EUROPEAN MARKET OUTLOOK: Further advance is expected on equity indices
15/03/2016
Technical Analysis Newsletter Tuesday, March 15, 2016
15/03/2016
Show all

EUROPEAN MARKETS NEWS REPORT 15 March 2016

EUROPE ADVANCE/DECLINE

80% of STOXX 600 constituents traded higher yesterday.

83% of the shares trade above their 20D MA vs 79% Friday (above the 20D moving average).

41% of the shares trade above their 200D MA vs 37% Friday (above the 20D moving average).

 

The Euro Stoxx 50 Volatility index eased 1.15pt to 22.96.

 

INTEREST RATE

The 10yr Bund yield fell 4bps to 0.27% (above its 20D MA). The 2yr-10yr spread fell 0bp to -74bps (below its 20D MA).

 

SECTORS vs STOXX 600

3mths relative high: none

3mths relative low: Travel & Leisure

 

ECONOMIC DATA

FR 08:45: Feb F CPI EU Harmonized MoM, exp.: 0.3% FR 08:45: Feb F CPI MoM, exp.: 0.2% FR 08:45: Feb CPI Ex-Tobacco Idx, exp.: 99.28 EC 11:00: 4Q Employment QoQ

 

 

UK – IRELAND

International Consolidated Airlines: Iberia Airline can reduce a further 462 jobs under the current voluntary job-cut program, according to the airline’s chairman cited by Reuters.

 

Legal & General, Inchcape, Antofagasta, Balfour Beatty, EVRAZ, Cairn Energy, Gem Diamonds, Stadium Group: FY results expected.

 

Sainsbury: 4Q sales expected.

 

Financial Services: Provident Financial (-3.04% to 3000p) closed at a 3-month relative low against the STOXX Europe 600.

 

Industrial Goods & Services: Smiths Group (+2.08% to 1079p) and DS Smith (+1.94% to 410.8p) reached a new 3-month relative high against the STOXX Europe 600.

 

Travel & Leisure: Stagecoach Group (-5.41% to 258.6p) reached a new 3-month relative low against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Intermediate Capital Group (+2.07% to 591.5p), Standard Chartered (+3.37% to 483.55p).

 

Stock(s) 50D MA cross over: Carnival (+1.96% to 3477p), Persimmon (+2.21% to 2034p), Whitbread (+3.56% to 3932p)

 

Stock(s) 50D MA cross under: Provident Financial (-3.04% to 3000p), Stagecoach Group (-5.41% to 258.6p).

 

Weir Group and Royal Bank of Scotland were added to “conviction buy list” at Goldman Sachs.

 

 

GERMANY – AUSTRIA

ECB: Publication of the Consolidated Financial Statement of the Eurosystem, 15:00 CET

 

Volkswagen: A group of 278 global institutional investors has filed a lawsuit against the Co in Germany’s Braunschweig Regional Court claiming E3.3B in damages in relation to the Co’s diesel-engine scandal, reported Bloomberg.

 

Porsche Automobil, Sixt SE: FY results expected.

 

MobileTech Conference.

 

Construction & Materials: HeidelbergCement (+2.63% to E72.64) reached a new 3-month relative high against the STOXX Europe 600.

 

Industrial Goods & Services: Bilfinger Berger (+4.23% to E43.86) reached a new 3-month relative high against the STOXX Europe 600.

 

DE – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Duerr (+4.26% to E63.21), Fraport (+2.66% to E56.27), K+S (+2.86% to E20.86), Axel Springer (+2.26% to E48.12).

 

DE – Stock(s) 50D MA cross over: Bayer (+2.34% to E100.25).

 

 

FRANCE

Numericable-SFR swung to a FY15 net income of E682M from a net loss of E188M in the previous year, with adjusted EBITDA surging to E3.86B from E708M on revenue of E11.04B vs E2.17B in the prior year.

 

Aeroports de Paris reported that the number of passengers it served in February increased 3.6% YoY to 6.6M, including 4.5M passengers travelling through Paris-Charles de Gaulle (+2.7%) and 2.1M through Paris-Orly (+5.4%). The Co added: “Since the beginning of the year, ADP passenger traffic has seen growth of 2.2%, with a total of 13.4M passengers during the first two months. (…) Passenger traffic at TAV Airports, 38%-owned by ADP, increased by 9.6% in February 2016 and has risen by 6.0% since the beginning of the year. (…) Passenger traffic at Santiago, 45%-owned by ADP, has risen by 10.0% in February 2016 and by 10.1% since the beginning of the year.”

 

Areva said it has secured 2 long-term contracts worth over $200M (appx. E184M) with U.S. utilities for the supply of used fuel storage solutions.

