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European stocks tumble with the 4 largest markets down over 3%

Dec 06, 2018

 

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

European Markets

  • European stocks tumbled today with the 4 largest markets closing down over 3% on fears of rising trade tension between the US and China
  • Investors fear a flaring of trade tension in the wake of Canadian authorities announcing they have arrested the CFO of the Chinese technology company Huawei, Meng Wazhou, and she faces extradition to the United States.
  • The Euro Stoxx 600 closed down -3.09%, the FTSE 100 declined -3.15%, the DAX fell -3.48%, and the CAC 40 finished down -3.32%
  • The 3.48% fall in the DAX today puts it in bear market territory for 2018
  • The Saudi Oil Minister said today he is not confident an agreement can be reach between OPEC and Russia (OPEC+) to cut oil production 
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.03x
  • Real Estate (-1.1%), Utilities (-1.68%), and Telecommunications (-2.12%) stocks were the top performers in the Euro Stoxx 600 today
  • Automobiles & Parts (-4.15%), Construction & Materials (-4%), and Banks (-3.93%) stocks were the worst performers in the Euro Stoxx 600 today
  • 10 stocks in the Euro Stoxx 600 hit 4-week highs while 139 stocks closed at 4-week lows
  • 8 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 5.52 points today to 24.61 after closing at 19.09 yesterday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • BAE Systems (BA LN) was downgraded today by UBS.  BAE Systems saw its rating cut to neutral from buy, its price target was cut to 505 pence from 720 pence.  UBS said it is “more cautious” on the defense industry in Europe overall.  BAE Systems is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Capgemini (ENXTPA: CAP) shares are falling after Barclays downgraded the stock from overweight to equal-weight. Additionally, Barclays lowered its price target for Capgemini shares from 125 euros to 106 euros, representing a 2.7% upside from Wednesday’s close. Capgemini is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. 
  • Euromoney (ERM LN) will acquire “Boardex” and “The Deal” from The Street (TST).  Euromoney said the acquisition will create “a powerful workflow tool across multiple industries.  Boardex is an executive profile platform and The Deal is a platform focused on M&A news and data.  Euromoney will fund the acquisition with existing funding.  Euromoney is not rated on our Global Top Stock Ideas.  The Street is rated “Neutral” in our US Micro-Cap Global Top Stock Ideas.
  • Huawei Technologies Co.’s Chief Financial Officer Wanzhou Meng was arrested by Canadian officials at the instruction of the United States for allegedly violating Iranian sanctions. The US is now seeking the extradition of Meng while Chinese authorities are up in arms, calling for the release of the daughter of Huawei founder Ren Zhengfei. The arrest threatens to upend US-China trade negations, sending the shares of Qualcomm (QCOM)Advanced Micro Drives (AMD)Texas Instruments, Inc. (TXN), and other US-based chipmakers lower in pre-market trading. Qualcomm is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. Advanced Micro Drives is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas. Texas Instruments is rated “Neutral” in our US large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • SimCorp A/S (JSE: SIM) shares are rising after announcing that it has signed, “a very large 8-year subscription license agreement,” with an Asian investment company for the use of its Dimension product. CEO Klaus Holse said that the agreement will strengthen the company’s position in Asia, where they have signed five new clients since 2016. The total realization value of the contract will depend on whether certain milestones are completed. SimCorp is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas. 
  • Steinhoff International Holdings NV (DB: SNH) shares are plummeting after PricewaterhouseCooper (PwC) announced that a forensic audit of the South African retail holding company will be delayed. The announcement by PwC comes exactly a year after Steinhoff disclosed accounting irregularities, leading to the resignation of its CEO and sending the company into crisis. The findings of the forensic audit will not be disclosed until February, as per PwC. Steinhoff is not rated in our Global Top Stock Ideas.
  • Tesla (TSLA) will start production at its new Shanghai facility in the second half of 2019.  The new factory, dubbed “Gigafactory 3”, will be the biggest ever foreign owned manufacturing facility in Shanghai.  Local officials visited the project yesterday, asking Tesla to accelerate construction, according to a message a release from local officials. Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.

What is Going on with European Currencies?

  • EUR€ is currently up +0.309% against the USD$ to 1.1379
  • GBP£ is currently up +0.33% against the USD$ to 1.2776
  • CHF is currently up +0.509% against the USD$ to 1.0074

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -4.1 basis points to 0.236%
  • German 10-Year Bunds are higher with yields down -4.1 basis points to 0.236%
  • French 10-Year Government Bonds are higher with yields down -1.5 basis points to 0.664%
  • UK 10-Year GILTs are higher with yields down -6.9 basis points to 1.246%
  • Italian 10-Year Government Bonds are lower with yields up 14.1 basis points to 3.202%
  • Spanish 10-Year Government Bonds are lower with yields up 0.2 basis points to 1.461%

 

Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
Nokia OYJ Financials 4.76 0.00%      16,039,436.00
Unilever NV Information Technology 48.2 -1.36%               5,503,018
adidas AG Financials 194 -1.48%                  917,580
Industria de Diseno Textil SA Materials 26.8 -1.51%               3,206,467
EssilorLuxottica SA Consumer Staples 110 -1.65%               4,758,778
 
Underperformers Sector Price 1D% CHG  Volume 
Daimler AG Consumer Staples 46.9 -6.18%               9,332,061
Fresenius SE & Co KGaA Telecommunication Services 47.4 -5.77%               3,191,373
Intesa Sanpaolo SpA Industrials 1.97 -5.15%          191,779,021
CRH PLC Telecommunication Services 22.2 -5.12%               2,541,408
ING Groep NV Consumer Discretionary 10.1 -4.99%            24,902,333