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European stocks post solid gains, close near the highs of the session with risk-on sentiment pushing markets higher led by auto sector

Oct 29, 2018

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

European Markets

  • European stocks posted solid gains today, closing near the highs of the session with risk-on sentiment pushing markets higher
  • The morning strength in the market carried to the close with European auto stocks leading the way following China's proposed cut in auto sales tax and S&P's decision to not downgrade Italy
  • The Euro Stoxx 600 closed up +1.47%, the FTSE 100 advanced +1.81%, the DAX rose +1.85%, and the CAC 40 finished up +1.01%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 6.89x
  • Automobiles & Parts (+3.81%), Banks (+2.6%), and Construction & Materials (+2.16%) stocks were the top performers in the Euro Stoxx 600 today
  • Personal & Household Goods (+0.02%), Food & Beverage (+0.03%), and Utilities (+0.49%) stocks were the worst performers in the Euro Stoxx 600 today
  • 8 stocks in the Euro Stoxx 600 hit 4-week highs while 161 stocks closed at 4-week lows
  • 4 stocks in the Euro Stoxx 600 finished the trading session overbought while 169 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  moving down -9.51 points today to 14.23 after closing at 23.74 last week

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Bankia SA (BME:BKIA) reports C3Q results which disappointing market forecasts as capital levels dropped more than expected.  While net income beat Consensus estimates by 1.1%, bad loans, are a ratio of the total loan book, came in it ~7.8% for the quarter.  Bankia is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. 
  • BASF SE (DB:BAS) has its price target cut to 95 Euros from 105 Euros at Credit Suisse.  The investment bank keeps its “Outperform” rating for BASF SE but after the recent 3Q earnings missing, Credit Suisse remains concerned about the increasing challenges to the demand outlook for BASF SE.  BASF SE is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • CCC Sa (WSE:CCC) reports C3Q results which missed earnings drops to a 2-year low as its footwear-store profitability dropped in C3Q.  C3Q results dropped to negative 41.7 million Zloty in comparison to Street expectations for a positive profit of 38.6 million Zloty.  CCC is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Fabryki Mebli Forte SA (WSE: FTE) shares are plummeting after reporting 9% decline in EBITDA and a 37% drop off in EBIT, exacerbating concerns of a debt default. EBITDA margin tightened to 10.7% in CY3Q2018 after management promised to maintain EBITDA margin at the 15.4% level reported on in 2H2016. Fabryki Mebli Forte SA is not rated in our Global Top Stock Ideas.  
  • Grifols SA (BME:GRF) popped today on news that is received positive results from Amba clinical tests, a new Alzheimer drug.  The tests conducted by Grifols included 496 mild and moderate Alzheimer patients.  However, a new phase 3 trial will be required to secure a regulatory approval.  BBVA upgrades Grifols to “Outperform” and boosts its price target to 27.51 Euros.  Grifols is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. 
  • HSBC Holdings (LSE:HSBA) reports C3Q results which came in ahead of Street expectations.  Adjusted revenues grew 9% Y/Y in the quarter while costs only grew +2% Y/Y for HSBC in C3Q.  The improvement in top-line, combined with a continued focus on cost cutting is boost investor sentiment for the stock.  HSBC is rated “Unattractive” in our United Kingdom Global Top Stock Ideas.
  • European auto stocks Volkswagen (XTRA:VOW3)Daimler AG (XTRA:DAI) and BMW(DB:BMW) are up on news that the National Development and Reform Commission, the top economic planning committee in China, is considering cutting the sales tax on new car purchases in half.  Volkswagen is rated “Neutral”, Daimler is rated “Unattractive, and BMW is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1394
  • GBP£ is currently little changed against the USD$ at 1.2809
  • CHF is currently down -0.319% against the USD$ to 0.9997

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 2.6 basis points to 0.378%
  • German 10-Year Bunds are lower with yields up 2.6 basis points to 0.378%
  • French 10-Year Government Bonds are lower with yields up 0.6 basis points to 0.744%
  • UK 10-Year GILTs are lower with yields up 1.4 basis points to 1.397%
  • Italian 10-Year Government Bonds are higher with yields down -14.2 basis points to 3.304%

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Volkswagen AG Consumer Discretionary 143 5.16%               1,732,075
Intesa Sanpaolo SpA Financials 2 3.85%          116,317,025
Cie de Saint-Gobain Industrials 33 3.73%               1,493,348
Bayer AG Health Care 67.8 3.34%               2,039,746
Banco Santander SA Financials 4.12 2.96%                  643,845
 
Underformers Sector Price 1D % Chg Volume
Danone SA Consumer Staples 61.9 -1.10%                  972,985
Koninklijke Ahold Delhaize NV Consumer Staples 19.9 -0.89%               3,714,969
Safran SA Industrials 108 -0.73%                  789,248
L'Oreal SA Consumer Staples 188 -0.26%                  256,940
Air Liquide SA Materials 106 -0.19%                  517,038