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European stocks lower, but rise off lows; Brexit progress hoped for

Nov 14, 2018


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

European Markets

  • European stocks open lower, turn positive as the US opens higher, then follow the US lower to close in the red, though off the lows of the day
  • Markets are hoping for progress on Brexit with Prime Minister Theresa May's cabinet discussing the agreement into the evening
  • The Euro Stoxx 600 closed down -0.6%, the FTSE 100 declined -0.28%, the DAX fell -0.52%, and the CAC 40 finished down -0.65%
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.57x
  • Automobiles & Parts (+0.79%), Utilities (+0.72%), and Travel & Leisure (+0.61%) stocks were the top performers in the Euro Stoxx 600 today
  • Basic Resources (-1.65%), Chemicals (-1.36%), and Industrial Goods & Services (-1.22%) stocks were the worst performers in the Euro Stoxx 600 today
  • 56 stocks in the Euro Stoxx 600 hit 4-week highs while 53 stocks closed at 4-week lows
  • 16 stocks in the Euro Stoxx 600 finished the trading session overbought while 27 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed up 1.07 points today at 18.10 after closing at 17.03 yesterday

Stocks Trending in the News

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  • Adyen (AYDNA DC) shares are falling today after notable index compiler MSCI refrained from adding Adyen to its MSCI Europe Index benchmark. According to an analyst from Bryan Garnier, who maintains a ‘Sell’ recommendation for Adyen with a price target of 490 euros, some investors were surprised by the news. Adyen is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Iliad SA (ENXTPA: ILD) shares are trading higher following FY3Q2018 financials that contained shreds of optimism after the company’s stock has lost half of its value so far in 2018. Specifically, investors were pleased to see strong performance in the company’s Italian unit. Raymond James analyst Stephane Beyazian, who maintains a ‘Strong Buy’ recommendation for Iliad, wrote in a note that FY3Q2018 contained the first signs of recovery for Iliad. Raymond James is rated “Unattractive’ in our European SMID-Cap Global Top Stock Ideas. 
  • Merck (MRK GR) cut its full year adjusted ebitda forecast while raising its net sales guidance.  Merck expects full year adjusted ebitda 3.7-3.9 billion euros, down from 3.75-4 billion euros.  Merck now expects organic net sales to grow 4-6%, up from 3-5%.  Merck said adverse forex effects will lower adjusted ebitda by 8-10%.  Merck is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Mediaset (BIT: MS) shares are trading higher after reported FY3Q2018 financials the pleased investors. Mediaset reported an EBIT loss of 9.1mm euros in FY3Q2018, an improvement from their 42.2mm euros EBIT loss a year prior. Mediaset’s failure to retain football broadcasting rights, however, caused advertising revenues in October fell 1% y/y. Mediaset is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. 
  • Tata Motors (TTMT IN) had its outlook cut to negative from stable at Moody’s Investors Service.  Tata Motors saw the cut due to weakness expected at its Jaguar Land Rover Automotive Plc over the next 12-18 months.  Tata Motors had its rating reaffirmed at Baa2.  Tata Motors is not rated in our Global Top Stock Ideas.
  • Tencent (700 HK, TCEHY) reported 3Q net income that beat the highest estimates.  Tencent reported net income of 23.33 billion yuan while 18.39 billion as consensus.  Tencent 3Q revenue of 8.6 billion yuan was in line with 80.41 billion yuan expected.   Tencent saw 3Q online gaming revenue of 25.8 billion yuan, online advertising revenue of 16.2 billion and smart phone gaming revenue of 19.5 billion yuan.  Tencent is rated “Attractive” in our China All-Cap Global Top Picks.
  • Wirecard (WDI GR) shares are sliding despite raising guidance.  Wirecard raised its operating profit forecast and investors have not been impressed.  Morgan Stanley noted the increased guidance “a minor positive” given that most estimates were already above that.  Wirecard entered the DAX in September.  Wirecard is rated “Attractive” in our European Large-Cap Global top Stock Idea.

What is Going on with European Currencies?

  • EUR€ is currently up +0.195% against the USD$ to 1.1312
  • GBP£ is currently up +0.339% against the USD$ to 1.3021
  • CHF is currently little changed against the USD$ at 0.9934

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -1.1 basis points to 0.398%
  • German 10-Year Bunds are higher with yields down -1.1 basis points to 0.398%
  • French 10-Year Government Bonds are higher with yields down -0.4 basis points to 0.782%
  • UK 10-Year GILTs are higher with yields down -1.5 basis points to 1.506%
  • Italian 10-Year Government Bonds are lower with yields up 4.4 basis points to 3.49%
  • Spanish 10-Year Government Bonds are lower with yields up 1.2 basis points to 1.618%



Euro Stoxx 50 Movers

In local currency.
On Mobile/Tablet scroll to the right.

Outperformers Sector Price 1D % Chg Volume
E.ON SE Utilities 8.97 3.39%            23,199,138
Fresenius SE & Co KGaA Health Care 53.4 2.57%               2,662,193
Anheuser-Busch InBev SA/NV Consumer Staples 66.4 1.45%               2,217,962
Iberdrola SA Utilities 6.7 1.36%            17,427,643
Bayerische Motoren Werke AG Consumer Discretionary 74.66 1.03%               2,677,272
Underperformers Sector Price 1D % Chg Volume
Bayer AG Health Care 64.5 -3.21%               5,283,514
Danone SA Consumer Staples 65.26 -1.91%               1,952,415
Allianz SE Financials 190.8 -1.71%               1,354,859
Industria de Diseno Textil SA Consumer Discretionary 25.71 -1.53%               5,203,677
Safran SA Industrials 111.2 -1.51%                  963,916