European auto stocks start November in the green

European markets started the new month on a positive note, with auto stocks surging 2% MoM (month-over-month). The pan-European Stoxx 600 rose 0.38%, the UK FTSE Index went up 0.2%, while Germany’s DAX and Italy’s FTSE MIB gained 0.7% each, and France’s CAC 40 jumped only 0.1%.  

Cryptopolitan reported late last month that the Stoxx 600 Index was up 0.2%, hitting an ATH of 575.76. The Stoxx 600’s gain was attributed to increased activity in energy and consumer stocks. The FTSE 100 also grew by 0.7%, while financial and industrial stocks led the month’s rally, with Lifco reportedly surging over 10% to exceed Q3 estimates.

Saab stock increased by 6.1%, the LSEG group rose by 5%, and NatWest jumped 4.9%. 

European auto stocks perform comparatively better MoM in November

Yahoo Finance showed that Renault surged 3.7% in early trading. The French automaker’s Chief Growth Officer, Fabrice Cambolive, announced a global partnership with the Chinese company Geely, among other car manufacturers. 

Meanwhile, Nexperia resumed exporting chips to China, amid hopes of resolving semiconductor supply shortages, which boosted shares of Mercedes-Benz by 3.3% and Volkswagen by 2.8%. Stellantis also rose by 2.9%, BMW by 1.7% and Porsche by 1.6%. Other results are due this week, including Ferrari on Tuesday. 

The European Automobile Manufacturers’ Association (ACEA) recently reported that new car sales in Europe surged 10.7% in September, driven by strong growth in the German and UK markets. Sales in Britain, the EU, and the European Free Trade Association increased to 1.23 million units, partly driven by the launch of new models. 

However, a trade group representing EU automakers last week warned that some assembly lines will imminently face line stoppages, with some already experiencing partial supply issues. Europe’s manufacturers, including Mercedes-Benz, BMW, and Volkswagen, have recently confirmed that they have sufficient supply in the short term but are working to avoid potential production disruptions. 

Audi and Volkswagen said on October 31 that their full-year financial guidance depends on the adequacy of semiconductor supplies. Citi analysts expect the news from both automakers to boost shares of EU auto-part suppliers and OEMs (Original Equipment Manufacturers).

BP PLC boosts share price by 0.8% after selling U.S. assets 

BP PLC reportedly sold $1.5 billion worth of U.S. assets, boosting its share price by 0.8%. BP’s 1.7% climb boosted the UK’s energy sector after the company unveiled plans to sell stakes in Eagle Ford and Permian for $1.5 billion

Other stocks, such as Nokia, rose 4.2% to extend their rally, while Vodafone Group dropped 2.6% following several acquisitions. More results are due this week from Vestas, Commerzbank, Diageo, Maersk, Rheinmetall, and AstraZeneca.

European stocks reportedly traded steady on Monday amid a fresh wave of company earnings, including those from GTT and PostNL. GTT shares rose 4.3%, although the broader oil and gas index gained 1.1%, while PostNL dropped 4% after reporting a quarterly operating loss. 

However, shares of Campari slid 4% following a probe into tax evasion. Italian tax police seized shares worth $1.5 billion (€1.29B) from a holding company based in Luxembourg.  

Meanwhile, the first week of November also began with Ryanair shares shedding 2% despite a 13% rise in H1 revenue to €9.82 billion. The low-cost airline earned $1.98 billion (€1.72B) in Q2, meeting market expectations with a 42% increase that reportedly aligned with estimates. 

November is reportedly expected to be a stock market goldmine. The month is also known to historically deliver some of the most substantial stock market returns in any year.  

Consumer discretionary stocks are also expected to shine as holiday spending increases. Historically, the month of November has seen average returns of around 3.14% in nearly 80% of Novembers. 

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