European Stocks at Midday
May 14, 2018
- European equities are lower across the board, with Euro Stoxx 600 -0.16%, the DAX -0.30%, the CAC40 -0.20%, and the FTSE 100 -0.21%
- Market breadth in the Euro Stoxx 600 is notably negative with an advance decline ratio of 0.44 (137 advances and 335 declines)
- The Euro Stoxx 600 is trading 7.70% below its average 10-day volume
What is Going on With European Currencies?
- The EUR€ has appreciated 0.38% against the USD$
- The GBP£ has gained 35 bps compared the USD$
Highlights from European Bond Markets
- 10-year bond prices across Europe are broadly retreating, yields moving higher
- Yields on the Italian 10-year bond have advanced roughly 0.05%
- Germany 10-year bond yields have increased by 0.4%
- Netherlands’ 10-year bond rate has risen by nearly 0.4%
- According to a Bloomberg report, ten EU member nations have proposed a tax on financial transactions, which may generate up to $23.5 billion in annual revenue
- Bank of France governor and ECB member François Villeroy de Galhau provided hawkish sentiment when he remarked that interest rate hikes may begin in “some quarters, but not years” after the ECB’s QE program is ended. Villeroy stated that weaker than expected economic growth in 1Q is temporary, and that the ECB should continue with its plan to wind down its bond buying initiative throughout this year
- Leaders of Italy’s 5-Star Movement and League Party came to a consensus yesterday regarding issues including universal basic income, a flat tax, and roll backs of pension reforms instituted in 2011 There is hope that these agreements may open the door to the formation of a coalition government following prolonged disputes between the two parties
- Francesco Drudi, the ECB mission chief in Greece, advocated for providing Greece with a line of credit which would enable Greece to reduce the volatility of bank deposits and allow Greece to participate in the ECB’s QE program. Drudi provided the caveat that this credit would come with “strict and effective conditions”
- According to a Bloomberg report, Romania, Bulgaria and Croatia will present plans for joining the Euro by years-end. These three countries are the poorest in the EU, and it is reported that their goal is to strengthen ties with the EU which would grant these Balkan nations increased access to critically important development funds.
- In a Reuters report, Swiss National Bank Vice Chairman Fritz Zurbruegg stated that the SNB has no plans to alter its monetary policy, despite a weakening in the Swiss France in recent months.
- Norges Bank Governor Øystein Olsen remarked that economic conditions will soon warrant interest rate increases by Norway’s central bank
- Sweden’s unemployment rate for April was reported at 3.6%, down from 3.8% prior
- Finland’s CPI for April was in-line with expectations (+0.8% y/y vs +0.8% y/y projected). Finnish retail sales growth for March came in softer than forecasted (+4.5% vs +4.8% estimated)
*Data in Price Return
Euro Stoxx 50 Movers
In local currency.
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|Anheuser-Busch InBev SA/NV
|Industria de Diseno Textil SA
|Deutsche Bank AG
|Intesa Sanpaolo SpA