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European stocks open week with losses for the first session in five

Jan 21, 2019

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

European Markets

  • European stocks are declining to start the week, on pace for their first drop in 5 trading sessions 
  • The Euro Stoxx 600 is currently down -0.25%, the FTSE 100 is higher by +0.11%, the DAX has fallen -0.43%, and the CAC 40 is lower by -0.18%
  • Investor sentiment is mixed following a report from China’s National Bureau of Statistics that showed China 4Q GDP slowing to 6.4% in CY2018 vs 6.8% in CY2017 
  • The UK Parliament is expected to begin debates on a new “Plan B” BREXIT plan from UK Prime Minister Theresa May – UK PM May is to announce her plan today
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.79x
  • Travel & Leisure (+0.27%), Insurance (+0.06%), and Food & Beverage (+0.03%) stocks are the top performers in the Euro Stoxx 600 today
  • Utilities (-0.98%), Banks (-0.58%), and Telecommunications (-0.58%) stocks are the worst performers in the Euro Stoxx 600 today
  • 312 stocks in the Euro Stoxx 600 are at 4-week highs while 6 stocks are at 4-week lows
  • 40 stocks in the Euro Stoxx 600 are overbought while 0 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 0 after closing at 14.28 last week

Stocks Trending in the News

Click name for Q-Factor score and financial data

  • BAE Systems (LSE:BA) announces the sale of its armored vehicles unit, which includes the Challenge 2 tank, to a German rival Rheinmetall for £30 million.  BAE Systems is rated “Neutral” in our UK Large-Cap Global Top Stock Ideas. 
  • Casino, Guichard-Perrachon (ENXTPA:CO) announces it will see properties worth 501 million Euros to Fortress Investment Group.  The portfolio of properties has an implied yield of 53.9% and includes 13 Casino hypermarkets, 3 Casino hypermarkets and 10 Casino supermarkets. Casino is rated “Neutral” in our Europe Large-Cap Global Top Stock Ideas.   
  • Facebook (NASDAQ: FB) announces it is in the process of limiting the number of forwards that can be sent of a WhatsApp message.  This decision is part of Facebook’s attempt to fight fake and misleading news from going viral on its different platforms.  Facebook is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Info Tech Global Top Stock Ideas.
  • Henkel AG (XTRA:HEN3) releases 4Q results in-line with market forecasts.  Total revenues reached 19.9 billion Euros in CY2018 while organic sales growth was +2.4%.  The consolidated operating margin dropped 30 basis points to 17.6%.  Henkel AG is rated “Attractive” in our Europe Large-Cap Global Top Stock Ideas.   
  • Just Eat (LSE:JE.) announces CEO Peter Plumb is stepping down immediately.  Chief Customer Officer Peter Duffy has been appointed interim CEO.  Just Eat now sees FY revenue of £780 million (vs. A previous guidance range of £740 to £770 million).  Just Eat is rated “Neutral” in our UK Large-Cap Global Top Stock Ideas. 
  • SoftBank Group Corp (TSE: 9484) will invest USD$400 million in First Cry, according to a report in the Eastern Times.  FirstCry, the omni-channel retailer of baby and mother related goods, is being valued at USD$600-700 million.  Softbank is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.      
  • Takeda Pharma (TSE: 4502) is considering the sale of up to USD$3 billion in emerging markets assets as it seeks to lower its debt load.  Takeda is in early talks to gauge interest in some of these assets in the wake of its USD$62 billion takeover of Shire Plc.   Takeda had its credit rating cut after increasing its debt load to complete the Shire deal.  Takeda is rated “Unattractive” in our Japan Large-Cap Global Top Stock Ideas. 
  • Thor Industries' (NYSE:THO) expected acquisition of Erwin Hymer Group is expected to exclude Hymer’s North American operations.  The combination of Thor and Erwin Hymer will create the world largest RV manufacturer with operations presence in both the United States and Europe.  Thor Industries is a “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 

What is Going on with European Currencies?

  • EUR€ is currently little changed against the USD$ at 1.1368
  • GBP£ is currently little changed against the USD$ at 1.2872
  • CHF is currently down -0.229% against the USD$ to 1.0022

Highlights from the European Bond Market

  • Generic Euro 10-Year Bonds are higher with yields down -1.1 basis points to 0.251%
  • German 10-Year Bunds are higher with yields down -1.1 basis points to 0.251%
  • French 10-Year Government Bonds are higher with yields down -1.2 basis points to 0.648%
  • UK 10-Year GILTs are higher with yields down -4.4 basis points to 1.309%
  • Italian 10-Year Government Bonds are lower with yields up 3.2 basis points to 2.762%
  • Spanish 10-Year Government Bonds are lower with yields up 0.7 basis points to 1.353%

 

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Euro Stoxx 50 Movers

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

Outperformers Sector Price 1D % Chg Volume
Danone SA Financials 63.2 1.41%                  757,792
LVMH Moet Hennessy Louis Vuitton SE Consumer Discretionary 258 1.28%                  190,025
Kering SA Consumer Staples 414 0.73%                     49,838
Nokia OYJ Financials 5.35 0.68%               3,360,868
Sanofi Consumer Discretionary 73.3 0.53%                  508,468
 
Underperformers Sector Price 1D % Chg Volume
Deutsche Telekom AG Financials 14.6 -1.98%               7,217,836
Societe Generale SA Energy 28.1 -1.75%               1,392,264
Orange SA Materials 13.4 -0.96%               1,352,427
Vinci SA Consumer Discretionary 74.7 -0.90%                  215,139
L'Oreal SA Health Care 199 -0.85%                     94,335

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