06 11 EU PRE OPEN

EU indices mixed | TA focus on Novo Nordisk

INDICES
Yesterday, European stocks also remained firm. The Stoxx Europe 600 gained 1.05%, Germany's DAX jumped 1.98%, France's CAC 40 rose 1.24% and the U.K.'s FTSE 100 was up 0.39%.

EUROPE ADVANCE/DECLINE
73% of STOXX 600 constituents traded higher yesterday.
66% of the shares trade above their 20D MA vs 52% Wednesday (above the 20D moving average).
59% of the shares trade above their 200D MA vs 56% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.63pt to 26.37, a new 52w high.

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

Europe Best 3 sectors
insurance, basic resources, banks

Europe worst 3 sectors
health care, technology, energy

INTEREST RATE
The 10yr Bund yield fell 2bps to -0.64% (below its 20D MA). The 2yr-10yr yield spread rose 1bp to -15bps (above its 20D MA), a new 52w high.

ECONOMIC DATA
GE 08:00: Sep Industrial Production MoM, exp.: -0.2%
FR 08:45: Sep Current Account, exp.: E-4.7B
FR 08:45: Sep Balance of Trade, exp.: E-7.7B
FR 08:45: Q3 Private Non Farm Payrolls QoQ Prel, exp.: -0.8%
UK 09:30: Oct Halifax House Price Idx MoM, exp.: 1.6%
UK 09:30: Oct Halifax House Price Idx YoY, exp.: 7.3%

MORNING TRADING
In Asian trading hours, EUR/USD held gains at 1.1830 while GBP/USD eased to 1.3134. USD/JPY remained subdued at 103.45. Early today, official data showed that Japan's household spending dropped 10.2% on year in September (-10.5% expected)

Spot gold retreated to $1,940 an ounce.

#UK - IRELAND#
RSA Insurance, a general insurance company, confirmed that it has received a proposal from Intact Financial and Tryg regarding a possible offer for the company, which comprises 685p in cash per share, plus payment by RSA of the announced interim dividend of 8p per share.

AstraZeneca, a pharmaceutical giant, said its Brilinta has been approved by the US Food and Drug Administration to reduce the risk of stroke in patients with an acute ischaemic stroke or high-risk transient ischaemic attack.

#GERMANY#
Allianz, a financial services group, announced that 3Q net income rose 5.9% on year to 2.06 billion euros while operating profit fell 2.6% to 2.91 billion euros on revenue of 31.4 billion euros, down 6.1%.

#SPAIN#
Amadeus, a major Spanish IT services provider, reported a 3Q adjusted net loss of 125 million euros, compared with an adjusted net profit of 323 million euros in the prior-year quarter, and revenue declined 70.1% on year to 419 million euros.

#DENMARK#
Novo Nordisk, a pharmaceutical group, announced that it has agreed to acquire all outstanding shares of U.S.-listed drug delivery company Emisphere Technologies for 1.35 billion dollars and to acquire related Eligen SNAC royalty stream obligations owed to MHR Fund Management, the largest shareholder of Emisphere, for 450 million dollars.

From a technical point of view, the stock has bounced back on the support of August at 400.2DKK. Moreover, volumes jumped during the last trading session. Above the bottom of August at 400DKK, targets are set at the previous all-time high of October 2020 at 467.9DKK and 490DKK in extension.

Source: TradingView, GAIN Capital

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.