EUROPEAN MARKETS NEWS REPORT 23 March 2016
23/03/2016
EUROPEAN MARKET OUTLOOK: Losing downward momentum
30/03/2016
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EUROPEAN MARKETS NEWS REPORT 24 March 2016

EUROPE ADVANCE/DECLINE

47% of STOXX 600 constituents traded lower yesterday.

71% of the shares trade above their 20D MA vs 73% Tuesday (below the 20D moving average).

43% of the shares trade above their 200D MA vs 43% Tuesday (above the 20D moving average).

 

The Euro Stoxx 50 Volatility index added 0.06pt to 22.1.

 

INTEREST RATE

The 10yr Bund yield fell 2bps to 0.21% (below its 20D MA). The 2yr-10yr spread rose 1bp to -68bps (above its 20D MA).

 

SECTORS vs STOXX 600

3mths relative high: Chemicals, Construction, Industrial 3mths relative low: none

 

ECONOMIC DATA

GE 08:00: Feb Import Price Idx MoM, exp.: -0.2% GE 08:00: Apr GfK Consumer Conf., exp.: 9.5 FR 08:45: Mar Business Conf., exp.: 101 FR 08:45: Mar Manufacturing Conf., exp.: 103 FR 08:45: Mar Production Outlook Indicator FR 08:45: Mar Own-Company Production Outlook EC 10:00: ECB Economic Bulletin UK 10:30: Feb Retail Sales Ex Auto Fuel MoM, exp.: -1% UK 10:30: Feb Retail Sales Inc Auto Fuel MoM, exp.: -0.7% UK 10:30: Feb BBA Loans for House Purchase, exp.: 47900 UK 12:00: Mar CBI Retailing Reported Sales, exp.: 10 UK 12:00: Mar CBI Total Dist. Reported Sales FR 18:00: Feb Total Jobseekers, exp.: 3555.3K FR 18:00: Feb Jobseekers Net Change, exp.: 2.7

 

 

UK – IRELAND

Next: FY results expected.

 

Mitie Group: Trading update expected.

 

Industrial Goods & Services: DCC (+1.92% to 6100p) closed at a 3-month relative high against the STOXX Europe 600.

 

Media: WPP Group (+1.82% to 1624p) and Rightmove (+1.49% to 4146p) reached a new 3-month relative high against the STOXX Europe 600.

 

Travel & Leisure: William Hill (-11% to 330p) closed at a 3-month relative low against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Auto Trader (+2.52% to 386.5p), Carnival (+1.91% to 3522p)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: John Wood Group (-3.67% to 616p).

 

Stock(s) 50D MA cross over: WS Atkins (+2.7% to 1367p), Auto Trader (+2.52% to 386.5p), Berkeley Group (+2.75% to 3285p), Bellway (+1.57% to 2594p), Firstgroup (+1.57% to 94p), Sky (+2.37% to 1037p).

 

 

GERMANY – AUSTRIA

ECB: Publication of the Economic Bulletin (Issue 02/2016) (10:00 CET)

 

Volkswagen announced a worldwide recall of 177K Passat model vehicles due to electronic faults.

 

Strabag SE was upgraded to “hold” from “reduce” at HSBC.

 

Chemicals: K+S (-2.02% to E21.12) reached a new 3-month relative low against the STOXX Europe 600.

 

Industrial Goods & Services: Duerr (+1.96% to E69.55) closed at a 3-month relative high against the STOXX Europe 600.

 

DE – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Henkel (+1.72% to E97.75), Symrise (+1.83% to E59.42).

 

DE – Stock(s) 50D MA cross under: Deutsche Bank (-2.87% to E16.23)

 

AT – Stock(s) 50D MA cross under: Erste Group Bank AG (-2.47% to E24.53).

 

 

FRANCE

Total is negotiating the purchase of all or part of Engie’s exploration & production assets worth appx. E5B, reported Reuters citing sources familiar with the situation.

 

Korian reported that FY15 net income declined 4.2% YoY to 59M and EBITDA were up 8.8% to E342M on revenue of E2.58B, up 16.1%. The Co proposed maintaining dividend at E0.60 per share. On the outlook the Co said: “Korian confirms expectations of a significant increase in 2016 revenues to reach almost E3B, thanks to the integration of Casa Reha, the opening of more than 2,500 new beds and continued targeted acquisitions, (…) profitability (EBITDA to Revenue ratio) is expected to be close to 2015 levels.”

 

Imerys said it had sold a E600M bond under its Euro Medium Term Note Programme.

 

Kering: S&P affirmed the Co’s rating at “BBB”, outlook “stable”. The rating firm said: “The affirmation reflects our unchanged assessments of Kering’s strong business risk profile and intermediate financial risk profile. We consider the group’s luxury goods division to be its most solid, owing to its strong brand recognition, wide geographic coverage, and above-average profitability.”

