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European stocks fall today, but gain 1% this week, sentiment dampened by trade concerns

Nov 30, 2018

 

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

European Markets

  • European stocks fall today but close the week with a 1% gain, the optimism in the wake of Fed Chain Powell's comments gave way to concerns over trade ahead of the G20 summit
  • President Trump and President Xi are scheduled to have dinner Saturday evening
  • The Euro Stoxx 600 closed down -0.17%, the FTSE 100 declined -0.83%, the DAX fell -0.36%, and the CAC 40 finished down -0.05%
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.45x
  • Telecommunications (+0.91%), Health Care (+0.84%), and Chemicals (+0.67%) stocks were the top performers in the Euro Stoxx 600 today
  • Retail (-1.19%), Basic Resources (-1.09%), and Automobiles & Parts (-0.92%) stocks were the worst performers in the Euro Stoxx 600 today
  • 74 stocks in the Euro Stoxx 600 hit 4-week highs while 37 stocks closed at 4-week lows
  • 16 stocks in the Euro Stoxx 600 finished the trading session overbought while 24 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed down 0.11 points today to 18.50 after closing at 18.61 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Allianz (ALV GR) CEO Oliver Baete delivered guidance of 5% profit growth for the next 3 years.  Aliianz provided the exact same guidance 3 years ago leading many to questions why it is simply more of the same.  Investors did not seem to care for his guidance and sent the shares lower.  Allianz has been looking for acquisitions and has been unsuccessful, for now operational improvements will drive profit growth.  Allianze  is rated “Neutral”” in our European Large-Cap Global Top Stock Ideas.
  • Altice Europe NV (ENXTAM: ATC) shares are soaring after announcing the sale of just under half of its French fiber broadband operation group for 1.8bn euros (USD$2.1bn) to various Canadian, French, and German infrastructure funds. The newly acquired funds will be used by Altice to payoff pre-existing debt while also enabling Altice to fund the roll-out of ultra-fast internet connections to consumers at low rates available to big infrastructure projects. Altice is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas. 
  • The CEOs of BMW (BMW)Volkswagen (VOW), and Daimler (DAI GR) will meet with representative of the US government on December 4th.  The idea is to discuss trade and try to find a way forward on auto imports.  The exact details of the meeting have not been released yet, but if confirmed, would be positive for trade sentiment.  BMW is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Volkswagen is rated “Neutral”” in our European Large-Cap Global Top Stock Ideas.  Daimler is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.  
  • Distribuidora Internacional de Alimentacion SA (BME: DIA) shares are trading lower after a report by news outlet Cinco Dias that banks have limited DIA’s credit lines over the last month and a half. Financial institutions Santander, BBVA Deutsche Bank, Sabadell, and CaixaBank have all cancelled supplier credit lines greater than 200mm euros. Due to this, DIA will be forced to pay suppliers with its own cash. DIA is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Kier Group Plc (LSE: KIE) shares are sustaining their worst losses in history after announcing a plan to raise GBP264mm (USD$336mm) through a rights issue that will dilute the stock. Kier is planning to use the funds, which will come from a 33-for-50 fully underwritten issue, in order to grow its position in other markets over the long-term. Kier is the most-shorted stock in the UK. Kier is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • Marriott International Inc (MAR) was hacked in 2014 in what appears to be one of the largest theft of hacked personal data.  Marriott’s Starwood unit has data on up to 500 million guests stolen, including some passport and credit card data.  Marriott International has alerted authorities and is working with law enforcement to determine how this happened.  Marriott International is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.

 

What is Going on with European Currencies?

  • EUR€ is currently down -0.623% against the USD$ to 1.1322
  • GBP£ is currently little changed against the USD$ at 1.2773
  • CHF is currently down -0.269% against the USD$ to 1.0015

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -0.8 basis points to 0.313%
  • German 10-Year Bunds are higher with yields down -0.8 basis points to 0.313%
  • French 10-Year Government Bonds are higher with yields down -1.4 basis points to 0.684%
  • UK 10-Year GILTs are higher with yields down -0.3 basis points to 1.364%
  • Italian 10-Year Government Bonds are lower with yields up 0.9 basis points to 3.213%
  • Spanish 10-Year Government Bonds are higher with yields down -0.6 basis points to 1.502%

 

Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
Linde PLC Real Estate 141 2.97%         1,415,947.00
Air Liquide SA Financials 107 2.50%               1,375,642
Telefonica SA Financials 7.93 1.59%            46,685,034
TOTAL SA Consumer Discretionary 49.2 1.50%               8,735,239
Bayer AG Information Technology 64.6 1.27%               5,207,229
 
Underperformers Sector Price 1D % Chg Volume
Fresenius SE & Co KGaA Telecommunication Services 50.1 -2.41%               1,873,965
Daimler AG Consumer Staples 49.7 -1.92%               7,341,792
Unibail-Rodamco-Westfield Telecommunication Services 152 -1.82%                  843,093
Deutsche Post AG Health Care 28.1 -1.54%               3,669,830
LVMH Moet Hennessy Louis Vuitton SE Consumer Discretionary 253 -1.54%               1,194,021