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International Summary

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International Summary

"CAPIS EU Close Recap – 1/11/2019"

posted by Clayton Duff on 01/11/2019 at 12:59 pm

by Clayton Duff

01/11/2019 at 12:59 pm

European indices again rebounded from lower levels as the US market opened lower and quickly started working higher.  The Stoxx 600 has now recovered just under 6% from its closing low on December 27th as it has consolidated over the last three days. With moves subdued today we saw a fairly even split of both individual names along with sectors up vs down.  Personal Goods led, up over a percent with Food names not far behind.  Losses were slight in the underperforming Industrials and Construction sector.

Deutsche Bank -.3% and Commerzbank +1.1%  have received an initial thumbs up to a possible merger derived from a letter from the office of the Finance Ministry.  In it, a Parliamentary Fin Sec noted they expect institutions should act in their best interest when asked about a possible merger.  The German gov is a 15% holder, the largest, of Commerzbank.

Anheuser Busch rallied 3.7% with the firm said to be considering IPO its Asian biz which could reap $5B.

Construction names closed mixed despite a rosier outlook from Bank of America ML.  The broker sees infrastructure names as appealing on a defensive standpoint while upgrading homebuilders.  On that they like the building material space with better margins seen in cement names.  UK builders were upped on a view a no-deal Brexit will likely be avoided. LafargeHolcim +1.4%, Saint-Gobain -2.4%, Ferrovial -.4%, Taylor Wimpey +4.8%, and Persimmon +4.4%.

Debenhams continued lower, down another 19%, after their Chairman and the CEO’s board seat were nixed by shareholders.

From earlier: Daimler -.8%, VW -1.9%, BMW -1%, and Renault -2.2%.

Trade data out of China is due early next week with expectations of slowing growth in Exports on a Dollar basis. EU Industrial Production is due Monday as well. Hopefully next Tuesday we will see a vote in the UK Parliament pertaining to Brexit.

About the Author

ClaytonDuffFVP,Senior International Trader

Clayton Duff joined the firm in 2008. He has worked in the industry since 1994 and held various trading and sales positions before CAPIS, including four years as a trader for First Southwest. He earned his bachelor’s degree from the University of Texas Arlington. Clayton maintains Series 3,...

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