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European stocks close on the high of the day after ECB President Mario Draghi reiterates EU growth returning to potential, downplays Italy and economic risks

Oct 25, 2018

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

European Markets

  • European stocks closed on the high of the day after ECB President Mario Draghi reiterated EU growth is returning to potential, he downplayed Italian budget tension and slowing economic momentum
  • The Euro Stoxx 600 closed up +0.51%, the FTSE 100 advanced +0.59%, the DAX rose +1.03%, and the CAC 40 finished up +1.6%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.45x
  • Automobiles & Parts (+3.1%), Chemicals (+1.85%), and Technology (+1.78%) stocks were the top performers in the Euro Stoxx 600 today
  • Media (-2.02%), Health Care (-1.7%), and Food & Beverage (-1.13%) stocks were the worst performers in the Euro Stoxx 600 today
  • 16 stocks in the Euro Stoxx 600 hit 4-week highs while 185 stocks closed at 4-week lows
  • 4 stocks in the Euro Stoxx 600 finished the trading session overbought while 227 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down -1.23 points today to 20.75 after closing at 21.98 yesterday

Stocks Trending in the News

Click name for Q-Factor score, more information and the latest price

  • Anheuser-Busch Inbev (ENXTBR:ABI) reports C3Q earnings results which missed expectations and cut its dividend payout in half to 80 Euros cents.  The compay reports organic revenue growth of +4.5% vs. the Street at +5.9%.  Anheuser-Busch Inbev is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. 
  • Continental AG’s (DB: CON) CFO, Wolfgang Schaefer, said in an interview with Reuters that he expects 3Q2018 adjusted operating profit of ~770mm euros, a drop from the 1.08bn euros operating profit posted a year ago. Continental’s CFO also sees FY2018 revenue of about 44.5bn euros which is in line with consensus revenue estimates of 44.99bn euros. Continental AG is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Daimler AG (CXE: DAI) reports 3Q2018 revenue of 40.2bn euros and 794,700 car and commercial vehicles sold in 3Q2018, down 4% y/y. Daimler AG’s truck division helped to offset low automotive sales with its NAFTA region truck sales 16% y/y in 3Q2018 to 52,700 trucks from 45,300 in 3Q2017 -- the entire truck division saw unit sales up 8% y/y to 136,100 units in 3Q2018. Daimler is rated as “Unattractive” in our European Large-Cap Global Top Stock Ideas. 
  • International Consolidated Airlines Group (LN: IAG) is notifying customers that hackers stole private information from 77,000 payment card holders and an additional 108,000 card holders without CVV whose data may also have been compromised. The hacks reportedly occurred between April 21st, 2018 and July 28th, 2018. In total, 380,000 payment cards were targeted while 244,000 payment cards were actually affected. IAG is rated “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas and “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • Mediobanca Banca di Credito Finanziario (BIT: MB) beat consensus revenue estimates of 625.2mm euros after reporting F1Q2018 revenue of 637.7mm euros, up 6.5% y/y from 598.4mm euros. Despite growing revenue y/y, Mediobanca reports bottom-line net income y/y growth of –18.4% from 300.9mm euros in F1Q2017 to 245.4mm euros in F1Q2018 -- F1Q2018 net income still surpassed consensus estimates of $219.2mm euros. Mediobanca is rated “Neutral” in our European Large-Cap Global Top Stock Idea
  • UBS Group (SWX:UBSG) reports C3Q results which were ahead of market expectations on the back of better than expected cost savings in its wealth management unit.  UBS management is targeting a 72% cost/income ratio and a return on CET1 capital of 15-17% for CY2020.  UBS is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • WPP PLC (LSE:WPP) reports C3Q results which misses Street estimates and lower FY CY2018 guidance.  Reported organic sales growth is –1.5% vs. expectations for +0.3%.  WPP management now see ZFY CY2018 organic sales down 0.5% to 1.0%.  WPP is rated “Neutral” in our UK All-Cap Global Top Stock Ideas. 

What is Going on with European Currencies?

  • EUR€ is currently down -0.211% against the USD$ to 1.1368
  • GBP£ is currently down -0.497% against the USD$ to 1.2817
  • CHF is currently down -0.319% against the USD$ to 0.9989

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 0.2 basis points to 0.398%
  • German 10-Year Bunds are lower with yields up 0.2 basis points to 0.398%
  • French 10-Year Government Bonds are flat with yields little changed 0 basis points to 0.771%
  • UK 10-Year GILTs are higher with yields down -1.6 basis points to 1.441%
  • Italian 10-Year Government Bonds are higher with yields down -11.3 basis points to 3.492%
  • Spanish 10-Year Government Bonds are higher with yields down -3.8 basis points to 1.587%

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Schneider Electric SE Industrials 62.1 7.48%               4,155,587
ASML Holding NV Information Technology 148 3.55%               2,162,234
adidas AG Consumer Discretionary 207 3.13%                  810,605
Banco Bilbao Vizcaya Argentaria SA Financials 5.11 2.85%            30,572,041
Intesa Sanpaolo SpA Financials 1.95 2.77%          156,501,370
 
Underformers Sector Price 1D % Chg Volume
Anheuser-Busch InBev SA/NV Consumer Staples 64.9 -10.38%               8,138,163
Bayer AG Health Care 66.2 -2.99%               6,229,012
Deutsche Telekom AG Telecommunication Services 14.4 -0.79%            18,381,691
Sanofi Health Care 75.7 -0.62%               3,894,463
Deutsche Bank AG Financials 8.82 -0.55%            20,117,722