement from Westpac.

Hannover Re, a reinsurance group, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

#FRANCE#
Total, a French oil giant, was downgraded to "neutral" from "overweight" at JPMorgan.

#SPAIN#
Repsol, a fossil fuel company, was downgraded to "underweight" from "neutral" at JPMorgan.

#BENELUX#
AB InBev, a multinational drink and brewing company, was downgraded to "neutral" from "buy" at Citigroup.

From a technical point of view, the stock has broken the key horizontal resistance around 51.5E, which contained the share price since June 2020. Above the basis of the bullish breakaway gap at 47.5E, targets are set at 61.45E and 76.1E in extension. Alternatively, a break below 47.5E would call for a new correction move towards 44E.

Source: TradingView, GAIN Capital

#SWITZERLAND#
Roche, a multinational healthcare company, announced that the U.S. Food and Drug Administration has approved Gavreto (pralsetinib) for the treatment of advanced or metastatic RET-mutant and RET fusion-positive thyroid cancers.

EX-DIVIDEND
Hexagon: E0.62, Linde Plc (LIN): $0.963

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