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Caught in the global stocks updraft, European stocks post modest gains

Apr 05, 2019

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scroll down for the Asian markets recap

International Stock Markets Indexes

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

European Markets Recap

  • European stocks post modest gains, caught in the global stocks updraft of this week
  • Both the US and China reported progress in trade talks with President Trump mentioning a potentially "monumental" deal being considered and China calling it a "new consensus"
  • President Trump said "we still have a ways to go" and said a deal is likely still weeks away
  • Read more on US-China trade talks in our blog post: Let's make a deal! China looking to close a trade deal with US as negotiators arrive in Washington
  • We look at factors driving German stocks: Factor Friday: Factor Performance Driving German Stocks
  • We highlight ETFs in this post today: Could ingrained beliefs about low-cost ETFs be mistaken? A new study suggests perhaps so
  • A JP Morgan survey of institutional money managers with over $700 billion among them showed 54% are seeking fee reductions from the hedge funds where they have investments, this following a ddisastrous2018 for hedge fund performance
  • UK PM Theresa May has requested an extension from the EU of Brexit until June 30th, with France already saying it's "premature" to talk about an extension
  • The Euro Stoxx 600 closed up +0.09%, the FTSE 100 advanced +0.61%, the DAX rose +0.18%, and the CAC 40 finished up +0.23%
  • Investor sentiment for European stocks finished trading positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.61x
  • Oil & Gas (+0.88%), Chemicals (+0.83%), and Basic Resources (+0.76%) stocks were the top performers in the Euro Stoxx 600 today
  • Telecommunications (-1.02%), Real Estate (-0.79%), and Banks (-0.46%) stocks were the worst performers in the Euro Stoxx 600 today
  • 168 stocks in the Euro Stoxx 600 hit 4-week highs while 17 stocks closed at 4-week lows
  • 76 stocks in the Euro Stoxx 600 finished the trading session overbought while 2 stocks closed oversold according to the 16-day RSI Measure
  • VSTOXX, the European stocks equivalent of the VIX, closed little changed +0.42 points today to 14.67 after closing at 14.25 yesterday
  • EUR€ is currently little changed against the USD$ at 1.1213

Asian Stock Markets Indexes

Asian Markets Recap

  • The Nikkei 225 finished up +0.38%, the Hang Seng ended down -0.17%, the Hang Seng China Enterprise declined -0.11%, and the CSI 300 was +1%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 2.21x
  • 46 stocks in the Nikkei 225 hit 4-week highs while 11 stocks reached 4-week lows
  • 14 stocks in the Nikkei 225 closed overbought while 3 stocks closed oversold according to the 16-day RSI Measure

Stocks Trending in the News

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Global Consumer Stocks Trending in the News

  • Amazon (AMZN) is set to enter the generic drug market as soon as October, according to a note from Cleveland Research.  The note comments that Amazon will likely make a “more meaningful move” into the pharmacy business over the next 12 months.  Amazon also announced it has added some health-related functions to Alexa, including scheduling doctor visits and checking prescriptions.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Nike (NKE) snagged tennis start Naomi Osaka from Adidas (DB:ADS), in a surprise move.  Osaka was expected to sign with Adidas for a record sum, reported to be $8.5 million.  Nike then announced it signed #1 ranked Osaka for an undisclosed amount.  Osaka will wear Nike clothing for the first time later this month.  Nike is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  Adidas is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Roku (ROKU) was downgraded at Guggenheim to neutral from buy.  Roku also saw its price target trimmed to $72 from $77.  Roku is facing competition from a number of large players making its platform vulnerable.  Free content from bigger players on their own platforms is threatening Rolu’s growth outlook, Guggenheim notes, saying Roku is fairly valued at these levels.  Roku is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Alphabet’s Google (GOOGL) was forced to scrap its outside council that was set up to advise it on complicated ethical issues related to artificial intelligence.  The council, called the Advanced Technology External Advisory Council, became the focus on complaints for the members Google chose for it.  “It became clear that in the current environment, ATEAC could not function as intended,” Google said, so it disbanded the council and will try again.  Alphabet is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Facebook (FB) and other social media executives could be held personally liable for harmful content on their platforms in the UK, according to a report from Bloomberg.  Legislation may be presented as early as Monday with those provisions, the report notes.  UK ministers are unhappy with the rate of progress on self-regulation and are ready to craft government regulations for the space.  The recent massacre in New Zealand and the use of the Facebook platform before and during that incident gave new impetus for the regulations.  Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Intel (INTC) was downgraded to market perform from outperform at Wells Fargo Securities.  Intel’s price target was raised to $60 from $55.  Wells writes that the downgrade “reflects a more cautious view on the current semi demand and data points” with the close of the first quarter.  Wells is cautious about 2H19 demand with the potential for further weakness, seeing downside to its current expectations.  Intel is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • SAP (DB:SAP) was downgraded to reduce from neutral at Oddo BHF.  SAP saw its price target  cut to 84 euros from 90 euros.  Oddo cut SAP’s target to well below the market average of 107.47 euros.  SAP is trading above 102 euros so Oddo sees significant downside from present levels.  SAP is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Snap (SNAP) is getting into gaming on its platform as it tried to edge into the gaming market.  Snap said its platform will launch multi-player games with its first called Botmoji Party.  Snap is seeking to have users spend more time on its platform and a slew of new games with be launched with development partners.  Snap is further blurring the line between social network and gaming.  Snap is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Information Technology Global Top Stock Ideas.  

Global Industrials Stocks Trending in the News

  • Boeing (BA) has accepted that its flight control systems was to blame for the crash of Ethiopian Airlines.  Boeing’s CEO said “We own it and we know how to fix I,” in a statement following a preliminary report on the crash.   Pilots on the doomed flight followed Boeing’s instructions when problems began, them shut off the system.  Pilots then turned that system back on and the plane crashed.  All 737 Max jets are grounded and it is not clear when they will fly again.  Boeing is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas

Global Financial Stocks Trending in the News

  • JP Morgan (JPM) CEO Jamie Dimon commented on banks’ potentially limited ability to help during the next crisis situation.  He commented in his letter to shareholders that new regulations and liquidity requirements will not allow banks to respond as they did during the crisis.  JP Morgan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • TradeWeb Markets (TW) placed its IPO and started trading Thursday.  Share were priced at $27 and the shares opened the day 27% higher at $34.26.  TradeWeb sold 40 million shares raising $1.1 billion in the sale and twice increased the size of the offering due to demand.  The IPO values TradeWed at $7.9 billion.  TradeWeb is not yet rated in our Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Canopy Growth Corp (TSX:WEED) started trading 5 years ago this week as the first listed pot stock.  Canopy Growth has risen 2,159% since going public, rising higher in a cloud of smoke.  What started as a listing on the Toronto Exchange’s Venture Market with a stock a bot over $1, is now a $15 billion company.   Canopy Growth is rated “Unattractive” in our Canada All-Cap Global Top Stock Ideas  

 

 

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS