09 10 EU PRE OPEN

INDICES
Yesterday, European stocks were broadly higher. The Stoxx Europe 600 Index increased 0.78%, Germany's DAX 30 rose 0.88%, France's CAC 40 gained 0.61% and the U.K.'s FTSE 100 was up 0.53%.

EUROPE ADVANCE/DECLINE
69% of STOXX 600 constituents traded higher yesterday.
68% of the shares trade above their 20D MA vs 63% Wednesday (above the 20D moving average).
61% of the shares trade above their 200D MA vs 58% Wednesday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 0.99pt to 23.98, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Construction, Travel & Leisure
3mths relative low: none

Europe Best 3 sectors
energy, technology, banks

Europe worst 3 sectors
basic resources, automobiles & parts, personal & household goods


INTEREST RATE
The 10yr Bund yield rose 1bp to -0.49% (above its 20D MA). The 2yr-10yr yield spread rose 1bp to -19bps (above its 20D MA).


ECONOMIC DATA
UK 07:00: Aug GDP YoY, exp.: -11.7%
UK 07:00: Aug Goods Trade Balance, exp.: £-8.63B
UK 07:00: Aug GDP 3-Mth Avg, exp.: -7.6%
UK 07:00: Aug GDP MoM, exp.: 6.6%
UK 07:00: Aug Construction Output YoY, exp.: -12.8%
UK 07:00: Aug Industrial Production YoY, exp.: -7.8%
UK 07:00: Aug Industrial Production MoM, exp.: 5.2%
UK 07:00: Aug Manufacturing Production YoY, exp.: -9.4%
UK 07:00: Aug Manufacturing Production MoM, exp.: 6.3%
UK 07:00: Aug Balance of Trade, exp.: £1.1B
FR 07:45: Aug Industrial Production MoM, exp.: 3.8%
UK 14:00: Q3 NIESR Monthly GDP Tracker, exp.: 7%


MORNING TRADING
In Asian trading hours, EUR/USD climbed to 1.1779 and GBP/USD advanced to 1.2957. USD/JPY fell to 105.86. This morning, government data showed that Japan's household spending dropped 6.9% on year in August (-6.7% expected). AUD/USD rose to 0.7186. Earlier today, China's Caxin Services PMI rose to 54.8 in September (54.3 expected) from 54.0 in August.

Spot gold jumped to $1,910 an ounce.


#UK - IRELAND#
London Stock Exchange, a stock market operator, confirmed it has agreed to sell its entire shareholding in London Stock Exchange Group Holdings Italia, the parent company of Borsa Italiana, to Euronext for an equity value of 4.325 billion euros.

Standard Life Aberdeen, a global investment company, was upgraded to "equalweight" from "underweight" at Morgan Stanley.


#GERMANY#
Zalando, an e-commerce company, lifted its full-year outlook after posting preliminary 3Q results, saying: "The company now expects gross merchandise volume (GMV) to grow 25-27%, revenues to grow 20-22% and an adjusted EBIT of 375-425 million euros for the financial year 2020. In its outlook published on July 15, 2020, Zalando previously assumed GMV growth of 20-25%, revenue growth of 15-20% and adjusted EBIT of 250-300 million euros for the full year. According to preliminary figures for the third quarter of 2020, Zalando increased its gross merchandise volume (GMV) by 28-31% to 2.43-2.48 billion euros (Q3 2019: 1.89 billion euros) and revenues by 20-23% to 1.83-1.87 billion euros (Q3 2019: 1.52 billion). The adjusted EBIT in the same period is expected between 100-130 million euros (Q3 2019: 6.3 million)."
From a chartist point of view, the stock is supported by a rising trend line drawn since March. Furthermore, the 50 exponential moving average (73.76E) is playing a support role, while the Relative Strength Index is trading above of the key support at 54%. Above 73.76E, targets are set at 90E and 96.1E in extension.


Source: TradingView, GAIN Capital


#FRANCE#
Euronext, a stock exchange operator, has agreed to acquire Borsa Italiana from London Stock Exchange for an equity value of 4.325 billion euros, according to a statement from London Stock Exchange.

L'Oreal, a personal care company, is considering closing some retail stores of its U.S. luxury division as part of a restructuring plan, according to Bloomberg.


#SPAIN#
Telefonica, a Spanish telecommunications group, is planning to invest 5 billion euros in building high-speed networks in Germany and to create a wholesale broadband operator in the country, reported Bloomberg citing people familiar with the matter.


#ITALY#
Davide Campari-Milano, a branded beverage company, was upgraded to "equalweight" from "underweight" at Morgan Stanley.


#DENMARK#
Novo Nordisk, a Danish pharmaceutical group, raised its full-year net sales growth guidance to 5% - 8% from 3% - 6% previously and operating profit growth forecast was lifted to 5% - 8% from 2% - 5%, all at constant exchange rate. The company reported that both 3Q net sales and operating profit increased 7% on year at constant exchange rate, "reflects lower than anticipated negative impacts from COVID-19 as well as underlying market demand".