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European stocks post tepid gains following Asia rally overnight

Dec 13, 2018

 

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

European Markets

  • European stocks are mostly positve but only by a small margin, unable to build on the momentum from Asia's rally overnight
  • After surviving a confidence vote Wednesday night, UK Prime Minister Theresa May is in Brussels attempting to negotiate for increased concessions, notably on the “Ireland Question” as she tries to build support for a BREXIT vote in the UK Parliament
  • Goldman Sachs believes UK Prime Minister Theresa May’s victory last night among her Conservative Party colleagues will serve as a “Pyrrhic Victory” with the possibility that BREXIT could be reversed – Goldman is suggesting that the support for BREXIT outside of Prime Minister May’s Conservative Party is limited (remember that PM May was part of the Conservative Party that advocated for “Remain” ahead of the BREXIT referendum)
  • The European Central Bank (ECB) is set to lower its inflation target for CY2019 today as it publishes its outlook for the new year – previous expectations were for inflation of +1.7% 
  • Banks in the Eurozone are rallying following news that the German government is considering a forced merger of Deutsche Bank (DB: DBK) and Commerzbank  (DB: CBK)
  • Italian stocks are positive amid rumors of a new deficit target of 2.04% for CY2019, down from an initial proposal of 2.4% and is seen as a “real” concession by the Italian Coalition Government to the EU
  • The Euro Stoxx 600 is currently down -0.34%, the FTSE 100 has declined -0.41%, the DAX has fallen -0.18%, and the CAC 40 is lower by -0.38%
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.52x
  • Utilities (+0.58%), Automobiles & Parts (+0.58%), and Travel & Leisure (+0.44%) stocks are the top performers in the Euro Stoxx 600 today
  • Real Estate (-1.16%), Oil & Gas (-1.09%), and Financial Services (-0.73%) stocks are the worst performers in the Euro Stoxx 600 today
  • 40 stocks in the Euro Stoxx 600 are at 4-week highs while 40 stocks are at 4-week lows
  • 10 stocks in the Euro Stoxx 600 are overbought while 25 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is  moving down this morning and is currently at 18.88 after closing at 19.72 yesterday

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1377
  • GBP£ is currently up +0.245% against the USD$ to 1.266
  • CHF is currently up +0.169% against the USD$ to 1.0082

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -0.2 basis points to 0.277%
  • German 10-Year Bunds are higher with yields down -0.2 basis points to 0.277%
  • French 10-Year Government Bonds are higher with yields down -2.4 basis points to 0.71%
  • UK 10-Year GILTs are higher with yields down -2.4 basis points to 1.255%
  • Italian 10-Year Government Bonds are higher with yields down -10.2 basis points to 2.898%
  • Spanish 10-Year Government Bonds are higher with yields down -2.8 basis points to 1.401%
     

 

 

 

Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
Bayerische Motoren Werke AG Utilities 74.5 2.34%                  823,402
Banco Bilbao Vizcaya Argentaria SA Information Technology 4.73 1.76%               7,413,989
Iberdrola SA Consumer Staples 6.96 1.67%               7,747,124
Intesa Sanpaolo SpA Industrials 2.04 1.59%                               12,455,777
CRH PLC Telecommunication Services 22.9 1.60%                  239,678
 
Underperformers Sector Price 1D % Chg Volume
Fresenius SE & Co KGaA Telecommunication Services 41.5 -2.19%               1,088,041
Deutsche Telekom AG Financials 14.9 -1.68%               4,763,591
Koninklijke Ahold Delhaize NV Consumer Discretionary 22.3 -1.35%               1,462,757
Anheuser-Busch InBev SA/NV Energy 63.23 -1.26%                              586090
Eni SpA Utilities 14.1 -1.12%               4,401,873