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StreetAccount Summary - European Market Recap: FTSE 100 +0.17%% to 7691.80, DAX +0.13% to 16211.59, CAC (0.16%) to 7415.45

Jul 25 ,2023

  • Synopsis:

    • European equity markets closed mixed to positive with pan-European just below session highs. Finland +1.5%, Netherlands +1.1% and Sweden +0.9% lead the overperformers whilst Denmark and Spain both (0.4%) are the leading decliners.

    • In Europe, travel and leisure sector in focus amid extreme weather which has seen record heat and wildfires in Greece. In geopolitical news, Russian drone attacked grain hangar at Danube River port Monday; latest attempt by Russia to hamper Ukrainian exports. Russia-Africa summit to take place this week to discuss Moscow's grain and fertilizer exports. Talks will focus on logistical corridors for food, fertilizer and other products. Meanwhile, UK government's new house-building plan was criticized by developers.

    • Limited macro calendar in Europe. Focus on German Ifo business climate survey which saw in July a further deterioration to 87.3 versus consensus 88.0 and prior 88.5. The current conditions index at 91.3 versus 93.0 forecast and prior 93.7 and expectations index at 83.5 compared with 83.4 consensus and 83.6 in June. UK Jul CBI Industrial Trends Orders came at (9) vs consensus (12) and prior (15). Elsewhere, most recent ECB bank lending survey showed record drop in company loan demand to all-time low since start of survey in 2003. Credit conditions tightened more than expected in Q2. Banks also tightened conditions and terms further in Q2.

    • Amidst a busy day in terms of earnings, DACHs names kicked off the session, including Bayer AG (BAYN.GR), Adidas (ADS.GR) and Logitech International (LOGN.SW) whilst - in France - Alstom (ALO.FP), Remy Cointreau (RCO.FP), Elior Group (ELIOR.FP) and Dassault Systemes (DSY.FP) were among few other companies to update investors. In the UK, Unilever (ULVR.LN) issued its latest numbers, whilst ITM Power (ITM.LN) postponed the FY23 report to 17-Aug citing a request for more time from auditors; in the Netherlands, Akzo Nobel (AKZA.NA) and Randstad (RAND.NA) reported before the open whilst - in the Nordics- UPM-Kymmene (UPM.FH) Kindred Group (KIND.SS) and Nordnet (SAVE.SS) released Q2/H1 earnings

    • Looking ahead to tomorrow's calendar (see - Europe Week Ahead: Jul 24-28 attached), Elia Group (ELI.BB), Just Eat Takeaway.com (TKWY.NA), Deutsche Bank (DBK.GR), MTU Aero Engines (MTX.GR), TRATON (8TRA.GR), PUMA (PUM.GR), Airbus (AIR.FP), Danone (BN.FP), Compagnie de Saint-Gobain (SGO.FP), Orange (ORA.FP), Michelin (ML.FP), Equinor (EQNR.NO), Hexagon (HEXA.B.SS), Valmet Corp. (VALMT.FH),Italiane (INW.IM), Corporacion Acciona Energias Renovables (ANE.SM), Redeia Corporacion (RED.SM), Enagas (ENG.SM), Rio Tinto (RIO.LN), British American Tobacco (BATS.LN), GSK (GSK.LN), and Lloyds Banking Group (LLOY.LN) will be among other names to update investors, whilst the macro-calendar releases will include France Jul consumer confidence, Switzerland Jul ZEW expectations, Sweden Jun trade balance, Eurozone Jun M3 money supply.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Basic Resources +4.46%, Personal Care Drug and Grocery Stores +1.81%, Technology +1.19%, Financial Svcs +0.99%, Chemicals +0.81%, Insurance +0.79%, Construct & Mtls +0.75%, Banks +0.49%,

      • Underperformers:

        • Travel & Leisure (0.71%), Energy(0.36%), Retail (0.33%), Telecom (0.31%), Autos & Parts (0.29%), Utilities (0.16%), Consumer Products and Services +0.01%, Health Care +0.09%, Media +0.11%, Real Estate +0.16%, Ind Goods & Svcs +0.25%,

    • Macro/Peripheral markets:

      • Ukraine/Russia

        • Russia's Crude Flows From Western Ports Slump to Seven-Month Low - Bloomberg

        • Russia extends conscription for compulsory military service up to age 30 - Reuters

        • Ukraine war latest: Putin has 'almost abandoned' idea of winning; Ukraine launches 'drone attack on Russian ship' - Sky news

      • EU

        • ECB under pressure to signal end of interest rate rises after fall in loan demand - FT

        • ECB Eyes Capital Charges for More Banks on Leveraged Finance - Bloomberg

      • UK

        • UK government faces £150bn bill to cover Bank of England's QE losses - FT

        • UK pension funds must broaden investments, new regulator warns - FT

        • Bank of England rates set to peak at 5.75% by year-end: Reuters poll - Reuters

        • UK interest rates need to stay higher for longer to beat inflation, says IMF - The Guadian

      • Germany

      • Italy

        • IMF raises Italy's estimates, better than Germany and France - Ansa

        • Biden receives Meloni on Thursday, 'Ukraine and China on the agenda' - Ansa

      • Greece:

