10 09 EU PRE OPEN

EU indices slightly up | TA focus on LVMH

INDICES
Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index advanced 1.8%, Germany's DAX 30 jumped 2.1%, France's CAC 40 and U.K.'s FTSE 100 were up 1.4%.

EUROPE ADVANCE/DECLINE
83% of STOXX 600 constituents traded higher yesterday.
57% of the shares trade above their 20D MA vs 37% Tuesday (below the 20D moving average).
56% of the shares trade above their 200D MA vs 53% Tuesday (below the 20D moving average).

The Euro Stoxx 50 Volatility index eased 2.56pts to 25.89, a new 52w high.

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

Europe Best 3 sectors
telecommunications, insurance, technology

Europe worst 3 sectors
travel & leisure, retail, automobiles & parts

INTEREST RATE
The 10yr Bund yield fell 3bps to -0.5% (below its 20D MA). The 2yr-10yr yield spread fell 2bps to -23bps (below its 20D MA).

ECONOMIC DATA
FR 07:45: Jul Industrial Production MoM, exp.: 12.7%
EC 12:45: ECB Interest Rate Decision, exp.: 0%
EC 12:45: Marginal Lending Rate, exp.: 0.25%
EC 12:45: Deposit Facility Rate, exp.: -0.5%
EC 13:30: ECB Press Conference
EC 18:00: ECB President Lagarde speech

MORNING TRADING

In Asian trading hours, EUR/USD rebounded to 1.1820 while GBP/USD retreated to 1.2990. USD/JPY held above the 106.00 level. This morning, official data showed that Japan's core machine orders grew 6.3% on month in July (+2.0% expected).

Spot gold slipped to $1,946 an ounce.

#UK - IRELAND#
British Land, a property group, announced that CFO Simon Carter will succeed Chris Grigg as CEO effective on November 18.

National Grid, an electricity and gas utility company, announced the appointment of Paula Rosput Reynolds, currently Non-executive Director at General Electric and will the company on January 1, to succeed Sir Peter Gershon as Chairman.

AstraZeneca, a pharmaceutical group, reported that its Fasenra met both co-primary endpoints in a phase 3 trial for patients with chronic rhinosinusitis with nasal polyps.

Dunelm Group, a home furnishings retailer, released full-year results: "Total revenue for the 52 weeks to 27 June 2020 fell by 3.9% to £1,057.9m (FY19: £1,100.4m). (...) Operating profit for the period was £116.0m (FY19: £126.9m). (...) PBT in the period was £109.1m (FY19: £125.9m), a reduction of £16.8m year-on-year. (...) The Board is not recommending a final dividend for FY20, to retain maximum liquidity ahead of winter peak trading."

Rio Tinto, a giant miner, was upgraded to "buy" from "neutral" at Citigroup.

#FRANCE#
LVMH's, a luxury goods producer, Chairman Bernard Arnault is seeking for help from the French government to cancel the deal to acquire Tiffany & Co, reported Bloomberg citing people familiar with the matter.
From a daily point of view, the stock is supported by a rising trendline drawn since August. Above the overlap threshold (resistance twice in May & June before becoming a support twice as well in June & August) at 363E targets are set at 450E and 473E in extension.

Source: GAIN Capital, TradingView

#SPAIN#
Iberdrola, a Spanish electric utility company, is considering acquiring energy group PPL Corp's unit in the U.K., which could be valued at 12 billion pounds, reported Bloomberg citing people familiar with the matter.

#ITALY#
UniCredit, an Italian bank, was downgraded to "hold" from "buy" at HSBC.

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.