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European stock fall steadily entire session, caught in global downdraft

Nov 20, 2018

 

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

European Markets

  • European stocks traded in only one direction today, down, falling steadily the entire session; global growth outlook and trade fears persist for investors
  • The Euro Stoxx 600 closed down -1.14%, the FTSE 100 declined -0.76%, the DAX fell -1.58%, and the CAC 40 finished down -1.21%
  • European stocks have shed USD$1 trillion in market value since September according to a report in Bloomberg today
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.2x
  • Utilities (+0.24%), Food & Beverage (-0.05%), and Travel & Leisure (-0.1%) stocks were the top performers in the Euro Stoxx 600 today
  • Chemicals (-2.58%), Banks (-2.29%), and Basic Resources (-2.28%) stocks were the worst performers in the Euro Stoxx 600 today
  • 36 stocks in the Euro Stoxx 600 hit 4-week highs while 76 stocks closed at 4-week lows
  • 12 stocks in the Euro Stoxx 600 finished the trading session overbought while 62 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  up 1.93 points today to 19.96 after closing at 18.03 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Apple (AAPL) stock continues to suffer as stories of production cuts from Apple suppliers keep swirling in the market.  Many suppliers are lowering outlooks in the wake of Apple’s cuts.  Apple itself has fallen almost 20% since October 3rd, almost entering bear market territory.  Analysts expect Apple focus on charging higher prices per phone to make up for slower growth expected going forward.  Apple is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • BASF (BAS GR) is targeting a boost to profit of USD$2.3 billion as a goal of its reorganization.  BASF will simplify its structure to 6 units as it seeks to challenge smaller competitors.  BASF is targeting 3-5% growth in ebitda over the coming years as part of its plans.  BASF expects the profit boost from 2021 and beyond.  BASF is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Boston Scientific (BSX) agreed to buy its competitor BTG Corp (BTG LN) in an effort to expand its medical devices offerings.  Boston Scientific, the maker of stents for blood vessels, will be adding medical technology products with the acquisition of BTG Corp.  The deal will be financed with cash and debt as Boston Scientific offers a 50% premium over the 90-day average price of BTG.  Boston Scientific is rated “Neutral” in our US Large-Cap Global top Stock Ideas.  BTG Corp is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Compass Group PLC (LSE: CPG) shares traded higher after reporting full-year operating profit in-line with analyst consensus. Compass Group generated adjusted operating profit of 1.74bn pounds while analyst consensus called for 1.74bn pounds. Compass Group also reported FY2018 EPS that beat consensus by 1% while announcing a dividend of 0.377 pounds/share. Compass Group is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • CYBG Plc (LSE: CYBG) shares are sliding the most since its IPO after the firm increased its MIs-Sold Insurance Provisions by USD$193mm. CYBG’s statutory pretax loss in FY2018 of 164mm pounds largely missed Shore Capital’s estimate of 53mm pounds. CYBG is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Julius Baer Group Ltd. (SWX: BAER) shares traded notably lower after missing a key productivity target and the firm saw assets under management fall. In the most recent quarter, Julius Baer saw the firm’s capital ratio fall to 13% compared to 13.5% at the end of 2017. Assets under management for the Swiss wealth manager fell to 395bn francs from 400bn francs in the previous quarter. Julius Baer is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. 
  • Spectris (LSE: SXS) shares are seeing their largest intraday gains in 6 years as analysts are praising the firm’s strength in Asia. On a constant currency basis, Spectris generated overall top-line sales growth of 8% driven by sales growth of 16% in the company’s Asia business. Jefferies analyst Andy Douglas, who maintains a “Buy” recommendation for Spectris, said the growth in the firm’s Asia business was “particularly stellar”. Spectris is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Wirecard AG (XTRA: WDI) shares are trading lower after reporting FY2019 guidance. Wirecard sees FY2019 EBITDA of between 740mm euros and 800mm euros while analyst consensus called for 766mm euros.  Wirecard is trading lower primarily due to the global rout in technology stocks. Meanwhile, HSBC analyst Antonin Baudry reiterated a “Buy” recommendation for Wirecard with a price target of 240 euros. Wirecard is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently down -0.585% against the USD$ to 1.1387
  • GBP£ is currently down -0.335% against the USD$ to 1.2811
  • CHF is currently little changed against the USD$ at 1.0054

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -2.3 basis points to 0.35%
  • German 10-Year Bunds are higher with yields down -2.3 basis points to 0.35%
  • French 10-Year Government Bonds are higher with yields down -2.2 basis points to 0.758%
  • UK 10-Year GILTs are lower with yields up 0.5 basis points to 1.383%
  • Italian 10-Year Government Bonds are lower with yields up 2 basis points to 3.617%
  • Spanish 10-Year Government Bonds are higher with yields down -0.3 basis points to 1.647%
     

 

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Enel SpA Utilities 4.6 0.79%            53,579,253
Sanofi Health Care 78.9 0.50%               2,683,756
Danone SA Consumer Staples 65 0.42%               1,779,424
Unilever NV Consumer Staples 48.8 0.15%               4,267,720
Deutsche Telekom AG Telecommunication Services 15.18 0.11%            10,642,742
 
Underperformers Sector Price 1D % Chg Volume
Deutsche Bank AG Financials 8.15 -4.80%            25,386,163
BASF SE Materials 66.2 -4.14%               5,504,804
Fresenius SE & Co KGaA Health Care 49.9 -3.11%               2,994,664
Nokia OYJ Information Technology 4.89 -3.09%            21,762,054
Banco Santander SA Financials 4.08 -2.93%            44,707,186