The auto sector continues imploding. Latest stats from ACEA, show new car registrations dropped 8.1% in November. With the Brexit and the Italian budget saga, both the UK and Italian stats are down all year, but even more notable is the fact German stats fell by almost a 10% drop in registrations.
Brexit deal or no deal, the Chinese declining market, tougher emissions tests are all aspects dragging the sentiment lower in this beaten sector.
Every name in the European auto index, SXAP, is red today. The bloodbath in the sector continues.
The SXAP index continues trading inside the perfect down trend. The index is down 35% from year highs. 450 is a huge level to watch. A close below risks sparking further stops.
Implied volatility for the SXAP (blue) continues moving higher, as well as the realized volatility (30/60 days).
Some names are still trading above recent lows, but there are beaten names that just keep on going down and down. Below is the chart of Continental, down 52% from year highs.
Another one, a popular but impossible fundamental short back in late 2017/early 2018, is flirting with breaking below recent lows, Renault. The stock, now with the recent Ghosn news is down 46% from year highs.
With France in full implosion mode as Macron’s new yellow vests headache continues, Renault, deriving some 21% of revenues from France, looks all but great.
France’s PMI out this morning is not happy reading.
Source: all charts by Bloomberg