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StreetAccount Summary - EU Market Recap: FTSE 100 +0.18% to 7270.76, DAX +0.66% to 15705.62, CAC40 +0.59% to 7240.88, STOXX 600 +0.68% to 451.70

Aug 22 ,2023

  • Synopsis:

    • European equity markets generally opened higher, as expected, with pan-European subsequently extending gains before plateauing at session highs ahead of Wall Street's open. EU shares pared advances as US shares gave up modest early gains

    • Norway traded in the red through much of the session, ending (0.2%), with Portugal +0.2% and UK's FTSE100 also among the leading underperformers throughout the day. At the close, Ireland +1.3%, Greece +1.2%, Finland +0.9% led outperformers.

    • Euro traded around a 7-week low vs US dollar, whilst investors' risk appetite for pound weakened through the session, with Aug preliminary PMI data in focus. 10-year Gilt yields were lower on the day

    • The handful of economic releases included Switzerland Jul trade balance (and also watch exports), Norway Q2 GDP, UK Jul public sector net borrowing and Aug industrial trends orders - CBI, as well as Finland Jul unemployment rate and Ireland Jul PPI.

    • In central banks, Latvia Central Bank's Krasovska, Head of the Financial Technology Supervision, participated in a seminar organized by the Latvian Chamber of Commerce and Industry to speak about support for FinTech development, whilst the Bank's Head of the Monetary Policy Dept., Uldis Rutkaste, participates in the Latvian Radio program 'Krustpunkt�?'.

    • In politics, in the Netherlands Frans Timmermans nominated as joint GroenLinks-PvdA party leader, whilst in Spain, both political blocks - led by Sánchez and Feijóo, say have enough backing to form a government. Also around the region, German Chancellor Scholz gave statement with PM of North Rhine-Westphalia, Hendrick Wüst, following visit/meetings in connection with Simmerath/Hürtgenwald wind farm and visited Neapco Europe, manufacturer of drive solutions for the automotive industry. The Chancellor also held meetings on structural change in the Rhenish mining area.

    • Elsewhere, BRICS Summit gets underway in South Africa (TASS, Reuters, Bloomberg)

    • Corporate news flow includes Ubisoft Entertainment (UBI.FP) announcing deal for streaming Call of Duty and other Activision Blizzard (ATVI) games, Royal Unibrew (RBREW.DC) Q2 earnings and John Wood Group (WG.LN) H1 earnings, announces CFO to retire. Also with results was BHP Group (BHP.LN) FY Underlying EPS (cont ops) $2.65 vs FactSet $2.71 [23 est, $2.48-2.99], provides FY24 production guidance and states that lagged effect of non-labour inflation expected to impact business in FY24. Prysmian (PRY.IM) was selected as preferred bidder for power transmission cable projects in Germany. XXL (XXL.NO) commences subscription period for rights issue. Maritime Partners agrees to acquire AMSC's (AMSC.NO) American Tanker Holding Company, Inc. for $249.3M. Heidelberg Materials (HEI.GR) sells business in Gambia to B5 Plus for an undisclosed sum.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Real Estate +1.98%, Technology +1.98%, Basic Resources +1.93%, Construct & Mtls +1.11%, Financial Svcs +1.09%, Travel & Leisure +1.04%, Ind Goods & Svcs +0.83%, Health Care +0.72%

      • Underperformers:

        • Food & Beverage (0.03%), Media +0.06%, Insurance +0.08%, Telecom +0.18%, Banks +0.19%, Retail +0.30%, Persnl & HHold Goods +0.34%, Autos & Parts +0.39%, Oil & Gas +0.49%, Chemicals +0.54%, Utilities +0.63%

    • Macro/Peripheral markets:

      • EU:

        • EU's Borrell floats the idea of hosting Ukraine peace talks next month - euractiv

        • What climate related questions has Timmermans left unanswered in Brussels - Politico

        • Timmermans to resign as EU's Commissioner for Climate Action - Reuters citing an EU official

      • Finland:

        • Russia, Afghanistan amongst the issues being discussed at tomorrow's virtual Nordic foreign ministers' meeting in N5 format - release

      • Greece:

        • PM Mitsotakis met with the President of Moldova, Maia Sandu, discussed bilateral relations, Moldova's EU prospects - ekathimerini

      • Ireland:

        • Q2 growth forecast edged up by Economic and Social Research Institute, modified domestic demand +3.4% y/y vs prior estimate +3.3% - release

        • Wind Energy Ireland says government must use Budget 2024 to accelerate Ireland's energy revolution - release

      • Italy:

        • Italy faces wider budget deficits on Meloni's tax-cut plans - Bloomberg

        • South Italy will become richer than Germany and France, claims Meloni's party - euronews

      • Netherlands:

        • GroenLinks-PvdA joint party leaders committee unanimously nominates Frans Timmermans as candidate party leader - release

      • Spain:

        • Sánchez tells the King that he believes he is in a position to form a government again - El Mundo

