EUROPEAN MARKET OUTLOOK: the risk remains to the downside
21/03/2016
EUROPEAN MARKETS NEWS REPORT 22 March 2016
22/03/2016
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EUROPEAN MARKETS NEWS REPORT 21 March 2016

EUROPE ADVANCE/DECLINE

63% of STOXX 600 constituents traded higher Friday.

76% of the shares trade above their 20D MA vs 74% Thursday (below the 20D moving average).

44% of the shares trade above their 200D MA vs 41% Thursday (above the 20D moving average).

 

The Euro Stoxx 50 Volatility index eased 2.1pts to 20.66. The DAX Volatility Index closed at a new 3mths low at 19.62.

 

 

INTEREST RATE

The 10yr Bund yield fell 8bps to 0.23% (above its 20D MA). The 2yr-10yr spread rose 1bp to -69bps (above its 20D MA).

 

SECTORS vs STOXX 600

3mths relative high: Industrial

3mths relative low: Healthcare

 

 

ECONOMIC DATA

UK : Mar Rightmove House Prices MoM

EC 10:00: Jan ECB Current Account SA

EC 10:00: Jan Current Account NSA

UK 12:00: Mar CBI Trends Total Orders

UK 12:00: Mar CBI Trends Selling Prices

 

 

UK – IRELAND

U.K. house prices rose 1.3% MoM (vs +2.9% in February) and 7.6% YoY (vs +7.3% in February) in March, according to Rightmove Plc.

 

Sainsbury: South Africa’s Steinhoff International announced its withdrawal from the bidding for Home Retail.

 

Smiths Group is negotiating the acquisition of Safran’s security-scanner unit for appx. £470M, reported the Sunday Times.

 

Industrial Goods & Services: Weir Group (+3.6% to 1121p), Smiths Group (+2.79% to 1106p) and Aggreko (+2.72% to 1096p) closed at a 3-month relative high against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: IAG (+2.54% to 565p), Standard Chartered (+7.59% to 493.9p)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Halma (-4.15% to 854.5p).

 

Stock(s) 50D MA cross over: AA Limited (+2.99% to 279p), Balfour Beatty (+1.9% to 247.1p), Britvic (+1.97% to 700.5p), Greene King (+1.93% to 873.5p), Whitbread (+2.94% to 3926p)

 

Stock(s) 50D MA cross under: BAE Systems (-1.76% to 497.1p), Barratt Developments (-1.81% to 571p).

 

 

GERMANY – AUSTRIA

ECB: Publication of Economic Bulletin pre-release (Issue 02/2016): Public investment in Europe (10:00 CET)

 

BASF: New York-listed Monsanto Co has approached the Co for buying its crop-science business and forming a partnership, reported Bloomberg citing sources familiar with the matter.

 

Industrial Goods & Services: KION Group (+4.35% to E49.37) reached a new 3-month relative high against the STOXX Europe 600.

 

Personal & Household Goods: Steinhoff International (+3.51% to E5.6) closed at a 3-month relative high against the STOXX Europe 600.

 

Technology: Dialog Semiconductor (+4.11% to E34.05) closed at a 3-month relative high against the STOXX Europe 600.

 

DE – Stock(s) 50D MA cross under: ProSiebenSat 1 Media (-3.07% to E45.01).

 

 

FRANCE

Casino: S&P downgraded the Co’s rating to “BB+” from “BBB-“, outlook “stable”. The rating firm pointed out: “The downgrade primarily reflects Casino’s significantly weaker-than-expected earnings in 2015 (with reported EBITDA and trading profit down by 26% and 35%, respectively) and our expectation that its profitability will remain under pressure during at least 2016, primarily due to the very weak macroeconomic conditions in Brazil and expected continued competitive pressures in the French food retail sector.” In response to S&P’s downgrading, the Co said: “The Group confirms its France EBITDA guidance of E900M in 2016 and the continuous fast implementation of its delevaraging plan. The completion of the disposal of the Group’s participation in Big C Thailand for E3.1B is imminent. Furthermore, the disposal process of its activities in Vietnam is progressing well.”

 

AXA announced that Henri de Castries will retire as chairman & CEO in September, adding that Thomas Buberl will succeed him as CEO and Denis Duverne as non-executive chairman.

 

Carrefour has nominated Brazilian billionaire Abilio Diniz to its board, announced Diniz’s investment company Península Participacoes.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Alstom (+3.88% to E23.7), AtoS (+2.36% to E70.76), Wendel (+2.06% to E92.3), L’Oréal (+2.32% to E159.05), Zodiac Aerospace (+5.63% to E18.85).

 

Stock(s) 50D MA cross over: Alstom (+3.88% to E23.7), Zodiac Aerospace (+5.63% to E18.85).

 

 

SPAIN – PORTUGAL – GREECE

Portugal: S&P affirmed the country’s rating at “BB+”, outlook “stable”.

 

Gas Natural said it will now pay a dividend of E1.00 per share, up 10.1% YoY.

 

Construction & Materials: ACS (+2.91% to E26.55) closed at a 3-month relative high against the STOXX Europe 600.

 

Banks: Alpha Bank AE (-5.46% to E1.73) closed at a 3-month relative low against the STOXX Europe 600.

 

ES – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Bolsas Y Mercados Espanoles (+2.72% to E29.07), CaixaBank (+2.27% to E2.8)

 

GR – Stock/STOXX Europe 600 ratio(s) 50D MA cross under: OPAP (-5.08% to E6.17).

 

GR – Stock(s) 50D MA cross under: OPAP (-5.08% to E6.17).

 

 

BENELUX

EC: Governing Council meeting of the ECB; European Commission and Russian Government executive-to-executive meeting

 

Groupe Bruxelles Lambert announced that FY15 net income rose 17.3% YoY to E1.03B, citing the exceptional net gain of E442M generated by the LafargeHolcim merger. FY15 cash earnings were up 1.9% to E462M. The Co proposed raising dividend by 2.5% to E2.86 per share.

 

Relx reported that it had bought back 176K shares at E15.3375 per share last Friday (March 18).

 

Industrial Goods & Services: bpost (+2.13% to E24.91) reached a new 3-month relative high against the STOXX Europe 600.

 

BE – Stock(s) 50D MA cross over: AB InBev (+2.78% to E107.15).

 

 

ITALY

Telecom Italia CEO Marco Patuano will submit his resignation, reported Dow Jones citing a source familiar with the situation.

 

Terna, Enel Green Power: FY results expected.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: UniCredit (-1.76% to E3.68).

 

Stock(s) 50D MA cross over: Banca Popolare di Sondrio (+1.93% to E3.38).

 

 

SWITZERLAND

Technology: AMS AG (+2.05% to SF32.3) reached a new 3-month relative high against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Givaudan (-2.93% to SF1858), Sika (-2.95% to SF3681).

 

Stock(s) 50D MA cross under: Geberit (-1.79% to SF351.8).

 

 

SCANDINAVIA – DENMARK

Denmark: S&P affirmed the country’s rating at “AAA”, outlook “stable”.

 

Swedbank announced that Goran Bronner will step down as CFO and be replaced by Anders Karlsson, currently the Bank’s chief risk officer.

 

Industrial Goods & Services: Sandvik (+1.75% to SEK84.1) closed at a 3-month relative high against the STOXX Europe 600.

 

SE – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Kinnevik Investment (+2.4% to SEK226.3).

 

 

EX-DIVIDEND

Bankinter: E0.045757, BB Biotech: SF2.25, Givaudan: SF10.5, Novo Nordisk: DKK6.4, STMicroelectronics (STM): $0.1, Total: E0.61

 

 

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