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European Markets Overview: Turnover on STOXX 600 was 6.2% Above 12-Month Average

Overview:

The week from the 23 rd to the 27 th October saw the STOXX 600 up by 0.8%, with 59.2% of stocks in the green. Investor turnover on the STOXX 600 was 6.2% above the 12 month average, with volatility remaining at historically low levels. European markets were supported by the ECB's move on Thursday, with Mario Draghi reducing the asset buying program from the start of 2018 (to €30bn/month from €60bn), at a slower pace than expected. With Mario Draghi also noting that the ECB could increase the volume of asset purchases again if necessary, the Euro was under pressure, losing 1.1% against the SDR (or 1.7% against the USD) over the week. This morning saw the Eurozone economic confidence indicator reach its highest level since January 2001.

The top performing indices were the CAC40 (+2.3%) and the DAX 30 (+1.7%), the two largest continental European indices, whilst the IBEX 35 (-0.3%) continued to be dragged down by the political uncertainty in Catalonia. Other indices down were the OMXH (-1.1%) and the PSI 20 (-0.8%).

Non Euro denominated indices underperforming

With the exception of the Oslo Exchange All share (+1.1%) and the OMXC20 (+0.4%), all the non-Euro denominated main indices were down over the week, led by the OMXH (-1.1%) and the SMI (-0.6%). Perhaps of note, the OMXC20 is Denmark's index, with the Danish Krone pegged to the Euro. UK indices were also down, with the more export heavy FTSE losing 0.2%, as the FTSE 250 lost 0.004%.

Apple suppliers enjoying strong results

The two top performing stocks on the STOXX 600 over the week, AMS (+33.4%) and STMicroelectronics (+18.0%), were both supported by strong 3Q17 results and guidance, supported by Apple iPhone X sales expectations. On Friday, Apple opened pre-orders for the new iPhone, with demand quoted as being "off the charts".

Deutsche Boerse sees significant investor turnover as CEO Kengeter quits

Deutsche Boerse CEO Carsten Kengeter resigned as the company faced weak 3Q17 results and as the insider trading probe continues. The CEO had been under shareholder pressure to step down, with two of the largest shareholders now calling for Chairman Joachim Faber to also step down.

Luxury goods companies up over the week

Kering's shares added 10.1% and hit an all-time high after it reported stronger than expected quarterly revenues, supported by its Gucci brand and strong sales growth in China and Western Europe. Luxury peers LVMH were up 6.9% and Luxottica 6.2%.

Covestro up as Bayer falls

German chemical company Covestro soared 13.7% to a record high after reporting a 50% increase in third-quarter earnings and a share buyback programme of up to €1.5bn equal to 10% of outstanding shares. Bayer, which spun-off Covestro, had its own results last week, with below expectations revenues (-2.8%), seeing the stock down 5.3%. The company also stated that the deal with Monsanto was expected to complete early next year.

Weak sales hurt Nokia

Nokia's share price plunged by 18.2%, after the company reported a continuing decline in its telecommunications equipment business that it said will run into next year.

The Big Four Satellite operators release results

The big four satellite operators: Eutelsat, SES, Intelsat and Iridium all released results last week. Two of these are listed in Europe and were amongst the worst performers on the STOXX 600, as Eutelsat Communications fell 9.2% and SES of Luxembourg lost 15.8%.

Week ahead:

  • 31.10.2017: Eurozone inflation (October), GDP (Q3) & unemployment (September); Bank of Japan interest rate decision
  • 01.11.2017: UK manufacturing PMI; Fed interest rate decision
  • 02.11.2017: BoE interest rate decision and inflation report

Top performing stocks:

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Top stocks by investor turnover

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Nasdaq Advisory Services European Team is part of Nasdaq's Corporate Solutions Advisory Services -- the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Alexander Free . This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, "Nasdaq"), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.