19 10 EU PRE OPEN

Article By: ,  Financial Analyst

EU indices slightly up | TA focus on Julius Baer

INDICES
Friday, European stocks were still in positive territory. The Stoxx Europe 600 Index rebounded 1.26%, Germany's DAX 30 rose 1.62%, France's CAC 40 jumped 2.03%, and the U.K.'s FTSE 100 was up 1.49%.

EUROPE ADVANCE/DECLINE
76% of STOXX 600 constituents traded higher Friday.
63% of the shares trade above their 20D MA vs 53% Thursday (above the 20D moving average).
60% of the shares trade above their 200D MA vs 58% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index eased 1.53pt to 25.32, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Pers. & House. Goods, Media, Industrial
3mths relative low: Insurance

Europe Best 3 sectors
automobiles & parts, personal & household goods, banks

Europe worst 3 sectors
real estate, telecommunications, travel & leisure


INTEREST RATE
The 10yr Bund yield fell 3bps to -0.61% (below its 20D MA). The 2yr-10yr yield spread rose 0bp to -15bps (above its 20D MA), a new 3mths high.


ECONOMIC DATA
EC 10:00: Aug Construction Output YoY, exp.: -3.8%
FR 14:00: 12-Mth BTF auction, exp.: -0.63%
FR 14:00: 6-Mth BTF auction, exp.: -0.64%
FR 14:00: 3-Mth BTF auction, exp.: -0.66%


MORNING TRADING
On Sunday, House Speaker Nancy Pelosi called on the government to reconcile remaining disputes on stimulus legislation within 48 hours in an attempt to pass a bill before the 2020 election. Comments by Pelosi helped in raising market optimism about progress on an agreed deal between the government and Congress. U.S. stock index futures jumped in early Asian trading hours on Monday. During Asian sessions, EUR/USD was little changed at 1.1715 while GBP/USD advanced to 1.2937. USD/JPY was broadly flat at 105.37. This morning, official data showed that Japan's exports fell 4.9% on year in September (-2.4% expected) and imports declined 17.2% (-21.4% on year expected). AUD/USD marked a day-high near 0.7108 before easing back to 0.7095. Earlier today, government data showed that China's 3Q GDP grew 4.9% on year (+5.5% expected), while industrial production rose 6.9% in September (+5.8% expected) and retail sales increased 3.3% (+1.7% expected).

Spot gold edged up to $1,901 an ounce.


#UK - IRELAND#
AstraZeneca, a pharmaceutical group, said its Trixeo Aerosphere has been recommended for approval in the European Union by the Committee for Medicinal Products for Human Use (CHMP) for the maintenance treatment of chronic obstructive pulmonary disease. At the same time, its Forxiga has also been recommended for approval by CHMP in the region for the treatment of symptomatic chronic heart failure.


#GERMANY#
Volkswagen's, an automobile group, Traton announced that it has agreed to acquire the remaining stake in American trucks and diesel engines company Navistar for 44.50 dollars per share, representing about 3.7 billion dollars.


#BENELUX#
Philips, a Dutch multinational conglomerate, announced that 3Q net income jumped 63% on year to 340 million euros and EBITA grew 32% to 769 million euros on revenue of 4.98 billion euros, up 6% (+10% on a comparable basis). The company said it targets an acceleration of the average annual comparable sales growth to 5-6% for the 2021-2025 period, but expects a low-single-digit growth for 2021.


#SWITZERLAND#
Julius Baer, a Swiss private bank, said assets under management rose 3% on quarter (-3% on year) to 413 billion Swiss franc in 3Q and annualized growth of net new money inflows was close to 4% in the 9-month period, compared with 2.3% in 1H and 2.8% for full-year 2019.
From a weekly point of view, the consolidation channel's upward breakout would call for a new measured move up to 50CHF at least (horizontal resistance from April 2019) and 56.5CHF in extension (neckline of a 2017/2018 head-and-shoulders pattern and upper end of a bearish gap set on 2018, July 23rd).

Source: TradingView, GAIN Capital

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