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European stocks close higher, following US strength, with post election bullish sentiment propelling markets

Nov 07, 2018

 

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

European Markets

  • European stocks closed  higher, following strength in US stock markets, as post-election bullish sentiment propelled stock markets higher
  • The Euro Stoxx 600 closed up +1.06%, the FTSE 100 advanced +1.09%, the DAX rose +0.83%, and the CAC 40 finished up +1.24%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 5.06x
  • Retail (+2.5%), Construction & Materials (+1.96%), and Utilities (+1.9%) stocks were the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-0.01%), Personal & Household Goods (+0.52%), and Food & Beverage (+0.65%) stocks were the worst performers in the Euro Stoxx 600 today
  • 37 stocks in the Euro Stoxx 600 hit 4-week highs while 16 stocks closed at 4-week lows
  • 7 stocks in the Euro Stoxx 600 finished the trading session overbought while 11 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed down -1.68 points today to 16.43 after closing at 18.11 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Adidas (ADS GR) lowered its sales guidance for the full year to 8-9% growth, down from ~10% previously.  While lowering growth guidance, margin guidance was raised by Adidas.  Adidas expects net income will rise up to 20%, 3 percentage points more than previously indicated.  Adidas saw weakness in sales in Western Europe, falling 1%, and had strong inventory control in North America.  Adidas’ online sales grew 52% but are only 7% of sales.  Adidas is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • Amadeus IT (BME: AMS) shares are trading lower after the company reported its 9-month financials this morning. Amadeus announced 9-month EBITDA of 1.59bn euros, up 8.16% y/y from 1.47bn euros. Amadeus’ 9-month EBITDA margin comes in as 43.1% compared to 39.8% a year ago. Amadeus is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.  
  • Bayerische Motoren Werke Aktiengesellschaft (DB: BMW) shares are down after reporting CY3Q2018 earnings that miss average analyst expectations. BMW reports CY3Q2018 EBIT of 1.75bn euros while consensus estimates called for 1.91bn euros. BMW’s top-line sales managed to surpass expectations, reporting CY3Q2018 revenue of 24.74bn euros while consensus revenue estimates called for 23.59bn euros. BMW is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Great Wall Motors (2333 HK) reported October sales growth of 1.9% compared with a year ago.  Great Wall Motors reported sales of 110,088 in October versus 108,008 a year earlier.  Great Wall Motors production in October of 108,220 versus 107,817 a year earlier.  Great Wall Motors is rated “Top Short” in our China All-Cap Global top Stock ideas.
  • G4S (LSE: GFS) shares are trading at their lowest level in 2 years after the company issued a warning that its profits would be flat this year. G4S specified that its growth has been held back by “tight labor markets” in some countries. G4S is rated “Unattractive" in our United Kingdom Global Top Stock Ideas.
  • Hermes International (ENXTPA: RMS) shares are trading slightly higher after the company reported CY3Q2018 y/y sales growth of 10% (excluding currency conversions) to 1.46bn euros. Analysts see this as a strong sign in what has been a gloomy European luxury retail industry. Hermes International’s sales growth was driven by higher clothing sales and stronger leather bag sales than analysts expected. Hermes International is rated “Attractive” in our European Large-Cap Global Top Stock Ideas.
  • Koninklijke Ahold Delhaize (ENXTAM: AD) shares are higher today after reporting CY3Q2018 financials that beat consensus analyst expectations. Ahold Delhaize grew its net sales 4.22% y/y in CY3Q2018 from 15.14bn euros to 15.78bn euros – analysts' consensus forecast called for sales of 15.5bn euros. Ahold Delhaize also beat consensus operating income expectations of 620mm euros by reporting CY3Q2018 operating income of 647mm euros. Ahold Delhaize is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas. 
  • Nissan (TSE: 7201) shares are trading slightly higher ahead of its FY2Q2019 earnings release tomorrow. Analysts forecast Nissan’s FY2Q2019 operating income to fall between 100bn yen and 187.76bn yen with consensus calling for 127.52bn yen. Nissan maintains an average price target of 1,172 yen, representing a 14.8% upside from its current share price. Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Nissin Food (TSE: 2897) shares are soaring after the company announced FY2Q2019 operating income that beat the highest analyst estimate. Nissin Food reports FY2Q2019 operating income of 9.70bn yen while consensus estimates ranged between 7.30bn yen and 8.17bn yen. Despite such a large beat in its operating income, Nissin Food’s net sales of 111.26bn yen fell short of consensus revenue estimates of 114.05bn yen. Nissin Food is not rated in our Global Top Stock Ideas.  
  • Persimmon (PSN LN) CEO Jeff Fairburn will be leaving the company by “mutual agreement” according to a release from Persimmon.  The CEO has faced criticism for his USD$99mn bonus package and an overall compensation that grew 22 times larger between 2016 and 2017.  Despite leaving, Persimmon will still pay him the full bonus package he received.  Persimmon is rated “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Sophos Group PLC (LSE: SOPH) shares are tumbling after the company said it only expects “modest” improvements in its billings growth in the second half of FY2019. An analyst from Liberum said Sophos’ y/y billings growth could be “flat at best” while an analyst from Short Capital believes FY2019 billings growth could be ~5% below consensus. JP Morgan downgraded Sophos to neutral from overweight while lowering its price target from 6 pounds/share to 4.20 pounds/share. Sophos is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Vestas Wind Systems (CPSE: VWS) shares are up after the company maintained its full-year guidance for revenue and profit margin but missed on quarterly financials. Vestas’ management reiterated its full-year revenue target of between 10bn euros and 10.5bn euros while maintaining its full-year EBIT margin forecast of between 9.5% and 10.5%. Vestas reported CY3Q2018 revenue of 2.81bn euros while consensus analyst estimates called for 2.83bn euros. Vestas is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Wizz Air Holdings (LN: WIZZ) shares are rising today after management detailed in its CY3Q2018 conference call that it is sacrificing current profit margins in order to pursue growth. Wizz management believes that rising oil prices will cause weakness in several competitors, creating an opportunity to grow its market share. Wizz also pulled-back its full-year profit guidance, specifying that they will only be able to offset rising fuel costs for about half of its annual oil expenses. Wizz is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
     

