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23 11 EU PRE OPEN

Article By: ,  Financial Analyst
November 23, 2020 3:09 AM

EU indices on the upside | TA focus on Aviva

INDICES
Friday, European stocks had a positive trading day. The Stoxx Europe 600 gained 0.52%, both Germany's DAX and France's CAC 40 gained 0.39%, and the U.K.'s FTSE 100 was up 0.27%.

EUROPE ADVANCE/DECLINE
65% of STOXX 600 constituents traded higher Friday.
84% of the shares trade above their 20D MA vs 82% Thursday (above the 20D moving average).
84% of the shares trade above their 200D MA vs 83% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.53pt to 21.44, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: Food & Beverage

Europe Best 3 sectors
energy, basic resources, utilities

Europe worst 3 sectors
food & beverage, real estate, media


INTEREST RATE
The 10yr Bund yield fell 2bps to -0.57% (above its 20D MA). The 2yr-10yr yield spread fell 0bp to -17bps (above its 20D MA).


ECONOMIC DATA
FR 09:15: Nov Markit Composite PMI Flash, exp.: 47.5
FR 09:15: Nov Markit Services PMI Flash, exp.: 46.5
FR 09:15: Nov Markit Manufacturing PMI Flash, exp.: 51.3
GE 09:30: Nov Markit Composite PMI Flash, exp.: 55
GE 09:30: Nov Markit Services PMI Flash, exp.: 49.5
GE 09:30: Nov Markit Manufacturing PMI Flash, exp.: 58.2
EC 10:00: Nov Markit Composite PMI Flash, exp.: 50
EC 10:00: Nov Markit Services PMI Flash, exp.: 46.9
EC 10:00: Nov Markit Manufacturing PMI Flash, exp.: 54.8
UK 10:30: Nov Markit/CIPS Manufacturing PMI Flash, exp.: 53.7
UK 10:30: Nov Markit/CIPS UK Services PMI Flash, exp.: 51.4
UK 10:30: Nov Markit/CIPS Composite PMI Flash, exp.: 52.1
FR 15:00: 3-Mth BTF auction, exp.: -0.6%
FR 15:00: 12-Mth BTF auction, exp.: -0.6%
FR 15:00: 6-Mth BTF auction, exp.: -0.6%

MORNING TRADING
In Asian trading hours, EUR/USD climbed to 1.1873 and GBP/USD extend its rally to 1.3322. USD/JPY eased to 103.73. NZD/USD rose to 0.6953. This morning, official data showed that New Zealand's 3Q retail sales rose 28.0% on quarter (+19.0% expected).

Spot gold edged up to $1,873 an ounce.


#UK - IRELAND#
Aviva, an insurance company, said it has agreed to sell its entire 80% shareholding in the Italian life insurance joint venture, Aviva Vita, to its partner UBI Banca for 400 million euros.

From a technical point of view, the stock has crossed above the key overlap area around 307p. As long as 250p is support, look towards 335p and 372p in extension.


Source: TradingView, GAIN Capital


#GERMANY#
BMW, an automobile group, was downgraded to "equalweight" from "overweight" at Morgan Stanley.


#FRANCE#
Credit Agricole, a banking group, said it has launched a voluntary public tender offer of 10.50 euros per share in cash for Italian bank Credito Valtellinese, corresponding to a total investment of 737 million euros.

Danone, a food company, announced plans to deliver 1 billion euros cost savings by 2023 and to cut 1,500 to 2,000 jobs in local and global headquarters. At the same time, the company confirmed its 2020 guidance of full-year 14% recurring operating margin and the delivery of 1.8 billion euros free cash flow.


#SPAIN#
Telefonica's, a Spanish telecommunications company, credit rating was downgraded to "BBB-" from "BBB" at S&P Global Ratings, outlook "Stable". The rating agency said: "We now expect Telefonica's metrics will deteriorate this year, due to lower revenue and earnings, driven by weaker year-on-year service revenue as a consequence of the pandemic and adverse currency movements affecting contributions from the Latin American business."


#BENELUX#
Prosus, an investment group, announced that 1H core EPS rose 27.6% on year to 1.34 dollars while operating loss narrowed to 207 million dollars from 252 million dollars in the prior-year quarter. Revenue was up 53.3% on year to 2.17 billion dollars.


#ITALY#
UniCredit, an Italian banking group, and the Italian government are in talks regarding a takeover of Monte Paschi, where the government might inject 2.5 billion euros into Monte Paschi to make the deal viable for UniCredit, reported Bloomberg citing people familiar with the matter.


#SWITZERLAND#
Swiss Re, an insurance group, was upgraded to "buy" from "neutral" at Citigroup.


EX-DIVIDEND
Cellnex Telecom: E0.03588

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