05 10 EU PRE OPEN

INDICES
Friday, European stocks were mixed. The Stoxx Europe 600 Index added 0.25%, the U.K.'s FTSE 100 climbed 0.39%, France's CAC 40 was broadly flat, while Germany's DAX 30 dropped 0.33%.

EUROPE ADVANCE/DECLINE
51% of STOXX 600 constituents traded higher Friday.
48% of the shares trade above their 20D MA vs 48% Thursday (above the 20D moving average).
56% of the shares trade above their 200D MA vs 56% Thursday (above the 20D moving average).

The Euro Stoxx 50 Volatility index added 0.28pt to 26.82, a new 52w high.

SECTORS vs STOXX 600
3mths relative high: Media
3mths relative low: Energy

Europe Best 3 sectors
construction & materials, media, utilities

Europe worst 3 sectors
retail, technology, automobiles & parts

INTEREST RATE
The 10yr Bund yield fell 1bp to -0.54% (below its 20D MA). The 2yr-10yr yield spread fell 0bp to -17bps (above its 20D MA).

ECONOMIC DATA
FR 08:50: Sep Markit Services PMI final, exp.: 51.5
FR 08:50: Sep Markit Composite PMI final, exp.: 51.6
GE 08:55: Sep Markit Services PMI final, exp.: 52.5
GE 08:55: Sep Markit Composite PMI final, exp.: 54.4
EC 09:00: Sep Markit Services PMI final, exp.: 50.5
EC 09:00: Sep Markit Composite PMI final, exp.: 51.9
EC 09:00: Eurogroup Meeting
UK 09:00: Sep New Car Sales YoY, exp.: -5.8%
UK 09:30: Sep Markit/CIPS UK Services PMI final, exp.: 58.8
UK 09:30: Sep Markit/CIPS Composite PMI final, exp.: 59.1
EC 10:00: Aug Retail Sales MoM, exp.: -1.3%
EC 10:00: Aug Retail Sales YoY, exp.: 0.4%
FR 10:00: Aug Retail Sales YoY, exp.: 5.8%
FR 10:00: Aug Retail Sales MoM, exp.: 1.5%
FR 14:00: 12-Mth BTF auction, exp.: -0.6%
FR 14:00: 6-Mth BTF auction, exp.: -0.6%
FR 14:00: 3-Mth BTF auction, exp.: -0.65%

MORNING TRADING
In Asian trading hours, EUR/USD rebounded to 1.1731 and GBP/USD bounced to 1.2946. USD/JPY climbed to 105.56. AUD/USD advanced to 0.7187. This morning, Australia's NAB Business Confidence Index improved to -4 in September from -8 in August.

Spot gold was little changed at $1,899 an ounce.

#UK - IRELAND#
Weir Group, an engineering company, said it has agreed to sell its entire Oil & Gas division to Caterpillar for an enterprise value of 405 million dollars.

Wizz Air, a low-cost airline group, reported that it carried 1,567,836 passengers in September, down 58.9% on year, and the load factor dropped 29.9 percentage points to 64.6%.

Experian, a consumer credit reporting company, was upgraded to "overweight" from "equalweight" at Morgan Stanley.

#GERMANY#

K&S, a chemical group, is near a deal to sell its Morton Salt unit to Kissner Group for 3 billion dollars, reported Bloomberg citing people with knowledge of the matter.

Hapag-Lloyd's, a shipping and container transportation company, credit rating was upgraded to "BB-" from "B+" at S&P, outlook "Positive".

Thyssenkrupp, an industrial engineering group, was upgraded to "equalweight" from "underweight" at Morgan Stanley.

#FRANCE#
Suez, an utility company, said it renewed its support to the proposal being developed by investment firm Ardian and its partner, which envisages the acquisition of a 29.9% stake in the company from Engie and an all-cash public offer immediately thereafter. On the other hand, Veolia announced that it unconditionally commits not to file a hostile takeover bid following the sale of the shares held by Engie in Suez.

Engie, an electric utility group, announced the appointment of Catherine MacGregor, a former President of oil-services firm Technip Energies, as CEO, effective from January 1, 2021.

BNP Paribas, a banking group, was upgraded to "hold" from "sell" at Societe Generale.
From a chartist point of view, the stock has broken below the horizontal support of June at 33E. The recent Bollinger bands' widening calls for further downside. Below 34.6E look for the horizontal support at 27.5E and the previous low of April at 24.5E in extension.

Source: TradingView, GAIN Capital

#SWITZERLAND#
Ems-Chemie, a chemical group, announced that 3Q net sales declined 13.3% on year (-8.7% organic growth) and 9-month sales were down 22.6% (-17.7% organic growth). The company added: "EMS continues to expect the net operating income (EBIT) for 2020 to be below previous year. Given the result-oriented distribution policy, the ordinary dividend is also expected to be below previous year."

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