What is Going on with European Currencies?

  • EUR€ is currently up +0.28% against the USD$ to 1.1459
  • GBP£ is currently up +0.321% against the USD$ to 1.3141
  • CHF is currently up +0.261% against the USD$ to 1.0001
     

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 1.3 basis points to 0.447%
  • German 10-Year Bunds are lower with yields up 1.3 basis points to 0.447%
  • French 10-Year Government Bonds are lower with yields up 1.2 basis points to 0.813%
  • UK 10-Year GILTs are higher with yields down -0.6 basis points to 1.533%
  • Italian 10-Year Government Bonds are higher with yields down -6 basis points to 3.337%
  • Spanish 10-Year Government Bonds are lower with yields up 1.8 basis points to 1.602%
     

 

 

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 21.8 7.02%            13,868,640
Industria de Diseno Textil SA Consumer Discretionary 26.3 5.20%            17,114,635
Engie SA Utilities 12.4 3.54%               8,705,266
CRH PLC Materials 26.5 3.27%               1,259,173
Fresenius SE & Co KGaA Health Care 55.78 3.26%               3,244,560
 
Underperformers Sector Price 1D % Chg Volume
adidas AG Consumer Discretionary 199 -3.55%               1,688,426
Bayerische Motoren Werke AG Consumer Discretionary 74.3 -3.46%               3,911,224
Volkswagen AG Consumer Discretionary 155 -0.76%               1,179,146
Munich Re Financials 190 -0.16%                  519,125
Deutsche Post AG Industrials 28.9 -0.03%               3,207,220