blog

Latest from the Quantamize Blog

European stocks recover from earlier weakness on better UK PMI and oil strength

Jan 02, 2019

Get Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your ReturnsGet Unbiased Quantitative Investment Research from Advanced AI Machine Learning Technology and Maximize your Returns
 

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

European Markets

  • European stocks followed US stocks higher from lower levels to close slightly down, with rising oil prices improving market sentiment
  • Saudi Arabia appears to be fufilling its promise to cut oil production, Bloomberg is reporting, after analyzing observed tanker volumes
  • WTI crude is surging 4.3%, trading at $47.37 on production news out of Saudi Arabia
  • The UK manufacturing PMI unexpectedly improved to 54.2 in December while 52.5 was expected
  • Italian stocks are the cheapest they have been since August 2012 based on the Forward 12-month P/E valuation metric, though in relation to the Euro Stoxx 600, its relative cheapness narrowed over the course of C4Q2018
  • The Euro Stoxx 600 closed down -0.13%, the FTSE 100 advanced +0.09%, the DAX rose +0.2%, and the CAC 40 finished down -0.87%
  • Stock Market strategists suggest metals stocks are set to recover in CY2019 and will be one of the best performing industry sectors with a peak US Dollar  
  • Investor sentiment for European stocks finished trading negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.82x
  • Oil & Gas (+1.2%), Utilities (+0.59%), and Telecommunications (+0.35%) stocks were the top performers in the Euro Stoxx 600 today
  • Basic Resources (-1.63%), Automobiles & Parts (-1.48%), and Travel & Leisure (-0.67%) stocks were the worst performers in the Euro Stoxx 600 today
  • 7 stocks in the Euro Stoxx 600 hit 4-week highs while 3 stocks closed at 4-week lows
  • 2 stocks in the Euro Stoxx 600 finished the trading session overbought while 15 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed  down 0.47 points today to 23.39 after closing at 23.86 Friday

