Advertisement
New Zealand markets closed

  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     

  • NZD/USD

    0.5889
    -0.0017 (-0.28%)
     

  • NZD/EUR

    0.5525
    -0.0019 (-0.35%)
     

  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     

  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     

  • OIL

    82.25
    -0.48 (-0.58%)
     

  • GOLD

    2,395.00
    -3.00 (-0.13%)
     

  • NASDAQ

    17,394.31
    -99.31 (-0.57%)
     

  • FTSE

    7,833.09
    -43.96 (-0.56%)
     

  • Dow Jones

    37,775.38
    +22.07 (+0.06%)
     

  • DAX

    17,730.88
    -106.52 (-0.60%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • NZD/JPY

    90.9460
    -0.3080 (-0.34%)
     

CME Group Reports Soft June & Q2 Volumes, Shares Decline

Zacks Equity Research
·4-min read

CME Group Inc. CME reported unimpressive average daily volume (ADV) for June 2020. Average daily volume of 17.1 million contracts per day was down 26% year over year attributable to lower volumes in five of the six product lines. There were 22 trading days in June this year versus 20 days in June 2019. Shares of the company lost 2.1% in the day’s trading in response to the soft volumes.

Interest rate volume of 5.8 million contracts per day decreased 55%. Energy volume of 2 million contracts decreased 20% year over year. Foreign exchange volumes dropped 12% to 0.9 million contracts per day. Agricultural volume of 1.5 million contracts per day declined 25% year over year while Metals volume of 0.5 million contracts per day decreased 34%. However, Equity index volume of 6.4 million contracts per day increased 64%.

Q2 Volumes

CME Group also reported second-quarter 2020 volumes. The company recorded ADV of 17.6 million contracts, down 16% from second-quarter 2019.

Energy volume of 2.6 million contracts increased 4% from second-quarter 2019. Interest rate volume of 6.9 million contracts per day decreased 41% while Equity index volume of 5.6 million contracts per day increased 60%.
However, Metals volume of 0.5 million contracts per day decreased 18%. Foreign exchange volumes dropped 17% to 0.7 million contracts per day. Agricultural volume of 1.3 million contracts per day decreased 29% from second-quarter 2019.

Though June volumes decreased, the company’s operating leverage and compelling suit of products are expected to help CME Group record higher volumes in the near term. The company boasts the largest futures exchange globally in terms of trading volume as well as notional value traded. CME group leads with about 90% market share of the global futures trading and clearing services.

Expansion of futures products in the emerging markets plus an increase in non-transaction related opportunities as well as OTC offerings should continue to contribute modestly to its top-line growth in the years ahead.

Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a strong global presence should also drive growth.

Shares of CME Group have underperformed the industry year to date. This Zacks Rank #3 (Hold) stock has lost 17.7% compared with the industry’s decline of 3.6%. Nevertheless, its solid fundamentals will likely help the stock regain its growth momentum.

Stocks to Consider

Some better-ranked stocks from the finance sector include MarketAxess Holdings Inc MKTX, Deutsche Boerse AG DBOEY and and Equifax Inc. EFX. While MarketAxess sports a Zacks Rank #1 (Strong Buy), Deutsche Boerse and Equifax carry a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

MarketAxess operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. It surpassed estimates in three of the last four quarters, with the average positive surprise being 1.09%.

Deutsche Boerse operates as an exchange organization in Europe, the United States, and the Asia-Pacific and engages in electronic trading of derivatives, foreign exchange, operating Eurex Repo over the counter trading platform and electronic clearing architecture. It came up with four-quarter average positive surprise of 15.38%.

Equifax provides information solutions and human resources business process outsourcing services for businesses, governments and consumers. It surpassed estimates in each of the last four quarters, with the average positive surprise being 4.23%.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Equifax, Inc. (EFX) : Free Stock Analysis Report
 
CME Group Inc. (CME) : Free Stock Analysis Report
 
MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report
 
Deutsche Boerse AG (DBOEY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research