    • Company news:

      • Trading Higher:

        • +40.4% QLINEA.SS (Q-linea SEK4.38, +1.26) -- announces results of SEK 263M right issue

        • +35.0% AFRN.LN (Aferian £0.14, +0.04) -- to raise up to $4.0M issuing new shares; continues to trade in-line trading and outlook statement given on 28-Jun-23

        • +19.0% RCH.LN (Reach £0.82, +0.13) -- H1 earnings

        • +12.0% LOGN.SW (Logitech International CHF61.58, +6.62) -- Q1 earnings

        • +11.0% IDEX.NO (IDEX Biometrics NOK0.74, +0.07) -- collaboration with Goldpac Fintech Hong Kong

        • +9.0% CICN.SW (Cicor Technologies CHF46.00, +3.80) -- H1 earnings

        • +7.9% ECX1.GR (Epigenomics €0.76, +0.06) -- agreement on the acquisition of almost all assets by New Day Diagnostics LLC

        • +6.3% DXRX.LN (Diaceutics £0.93, +0.06) -- H1 trading update

        • +5.9% OXUR.BB (Oxurion €0.00, -0.00) -- receives upfront payment of $400,000 following Oncurious Asset License by VIB

        • +5.6% HFG.GR (HelloFresh €24.77, +1.31) -- initiated buy at Kepler Cheuvreux

        • +5.3% AAL.LN (Anglo American £25.18, +1.26) -- H1 earnings; Buyers circling Chalice Mining - The Australian

        • +4.8% PEBB.LN (The Pebble Group £0.88, +0.04) -- H1 trading update

        • +4.7% CRDA.LN (Croda International £59.28, +2.64) -- H1 earnings

        • +4.5% RIO.LN (Rio Tinto $54.12, +2.34) -- Buyers circling Chalice Mining - The Australian

        • +4.5% RCO.FP (Remy Cointreau €151.95, +6.50) -- Q1 sales

        • +4.4% ULVR.LN (Unilever £41.97, +1.75) -- H1 earnings

        • +4.3% 888.LN (888 Holdings £1.10, +0.05) -- appoints new CEO

        • +4.2% HVO.LN (hVIVO plc £0.16, +0.01) -- contract

        • +3.9% SUN.SW (Sulzer CHF84.25, +3.15) -- H1 earnings

        • +3.7% ADS.GR (Adidas €181.26, +6.52) -- prelim Q2 earnings; BNP Paribas Exane and Societe Generale upgrade

        • +3.6% ORP.FP (Orpea €1.89, +0.06) -- approval from Nanterre Specialised Commercial Court for Accelerated Safeguard Plan

        • +3.5% TSTL.LN (Tristel £3.68, +0.13) -- FY trading update

        • +3.5% EXE.FP (Exel Industries €53.00, +1.80) -- Q3 revenue

        • +3.3% BOOZT.SS (Boozt Fashion SEK120.50, +3.80) -- Carnegie Securities upgrade

        • +3.2% BFIT.NA (Basic-Fit €32.60, +1.02) -- H1 earnings

        • +2.6% STEM.LN (Sthree £3.58, +0.09) -- H1 earnings

      • Trading Lower:

        • -96.3% WAND.LN (WANdisco £0.49, -12.61) -- will issue 47.5M new shares as part of previously disclosed equity fund raising

        • -12.3% HUM.LN (Hummingbird Resources £0.13, -0.02) -- Q2 operational and trading update

        • -12.3% ELIOR.FP (Elior Group €2.49, -0.35) -- Q3 revenue; revises FY outlook

        • -7.8% XBRANE.SS (Xbrane Biopharma SEK70.90, -6.00) -- STADA and company weigh options for ranibizumab biosimilar candidate in North America

        • -7.4% FTK.GR (flatexDEGIRO €8.78, -0.70) -- Q2 earnings; Deputy CEO & COO to step down

        • -7.1% CLIG.LN (City of London Investment Group £3.85, -0.29) -- FY earnings

        • -6.9% MONY.LN (Moneysupermarket.com Group £2.57, -0.19) -- Peel Hunt downgrade

        • -6.1% ACOMO.NA (ACOMO NV €20.85, -1.35) -- H1 earnings

        • -5.8% POM.FP (Plastic Omnium €18.02, -1.10) -- Midcap Partners downgrade

        • -5.7% AAD.GR (Amadeus FiRe €105.80, -6.40) -- H1 earnings

        • -5.5% ITM.LN (ITM Power £0.93, -0.05) -- expects to report preliminary FY23 results on 17-Aug

        • -5.2% CPG.LN (Compass Group £20.14, -1.10) -- Q3 trading update

        • -5.0% IDIA.SW (Idorsia CHF6.48, -0.34) -- Q2 earnings

        • -4.9% DSY.FP (Dassault Systemes €38.06, -1.97) -- Q2 earnings

        • -4.5% SAAB.B.SS (Saab SEK542.20, -25.80) -- BofA downgrade

        • -4.1% CWR.LN (Ceres Power Holdings £3.75, -0.16) -- H1 trading update

        • -4.0% SW.FP (Sodexo €93.36, -3.86) -- to form JV with Banco Santander Brasil

        • -3.5% CRL.IM (Carel Industries €25.00, -0.90) -- to acquire 82.4% stake in Kiona; enters into pre-underwriting agreement with Mediobanca in regards to envisaged rights issue of up to €200M