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • Abbott Labs (ABT) was downgraded to sell from neutral at Citi today.  Abbott Labs’ price target was lowered to USD$68 from USD$72.  Abbott Labs’ price target implies 8% downside from its last close.  Abbott Labs is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Akami (AKAM) was downgraded today to market perform from outperform at JP Morgan.  Akami’s price target was cut to USD$73 from USD$86.  Akami will see lower top-line growth than previously expected.  Akami is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • ArcelorMittal (ENXTAM: MT) and Evraz Plc. (LSE: EVR) shares are plunging in sympathy with mining companies after Caixin Media and HIS Markit China’s December manufacturing purchasing managers’ index fell from November levels. December’s value for the index neared with 2018 lows. ArcelorMittal is rated “Neutral” in our European Large-Cap Global Top Stock Ideas. Evraz is rated “Top Buy” in our European SMID-Cap Global Top Stock Ideas and “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas. 
  • BAE Systems (LSE: BA) announced that it won a USD$78.8mm contract from the US Navy to perform maintenance and modernize the USS Shoup, an Arleigh Burke-class guided missile destroyer. If all options are exercised, the deal could be valued at as much as USD$87.6mm. BAE Systems is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Baidu Inc. (BIDU) Chairman Robin Li said in an open letter today that the firm will focus on opportunities in artificial intelligence (AI) technology in 2019. In the open letter, Li highlighted the enormous opportunities for growth and augmentation in the technology. Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Banca Carige (BIT: CRG) saw its operations placed under temporary administration by the European Central Bank.  Banca Carige saw this happen after it failed to raise additional capital last week.  A team from the ECB will help the bank lower risk and potentially find a partner.  Banca Carige is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.
  • Becton, Dickinson & Co (BDX) was named a top large-cap pick at JP Morgan for 2019.  Becton, Dickinson will see 6-7% growth in 2019, growing faster than peers.  Becton, Dickinson will see margin expansion in 2019 in the wake of its acquisition of Bard, 2019 will see full integration of the Bard business.  Becton, Dickinson & Co is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • BioMarin Pharmaceutical Inc. (BMRN) has been downgraded by Raymond James from outperform to market perform. BioMarin currently maintains 22 buy recommendations, 6 hold recommendations, and 0 sell recommendations across industry ratings. Over the last year, analysts have raised BioMarin’s consensus price target by 0.8%. BioMarin is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Facebook (FB) Messenger is likely set to introduce a dark mode, according to reports. Jane Machun Wong, a tech tipster, posted a screenshot on Twitter that appears to be a work in progress of a dark mode interface for Facebook Messenger. A dark mode for Facebook Messenger would effectively make the application easier to use at night while saving battery for Android users. Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Geely Automotive (SEHK: 175) released the first photos of its new models as it seeks to broaden its automotive offerings.  Geely Automotive released photos of a new coupe SUV that is based on its new modular architecture.  Geely did not give a data it will go on sale nor a price for the vehicle.  Geely Automotive is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Netflix (NFLX) has removed a TV from streaming in Saudi Arabia at the request of regulators there.  Netflix removed a show that is critical of the US-Saudi Arabia relationship after regulators said the show runs afoul of Saudi Arabia’s cybersecurity laws.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Omega Healthcare (OHI) announced that it will acquire MedEquities Realty Trust (MRT) in a deal that values MedEquities at USD$600mm in enterprise value. The acquisition will see Omega take on USD$34mm in mortgage loans while diversifying the firm’s property portfolio to 7 different states. Omega Healthcare is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. MedEquities is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Ophir Energy Plc. (LSE: OPHR) shares are rising the most in its history after the company confirmed reports of a possible cash takeover bid from PT Medco Energi Internasional Tbk. (IDX: MEDC). The potential deal would see Medco become the seventh-largest non-state energy producer in Southeast Asia. Ophir Energy is not rated in our Global Top Stock Ideas. Medco is not rated in our Global Top Stock Ideas. 
  • Tata Steel Ltd (BSE: 500470) has its stock downgraded today by CLSA.  Tata Steel was downgraded to sell from neutral at CLSA.  Tata Steel’s price target was slashed to 460 rupees from 815 rupees, implying an 8.6% downside from its last price.  Tata Steel is not rated in our Global Top Stock Ideas..

What is Going on with European Currencies?

  • EUR€ is currently down -1.003% against the USD$ to 1.135
  • GBP£ is currently down -1.13% against the USD$ to 1.2596
  • CHF is currently down -0.726% against the USD$ to 1.0112

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -7.7 basis points to 0.165%
  • German 10-Year Bunds are higher with yields down -7.7 basis points to 0.165%
  • French 10-Year Government Bonds are higher with yields down -5.9 basis points to 0.651%
  • UK 10-Year GILTs are higher with yields down -6.8 basis points to 1.209%
  • Italian 10-Year Government Bonds are higher with yields down -5 basis points to 2.692%
  • Spanish 10-Year Government Bonds are higher with yields down -1.5 basis points to 1.401%
     

 

Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.Our Comprehensive Analytics and Powerful Quantitative Products Analyze and Synthesize Trade Ideas for you.

Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
adidas AG Financials 184 1.10%                  803,984
TOTAL SA Consumer Discretionary 46.7 1.03%               6,652,627
Amadeus IT Group SA Materials 61.4 0.99%               2,492,131
Telefonica SA Financials 7.41 0.91%            14,670,799
Enel SpA Industrials 5.08 0.79%            24,883,087
 
Underperformers Sector Price 1D % Chg Volume
Air Liquide SA Financials 106 -2.17%                  680,205
Kering SA Consumer Staples 403 -2.14%                  220,756
Unibail-Rodamco-Westfield Telecommunication Services 133 -2.05%                  531,727
Volkswagen AG Consumer Staples 136 -1.91%               1,116,700
LVMH Moet Hennessy Louis Vuitton SE Consumer Discretionary 253 -1.90%                  561,858

Global Top Stock Ideas
TOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETS
MONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS