• SXXP +60bps on volumes half that of the 20 day average..

• UK markets being closed due to a bank holiday

• MSCI rebal today (ex UK) --- Apple & Telsa stock splits come into effect today

• In terms of sectors: a risk on skew with Autos, Oil & Gas & Miners all +>1% and telcos and travel names only ones in the red

• Suez +17% after Veolia Environnement offered 2.9 billion euros for a 29.9% stake in the company.

• Phillips -70bps having been cutting guidance

• Europe +30bps in line with the move in the S&P futs from Europe’s close yday

• UK playing catch up is dragging the market down ->1%...

• volumes +65% vs 20 day moving average

• METALS: Glencore +3% as $ makes new lows it's no surprise to see COPPER finally breaking out above the $3/lb resistance that has proven so stubborn over the Summer

• Euro Area (51.7): unchanged from the flash estimate, output and new orders rose at marked rates. Despite this, manufacturers continued to make sharp cuts in employment, with job losses most acute in Germany

• SXXP +60bps on volumes half that of the 20 day average..

• UK markets being closed due to a bank holiday

• MSCI rebal today (ex UK) --- Apple & Telsa stock splits come into effect today

• In terms of sectors: a risk on skew with Autos, Oil & Gas & Miners all +>1% and telcos and travel names only ones in the red

• Suez +17% after Veolia Environnement offered 2.9 billion euros for a 29.9% stake in the company.

• Phillips -70bps having been cutting guidance

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• SXXP -50bps, underperforming move in S&P futures by >1%...

• Nasdaq hit record high for 4th day running as Tesla +6% & Netflix +10

• EU Banks -2% worst performing sector, tracking the move in German 10yr yields

• Powell’s speech at Jackson Hole @2.10pm UK Time.

• Travel & Leisure is continuing to outperform as Italy and France joined Spain in ruling out imposing new nationwide lockdowns despite an upsurge in coronavirus cases.

• RR/ calling -8%... CFO leaving

• ECB’s Lane speaking at 16:50 London time AND We get the second estimate of US GDP and the initial jobless claims.

• Positive risk sentiment following Germany extending extends wage support program to end of 2021 which saw steepening of yields with 10Y Bunds selling off by over 7bp. Risk on rotation evident in equity mkt too as Telecoms, Utils worst performing.

• Also some positivity on the US/China del front as China was reported to be set to buy a record amount of American soybeans after reaffirming its commitment to the phase-one deal with the US earlier this week. ove to restore friendly Europe Ties

• Tech outperforming +1%

• Telecoms underperforming Hoever.. Telecom Italia +4% on decent volume post press spec. that Italy Unlikely to Block Telecom Italia Deal With KKR re: Networks sales.

• Energy only small up is underperforming despite crude maintaining the $45 price after more headlines around Hurricane Laura hitting production.

• PROVIDENT FINANCIAL +16% there were some +ve comments on Con call..competitive landscape --- COVID will expand their addressable market place; CEO talking up balance sheet strength

• Ambu -14% in Copenhagen after the resuscitator-maker lowered its full-year growth and profit forecasts.

• Elekta +15% loads of incoming all from clients who think this rally is too much, that said 1Q order intake was more resilient than expected, EBITA beat cons by +19% on favourable sales mix and solid cost control however market seems to be blind to the fact that the co expects 2Q to still be impacted by COVID and is not issuing FY guidance.

• Aroundtown S.A. rose as much as 3.9% in Frankfurt after reporting a jump in half-year revenue.

• FERRAGAMO(SFER IM) +6% post Jefferies u/g to BUY this am p/t 15 fm 11

• Macro French PM Castex commented on radio France to unveil economic stimulus plan on 3-Sep: further hints about the contents of its €100B plan to boost the economy with full details of the stimulus package to be announced on 3-Sep

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Risk on trade across asset classes

• SXXP +50bps somewhat inline S&P futs.. And volumes -30bps still low as to be expected mid-August Friday This mixed session in Asia. Korea rebounding from Thursday's sell-off as China and Taiwan markets outperform on tech strength.

• One focus on China's Commerce Ministry said that Beijing and Washington have agreed to hold a call soon to discuss the progress of their phase one trade agreement. HOWEVER Reuters reported Trump administration on Thursday declined to acknowledge any plans to meet with China over the Phase 1 trade deal so will be keeping an eye out for more headlines revolving this..

• From a virus standpoint there has been Headlines that Pfizer’s vaccine is on track for a regulatory review as early as October helped spurred risk-on mood across asset classes

• Futures sold off shortly after the open on disappointing French PMI data, bounce back as Germany: Manufacturing was stronger in August than July, but services dragged the composite lower.

• key takeaway from the surveys is that employment continues to weigh on demand, with job losses in both Germany and France still notable.

• France: August readings were weaker than July across the board, led by manufacturing, which contracted for the first time since May.

• £ was better early as UK PMI 60.3 much compared to the euro area 51.6 however gains reversed watch Sterling vs. Euro...hardly a surprise but EU BARNIER SAYS AGREEMENT AT THIS STAGE WITH UK SEEMS UNLIKELY

• In terms of Sectors.. another risk off lead session with the Banks Autos and Energy remaining unloved the only three sectors down on the day. Value basket underperforming again today -40bps.

• Travel and Leisure +best part of 2% as GVC +4% after Jef analyst raising forecasts, so shout out if you want to see that note. ACOR +3%, IHG +2% lots of broker reit buy in these after yesterday M&A spec.

• Client focus heavily on ADYEN -4% after placing $850m overnight so the stck is currently trading at around the placing price of 1365. Overnight Jeff reit buy in stock p/t 1495

Risk off move on light volumes led by cautious FOMC comments overnight