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European stocks retreat throughout the day, closing near the lows, on pace for the biggest monthly loss in over 3 years

Oct 26, 2018

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

European Markets

  • European stocks retreated through the day and closed lower, on pace for the worst performance in over 3 years
  • The Euro Stoxx 600 closed down -0.77%, the FTSE 100 declined -0.92%, the DAX fell -0.94%, and the CAC 40 finished down -1.29%
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.33x
  • Food & Beverage (+0.04%), Basic Resources (-0.11%), and Real Estate (-0.15%) stocks were the top performers in the Euro Stoxx 600 today
  • Telecommunications (-1.99%), Media (-1.82%), and Banks (-1.09%) stocks were the worst performers in the Euro Stoxx 600 today
  • 9 stocks in the Euro Stoxx 600 hit 4-week highs while 272 stocks closed at 4-week lows
  • 4 stocks in the Euro Stoxx 600 finished the trading session overbought while 146 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down -6.52 points today to 14.23 after closing at 20.76 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • BASF SE (DB:BAS) C3Q results which miss analyst expectations after a slowdown in global auto sales and higher raw material costs hit both top-line and profitability.  BASF is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Electrolux (OM: ELUX B) tumbled this morning after C3Q results  miss consensus expectations as higher raw materials costs continue to pinch operating profitability.  North American sales were further hit on market-share losses to private label brands following bankruptcy of Sears (SHLD).  Elextrolux is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Glencore (LSE: GLEN) C3Q results miss expectations with own-source Copper output coming in at 1.06 million tons.  Glencore is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. 
  • Royal Bank of Scotland (LSE:RBS) reports its it has set aside USD$128 million to reflect uncertainty around Brexit during C3Q.  Royal Bank of Scotland CEO Ross McEwan suggests large companies are pausing investment plans as the BREXIT talks drag on.  For the quarter, Royal Bank of Scotland reports net profit that is ahead of Street estimates with net interest margin (NIM) coming in at 1.93%.  Royal Bank of Scotland is rated “Neutral” in our UK All-Cap Global Top Stock Ideas. 
  • SEB SA (ENXTPA:SK) cut its FY CY2018 profit growth outlook on continued impact from FX volatility and weak retail sales (on account of disruption from eCommerce boom).  SEB sees FY CY2018 sales growth of ~8%.  SEB is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.
  • Total SA (ENXTPA:FP) C3Q come in ahead of Consensus estimates though management suggests it will keep spending restrained.  Total remains committed to improving efficiency and profitability as its looks to maintain its ability to weather the next downturn in global oil prices.  Total is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • Valeo (ENXTPA:FR) is plunging in early morning trading following C3Q results which miss market expectations.  A slowdown in the China market and new rules on emissions testing hit Valeo results harder than management expected.  Valeo cuts its target FY CY2018 guidance to 6.2%-6.5%.  Valeo is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.

 

What is Going on with European Currencies?

  • EUR€ is currently up +0.316% against the USD$ to 1.1411
  • GBP£ is currently up +0.164% against the USD$ to 1.2838
  • CHF is currently up +0.21% against the USD$ to 1.0026

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -4.6 basis points to 0.352%
  • German 10-Year Bunds are higher with yields down -4.6 basis points to 0.352%
  • French 10-Year Government Bonds are higher with yields down -3.3 basis points to 0.738%
  • UK 10-Year GILTs are higher with yields down -5.8 basis points to 1.383%
  • Italian 10-Year Government Bonds are higher with yields down -4.6 basis points to 3.446%
  • Spanish 10-Year Government Bonds are higher with yields down -2 basis points to 1.567%

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Nokia OYJ Information Technology 4.86 3.43%            39,987,254
Anheuser-Busch InBev SA/NV Consumer Staples 65.9 1.68%               4,655,156
Cie de Saint-Gobain Industrials 32 1.46%               3,530,377
Eni SpA Energy 15.1 1.07%            22,655,608
CRH PLC Materials 24.33 0.95%               1,736,324
 
Underformers Sector Price 1D % Chg Volume
Deutsche Bank AG Financials 8.52 -3.40%            21,620,580
Unibail-Rodamco-Westfield Real Estate 157 -2.26%                  528,296
Allianz SE Financials 179 -2.12%               2,063,091
Koninklijke Ahold Delhaize NV Consumer Staples 20.1 -1.93%               6,808,676
adidas AG Consumer Discretionary 203 -1.88%               1,147,148