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European Stocks at Midday

May 29, 2018

European Markets

  • Global risk-off sentiment is being driven by political uncertainty in Italy. Italian populist Five Star Movement and La Lega parties have scrapped plans to form a coalition government, following President Sergio Mattarella’s decision to block the appointment of Paolo Savona as finance minister, who is known for his anti-EU and anti-German perspective
  • European stocks are sharply lower with the Euro Stoxx 600 -1.39%, the FTSE 100 -1.30%, the DAX -1.35%, and the CAC40 -1.40%
  • All sectors in the Euro Stoxx 600 are in the red
  • Financials (-2.77%), consumer discretionary (-1.55%), and utilities stocks (-1.47%) are the biggest underperformers in the Euro Stoxx 600 today
  • Market breadth in the Euro Stoxx 600 is overwhelmingly negative with 520 stocks declining, compared to only 64 advances
  • Volume across Europe was significantly higher than usual (25.19% above 10-day average)
  • The Eurozone’s M3 Money Supply in April grew 3.9% y/y, in-line with expectations for 3.9% growth
  • According to a Reuters report, Eurozone money markets are now pricing in a 30% chance for a 10 basis point ECB rate hike in June, which was lower than previous levels, as weak economic data and political uncertainty have dampened expectations for a rate increase
  • Italian consumer confidence for May was reported at 113.7, which was below a consensus of 116.5
  • French consumer confidence in May came in at 100, which was in-line with projections
  • Switzerland’s trade balance for April was CHF2.29 billion, softly above projections of a CHF2.23 billion trade balance

What is Going on with European Currencies?

  • SEK is 1.15% weaker against the USD$
  • EUR€ has depreciated by 0.60% compared to the USD$
  • GBP£ has fallen 0.39% relative to the USD$

Highlights from the European Bond Market

  • Italy’s 10-year bond yield has increased by 38.2 basis points, to 3.041%, as political uncertainty is driving a significant sell-off in Italian treasuries
  • Yields on the 10-year German Bund have fallen by 2.6 basis points to 0.31%, near its lowest level in almost 11 months
  • Significant rotation out of Greek treasuries, with yields on Greece’s 10-year bond up 48.9 basis points to 4.83%
  • UK treasuries are rallying, with yields on the UK 10-year 5.8 basis points lower to 1.26%

*Data in Price Return

Euro Stoxx 50 Movers

In local currency.

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Outperformers Ticker Price Chg % Chg Volume
Unilever NV LSE:ULVR 48.40 0.30 0.62% 3.04M
Fresenius SE & Co KGaA DB:FRE 67.24 0.24 0.36% 634.40k
Airbus SE ENXTPA:AIR 97.42 0.22 0.23% 747.37k
L'Oreal SA ENXTPA:OR 208.00 0.00 0.00% 365.98k
Essilor International Cie Generale d'Optique SA ENXTPA:EI 117.70 -0.05 -0.04% 343.20k

 

Underperformers Ticker Price Chg % Chg Volume
Banco Santander SA BME:SAN 4.61 -0.28 -5.76% 83.76M
Intesa Sanpaolo SpA BIT:ISP 2.42 -0.13 -5.25% 179.29M
Deutsche Bank AG DB:DBK 9.84 -0.45 -4.34% 25.72M
BNP Paribas SA ENXTPA:BNP 57.34 -2.55 -4.26% 5.38M
Banco Bilbao Vizcaya Argentaria SA BME:BBVA 5.91 -0.23 -3.70% 24.07M