Tepid gains seen in Europe today with indices giving up some gains vs highs seen at lunch. Spain slipped on the session with France the outperformer. Roughly 3/4 of sectors finished higher with Energy, Tech, and Industrials better by over a percent day. Banks and Telcos slipped on the session. Volume was considerably slower today, down 17% vs the recent month’s turnover. Headlines concerning Brexit were fairly light but two Conservative party vice chairs resigned after the close in protest of the plan out of Chequers.
The DOE lowered world oil demand this year by 80k barrels per day, cutting next year’s demand by 10k bpd.
Nokia leapt 2% post the €1B deal with China Mobile to supply wireless/fixed network equipment along with IP routing and associated products.
Equinor rallied 2.4% despite a strike by oil drilling workers. The firm added that production did not suffer.
Post being added to BofAML’s Europe 1 best ideas list Airbus ascended 4% today. The bank sees the company outperforming in the 2H as it gets A320 issues behind it. They expect FCF of €4.4B next year rise a 50% increase to €6.4B in 2020. Even with a possible stock buyback a cash balance of €15B is seen by the end of FY20.
From earlier: Shire +.2%, Sky +2.3%, and Ocado +9%.
Tonight, producer prices are expected in Japan along with Machine Orders and the Tertiary Industry reading. South Korea will release their Unemployment rate. Releases in Europe are light tomorrow.
