07 08 EU PRE OPEN

INDICES
Yesterday, European stocks returned to the downside. The Stoxx Europe 600 Index dropped 0.73%, Germany's DAX 30 lost 0.54%, France's CAC 40 sank 0.98%, and the U.K.'s FTSE 100 shed 1.27%.

EUROPE ADVANCE/DECLINE
72% of STOXX 600 constituents traded lower or unchanged yesterday.
45% of the shares trade above their 20D MA vs 54% Wednesday (below the 20D moving average).
47% of the shares trade above their 200D MA vs 50% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 1pt to 24.94, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Financial Services, Industrial
3mths relative low: Telecom.

Europe Best 3 sectors
media, travel & leisure, industrial goods & services

Europe worst 3 sectors
basic resources, energy, telecommunications


INTEREST RATE
The 10yr Bund yield rose 5bps to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 2bps to -17bps (above its 20D MA).


ECONOMIC DATA
GE 07:00: Jun Industrial Production MoM, exp.: 7.8%
GE 07:00: Jun Current Account, exp.: E6.5B
GE 07:00: Jun Balance of Trade s.a, exp.: E7.6B
GE 07:00: Jun Exports MoM s.a, exp.: 9%
GE 07:00: Jun Imports MoM s.a, exp.: 3.5%
GE 07:00: Jun Balance of Trade, exp.: E7.1B
FR 07:45: Jun Current Account, exp.: E-8.5B
FR 07:45: Jun Balance of Trade, exp.: E-7.1B
FR 07:45: Jun Industrial Production MoM, exp.: 19.6%
FR 07:45: Q2 Private Non Farm Payrolls QoQ Prel, exp.: -2.5%
UK 08:30: Jul Halifax House Price Idx MoM, exp.: -0.1%
UK 08:30: Jul Halifax House Price Idx YoY, exp.: 2.5%


MORNING TRADING
In Asian trading hours, the U.S. dollar strengthen up. EUR/USD turned down sinking back to 1.1824, and GBP/USD slid to test the support at 1.3085. USD/JPY showed upward momentum rising back to 105.60.  USD/CAD shot up to 1.3365. AUD/USD sank back to 0.7205. China recorded a trade surplus of 62.33 billion dollars in July (vs a surplus of 42.6 billion dollars expected) with exports growing 7.2% on year (vs -0.6% expected).

Spot gold consolidated some gains, retreating to $2,051 an ounce.


#UK - IRELAND#
Standard Life Aberdeen, an investment company, posted 1H results: "Fee based revenue of 706 million pounds (H1 2019: 815 million pounds), 13% lower mainly reflecting 2019 outflows, client preferences changing asset mix in this environment, and Lloyds Banking Group (LBG) tranche withdrawals (...) IFRS loss before tax of 498 million pounds (H1 2019: 629 million pounds profit) reflecting impairment charges relating to goodwill and intangible assets partly offset by gains on sales of Indian investments (...) AUMA (Assets under management and administration) of 511.8 billion pounds after LBG tranche withdrawals (FY 2019: 544.6 billion pounds) (...) Maintained interim dividend at 7.3 pence (H1 2019: 7.3 pence)."

From a daily point of view, the share is trying to escape above the upper end of a symmetrical triangle drawn since June. Moreover, the Relative Strength Index (RSI, 14) has broken above a declining trendline, given us an advanced signal. Above 241.3p look for the previous resistance of March at 288.3p and 308.1p in extension.


Source: GAIN Capital, TradingView

Hikma Pharmaceuticals, a U.K.-based pharmaceutical firm, reported 1H results: "Group core revenue grew 9% to 1,132 million dollars (2019: 1,043 million dollars). (...) operating profit of 297 million dollars (H1 2019: 238 million dollars). (...) Profit attributable to shareholders was 212 million dollars (H1 2019: 185 million dollars). (...) Core basic earnings per share increased by 17% to 85.3 cents (H1 2019: 72.7 cents) (...) The Board is recommending an interim dividend of 16 cents per share (approximately 12 pence per share) (H1 2019: 14 cents per share)."

Hargreaves Lansdown, an investment management services provider, published full-year results: "2020 profit before tax grew by 24% to 378.3 million pounds. (...) The increase was driven by continued NNB-driven revenue growth and strong share dealing volumes in the second half of the year. (...) Total AUA (Assets Under Administration) increased by 5% to 104.0 billion pounds as at 30 June 2020 (99.3 billion pounds as at 30 June 2019). This was driven by 7.7 billion pounds of NNB (Net new business) offset by negative market movement of 3.0 billion pounds. (...) Total dividend up 31% at 54.9 pence per share."


#FRANCE#
Maurel & Prom, an oil & gas firm, said it swung to a 1H net loss of 606 million dollars from a net income of 33 million dollars in the prior-year period, citing an impairment charge of 474 million dollars. 1H sales were down 38% on year to 142 million dollars.

Danone, a dairy maker, was downgraded to "hold" from "buy" at Deutsche Bank.


#ITALY#
Banca Monte Dei Paschi di Siena, an Italian bank, said it swung to a 2Q net loss of 845 million euros from a net income of 65 million euros in the prior-year period, citing 384 millions in provisions for legal claims and 476 million euros in a writedown of deferred tax assets.


#SWITZERLAND#
Roche, a Swiss pharmaceutical major, announced that the Phase 3 trial on Tecentriq (atezolizumab) in combination with paclitaxel (chemotherapy) did not meet statistical significance on its primary endpoint of progression-free survival (PFS) for the initial (first-line) treatment of people with metastatic triple-negative breast cancer (TNBC).


EX-DIVIDEND
Ahold Delhaize: E0.5