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European stocks are falling after Italy set a budget deficit target higher than the market was anticipating

Sep 28, 2018

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*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

European Markets

  • European stocks are seeing profit taking across the continent in the wake of bad fiscal news in Italy as it set a deficit target higher than the market was expecting, a deficit target of 2.4% for the next 3 years, market expectations were 1.9%
  • Finance Minister Tria advocated lower deficit target of 1.9% but was overruled in showdown with populist coaltion government, raising prospect of internal political friction
  • Investors are dumping Italian bonds in the wake of the deficit target announcement with the yield on its 10-year bond rising over 30 basis points to 3.192%
  • The Euro Stoxx 600 is currently down -0.74%, the FTSE 100 has declined -0.53%, the DAX has fallen -1.46%, and the CAC 40 is lower by -0.78%
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.24x
  • Health Care (+0.35%), Food & Beverage (+0.33%), and Travel & Leisure (+0.2%) stocks are the top performers in the Euro Stoxx 600 today
  • Banks (-3.05%), Insurance (-2.03%), and Automobiles & Parts (-1.39%) stocks are the worst performers in the Euro Stoxx 600 today
  • 75 stocks in the Euro Stoxx 600 are at 4-week highs while 63 stocks are at 4-week lows
  • 41 stocks in the Euro Stoxx 600 are overbought while 22 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is moving up this morning and is currently at 14.67 after closing at 13.17 yesterday

What is Going on with European Currencies?

  • EUR€ is currently down -0.447% against the USD$ to 1.1589
  • GBP£ is currently down -0.214% against the USD$ to 1.3051
  • CHF is currently up +0.156% against the USD$ to 1.0249

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -7 basis points to 0.459%
  • German 10-Year Bunds are higher with yields down -7 basis points to 0.459%
  • French 10-Year Government Bonds are higher with yields down -5.6 basis points to 0.79%
  • UK 10-Year GILTs are higher with yields down -4.7 basis points to 1.551%
  • Italian 10-Year Government Bonds are lower with yields up 30.4 basis points to 3.192%
  • Spanish 10-Year Government Bonds are lower with yields up 0.8 basis points to 1.513%

Euro Stoxx 50 Movers

In local currency.
On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
Koninklijke Ahold Delhaize NV Consumer Staples 19.8 0.33%         1,932,555.00
L'Oreal SA Consumer Staples 208 0.19%            153,250.00
Unilever NV Consumer Staples 48.1 0.19%            994,006.00
Sanofi Health Care 77 0.16%            852,096.00
LVMH Moet Hennessy Louis Vuitton SE Consumer Discretionary 308 0.15%            202,310.00
 
Underformers Sector Price 1D % Chg Volume
Intesa Sanpaolo SpA Financials 2.23 -7.61%    140,130,008.00
Enel SpA Utilities 4.36 -4.63%      30,183,252.00
Deutsche Bank AG Financials 9.82 -4.09%         8,517,794.00
Societe Generale SA Financials 36.6 -4.06%         2,478,589.00
Banco Santander SA Financials 4.32 -3.82%      19,190,616.00