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European stocks rally late session on Brexit progress

Nov 13, 2018

 

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

European Markets

  • European stocks rallied late session to close higher on news the UK and EU negotiations made progress on Irish border talks 
  • There were also reports that Italy will submit a budget later today with only minor revsions, assuring further turmoil with the EU
  • The Euro Stoxx 600 closed up +0.67%, the FTSE 100 advanced +0.01%, the DAX rose +1.3%, and the CAC 40 finished up +0.85%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 2.23x
  • Telecommunications (+2.26%), Automobiles & Parts (+2.03%), and Travel & Leisure (+1.94%) stocks were the top performers in the Euro Stoxx 600 today
  • Oil & Gas (-1.79%), Basic Resources (-0.28%), and Utilities (-0.07%) stocks were the worst performers in the Euro Stoxx 600 today
  • 75 stocks in the Euro Stoxx 600 hit 4-week highs while 28 stocks closed at 4-week lows
  • 14 stocks in the Euro Stoxx 600 finished the trading session overbought while 29 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down -3.63 points today to 14.23 after closing at 17.86 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Ambu A/S (CPSE: AMBU B) shares are falling after reporting full-year EBIT that missed the lowest analyst estimate. Ambu reported full-year EBIT of 563mm kronor while analyst estimates ranged between 568mm kronor and 605mm kronor. Ambu also announced a full-year dividend of 0.40 kronor/share. Ambu is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.  
  • Bayer AG (DB: BAYN) shares are trading flat after announcing CY3Q2018 financials that surpass the highest analyst estimates. Bayer reports CY3Q2018 adjusted EBITDA of 2.20bn euros while analyst estimates ranged between 1.97bn euros and 2.14bn euros, with consensus calling for 2.04bn euros. Bayer’s sales, however, fell short of the CY3Q2018 consensus estimate of 9.99bn euros, reporting CY3Q2018 sales of 9.91bn euros. Bayer is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Experian PLC (LSE: EXPN) shares are seeing their largest intraday gains in six months after the company increased its guidance of the full-year. Experian sees its full-year organic revenue growth in-line with the first half of FY2019’s and at the higher-end of its previous guidance. In the first half of FY2019, Experian reported a dividend of 14.00 eurocents/share. Experian is rated “Attractive” in our European Large-Cap Global Top Stock Ideas and “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.  
  • Nordex SE (XTRA: NDX1) shares are tumbling after the turbine manufacturer suffered from the declining cost of generating wind power. Nordex SE saw EBITDA fall more than 60% from a year ago to 71.4mm euros while its sales fell 25% from a year ago to 1.77bn euros. Nordex’s CY2018 revenue guidance of between 2.4bn euros and 2.6bn euros also disappointed investors. Nordex is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • Swedish Match AB (OM: SWMA) shares are falling today after FDA commissioner Scott Gottlieb said at an event in Washington, DC that action on flavored cigars should be expected. This comes after Swedish Match detailed in its CY3Q2018 financial presentation that it expects to continue robust growth in the US cigar market for the full-year. Swedish Match is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas. 
  • Telecom Italia (BIT: TIT) shares are trading lower after CEO Amos Genish was removed following a dispute with investor Elliott Management Corporation. Genish faced issues with Elliot Management amid his plans to split off Telecom Italia’s landline network. After a hastily arranged conference call earlier Tuesday, Telecom Italia’s board of directors voted 10 to 5 in favor of Genish’s removal. Telecom Italia is rated “Top Short” in our European Large-Cap Global Top Stock ideas. 
  • Vodafone (LSE: VOD) shares are trading higher after analysts were pleased with the company’s ability to cut operating costs and maintain its dividend. Vodafone announced a dividend of 4.64 eurocents/share for the quarter while the firm intends to report a dividend of 15.07 eurocents/share for the full-year. For the first half of the fiscal year, Vodafone reported an EBITDA of 7.08bn euros while the company forecasted 7.03bn euros. Vodafone is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • YY Inc (YY) provided guidance that met consensus.  YY sees 4Q revenue of 4.39-4.54 billion yuan while consensus is for 4.5 billion yuan.  YY reported 3Q results that were a bit above expectations.  YY 3Q EPS of USD$1.70 was above USD$1.76, 3Q net revenue of USD$597.4 billion came above USD$575mn estimates.  YY is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently up +0.597% against the USD$ to 1.1285
  • GBP£ is currently up +1.409% against the USD$ to 1.303
  • CHF is currently up +0.263% against the USD$ to 0.9918

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 1.1 basis points to 0.409%
  • German 10-Year Bunds are lower with yields up 1.1 basis points to 0.409%
  • French 10-Year Government Bonds are lower with yields up 0.5 basis points to 0.786%
  • UK 10-Year GILTs are lower with yields up 6.9 basis points to 1.521%
  • Italian 10-Year Government Bonds are lower with yields up 0.8 basis points to 3.446%
  • Spanish 10-Year Government Bonds are lower with yields up 0.5 basis points to 1.606%

 

 

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Daimler AG Consumer Discretionary 51.89 2.94%               4,620,464
ASML Holding NV Information Technology 153.16 2.86%               1,616,497
BASF SE Materials 69.58 2.60%               3,901,015
Koninklijke Ahold Delhaize NV Consumer Staples 23.125 2.53%               7,951,750
adidas AG Consumer Discretionary 206.6 2.38%                  533,409
 
Underperformers Sector Price 1D % Chg Volume
Bayer AG Health Care 66.64 -2.87%               5,904,875
Eni SpA Energy 15.148 -2.20%            15,020,750
TOTAL SA Energy 49.51 -1.41%               8,648,199
Fresenius SE & Co KGaA Health Care 52.04 -0.80%               2,679,715
Industria de Diseno Textil SA Consumer Discretionary 26.11 -0.34%               3,934,378