Market Overview

14 Most Shorted European Stocks

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14 Most Shorted European Stocks

European stocks have severely lagged U.S. stocks over the past year. In that stretch, the iShares MSCI EMU Index (BATS: EZU) is up just 6%, while the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 50.9%.

Eurozone uncertainty related to Brexit, an economic slowdown in Germany and other factors have weighed on stock performance. The European Central Bank is doing its best to stimulate economic growth by lowering interest rates into negative territory and buying bonds.

Yet despite the ECB’s best efforts, the International Monetary Fund cut its Eurozone economic growth forecast for 2019 earlier this month from 1.3% to just 1.2%. That growth rate is down from 1.9% in 2018. Germany is a particularly soft spot. The IMF is calling for just 0.5% GDP growth in Germany this year.

Top Euro Shorts

S3 Partners recently compiled a list of the Eurozone stocks with the largest short interest. Here’s a look at the 14 most shorted European stocks, according to S3.

  1. Wirecard AG (ETR: WDI) (OTC: WCAGY), $2.88 billion short interest.
  2. Equinor ASA (NYSE: EQNR), $2.77 billion short interest.
  3. Sika AG (SWX: SIKA) (OTC: SXYAY), $2.04 billion short interest.
  4. Eurofins Scientific SE (FRA: ESF) (OTC: ERFSF), $1.68 billion short interest.
  5. Daimler AG (ETR: DAI) (OTC: DMLRY), $1.63 billion short interest.
  6. Flutter Entertainment PLC (LON: FLTR) (OTC: PDYPY), $1.18 billion short interest.
  7. Umicore SA (EBR: UMI) (OTC: UMICY), $1.14 billion short interest.
  8. Swisscom AG (SWX: SCMN) (OTC: SCMWY), $1.11 billion short interest.
  9. Iliad SA (EPA: ILD) (OTC: ILIAY), $1.06 billion short interest.
  10. NMC Health PLC (LON: NMC) (OTC: NMHLY), $967.7 million short interest.
  11. Anglo American plc (LON: AAL) (OTC: NGLOY), $950.3 million short interest.
  12. ThyssenKrupp AG (ETR: TKA) (OTC: TKAMY), $923.2 million short interest.
  13. BNP Paribas SA (EPA: BNP) (OTC: BNPQY), $920.3 million short interest.
  14. Sanofi SA (NASDAQ: SNY), $896.1 million short interest.

Benzinga’s Take

Some traders have large bets against European stocks as either a standalone bet that the worst is yet to come in Europe or as a hedge against long positions in the U.S. market. The long U.S. stocks/short Eurozone stocks pair trade has been a big winner for traders over the past five years.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Links:

13 Stocks With The Highest Average Daily Trading Volume

12 Stocks With Short Ratios Above 50

Posted-In: Brexit European Central Bank International Monetary Fund S3 PartnersShort Ideas Eurozone Markets Trading Ideas Best of Benzinga

 

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