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European stocks fall most in a month, encouraging trade news limits losses

Dec 05, 2018

 

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

European Markets

  • European stocks fell the most in a month, but losses are less than seen globally over the last 24 hours, with encouraging words on trade coming from China
  • China's Ministry of Commerce said the country will move forward with the US on items where there is consensus that the meeting with President Trump was "very successful"
  • China is preparing to resume imports of soybeans and liquified natural gas from the US according to media reports
  • The Euro Stoxx 600 closed down -1.16%, the FTSE 100 declined -1.44%, the DAX fell -1.19%, and the CAC 40 finished down -1.36
  • OPEC+ (OPEC plus Russia) has recommended production cuts, while no numbers were agreed to, the market talks of a 1 million barrel per day cut
  • Oil trade higher on the news with WTI 0.85% higher at USD$53.69
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.32x
  • Real Estate (+0.35%), Utilities (+0.13%), and Travel & Leisure (-0.08%) stocks were the top performers in the Euro Stoxx 600 today
  • Construction & Materials (-2.14%), Basic Resources (-1.93%), and Insurance (-1.82%) stocks were the worst performers in the Euro Stoxx 600 today
  • 29 stocks in the Euro Stoxx 600 hit 4-week highs while 65 stocks closed at 4-week lows
  • 10 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 1.89 points today to 19.09 after closing at 17.20 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Bayer (BAYN GR) cut revenue potential from its 5 most advanced experimental drugs to 3.75 billion euros, down from 6 billion euros.  Bayer’s CEO also acknowledged a need for better performance in the wake of recent weak results, saying the Monsanto takeover took focus from day-to-day.  Bayer will increase annual pharma research spending by USD$1.1 billion and work to revive drugstore brands.  Bayer is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas
  • Electrolux (ELUX OM) was downgraded today at Morgan Stanley.  Electrolux had its stock cut to underweight from neutral and its price target was cut to 210 kronor from 215 kronor.  Electrolux may see weakening demand in the coming year and that was cited as a main reason for the downgrade.  Electrolux is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Fresenius Medical Care (FME GR) announced it acquired stakes in 3 dialysis center networks in China as it seeks to expand its services there.  Fresenius Medical Care acquired 70% of Guangzhou KangNiDaiSi Medical, 55% of Henan Aishen Hospital Management and 60% of Daqing Kangda Dialysis Centers.  All three operate dialysis services in China.  Fresenius Medical Care is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Ryanair (RYA ID) is going to face legal action from the UK aviation regulator for not compensating passengers during its recent strike.  Regulators had warned Ryanair earlier that the strike would not qualify for an exemption from EU rules that require compensation.  Regulators initially requested Ryanair change its stance, but now that it has not the regulator will go to court.  Ryanair is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.
  • Thomas Cooke (TCG LN) is telling investors this week in meetings that it has no raise new equity and there will be no dilution for shareholders.  Analysts have been speculating there would be a need for Thomas Cooke to dilute shareholders.  The new today sent the shares 51.4% higher.  It was also announced that Thomas Cooke will be removed from the FTSE250 Index.  Thomas Cooke is rated “Top Short” 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 1.1352
  • GBP£ is currently up +0.197% against the USD$ to 1.2744
  • CHF is currently little changed against the USD$ at 1.0022

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are lower with yields up 1.4 basis points to 0.277%
  • German 10-Year Bunds are lower with yields up 1.4 basis points to 0.277%
  • French 10-Year Government Bonds are lower with yields up 1.2 basis points to 0.679%
  • UK 10-Year GILTs are lower with yields up 3.4 basis points to 1.315%
  • Italian 10-Year Government Bonds are higher with yields down -9.5 basis points to 3.061%
  • Spanish 10-Year Government Bonds are higher with yields down -2.6 basis points to 1.45

 

Euro Stoxx 50 Movers

In local currency.
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Outperformers Sector Price 1D % Chg Volume
Intesa Sanpaolo SpA Industrials 2.08 0.80%    110,642,832.00
Enel SpA Industrials 4.83 0.67%            29,363,189
Bayer AG Information Technology 65.6 0.43%               4,210,685
Orange SA Materials 14.8 0.41%               8,265,242
Iberdrola SA Consumer Staples 6.64 0.15%               8,555,536
 
Underperformers Sector Price 1D % Chg Volume
AXA SA Health Care 20.7 -2.78%            10,353,216
Vinci SA Consumer Discretionary 74.7 -2.61%               1,289,965
ASML Holding NV Health Care 149 -2.51%               1,094,115
CRH PLC Telecommunication Services 23.4 -2.38%               1,024,409
Safran SA Industrials 109 -2.37%                  669,097