25 09 EU PRE OPEN

INDICES
Yesterday, European stocks had a down trading day. The Stoxx Europe 600 Index lost 1.02%, Germany's DAX 30 fell 0.29%, the U.K.'s FTSE 100 shed 1.30%, and France's CAC 40 was down 0.83%.

EUROPE ADVANCE/DECLINE
75% of STOXX 600 constituents traded lower or unchanged yesterday.
29% of the shares trade above their 20D MA vs 34% Wednesday (below the 20D moving average).
50% of the shares trade above their 200D MA vs 53% Wednesday (below the 20D moving average).

The Euro Stoxx 50 Volatility index added 1.18pt to 28.34, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Pers. & House. Goods
3mths relative low: Telecom., Energy

Europe Best 3 sectors
energy, automobiles & parts, technology

Europe worst 3 sectors
insurance, travel & leisure, basic resources


INTEREST RATE
The 10yr Bund yield was unchanged to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -20bps (above its 20D MA).


ECONOMIC DATA
UK 07:00: Aug Public Sector Net Borrowing, exp.: £-25.9B
EC 09:00: Aug M3 Money Supply YoY, exp.: 10.2%
EC 09:00: Aug Loans to Households YoY, exp.: 3%
EC 09:00: Aug Loans to Companies YoY, exp.: 7%
UK 09:00: Aug Car Production YoY, exp.: -20.8%
FR 11:00: Aug Jobseekers Total, exp.: 3792.5K
FR 11:00: Aug Unemployment Benefit Claims, exp.: -172.2K


MORNING TRADING
In Asian trading hours, EUR/USD retreated to 1.1667 and GBP/USD edged down to 1.2755. USD/JPY held gains at 105.47.

Spot gold was steady at $1,868 an ounce.

#UK - IRELAND#
Pennon, a water utility and waste management company, posted a 1H trading statement: "Pennon is on track to deliver resilient financial results in line with management expectations. (...) The impact of COVID-19 to date is broadly in line with our initial assumptions for a net revenue impact in 2020/21 of £10 million."

Boohoo, an online fashion retailer, published an  independent review: "Ms Levitt's Independent Review has identified many failings in the Leicester supply chain and recommended improvements to boohoo's related corporate governance, compliance and monitoring processes. (...) We are confident that we can successfully embed all of the Independent Review's recommendations into our business model, without impacting lead times or financial expectations."

Wizz Air, a low-cost airline company, released an operational update: "In October, Wizz Air now expects to operate 50% of capacity compared to last year. Furthermore, should the level of restrictions remain at the current level, Wizz Air anticipates not to operate at a higher level of capacity during winter than its projection for October."

Shaftesbury, a real estate investment trust, issued a trading update for the period from April 1 to September 24: "41% of rents due for the six months to 30 September 2020 collected, 10% are expected to be subject to deferred collection arrangements, 23% are being waived and 26% remain outstanding at 11 September 2020. (...) EPRA vacancy at 31 August 2020: 9.7% of ERV (31.3.2020: 4.8%). (...) In view of current conditions and uncertain near-term outlook, the Board has decided not to declare a final dividend in respect of the year ending 30 September 2020, but intends to resume dividend payments as soon as it considers prudent."
From a daily point of view, the stock has broken below the lower end of a symmetrical triangle drawn since August. Moreover, the RSI is capped by a bearish trend line. Below the upper end of the triangle at 565p look for 400p and 340p in extension.


Source: GAIN Capital, TradingView

#FRANCE#
Air Liquide, an industrial gases supplier, announced that it has acquired an 80% stake in French company Cryoconcept, which specialises in dilution refrigeration. Financial terms were not disclosed.


#ITALY#
Generali, an insurance company, may bid for British insurer Aviva's French business which could be valued at 2 to 3 billion euros, reported Reuters citing people familiar with the matter.


#SWITZERLAND#
Julius Baer, a Swiss private bank, said the Swiss Federal Supreme Court has ruled that the company has to pay 150 million Swiss francs to German government agency BvS to settle a suit related to alleged unauthorized withdrawals in East Germany in the early 1990s, and the amount is fully covered by a provision it booked in December 2019.


EX-DIVIDEND
Total: E0.66