blog

Latest from the Quantamize Blog

European stocks close mixed, giving up earlier gains ahead of G20

Nov 29, 2018

 

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

European Markets

  • European stocks opened the session higher, but those gains faded as trade fears grew through the day ahead of the G20 summit that begins tomorrow
  • President Trump commented he is close to "something" with China, but stocks suffered on news he will bring Peter Navarro, his most hawkish trade adviser, to the Trump-Xi meeting at the G20
  • The Euro Stoxx 600 closed up +0.2%, the FTSE 100 advanced +0.49%, the DAX fell -0.01%, and the CAC 40 finished up +0.46%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.84x
  • Basic Resources (+1.1%), Industrial Goods & Services (+0.96%), and Chemicals (+0.91%) stocks were the top performers in the Euro Stoxx 600 today
  • Real Estate (-1.08%), Utilities (-0.92%), and Travel & Leisure (-0.58%) stocks were the worst performers in the Euro Stoxx 600 today
  • 61 stocks in the Euro Stoxx 600 hit 4-week highs while 61 stocks closed at 4-week lows
  • 13 stocks in the Euro Stoxx 600 finished the trading session overbought while 35 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed up 0.02 points today to 18.61 after closing at 18.59 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Amazon.com Inc. (AMZN) is under fire as the global tech giant, who is the largest retailer and online host for small businesses in Germany, is the target of an antitrust probe by the German Federal Cartel Office. The probe specifically focuses on the terms set by Amazon for other sellers as German regulators have reportedly received “numerous” complaints from sellers. Notably, Germany is Amazon’s second largest market outside of the US. Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Britvic (LSE: BVIC) shares are soaring after reporting full-year after-tax profits that largely surpassed the highest analyst estimates. Britvic generated an after-tax profit of GBP117.1mm in the most recent fiscal-year while analysts expected just GBP97.4mm. Despite such a large after-tax profit beat, Britvic’s revenue barely squeaked past analysts’ consensus, reporting full-year revenue of GBP1.50bn while analysts expected GBP1.49bn. Britvic is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Constellation Brands (STZ) was downgraded by Macquarie to neutral from outperform.  While Constellation Brands is seeing growth in Modelo and Corona brands, this is presently priced into the stock and hence the reason for the downgrade.  Constellation Brands is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Staples Global Top Stock Ideas.
  • Deutsche Bank (DBK GR) has its offices raided by 170 police officers today in Frankfurt.  Deutsche Bank was raided in relation to a money laundering investigation focused on 2 suspected employees.  The names of the employees were not released but their ages, 46 and 50, were published.  Analysts fear this development could paralyze Deutsche Bank for moths as it deals with the investigation.  Deutsche Bank is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Groupe Renault (ENXTPA: RNO)Nissan Motor Co. (TSE: 7201), and Mitsubishi Motors Corp. (TSE: 7211) quelled investor concerns after announcing their intention to maintain their 2-decade partnership after the arrest of the alliance’s Chairman Carlos Ghosn. “Unanimously and with conviction, the boards of Groupe Renault, Nissan Motor Co., and Mitsubishi Motors Corp. Have reaffirmed over the past days their deep commitment to the alliance,” said the companies in a joint statement. Renault is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas. Mitsubishi is rated “Unattractive” in our Japan Large-Cap Global Top Stock Ideas.
  • Intu Properties Plc (LSE: INTU) shares are plummeting after Brookfield Property Group (TCK) abandoned its takeover efforts for the UK shopping mall owner. Hedge fund manager Crispin Odey and Odey Asset management had substantial short positions against Intu Properties, betting that Brookfield’s takeover efforts would fail. Brookfield cited the Bank of England’s warning that a disorderly Brexit could cause a slump in UK commercial property prices as reasoning for giving up on the takeover efforts. Intu Properties is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Nintendo (TSE: 7974) shares jumped today after reporting strong financials from Thanksgiving to Cyber Monday, driven by the company’s staple console the Nintendo Switch. Total sales for Nintendo during the period were USD$250mm, driven by a 115% y/y increase in Nintendo Switch sales. US hardware sales, meanwhile, increased 45% y/y. Nintendo is not rated in our Global Top Stock Ideas. 
  • Safran (ENXTPA: SAF) shares are in the green after reporting organic revenue growth guidance in the high single-digits on average from 2019 through 2022. Additionally, Safran expects recurring operating income to trend between 16% and 18% by 2022. Safran cited positive trends in the commercial aircraft and military markets as reasoning for its updated guidance. Safran is rated “Attractive” in our European Large-Cap Global Top Stock Ideas. 
  • Sixt (SIX2 GR) has denied reports it is in talks to acquire Hertz (HTZ).  There has been speculation that Sixt was in advanced talks to acquire its smaller rival Hertz but Sixt put out a release denying any talks.  Sixt, based in Germany, has been expanding its reach in the US but is not planning an acquisition at this time.   Sixt is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas.  Hertz is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Takeda Pharmaceuticals Company Limited (TSE: 4502) shares are trading higher after Chief Financial Officer Costa Saroukos said in an interview that the drug maker will sell as much as USD$10bn in assets after acquiring Shire Plc (LSE: SHP). The asset sales will be used to reduce interest-bearing debt, Saroukos said in the interview with Nikkei. Takeda is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas. Shire is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas and “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas.

 

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1378
  • GBP£ is currently down -0.335% against the USD$ to 1.2782
  • CHF is currently down -0.328% against the USD$ to 1.003

Highlights from the European Bond Markett

  • Generic Euro 10-Year Bonds are higher with yields down -2.8 basis points to 0.321%
  • German 10-Year Bunds are higher with yields down -2.8 basis points to 0.321%
  • French 10-Year Government Bonds are higher with yields down -3.1 basis points to 0.698%
  • UK 10-Year GILTs are higher with yields down -1 basis points to 1.367%
  • Italian 10-Year Government Bonds are higher with yields down -5.2 basis points to 3.204%
  • Spanish 10-Year Government Bonds are higher with yields down -3.5 basis points to 1.508%
     

 

Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
Safran SA Industrials 112 5.04%         1,704,434.00
EssilorLuxottica SA Consumer Staples 112 3.57%               1,436,714
CRH PLC Telecommunication Services 24.8 1.81%               1,552,784
Koninklijke Philips NV Financials 32.9 1.57%               3,830,219
Vivendi SA Consumer Discretionary 22.3 1.55%               3,602,624
 
Underperformers Sector Price 1D % Chg Volume
Unibail-Rodamco-Westfield Telecommunication Services 155 -1.89%                  481,419
Iberdrola SA Consumer Staples 6.6 -1.40%            18,480,672
Bayerische Motoren Werke AG Utilities 72.9 -1.21%               1,974,610
ING Groep NV Consumer Discretionary 10.8 -1.15%            16,428,657
Intesa Sanpaolo SpA Industrials 2.03 -1.05%          125,288,930