 

Icade announced the signing of a 12-year lease agreement with an unnamed major French firm for the entire 24,000 sq.m of offices of the Millenaire 4 building in the 19th district of Paris. Financial terms were not disclosed.

 

Fimalac reported that FY15 net income surged to E1.58B from E87M a year earlier, citing capital gains realized on the sale of a 30% stake in Fitch Group and a 7.3% stake in NextRadio TV. The Co proposed a dividend of E2.10 per share and launching a buy-back of up to 1.7M shares (6.3% of the existing share capital) at E101 per share.

 

Vicat posted FY15 net income down 5.4% YoY to E121M and EBITDA up 1.5% to E448M on sales of E2.46B, up 1.5% (-4.4% at constant scope and exchange rates). The Co proposed maintaining dividend at E1.50 per share.

 

Virbac said FY15 net income plummeted 85% YoY to E9M, citing heavy impact of the temporary interruption of operations in the St. Louis manufacturing facility in the U.S. FY15 adjusted current operating profit plunged 50% to E58M on revenue of E853M, up 10.3% (-5.4% organic decline).

 

Ubisoft Entertainment reported that it had bought back 149K shares at E26.3571 per share on average in the March 7-10 period.

 

Zodiac Aerospace: 1H sales expected.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Safran (-6.26% to E55.52).

 

Stock(s) 50D MA cross over: Seb (+2.08% to E89.13)

 

Stock(s) 50D MA cross under: Dassault Aviation (-3.51% to E1013.1), Safran (-6.26% to E55.52).

 

 

SPAIN – PORTUGAL – GREECE

National Bank of Greece reported that FY15 net loss widened to E2.62B from E255M a year earlier.

 

 

BENELUX

EC: – European Parliament Committee Meetings, 2016 Conference on big data from space (BiDS’16), General Affairs Council

 

Altice NV announced that FY15 adjusted EBITDA rose 17.6% YoY to E6.67B on revenue of E17.50B, down 0.1% (-3.2% on a constant currency basis). On the 2016 guidance the Co said: “For 2016 we expect an improving trend in Altice Group revenue on a consolidated basis (under the current Group perimeter at constant currency). We expect mid-single digit growth in Group Adjusted EBITDA and Operating Free Cash Flow growth flat to slightly down reflecting accelerated investments.”

 

Relx reported that it had bought back 178.5K shares at E15.2923 per share yesterday (March 14).

 

Ageas said it had repurchased 51K shares at E35.71 per share on average in the March 7-11 period.

 

NL – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Aalberts Industries (+2.14% to E29.78).

 

 

ITALY

Tod’s reported that FY15 net income fell 4.5% YoY to E93M and EBITDA were up 4.7% to E203M on sales of E1.04B, up 7.4% (+1.8% at constant exchange rates). The Co proposed maintaining dividend at E2.00 per share. The Co pointed out: “Sales in Italy were E322.8M, up 3.7% from FY 2014 (+11.1% in Q4 2015), with very strong results in both the distribution channels. In the rest of Europe, sales totalled E248.6M, up 12.3% from FY 2014, mainly driven by France, Germany and UK. (…) The Group’s sales in Greater China were E225.8M, broadly aligned with 2014 turnover. We are beginning to see tentative signs of improvement in mainland China; this positive trend is not yet visible in Hong Kong.”

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Finmeccanica (+2.94% to E10.85).

 

 

SWITZERLAND

Geberit reported that FY15 net income dropped 15.3% YoY to SF422M and EBITDA were down 3.9% to SF632M on sales of SF2.59B, up 24.2% (+2.7% in local currencies). The Co proposed raising dividend by 1.2% to SF8.40 per share.

 

Galenica announced the FY15 net income rose 5.8% YoY to SF301M and EBITDA were up 20.3% to SF537M. The Co proposed raising dividend to SF18.00 per share from SF15.00.

 

Swiss Prime Site said FY15 net income surged 24.5% YoY to SF356M.

 

Industrial Goods & Services: Flughafen Zuerich (+3.77% to SF894.5) closed at a 3-month relative high against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Aryzta (-11.56% to SF43.21).

 

 

SCANDINAVIA – DENMARK

Industrial Goods & Services: Metso (+2.33% to E22.85) reached a new 3-month relative high against the STOXX Europe 600.

 

FI – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Stora Enso (+5.05% to E7.91), UPM-Kymmene (+3.41% to E16.08)

 

SE – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Industrivarden (+2.48% to SEK152.8).

 

FI – Stock(s) 50D MA cross over: Amer-Yhtyma (+1.92% to E24.89), Huhtamaki (+1.99% to E31.77)

 

SE – Stock(s) 50D MA cross over: BillerudKorsnas (+2.99% to SEK138).