        • -3.3% SIGN.SW (SIG Combibloc Group CHF23.98, -0.82) -- Q2 earnings

        • -2.9% DSV.DC (DSV A/S DKK1,422.50, -42.00) -- Q2 earnings; launches DKK 4.0B share buyback program

        • -2.2% AUTO.LN (Auto Trader Group £6.36, -0.14) -- JPMorgan downgrade

        • -2.2% OERL.SW (OC Oerlikon Corp. CHF4.70, -0.11) -- Kepler Cheuvreux downgrade

    • EU companies reporting tomorrow:

      • Earnings:

        • Benelux: Universal Music Group (UMG.NA), Elia Group (ELI.BB), Just Eat Takeaway.com (TKWY.NA), AMG Critical Materials (AMG.NA), Econocom Group (ECONB.BB)

        • DACHs: Deutsche Bank (DBK.GR), MTU Aero Engines (MTX.GR), TRATON (8TRA.GR), PUMA (PUM.GR), Telefonica Deutschland (O2D.GR), Dws Group & Co. (DWS.GR), EFG International (EFGN.SW), ALSO Holding (ALSN.SW), Mensch und Maschine Software (MUM.GR), Cosmo Pharmaceuticals (COPN.SW)

        • France: Airbus (AIR.FP), Danone (BN.FP), Compagnie de Saint-Gobain (SGO.FP), Orange (ORA.FP), Michelin (ML.FP), Carrefour (CA.FP), Eurofins Scientific (ERF.FP), Bureau Veritas (BVI.FP), Worldline (WLN.FP), Teleperformance (TEP.FP), SEB (SK.FP), Elis (ELIS.FP), Nexans (NEX.FP), Eramet (ERA.FP), BIC (BB.FP), Vicat (VCT.FP), Cnova (CNV.FP), Nexity (NXI.FP)

        • Nordics: Equinor (EQNR.NO), Hexagon (HEXA.B.SS), Valmet Corp. (VALMT.FH), Subsea 7 (SUBC.NO), Konecranes (KCR.FH), Medicover (MCOV.B.SS), Sanoma (SANOMA.FH), Concentric (COIC.SS), Lassila & Tikanoja (LAT1V.FH)

        • Southern Europe: Enel (ENEL.IM), Banco Santander (SAN.SM), Stellantis (STLAM.IM), Aena S.M.E. (AENA.SM), Endesa (ELE.SM), Moncler (MONC.IM), Jeronimo Martins (JMT.PL), Davide Campari-Milano (CPR.IM), Infrastrutture Wireless Italiane (INW.IM), Corporacion Acciona Energias Renovables (ANE.SM), Redeia Corporacion (RED.SM), Enagas (ENG.SM), Hera (HER.IM), Saipem (SPM.IM), Ebro Foods (EBRO.SM), Acerinox (ACX.SM), Laboratorios Farmace ticos Rovi (ROVI.SM), NH Hotel Group (NHH.SM), Fincantieri (FCT.IM), Metrovacesa (Madrid) (MVC.SM), Neinor Homes (HOME.SM)

        • UK/Ireland: Rio Tinto (RIO.LN), British American Tobacco (BATS.LN), GSK (GSK.LN), Reckitt Benckiser (RKT.LN), Lloyds Banking Group (LLOY.LN), RHI Magnesita (RHIM.LN), Primary Health Properties (PHP.LN), Breedon Group (BREE.LN), Rathbones (RAT.LN), Centamin (CEY.LN), FDM Group (FDM.LN), Mercialys (MERY.FP), Tarkett (TKTT.FP), Elementis (ELM.LN), Nichols (NICL.LN)

      • Trading Update: Soitec (SOI.FP), Voltalia (VLTSA.FP), Wavestone (WAVE.FP), Groupe Crit (CEN.FP), Synergie (SDG.FP), Delta Plus Group (ALDLT.FP)

  • Data:

    • Economics:

      • Finland Jun Unemployment Rate 7.2% vs consensus 7.7% and prior 9.0%

      • Sweden Jun PPI (3.1%) y/y vs consensus (5.9%) and prior (2.1%)

      • Germany Jul Ifo Business Climate 87.3 vs consensus 88.0 and prior revised 88.6 from 88.4

      • UK Jul CBI Industrial Trends Orders (9) vs consensus (12) and prior (15)

    • Markets:

      • WTI Crude (Sep 23): +$0.42 or +0.53% to $79.16

      • €-$ (0.0016) or (0.14%) to 1.1051

      • £-$ +0.0037 or +0.29% to 1.2863

      • €-£ (0.0037) to 0.8591

      • S&P 500 +0.19%

      • Performance year-to-date

        • FTSE 100: +3.25%

        • DAX: +16.37%

        • CAC: +14.51%

        • MIB: +22.02%

        • Stoxx 600: +10.11%

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