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European stocks close mixed, unable to sustain momentum from Asia overnight, with mixed earnings dampening sentiment

Oct 30, 2018

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

European Markets

  • European stocks closed mixed, unable to sustain momentum from Asia overnight, with mixed earnings dampening sentiment
  • The Euro Stoxx 600 closed up +0.09%, the FTSE 100 advanced +0.25%, the DAX fell -0.41%, and the CAC 40 finished down -0.19%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.71x
  • Health Care (+0.75%), Financial Services (+0.6%), and Retail (+0.58%) stocks were the top performers in the Euro Stoxx 600 today
  • Personal & Household Goods (-0.88%), Basic Resources (-0.73%), and Travel & Leisure (-0.4%) stocks were the worst performers in the Euro Stoxx 600 today
  • 17 stocks in the Euro Stoxx 600 hit 4-week highs while 26 stocks closed at 4-week lows
  • 3 stocks in the Euro Stoxx 600 finished the trading session overbought while 74 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed down -0.07 points today to 22.22 after closing at 22.29 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Aixtron (DB: AIXA) shares are soaring after M.M. Warburg Investment Research upgraded Aixtron to buy from hold. Warburg Investment Research also raised Aixtron’s price target from 10.50 euros to 12 euros, representing a 16% increase from yesterday's close. Consensus price targets for Aixtron are for 12.90 euros. Aixtron is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • BP (BP LN) reported blow out results, well above expectations for 3Q, with net income of USD$3.84 billion, up from USD$1.87 billion a year ago.  Production at BP was flat while the reliability of its refineries was the highest in 15 years.  BP is rated “Neutral” in our UK All-Cap Global Top Stock Ideas.
  • Genmab A/S (CPSE: GEN) shares are trading higher after results from its cancer treatment trial showed an impressive 45% reduction in the risk of progression or death. Analysts at Citigroup said that the market had expected strong results from the trial, but the “strong efficacy” level is likely to boost sentiment further. Swedish Bank, Svenska Handelsbanken, is recommending that investors buy shares of Genmab. Genmab is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  
  • Geberit (SWX: GEBN) announces disappointing CY3Q2018 earnings, reporting total sales of 740.7mm swiss francs while consensus estimates called for revenue of 763.0mm swiss francs. Geberit pulled back its FY2018 organic growth forecasts to between 3% and 4% after the company’s sales declined 2.9% y/y in CY3Q2018. Geberit is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  
  • Lufthansa (LHA) is cutting expansion plans after 3Q results came below estimates.   Lufthansa plans to slow growth next year after buying jets this year from a rival.  Lufthansa will focus on profitability next year after integration challenges from acquiring a rival’s jets.  Lufthansa plans to cut capacity by 3.8% next year after an expected 8% during the winter.  Lufthansa is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Novozymes (CPSE: NZYMB) is being downgraded from hold to sell at Carnegie with its price target being lowered to 275 kroner from 305 kroner. The price target reduction represents a 12% decrease from Novozymes last close. Novozymes is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas. 
  • Reckitt Benckiser Group (RB LN) saw USD$89.4mn cut from revenue in the 3Q due to a glitch in production at its infant formula facility in the Netherlands.  Reckitt Benckiser Group’s new CEO has been trying to turn around the company and the latest problem puts a huge kink in that effort.   Reckitt Benckiser Group is rated “Attractive” in our UK All-Cap Global Top Stock Ideas.
  • Volkswagen (VOW GR) reported 3Q results that beat expectations with results helped by its Porsche and Seat divisions.  Volkswagen 3Q operating profit of 3.51 billion euros came above consensus of 3.21 billion euros.  Volkswagen maintained full year guidance while many were expecting it to be cut, with Porsche strength powering those results.  Volkswagen

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1363
  • GBP£ is currently down -0.555% against the USD$ to 1.2722
  • CHF is currently down -0.2% against the USD$ to 0.996

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -0.6 basis points to 0.371%
  • German 10-Year Bunds are higher with yields down -0.6 basis points to 0.371%
  • French 10-Year Government Bonds are lower with yields up 0.3 basis points to 0.745%
  • UK 10-Year GILTs are lower with yields up 0.4 basis points to 1.403%
  • Italian 10-Year Government Bonds are lower with yields up 14 basis points to 3.477%
  • Spanish 10-Year Government Bonds are lower with yields up 2.4 basis points to 1.568%

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Volkswagen AG Consumer Discretionary 147 3.23%               2,700,967
CRH PLC Materials 25.7 3.06%               1,408,434
ASML Holding NV Information Technology 148 2.04%               2,018,426
Unibail-Rodamco-Westfield Real Estate 160 1.72%                  411,071
Koninklijke Ahold Delhaize NV Consumer Staples 20.81 1.61%               4,510,743
 
Underperformers Sector Price 1D % Chg Volume
BNP Paribas SA Financials 46.1 -3.12%               7,633,887
Banco Bilbao Vizcaya Argentaria SA Financials 4.97 -2.84%            41,159,633
Anheuser-Busch InBev SA/NV Consumer Staples 65.2 -1.94%               2,747,084
Airbus SE Industrials 93.9 -1.92%               2,644,992
Fresenius SE & Co KGaA Health Care 57.1 -1.89%               2,951,278