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European stocks close lower, off the lows of the session; Chinese growth concerns, UK's newest Brexit challenges and higher US rates dampen investor sentiment

Nov 09, 2018

 

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

European Markets

  • European stocks closed lower, though off the lows of the session; Chinese growth concerns, UK's newest Brexit challenges, and higher US rates dampened investor sentiment, especially in the wake of early US profit-taking
  • The Euro Stoxx 600 closed down -0.37%, the FTSE 100 declined -0.49%, the DAX rose +0.02%, and the CAC 40 finished down -0.48%
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.63x
  • Food & Beverage (+1.17%), Insurance (+0.84%), and Real Estate (+0.6%) stocks were the top performers in the Euro Stoxx 600 today
  • Basic Resources (-3.41%), Automobiles & Parts (-1.89%), and Oil & Gas (-1.41%) stocks were the worst performers in the Euro Stoxx 600 today
  • 138 stocks in the Euro Stoxx 600 hit 4-week highs while 8 stocks closed at 4-week lows
  • 22 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 up 0.49 points today to 16.37 after closing at 15.88 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Banca Monte dei Paschi Siena (BIT: BMPS) shares are trading slightly higher today after the company reported mixed CY3Q2018 financials. Monte Paschi reported CY3Q2018 revenue of 809.5mm euros while analyst consensus called for 827.8mm euros. Monte Paschi saw net interest income in CY3Q2018 of 442.1mm euros while consensus called for 440.7mm euros. Monte Paschi is rated “Unattractive’ in our European SMID-Cap Global Top Stock Ideas.  
  • Banco Bilbao Vizcaya Argentaria SA (BME: BBVA) is being hit the hardest among Spanish banks after the Mexican government proposed scrapping some bank commissions, including ATM withdrawal fees. BBVA is currently seeing its largest intraday drop in two years with Mexico currently accounting for 40% of the financial institution's revenue. BBVA is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.     
  • Burberry Group Plc (LSE: BRBY) shares are trading lower today despite being upgraded to neutral from underperform at Intermonte. Intermonte raised Burberry’s price target from 17.50 pounds/share to 18.00 pounds/share. Currently, Burberry maintains an average price target of 19.25 pounds across 22 companies. Burberry is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Compagnie Financiere Richemont SA (SWX: CFR) shares are trading notably lower today after the company signaled a slowdown of growth in China and a possibility of weakening demand for its products as a result of the US-Sino trade war. During the company’s conference call today, Richemont CFO Burkhart Grund told reporters that the company’s 18-month period of double-digit growth in domestic Chinese markets is over, citing a clampdown on luxury imports into China. Richemont is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • EDP (EDP) said it is maintaining its guidance for 2018 net profit, according to a regulatory filing.  EDP said it is seeing “clear signals” that approvals are coming for the China Three Gorges bid.  EDP said it also expects approval for projects in Brazil soon from regulators there.  EDP is rated “Attractive” in our European SMID-Cap Global Top Picks.
  • JD.com Inc. (JD) shares fell 6.9% in yesterday’s trading after the company’s CEO, Liu Qiangdong, was absent from the World Internet Conference, a significant state-sponsored conference in China. JD.com is the country’s second largest internet company and shares have fallen 48% so far this year, as of yesterday’s market close. JD.com is rated “Top Short” in our China All-Cap Global Top Stock ideas.
  • Leonardo (BIT: LDO) shares are falling after the company announced mixed CY3Q2018 financials. Leonardo reported CY3Q2018 revenue in-line with analyst consensus, however, their EBITA missed consensus by 17%. Leonardo is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Thyssenkrupp (TKA GR) issued a profit warning citing the effects of a German investigation into steel price fixing.  Thyssenkrupp said there could be “substantial adverse consequences” due to the ongoing investigation as well as weakness in its elevator division.  Thyssenkrupp expects 2018 adjusted ebit of 1.6 billion euros, down from 1.8 billion euros previously guided.  Thyssenkrupp is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Telecom Italia (TIT IM) has abandoned its debt-reduction target that it has previously announced.  Telecom Italia will write down the value of its assets by about 2 billion euros as the company copes with activist investors demanding improvements.  Telecom Italia is facing strong competition in both its mobile and fixed-line businesses.  Telecom Italia is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently down -0.37% against the USD$ to 1.1321
  • GBP£ is currently down -0.651% against the USD$ to 1.2977
  • CHF is currently little changed against the USD$ at 0.9933

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -5 basis points to 0.407%
  • German 10-Year Bunds are higher with yields down -5 basis points to 0.407%
  • French 10-Year Government Bonds are higher with yields down -3.5 basis points to 0.787%
  • UK 10-Year GILTs are higher with yields down -7.4 basis points to 1.491%
  • Italian 10-Year Government Bonds are lower with yields up 0.7 basis points to 3.403%
  • Spanish 10-Year Government Bonds are higher with yields down -1 basis points to 1.598%

 

 

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Danone SA Consumer Staples 65.6 3.57%               2,901,646
Allianz SE Financials 192 2.66%               2,168,274
Engie SA Utilities 12.6 2.44%               7,761,052
Koninklijke Ahold Delhaize NV Consumer Staples 22.6 2.22%               6,471,492
Unilever NV Consumer Staples 48.54 1.63%               4,036,131
 
Underperformers Sector Price 1D % Chg Volume
Banco Bilbao Vizcaya Argentaria SA Financials 4.91 -5.86%            69,543,107
Volkswagen AG Consumer Discretionary 146 -3.46%               2,266,275
Fresenius SE & Co KGaA Health Care 52.8 -2.83%               2,522,764
Deutsche Bank AG Financials 8.96 -2.16%            13,069,029
LVMH Moet Hennessy Louis Vuitton SE Consumer Discretionary 266 -1.85%                  768,709