EUROPEAN MARKET OUTLOOK: Losing downward momentum
30/03/2016
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EUROPEAN MARKETS NEWS REPORT 07 April 2016

EUROPE ADVANCE/DECLINE

74% of STOXX 600 constituents traded higher yesterday.

44% of the shares trade above their 20D MA vs 35% Tuesday (below the 20D moving average).

41% of the shares trade above their 200D MA vs 40% Tuesday (below the 20D moving average).

 

The Euro Stoxx 50 Volatility index eased 1.45pt to 25.17.

 

INTEREST RATE

The 10yr Bund yield fell 3bps to 0.1% (below its 20D MA). The 2yr-10yr spread fell 2bps to -61bps (above its 20D MA).

 

SECTORS vs STOXX 600

3mths relative high: none

3mths relative low: Banks

 

ECONOMIC DATA

FR 08:45: Feb Trade Balance, exp.: -3700M FR 08:45: Feb Current Account Balance UK 09:30: Mar Halifax House Prices MoM, exp.: 0.9% UK 09:30: Mar Halifax House Price 3Mths/Year, exp.: 9.5% EC 13:30: ECB Account of March Monetary Policy Meeting

 

 

UK – IRELAND

Barclays: Singapore’s Oversea-Chinese Banking Corp announced the acquisition of Bank’s wealth and investment management operations in Singapore and Hong Kong for $320M in cash.

 

Marks & Spencer, Victrex: Trading update expected.

 

Health Care, retail and construction & materials shares gained most in London on Wednesday.

 

Industrial Goods & Services: Royal Mail (+1.73% to 477p), Halma (+1.49% to 918.5p) and Experian (+1.28% to 1266p) closed at a 3-month relative high against the STOXX Europe 600.

 

Media: Informa (+1.36% to 709.5p) and Rightmove (+1.26% to 4189p) closed at a 3-month relative high against the STOXX Europe 600.

 

Personal & Household Goods: Unilever (+1.66% to 3242p) closed at a 3-month relative high against the STOXX Europe 600.

 

Technology: Sage Group (+1.28% to 631.5p) closed at a 3-month relative high against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Moneysupermarket.com Group (+3.02% to 328p), United Utilities (+2.54% to 929.5p)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Easyjet (-3.02% to 1476p).

 

Stock(s) 50D MA cross over: Greene King (+1.57% to 874.5p), United Utilities (+2.54% to 929.5p)

 

Stock(s) 50D MA cross under: IAG (-2.55% to 535p), Rotork Plc (-4.27% to 165.7p).

 

Sainsbury was upgraded to “outperform” from “underperform” at Credit Suisse.

 

Glencore and Antofagasta were downgraded to “neutral” from “overweight”, and Kaz Minerals to “underweight” from “neutral” at JPMorgan.

 

Lonmin was downgraded to “reduce” from “hold” at HSBC.

 

 

GERMANY – AUSTRIA

ECB: Publication of the ECB’s Annual Report 2015 (09:00 CET).

 

ECB: Publication of the Euro area quarterly balance of payments and international investment position (10:00 CET).

 

ECB: Publication of the accounts of the monetary policy meeting of the Governing Council held on 10 March 2016 (13:30 CET).

 

ECB: Publication of Short Term European Papers monthly outstanding amount (14:00 CET).

 

Conference: 10th International Congress on Autoimmunity

 

Volkswagen, Daimler, BMW, Porsche: Only Volkswagen has cheated emissions tests, reported German daily Handelsblatt citing a report by the German government’s transport agency.

 

Wirecard FY results expected

 

Personal & Household Goods: Adidas (+1.31% to E104.1) closed at a 3-month relative high against the STOXX Europe 600.

 

DE – Stock(s) 50D MA cross over: United Internet (+1.44% to E44.4).

 

 

FRANCE

Renault reported that the French government has raised its holding in the Co to 26.05% of voting rights, adding that the government has no plans to further increase its holding.

 

Vinci said its joint venture unit has secured a E496M contract from SNCF Reseau to build a train station at La Defense in Paris’ western region. In other news, the Co’s team with Japan’s Orix Corp is among a shortlist of auction bidders for the rights to manage five toll roads in Aichi prefecture in central Japan, reported Reuters citing sources with knowledge of the matter.

 

AXA announced the appointment of Alexander Vollert, currently an Allianz executive in charge of P&C operations in Germany, as CEO of AXA Germany.

 

Fleury Michon reported that FY15 net income declined to E17M from E18M a year earlier on revenue of E758M, up 7.1%. The Co proposed a dividend of E1.20 per share. It added that 1Q revenue was up 1.4% to E185M.