 

Bollore: FY results expected.

 

Industrial Goods & Services: Thales (+1.67% to E76.72) closed at a 3-month relative high against the STOXX Europe 600.

 

Oil & Gas: Technip (-3.27% to E48.61) reached a new 3-month relative low against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Capgemini (+1.74% to E81.16), Pernod-Ricard (+2.41% to E104)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Alstom (-3.37% to E22.79), Natixis (-2.24% to E4.57).

 

Stock(s) 50D MA cross over: Christian Dior (+2.2% to E160.1), Ingenico (+5.13% to E99.94), Hermes (+2.78% to E320).

 

 

SPAIN – PORTUGAL – GREECE

Banks: Santander (-2.13% to E4.08) closed at a 3-month relative low against the STOXX Europe 600.

 

 

BENELUX

Boskalis Westminster said it has secured an E80M contract from KSO Ciputra Yasmin to construct artificial islands for the Centre Point of Indonesia Project located off the coast of Makassar.

 

Delta Lloyd: S&P affirmed the Co’s rating at “A-“, outlook “negative”. The rating firm said: “The affirmations reflect the approval of the E650M rights issue by the shareholders and DL’s proposed additional capital management actions to enhance capital adequacy, (…) We believe that the rights issue and other actions, if executed as planned, will likely alleviate the pressure on DL’s balance sheet over the next two years.”

 

Relx reported that it had bought back 176K shares at E15.3694 per share yesterday (March 23).

 

Banks: ING Groep (-1.47% to E11.08) closed at a 3-month relative low against the STOXX Europe 600.

 

NL – Stock/STOXX Europe 600 ratio(s) 50D MA cross under: SBM Offshore (-3.32% to E11.52).

 

BE – Stock(s) 50D MA cross under: Telenet Group (-1.59% to E45.93)

 

NL – Stock(s) 50D MA cross under: SBM Offshore (-3.32% to E11.52).

 

 

ITALY

Banco Popolare SC and Banca Popolare di Milano Scarl jointly announced that they have agreed to merge through an all-stock deal, in which Banco Popolare’s shareholders will end up holding 54% of the merged bank. Banco Popolare will also launch a E1B capital increase before the deal.

 

Eni: S&P downgraded the Co’s rating to “BBB+” from “A-“, outlook “stable”. The rating firm said: “Low oil prices will have a lasting negative effect on Eni SpA’s credit metrics, despite its recent debt reduction following the deconsolidation of Saipem.”

 

Banks: Banca Popolare di Sondrio (-4.18% to E3.3) closed at a 3-month relative low against the STOXX Europe 600.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: UniCredit (-3.09% to E3.58).

 

Stock(s) 50D MA cross under: Banca Popolare di Sondrio (-4.18% to E3.3), Intesa Sanpaolo (-2.62% to E2.45), UniCredit (-3.09% to E3.58).

 

 

SWITZERLAND

Credit Suisse may post a second straight quarterly loss due to illiquid trading positions, according to the Bank’s CEO.

 

Novartis has agreed to an over-$25M settlement with the U.S. government concerning allegations that the Co boosted sales in China through bribing healthcare professionals there, announced the U.S. Securities and Exchange Commission.

 

Syngenta: U.S. lawmakers are raising national security concerns over the proposed acquisition of Syngenta by China National Chemical Corp as the deal is being reviewed by the Committee on Foreign Investment in the U.S., reported Dow Jones.

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Sika (+1.52% to SF3800)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: UBS Group (-1.89% to SF16.06).

 

 

SCANDINAVIA – DENMARK

Technology: Hexagon (+3.91% to SEK313.5) closed at a 3-month relative high against the STOXX Europe 600.

 

FI – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Amer-Yhtyma (+2.74% to E25.5)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Fortum (-1.95% to E13.06)

 

SE – Stock/STOXX Europe 600 ratio(s) 50D MA cross over: Fingerprint Cards (+8.05% to SEK475)

 

Stock/STOXX Europe 600 ratio(s) 50D MA cross under: Skandinaviska Enskilda Banken (-2.04% to SEK81.5), Swedbank (-2.33% to SEK175.9).

 

SE – Stock(s) 50D MA cross over: BillerudKorsnas (+1.49% to SEK135.9), Fingerprint Cards (+8.05% to SEK475)

 

Stock(s) 50D MA cross under: Skandinaviska Enskilda Banken (-2.04% to SEK81.5), Svenska Handelsbanken (-3.52% to SEK104.1).

 

 

EX-DIVIDEND

Bovis Homes:26.3p, Meggitt:9.8p, Prudential:26.47p, Schindler Holding: SF2.7, Schroders:58p, Segro Plc:10.6p, Sky:12.55p, Smiths Group:13.25p

 

 

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