        • Feijóo will present to the King a total support of 172 seats after confirming Vox's backing - El Confidencial

      • Sweden:

        • Turkey's backing of Sweden's plan to join NATO maybe delayed if it doesn't stop Koran burnings says Erdogan - Bloomberg

      • UK:

        • High Pay Centre research finds that median FTSE 100 CEO pay increased +15.6% y/y in 2022 - release

        • Sees surge in interest from non-EU job hunters - Reuters

        • Panel of economists said the BoE should up base rate next month and some members think rates might need to go up to 6% - inews

        • London Mayor Sadiq Khan unpopular in outer London poll shows, a week before Ulez expansion - Evening Standard

    • Company news:

      • Notable Gainers

        • +35.9% BGBIO.NO (BerGenBio) to present additional clinical data of bemcentinib in combination with chemotherapy and with immunotherapy in NSCLC at upcoming confs

        • +16.7% LMKG.SS (LMK Group) -- Q2 EPS SEK0.67 vs year-ago (SEK0.05); shareholder vote on proposed name change to be held on 15-Sep

        • +13.2% MINEST.SS (Minesto) -- completes manufacturing and functional testing

        • +11.3% ANX.LN (Anexo Group)

          • H1 EPS 8.6p vs year-ago 9.3p, reaffirms FY outlook

          • Former Anexo Group CFO Mark Bringloe to return as interim CFO

        • +8.9% UBI.FP (Ubisoft Entertainment) -- deal for streaming Call of Duty and other Activision Blizzard (ATVI) games

        • +7.6% NACON.FP (NACON) -- Lachlan Power signs as first NACON signature gamer

        • +7.3% AMSC.NO (AMSC) -- Maritime Partners agrees to acquire AMSC's American Tanker Holding Company, Inc. for $249.3M

        • +6.4% AWDR.NO (Awilco Drilling) -- launch of subsequent offering

        • +5.5% NDX1.GR (Nordex Group) -- to install 280 MW wind farm in Canada

        • +5.6% STO3.GR (Sto) -- prelim. H1 EBIT €58.2M, (9.1%) y/y; Lowers FY revenue guidance, maintains EBIT outlook

        • +4.7% CBOX.LN (Cake Box Holdings) -- non-executive chairman Nilesh Sachdev to step down in Nov; provides trading update

        • +4.8% WG.LN (John Wood Group)

          • H1 Adj. EPS $0.011 vs year-ago $0.057; now expects FY revenue $6B vs FactSet $5.75B and adjusted EBITDA ahead of previous expectations

          • CFO David Kemp to retire

        • +4.6% SKAN.SW (SKAN Group) -- H1 EPS CHF0.35 vs year-ago (CHF0.02), reaffirms FY guidance

        • +4.1% PRY.IM (Prysmian) -- selected as preferred bidder for power transmission cable projects in Germany

        • +3.5% RS1.LN (RS Group) -- to outperform from neutral at BNP Paribas Exane

        • +3.5% ARBN.SW (Arbonia) -- H1 net income (CHF2.0M) vs year-ago CHF11.7M; FY23 guidance remains suspended

        • +3.4% ULTI.NO (Ultimovacs) -- Q2 EPS (NOK1.30) vs year-ago (NOK0.70)

        • +3.1% MBQ.GR (Mobotix) -- 9M EBIT (€1.2M) vs year-ago (€6.6M), provides FY guidance

        • +2.8% EGTX.SS (Egetis Therapeutics) -- Q2 EPS (SEK0.3) vs FactSet (SEK0.28) [1 est]

        • +2.7% SYNSAM.SS (Synsam) -- Q2 EPS SEK0.94 vs year-ago SEK0.65

        • +2.2% F3C.GR (SFC Energy) -- Q2 EPS €0.07 vs year-ago €0.11; narrows FY guidance

        • +1.2% RBREW.DC (Royal Unibrew) -- Q2 EPS DKK7.8 vs FactSet DKK7.87 [6 est, DKK7.70-8.00], now expects FY Revenue around DKK 13B vs prior guidance DKK 13-14B, midpoint of FY EBIT guidance raised

          • On earnings/updates: SEE.LN (Seeing Machines), CANTA.SS (Cantargia), Nordhealth (NORDH.NO) and reversing initial falls MPCC.NO (MPC Container Ships), GEMD.LN (Gem Diamonds)

      • Notable Decliners

        • -23.5% CTM.SS (Catena Media) -- Q2 EPS from continuing operations (€0.03) vs year-ago (€0.01)

        • -10.9% XXL.NO (XXL) -- commencement of subscription period for rights issue

        • -9.7% BAKKA.NO (Bakkafrost) Q2 operational EBIT DKK353M, in line with prelim. vs FactSet DKK366.9M [9 est, DKK351-465.2M

        • -6.5% AGLX.NO (Agilyx) -- H1 EPS ($0.13) vs year-ago ($0.11)

        • -5.5% INSTAL.SS (Instalco) -- Q2 EPS SEK0.57 vs FactSet SEK0.69 [3 est, SEK0.69-0.70]

        • -4.6% GOMX.SS (GomSpace Group) -- Q2 EPS (SEK0.25) vs year-ago (SEK0.45)

        • -4.0% NOG.LN (Nostrum Oil & Gas) -- Q2 EBITDA $15.5M, (45%) vs year-ago $28.4M

        • -3.2% BAHN.B.SS (Bahnhof) -- H1 EPS SEK96.70 vs year-ago SEK88.00, reaffirms FY outlook

        • -3.2% GREENH.DC (Green Hydrogen Systems) -- H1 EBITDA (DKK161.6M) vs year-ago (DKK131.8M)

        • -2.8% YOYO.DC (OrderYOYO) -- confirms prelim. H1 revenue DKK116M, reports adj. EBITDA DKK9.0M, reaffirms FY guidance; shares reverse initial gains

        • -2.7% CAMBI.NO (Cambi) -- Q2 net income NOK52.7M vs year-ago (NOK9.0M); confirms outlook; shares reverse initial gains

        • -2.4% SBO.AV (Schoeller-Bleckmann Oilfield Equipment) -- EPS €2.74 vs year-ago €2.19

        • -2.0% VICO.SS (Vicore Pharma Holding) -- reports data from EndoPAT exploratory trial were inconclusive due to high intra-individual variability

        • -1.9% MIRI.LN (Mirriad Advertising) -- H1 EPS (2p) vs year-ago (3p), reaffirms outlook

        • -1.9% JDEP.NA (JDE Peet's) -- to hold from buy at ING

        • -1.8% BICO.SS (BICO Group)

          • Q2 EPS (SEK12.73) vs year-ago SEK0.68

          • announces goodwill impairment predominantly due to increased WACC and write-downs of assets

        • -1.5% NORVA.SS (Norva24 Group) -- Q2 EPS NOK0.31 vs year-ago NOK0.32

        • -1.4% GXI.GR (Gerresheimer) -- to hold from buy at Hauck & Aufhäuser

        • -1.3% ELK.NO (Elkem) -- to hold from buy at Nordea

          • On earnings/updates: BHP.LN (BHP Group), SYNT.SS (SyntheticMR)

    • EU companies reporting tomorrow:

      • Earnings:

        • Benelux: Agfa-Gevaert (AGFB.BB), MDxHealth (MDXH.BB), Alfen (ALFEN.NA), Kendrion (KENDR.NA)

        • DACH: CA Immobilien Anlagen (CAI.AV), tonies (TNIE.GR), IVU Traffic Technologies AG (IVU.GR), Petro Welt Technologies AG (O2C.GR), ORIOR (ORON.SW), Sensirion (SENS.SW), Autoneum (AUTN.SW),

        • Denmark: Sydbank (SYDB.DC), Bavarian Nordic (BAVA.DC), Gabriel Holding (GABR.DC), cBrain (CBRAIN.DC), SP Group (SPG.DC)

        • Norway: Mowi (MOWI.NO), Leroy Seafood (LSG.NO), Austevoll Seafood (AUSS.NO), Nykode Therapeutics (NYKD.NO), Odfjell Drilling (ODL.NO), BW Energy (BWE.NO), Multiconsult (MULTI.NO), AMSC (AMSC.NO), Arctic Fish (AFISH.NO), Zaptec (ZAP.NO), Smartoptics (SMOP.NO), B2Holding (B2H.NO), Vow (VOW.NO), Awilco LNG (ALNG.NO), Webstep (WSTEP.NO)

        • Sweden: MEKO (MEKO.SS), Scandi Standard (SCST.SS)

        • UK: Costain (COST.LN)

  • Data:

    • Economics:

      • Finland Jul unemployment rate 6.9% vs consensus 7.0%, prior 7.2%

      • Norway Q2 GDP +0.7% y/y vs consensus +2.3%, prior revised +3.3% from +3.0%

      • Switzerland Jul trade balance CHF3.13B vs consensus CHF4.3B, prior revised CHF4.79B from CHF4.82B

        • July Swiss Watch Exports (0.9%) to CHF 2.2B

      • UK

        • Jul public sector net borrowing (£3.48B) vs consensus (£17.0B), prior revised (£17.11B) from (£17.67B)

        • Aug CBI industrial trends orders (15) vs consensus (13), prior (9)

      • Ireland Jul PPI (5.2%) y/y vs consensus (1.0%), prior (0.6%)

    • Markets:

      • WTI Crude (Sep 23): ($0.10) or (0.12%) to $80.62

      • €-$ (0.0043) or (0.39%) to 1.0853

      • £-$ (0.0019) or (0.15%) to 1.2737

      • €-£ (0.0022) to 0.8522

      • S&P 500 +0.04%

      • Performance year-to-date:

        • FTSE 100: (2.43%)

        • DAX: +12.80%

        • CAC: +11.85%

        • MIB: +18.84%

        • Stoxx 600: +6.31%

This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
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