 

Industrial Goods & Services: Bureau Veritas (+1.53% to E19.95) reached a new 3-month relative high against the STOXX Europe 600.

 

Technology: Dassault Systemes (+1.31% to E71.29) reached a new 3-month relative high against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Accor (-1.81% to E35.74), Air France-KLM (-3.23% to E7.9).

 

Stock(s) 50D MA cross over: L’OrĂ©al (+1.26% to E156.15)

 

Stock(s) 50D MA cross under: Accor (-1.81% to E35.74), Air France-KLM (-3.23% to E7.9).

 

 

SPAIN – PORTUGAL – GREECE

Industrial Goods & Services: Aena (+2.14% to E116.85) and Abertis Infraestructuras (+1.79% to E14.53) closed at a 3-month relative high against the STOXX Europe 600.

 

ES – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Bolsas Y Mercados Espanoles (+2.19% to E27.75)

 

PT – Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Electricidade De Portugal (-1.37% to E2.94).

 

ES – Stock(s) 50D MA cross under: Zardoya Otis (-2.76% to E9.52)

 

PT – Stock(s) 50D MA cross under: Electricidade De Portugal (-1.37% to E2.94)

 

GR – Stock(s) 50D MA cross under: OPAP (-4.03% to E6.19).

 

 

BENELUX

EC: European Parliament Committee Meetings

 

EC: 2nd meeting of the European Migration Forum

 

EC: 30 years since Chernobyl – Witnesses of the past & nuclear power today

 

Dutch voters in a referendum said “No” to the European Union’s association treaty with Ukraine.

 

 

ITALY

Fiat Chrysler Automobiles announced plans to reduce appx. 1,300 workers at its plant in Sterling Heights, the U.S. state of Michigan.

 

Telecom Italia may cut appx. 15,000 jobs in Italy, about 30% of the Co’s workforce in the country, in response to Enel’s plan for a fiber-optic broadband network, reported Bloomberg citing sources familiar with the matter.

 

Banks: Unione di Banche Italiane (-1.25% to E3), Banca Popolare Di Milano (-1.39% to E0.53), Banca Popolare di Sondrio (-2.75% to E2.9) and Banco Popolare SC (-3.38% to E4.74) reached a new 3-month relative low against the STOXX Europe 600.

 

Stock(s) 50D MA cross over: Exor (+2.4% to E29.86).

 

 

SWITZERLAND

Lindt & Spruengli announced that Daniel Studer, currently U.S. sales chief of the Co, will replace Thomas Linemayr as U.S. operations chief.

 

Financial Services: GAM Holding (-3.4% to SF12.8) closed at a 3-month relative low against the STOXX Europe 600.

 

Industrial Goods & Services: Georg Fischer (+2.02% to SF781) and SGS (+1.8% to SF2091) closed at a 3-month relative high against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Barry Callebaut (+8.28% to SF1111).

 

Stock(s) 50D MA cross over: Barry Callebaut (+8.28% to SF1111).

 

 

SCANDINAVIA – DENMARK

Christian Hansen: 2Q results expected.

 

Utilities: Fortum (-3.69% to E11.21) closed at a 3-month relative low against the STOXX Europe 600.

 

Food & Beverage: Marine Harvest (+1.21% to NOK133.3) reached a new 3-month relative high against the STOXX Europe 600.

 

Technology: Hexagon (+3.12% to SEK320.6) closed at a 3-month relative high against the STOXX Europe 600.

 

FI – Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Fortum (-3.69% to E11.21), UPM-Kymmene (-3% to E15.22)

 

SE – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Unibet Group (+1.94% to SEK92.15).

 

FI – Stock(s) 50D MA cross under: Stora Enso (-1.64% to E7.51), UPM-Kymmene (-3% to E15.22)

 

SE – Stock(s) 50D MA cross over: Investor (+1.35% to SEK285.2), Unibet Group (+1.94% to SEK92.15).

 

 

EX-DIVIDEND

Aviva:14.05p, BBA Aviation (BBA): $0.0868, Berendsen:21.5p, Daimler: E3.25, Electrolux: SEK6.5, GKN:5.8p, Hikma Pharmaceuticals (HIK): $0.21, Husqvarna AB: SEK0.55, Imi Plc:24.5p, John Wood Group (WG/): $0.205, Lloyds Banking Group:0.5p, Melrose:2.6p, OC Oerlikon: SF0.3, Pearson:34p, Phoenix Group:26.7p, Rentokil Initial:2.06p, Rexam:11.9p, Rotork Plc:3.1p, Skanska: SEK7.5, St James’s Place Capital:17.24p, Taylor Wimpey:1.18p, Ultra Electronics Holdings:32.3p, Volvo: SEK3

 

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