07 10 EU PRE OPEN

INDICES
Yesterday, European stocks were slightly up. The Stoxx Europe 600 Index closed flat+, Germany's DAX 30 gained 0.61%, France's CAC 40 added 0.48% and the U.K.'s FTSE 100 was up 0.12%.

EUROPE ADVANCE/DECLINE
56% of STOXX 600 constituents traded higher yesterday.
67% of the shares trade above their 20D MA vs 61% Monday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 58% Monday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.06pt to 25.21, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Media
3mths relative low: Energy

Europe Best 3 sectors
3mths relative high: Media, Industrial
3mths relative low: none


INTEREST RATE
The 10yr Bund yield rose 3bps to -0.51% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -19bps (above its 20D MA).


ECONOMIC DATA
GE 07:00: Aug Industrial Production MoM, exp.: 1.2%
FR 07:45: Aug Current Account, exp.: E-6.2B
FR 07:45: Aug Balance of Trade, exp.: E-6.99B
UK 08:30: Sep Halifax House Price Idx MoM, exp.: 1.6%
UK 08:30: Sep Halifax House Price Idx YoY, exp.: 5.2%
EC 09:00: ECB Non-Monetary Policy Meeting
UK 09:30: Q2 Labour Productivity QoQ final, exp.: -1.3%
GE 10:40: 10-Year Bund auction, exp.: -0.5%
EC 13:10: ECB President Lagarde speech


MORNING TRADING
In Asian trading hours, EUR/USD slipped to 1.1730 while GBP/USD remained subdued at 1.2885 USD/JPY was little changed at 105.67.

Spot gold rebounded slightly to $1,881 an ounce.


#UK - IRELAND#
TUI, a travel and tourism company, announced that Sebastian Ebel, currently an executive board member, will succeed Brigit Conix as CFO with effect from January 1, 2021.

BHP Group, a giant metal group, is in talks with Tesla over a nickel supply deal, reported Bloomberg citing people familiar with the matter.

Glencore, a commodity trading and mining company, was upgraded to "neutral" from "underweight" at JPMorgan.


#GERMANY#
Continental, an automotive parts manufacturer, may sell some of its divisions as part of a restructuring plan, according to newspaper Frankfurter Allgemeine Zeitung.
From a weekly point of view, the stock has broken above a declining trend line drawn since January 2018. In addition, the share is trading above its one-year exponential moving average, while the Relative Strength Index crossed a strong resistance at 56.2%. Above the support at 79E, targets are set at the horizontal resistance at 115.6E and 133.1E in extension.

Source: TradingView, GAIN Capital

Hapag-Lloyd, a shipping and container transportation company, was upgraded to "buy" from "hold" at Deutsche Bank.


#SPAIN#
Amadeus, a Spanish IT service provider, was downgraded to "reduce" from "buy" at HSBC.


#ITALY#
Telecom Italia's, a telecommunications group, "BB+" credit rating outlook was revised to "Negative" from "Stable" by S&P Global Ratings. The rating agency said: "We expect lower revenue and earnings at Telecom Italia (TIM) will cause S&P Global Ratings-adjusted leverage to rise to 4.2x in 2020, outside our trigger for the rating."


#SWITZERLAND#
Sika, a specialty chemical company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.