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European stocks falling as German factory orders come much weaker than expected

Jan 07, 2019

 

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

European Markets

  • European stocks are falling mid-session as German factory orders came much weaker than expected
  • German factory orders fell in November 1%, well above the 0.1% fall that was expected
  • The Euro Stoxx 600 is currently down -0.46%, the FTSE 100 has declined -0.57%, the DAX has fallen -0.57%, and the CAC 40 is lower by -0.61%
  • According to UBS, European stocks valuations are implying at 18% cut to CY2019 ESP estimates (assuming a return to a 14.5x long-term forward 12-month P/E) -- according to the analysis, nearly 22 out of the 29 major European sectors imply double-digit reductions to forecaster EPS 
  • French President Macron in considering a slew of measures to support disposable income, according to Bloomberg, but if enacted they would increase France's budget deficit to the ~3.3% range, potentially setting France up for a confrontation with the EU similar that Italy's recent standoff
  • EPS growth is now forecasted to be +7.8% for CY2018, down from +9.1% at the end of November. 
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.99x
  • Technology (+0.86%), Basic Resources (+0.66%), and Media (+0.47%) stocks are the top performers in the Euro Stoxx 600 today
  • Personal & Household Goods (-1.26%), Food & Beverage (-1.22%), and Health Care (-0.76%) stocks are the worst performers in the Euro Stoxx 600 today
  • 81 stocks in the Euro Stoxx 600 are at 4-week highs while 23 stocks are at 4-week lows
  • 3 stocks in the Euro Stoxx 600 are overbought while 5 stocks are oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, is  moving up this morning and is currently at 21.08 after closing at 20.48 yesterday

What is Going on with European Currencies?

  • EUR€ is currently up +0.412% against the USD$ to 1.1442
  • GBP£ is currently up +0.244% against the USD$ to 1.2754
  • CHF is currently up +0.523% against the USD$ to 1.0183

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -0.9 basis points to 0.199%
  • German 10-Year Bunds are higher with yields down -0.9 basis points to 0.199%
  • French 10-Year Government Bonds are lower with yields up 0.2 basis points to 0.701%
  • UK 10-Year GILTs are higher with yields down -4 basis points to 1.236%
  • Italian 10-Year Government Bonds are lower with yields up 1.5 basis points to 2.914%
  • Spanish 10-Year Government Bonds are lower with yields up 0.7 basis points to 1.481%

 

 

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Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
ASML Holding NV Health Care 136 1.69%                  428,655
Intesa Sanpaolo SpA Industrials 2.02 1.52%            54,104,962
Nokia OYJ Financials 5.2 1.45%               5,549,940
Engie SA Industrials 12.9 1.34%               1,777,448
Vivendi SA Consumer Discretionary 21.6 0.70%                  945,814
 
Underperformers Sector Price 1D % Chg Volume
Siemens AG Utilities 97.1 -2.25%                  856,051
Bayer AG Information Technology 63.7 -2.02%               1,454,412
Safran SA Industrials 103 -1.95%                  242,910
Anheuser-Busch InBev SA/NV Energy 60.58 -1.85% 583,445
Danone SA Financials 60.9 -1.77%                  471,865

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