Stock markets: European stocks touch fresh highs, UK lower
14:00, 15 November 2021
European stocks hit a new all-time high Monday morning, with the Euro Stoxx 50 index climbing slightly. The market was pulled up by oil shares as well as a number of positive corporate announcements, from companies including Cineworld, Royal Dutch Shell and Wizz Air.
UK stocks on the other hand, were slightly downbeat amidst fears of new lockdowns due to the ongoing coronavirus pandemic, as winter approaches and cases rise across Europe.
Overnight in Asia, Hong Kong’s Hang Seng index rose as China pledged to gradually “phase down” coal production during the COP26 summit in Glasgow.
What’s interesting today: Oil giant Royal Dutch Shell announces major plans to implement changes in its dual share structures, to simplify its payment structure and increase shareholder payouts. Wizz Air announced plans to purchase approximately 196 additional aircrafts to be more competitive in the budget travel sector.
Stocks chart – Credit: TradingViewWhy are European stocks up today?
Positive corporate announcements: Monday saw important announcements from companies such as AstraZeneca, Wizz Air and CMC Markets.
What is your sentiment on UK100?
- What this means: With a number of big corporate changes, such as in Royal Dutch Shell’s dual share structure, shareholder compensation has been at the forefront of most companies’ strategic plans. A number of companies have announced higher dividends and share buyback programmes as well, following strong third quarter earnings. These announcements have significantly boosted investor confidence in the recovery of the market and the ability of said companies to deliver on these promises. After approximately two years of corporate, economic and financial struggle, these positive announcements offer welcome respite to shareholders.
Stocks markets today: key highlights
- The FTSE 100 index inched up 0.14% today to reach 7358.0 points
- The Euro Stoxx 50 edged up 0.05% to touch 4372.5 points
- Germany’s DAX index traded mostly flat at 16097.6 points
- France’s CAC 40 index climbed 0.20% to reach 7105.7 points
- Technology services and transportation led the market, whereas retail and mining lagged behind
- The US S&P 500 opened fractionally higher at 4689.30.
Market sentiment
- The CBOE Volatility Index, or VIX, a measure of expected fluctuations in US stocks increased to 16.71, reflecting growing investor concern about central bank decisions in December
- The US dollar index dipped lower to $95.15, as the market stabilised further
- The US 10-year bond yield index also dropped for the second trading session in a row to 1.570%
Top gainers: UK and Europe
- Avast, AstraZeneca and Imperial Brands were the best performing companies in the HonUK
- Avast shares rose as their NortonLifeLock product gains US regulatory approval
- AstraZeneca shares rose following the pharmaceutical company’s recent announcement of starting to make profits on Covid-19 vaccines
- Imperial Brands shares inched higher as the company increases prices to offset volume reductions
- In Europe, Kering, LVMH Moet Hennessy Louis Vuitton and Airbus were the best gainers
- Kering recently announced that it would appoint a new creative director to head Bottega Veneta
- Louis Vuitton announced that they were considering opening duty-free stores in China, especially in the Hainan area
- Airbus shares rallied after the company received a massive deal for 255 aircrafts from airline investor Bill Franke
Top losers: UK and Europe
- On the FTSE 100, B&M European Value Retail, Aveva Group and Glencore were the worst performing companies
- B&M European Value Retail recently announced that it planned to issue notes worth £250m
- Aveva Group still struggled to make up losses caused by its tie-up with Schneider Electric
- Glencore led the way for the International Monetary Fund to conduct debt talks in Chad, regarding the nation’s $1bn commercial debt, by agreeing to work on restructuring the debt
- On the Euro Stoxx 50, Nestle, Unilever and Ab InBev were the top losers
- Nestle shares suffered as proposals to shut down its Fawdon factory threatens to impact 500 jobs
- Unilever came under fire after its decision to not sell Ben and Jerry’s ice cream in Gaza and the West Bank
Stock news: what you need to know today
- The Beijing Stock Exchange kicks off with SMEs being highlighted
- Nordex admits being hit by increasing costs
- Indian hospital chain Apollo Hospitals increases profits four-fold
- Australian companies are the leaders in worldwide dividend payout increase
Read more: Indian shares struggle to climb amid inflationary concerns
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