Europe closed in the red across the board but off lows helped by the U.S. recovery from deeper losses. Also, there was most likely technical buying when the Euro Stoxx 600 found support at 383. It is worth keeping an eye on that level. If the current market trend persists, the 100 dmavg. is about to cross below the 200 dmavg. there. (See chart below).
Breadth was fairly even but most sectors were lower. Materials and energy declined by 1% due to falling underlying commodity prices. Telcos gained 1% largely thanks to Vodafone +5.1% but a few other names within the sector also managed to gain. IT and real estate recorded small advances.
Henkel -4.3% weighed upon consumer staples overpowering the U.K. grocer strength we noted this morning. While it raised some metrics, its noted stagnant growth for its beauty division.
RWE’s -5.6% headline results were positive overall. However, concerns regarding action the Green Party will take regarding coal power plants pummeled the stock.
Alstom +3.4% outperformed other capital goods peers following strong H1 results. Train sales in the Mid-East were ahead of expectations and the company affirmed its medium term targets for organic growth and margins. It sees the train division deal with Siemens -1.0% concluding next year.
Intermediate Capital +8.3% saw 14.0% growth in AUM during the H1 accompanied with strong new money growth, fees and profits.
The IT gains were driven by results from United Internets +3.5% and Scout24’s +6.1% MSCI inclusion.
Altice -13.2% was the worst performer in the Euro Stoxx 600 following last weeks’ results and management shake up. Morgan Stanley made negative comments regarding medium term prospects and the company saw its corporate yields sharply.
The names we covered this morning have last traded as follows: Tesco +6.2%, Booker +6.8%, Bovis Homes +2.7%, Berkeley Group +1.8% and Crest Nicholson +1.6%.
The € surged thanks to today’s macro data and the Greenback was weaker in general. DXY is currently off c. 0.5%. Commodities gave way especially crude. The IEA noted several factors are curtailing demand growth.
On tonight’s agenda: Japan releases GDP and industrial production, S. Korea and the U.K. employment related data. The U.S. CPI and retail sales tomorrow morning. Full details and table below. There were quite a few important results out after the respective local closes including Hon Hai, MUFG, and SMFG. Results due include Tencent, Samsung Elec., Lanxess, and K+S. On our side of the pond, we will see Cisco, Target and American Eagle.
Euro Stoxx 600 Chart
Market Levels and Macro Due
|SK||Unemployment rate SA||Oct||3.70%||—||3.70%||—||82.8571|
|AU||Westpac Consumer Conf Index||Nov||—||—||101.4||—||28.169|
|AU||Westpac Consumer Conf SA MoM||Nov||—||—||3.60%||—||83.0986|
|JN||GDP SA QoQ||3Q P||0.40%||—||0.60%||—||96.8085|
|JN||GDP Annualized SA QoQ||3Q P||1.50%||—||2.50%||—||94.6809|
|JN||GDP Nominal SA QoQ||3Q P||0.60%||—||0.70%||—||55.3191|
|JN||GDP Deflator YoY||3Q P||0.10%||—||-0.40%||—||88.2979|
|JN||GDP Private Consumption QoQ||3Q P||-0.40%||—||0.80%||—||6.38298|
|JN||GDP Business Spending QoQ||3Q P||0.30%||—||0.50%||—||12.766|
|AU||Wage Price Index QoQ||3Q||0.70%||—||0.50%||—||52.1127|
|AU||Wage Price Index YoY||3Q||2.20%||—||1.90%||—||38.0282|
|JN||Tokyo Condominium Sales YoY||Oct||—||—||-13.00%||—||52.1277|
|JN||Industrial Production MoM||Sep F||—||—||-1.10%||—||98.9362|
|JN||Industrial Production YoY||Sep F||—||—||2.50%||—||72.3404|
|JN||Capacity Utilization MoM||Sep||—||—||3.30%||—||69.2553|
|FR||CPI EU Harmonized MoM||Oct F||0.10%||—||0.10%||—||68.4211|
|FR||CPI EU Harmonized YoY||Oct F||1.20%||—||1.20%||—||76.3158|
|FR||CPI MoM||Oct F||0.10%||—||0.10%||—||73.6842|
|FR||CPI YoY||Oct F||1.10%||—||1.10%||—||97.3684|
|FR||CPI Ex-Tobacco Index||Oct||101.41||—||101.3||—||44.7368|
|UK||Claimant Count Rate||Oct||—||—||2.30%||—||81.1765|
|UK||Jobless Claims Change||Oct||—||—||1.7k||—||94.1176|
|UK||Average Weekly Earnings 3M/YoY||Sep||2.10%||—||2.20%||—||30.5882|
|UK||Weekly Earnings ex Bonus 3M/YoY||Sep||2.20%||—||2.10%||—||24.7059|
|UK||ILO Unemployment Rate 3Mths||Sep||4.30%||—||4.30%||—||89.4118|
|UK||Employment Change 3M/3M||Sep||52k||—||94k||—||11.7647|
|IT||General Government Debt||Sep||—||—||2279.2b||—||5.26316|
|EC||Trade Balance SA||Sep||21.0b||—||21.6b||—||31.8182|
|EC||Trade Balance NSA||Sep||—||—||16.1b||—||27.2727|
|US||MBA Mortgage Applications||10-Nov||—||—||0.00%||—||92.3077|
|CA||Teranet/National Bank HPI MoM||Oct||—||—||-0.80%||—||28.8889|
|CA||Teranet/National Bank HPI YoY||Oct||—||—||11.40%||—||26.6667|
|US||CPI Ex Food and Energy MoM||Oct||0.20%||—||0.10%||—||76.9697|
|CA||Teranet/National Bank HP Index||Oct||—||—||220.33||—||20|
|US||CPI Ex Food and Energy YoY||Oct||1.70%||—||1.70%||—||56.0606|
|US||CPI Core Index SA||Oct||253.252||—||252.86||—||44.697|
|US||CPI Index NSA||Oct||246.633||—||246.819||—||39.3939|
|US||Real Avg Weekly Earnings YoY||Oct||—||—||0.60%||—||8.33333|
|US||Real Avg Hourly Earning YoY||Oct||—||—||0.70%||0.60%||2.27273|
|US||Retail Sales Advance MoM||Oct||0.00%||—||1.60%||—||92.4242|
|US||Retail Sales Ex Auto MoM||Oct||0.20%||—||1.00%||—||64.697|
|US||Retail Sales Ex Auto and Gas||Oct||0.30%||—||0.50%||—||62.8788|
|US||Retail Sales Control Group||Oct||0.30%||—||0.40%||—||20.4545|
|CA||Existing Home Sales MoM||Oct||—||—||2.10%||—||17.7778|
|US||Total Net TIC Flows||Sep||—||—||$125.0b||—||66.6667|
|US||Net Long-term TIC Flows||Sep||—||—||$67.2b||—||75|