Article / 17 February 2017 at 12:48 GMT

Mid-session Europe: Royal Vopak drags down European stocks

Saxo Markets


Foreign exchange

fx chart

European stocks have taken a tumble following Royal Vopak's disappointing earnings release this morning. The upcoming French elections and their possible implications naturally continue to dominate across Europe also.

Meanwhile, the dollar is the only major currency to have seen gains today while gold has reached a high of $1,242/oz. 

Watchlist (all times GMT)

  • US Leading Indicators (1500)

  • Baker Hughes Weekly Rig Count (1800)
Forex developments

USD has had mixed fortunes but is still faring better versus GBP and EUR

EURUSD is down to 1.0650 while EURGBP is up to 0.8575. EURSEK also climbed to 9.4825 on the back of today's release of Swedish inflation figures for January.

FX Options volatilities
A risk-off reaction in the market on the back of political developments in France, ahead of the elections, has given a boost to volatilities.

: The curve has been well bid all morning. Front end has rallied, but is still affordable, but the risk around the French elections has increased a fair bit and feels like there is much more to go.

: Vols traded a spread higher this morning and risk reversals have moved towards USD puts again. We saw strong interest for 2-week – 1-month 110.00 puts during the sell-off in spot.

: Vols around the election event traded higher following the political comment from France. Front end vols traded higher as well, but we are already starting to see it trading lower again. There has been decent buying interest for 1-week 1.0700 (and similar) strikes this morning.

Fixed income
fixed income



European stocks dropped as Dutch storage company Royal Vopak NV disappointed after its earnings release. The Stoxx Europe 600 fell 0.5% to 368.20.

Royal Vopak slumped 8% after the provider of storage for the oil and chemicals industries said 2017 earnings before interest, tax, depreciation and amortization “will not exceed the 2016 result.” The stock was the Stoxx 600’s biggest decliner.

On the upside, Segro gained more than 3%. The U.K.-based real estate trust that owns warehouses posted a drop in 2016 pre-tax profit, but said demand is holding up and hiked its dividend.

Allianz rose almost 2% after the German insurance company raised its dividend, launched a buyback program, and outlined the continued recovery of its US fund manager Pacific Investment Management Co., or Pimco.

Latest and still open trades on #SaxoStrats
The replay of our Morning Call can be found here 

Read more

Mid-session Europe is part of TradingFloor's stable of commentary running through from the US close, through Asia to the European session. Click below to keep abreast of all the developments as they happen.

 Royal Vopak's disappointing earnings report has seen the company's share price drop 8% and European stocks have taken a tumble alongside it. Photo: Wikimedia Commons

— Edited by Jack Davies
The Global sales Trading desk is a multi-asset team providing customised trading solutions


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail