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StreetAccount Summary - EU Market Recap: FTSE 100 +0.53% to 7723.07, DAX +0.48% to 16617.29, CAC40 +0.52% to 7450.63, STOXX 600 +0.69% to 477.68

Jan 04 ,2024

  • Synopsis:

    • European equity markets closed higher. HealthCare, Utilities and Banks among the outperformers, while Technology, Retail and Travel/Leisure lag. Treasuries weaker with the curve bear steepening. Dollar extending gains vs yen but lagging vs euro and sterling. Gold up 0.5%. Bitcoin futures up 1.8%. WTI crude down 1.9%, off best levels. US equities mostly higher in Thursday midday trading.

    • Equity markets finding a modicum of support after turning defensive this week amid overbought conditions and stretched positioning and sentiment indicators. Movement coincided with backup in bond yields, as markets pared back aggressive rate cut expectations. FOMC minutes effectively endorsed market thinking on rate outlook. Focus in Europe on inflation data with German and French readings firmer up in line with expectations. Final composite and services PMIs see upward revision, but remains in recessionary territory. UK services sector activity at six-month high. BoE mortgage approval data supports expectations of a recovering housing market. Update from UK's BCC showed firms more confident about outlook in contrast to IoD update yesterday. UK PM Sunak tells ITV working assumption is general election to take place in H2 of 2024.

    • In corporate news flow, out of DACHs, GRENKE (GLJ.GR) reported Q4 new leasing business whilst - overnight - Evotec (EVT.GR) announced CEO transition and confirmed 2023 guidance; also, Newron (NWRN.SW) reported exceptional one-year results of study 014/15 with evenamide in treatment-resistant schizophrenia (TRS). In the Benelux region, Sligro Food Group (SLIGR.NA) issued Q4 group revenue and Galapagos (GLPG.NA) announced a strategic collaboration with BridGene Biosciences to expand small molecule drug discovery in oncology; furthermore, ForFarmers (FFARM.NA) completed the acquisition of Piast Pasze. In France, TotalEnergies (TTE.FP) closed deals with Alimentation Couche-Tard for €3.4B and SPIE (SPIE.FP) acquired J.D. Euroconfort. In the UK, Next (NXT.LN) shares traded higher on the back of Q4 trading update but - in a different story - JD Sports Fashion (JD.LN) shares lsot as much as (25%) after cutting FY PBT guidance; Topps Tiles PLC (TPT.LN) also underperforming after group posted Q1 trading update with like-for-like sales down (7.1%) in Q1. Sky News reports, cites City sources, that Royal London is plotting £6B bid for bulk annuities arm of Lloyds Banking Group (LLOY.LN) subsidiary Scottish Widows.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Banks +1.81%, Utilities +1.63%, Health Care +1.36%, Financial Svcs +1.05%, Media +0.94%, Construct & Mtls +0.83%, Oil & Gas +0.70%, Ind Goods & Svcs +0.71%

      • Underperformers:

        • Retail (0.75%), Technology (0.38%), Travel & Leisure (0.30%), Chemicals (0.26%), Consumer Products and Services (0.20%), Real Estate +0.19%, Food, Beverage and Tobacco +0.23%, Basic Resources +0.35%, Autos & Parts +0.13%, Personal Care Drug and Grocery Stores +0.40%, Insurance +0.63%

    • Macro:

      • UK:

        • Rishi Sunak working towards general election in 'H2 of the year' (ITV)

        • In election year, Labour's Starmer appeals to voters with message of hope (Reuters)

      • Germany:

        • German coalition dilutes 2024 subsidy cuts after farmer backlash (Reuters)

        • Emissions fall by a fifth amid stagnant industrial output (FT)

        • Inflation rises to 3.8% in blow to rate-cut hopes (FT)

    • Peripheral markets:

      • Ireland:

        • Government could pay for medics to study in NI (BBC)

      • Italy:

        • Italy to put Africa development, AI at heart of its G7 presidency (Reuters)

        • Rome seeks to boost sale of electric cars 'made in Italy' (FT)

      • Spain:

        • Irregular migrant arrivals almost doubled in Spain in 2023 (Reuters)

      • Hungary

        • Hungary's debt servicing costs surge past Italy's to lead EU (Bloomberg)

      • Greece

        • Blinken may meet Mitsotakis in Hania, spokesman says (Kathimerini)

    • Company news:

      • Notable Gainers

        • +135.8% AGL.LN (ANGLE £0.31, +0.18) -- expects new DNA sample-to-answer molecular solution combining CTC and ctDNA analysis to be driver of product and pharma services sales

        • +34.4% NWRN.SW (Newron Pharmaceuticals CHF6.14, +1.57) -- reports exceptional one-year results of study 014/15 with evenamide in treatment-resistant schizophrenia (TRS)

        • +20.9% KURN.SW (Kuros Biosciences CHF4.69, +0.81) -- trial advancement and two 510(k) clearances from FDA related to its MagnetOs products

        • +17.1% TGP.LN (Tekmar Group £0.12, +0.02) -- contract

        • +12.5% LIKE.LN (Likewise Group £0.23, +0.03) -- trading update

        • +9.5% IPH.FP (Innate Pharma €2.78, +0.24) -- FDA lifts partial clinical hold placed on lacutamab IND

        • +7.3% TRIN.LN (Trinity Exploration & Production £0.44, +0.03) -- notes Trinidad & Tobago Finance Act 2023

        • +5.8% NXT.LN (Next £85.32, +4.68) -- trading update; share buybacks

        • +5.2% SECARE.SS (Swedencare SEK67.72, +3.38) -- Symrise (SY1.GR) purchased additional 8.3M shares in Swedencare at up to SEK 64/share

        • +3.1% NRC.NO (NRC Group NOK11.24, +0.34) -- contract

        • +2.9% ART.LN (Artisanal Spirits Company £0.53, +0.02) -- acquisition

        • +2.7% AZA.SS (Avanza Bank Holding SEK230.80, +6.00) -- Dec update

        • +2.4% ALO.FP (Alstom €11.28, +0.27) -- contract

        • +2.4% BAYN.GR (Bayer AG €35.27, +0.83) -- trial result

        • +2.2% BINV.SS (BioInvent International SEK17.80, +0.38) -- announces 2024 strategic priorities and anticipated milestones

        • +2.1% VICO.SS (Vicore Pharma Holding SEK14.60, +0.30) -- trial results

        • +1.9% IAG.LN (International Consolidated Airlines Group £1.53, +0.03) -- notes failure to come to agreement with unions calling for strike

        • +1.7% EQNR.NO (Equinor NOK334.95, +5.65) -- Sif Holding (SIFG.NA) confirms termination of Empire Wind 2 monopile contract

        • +1.5% NDX1.GR (Nordex €9.98, +0.15) -- order

        • +0.9% CA.FP (Carrefour €16.78, +0.15) -- selling Pepsi (PEP) products due to price dispute - Reuters

        • +0.6% MRK.GR (Merck KGaA €143.30, +0.85) -- expands colorectal cancer portfolio through licensing agreement with Inspirna; Inspirna to receive upfront payment of $45M

        • +0.2% LLOY.LN (Lloyds Banking Group £0.48, -0.00) -- Royal London plotting £6B bid for bulk annuities arm of Lloyds Banking Group subsidiary Scottish Widows - Sky News

      • Notable Decliners

        • -23.0% JD.LN (JD Sports Fashion £1.20, -0.36) -- trading update; lowers FY PBT ex-items guidance to £915-935M vs prior £1.04B

        • -18.3% EVT.GR (Evotec €17.43, -3.92) -- CEO transition; confirms 2023 guidance

        • -5.4% TPT.LN (Topps Tiles £0.47, -0.03) -- trading update

    • EU companies reporting tomorrow:

      • Trading Update: Sodexo (SW.FP), Volvo Car (VOLCAR.B.SS)

      • Traffic: Norwegian Air Shuttle (NAS.NO)

  • Data:

    • Economics:

      • Dec Services PMI

        • UK 53.4 vs prelim 52.7

        • Eurozone Dec Services PMI 48.8 vs prelim 48.1

        • Germany Dec Services PMI 49.3 vs cons 48.4 and prior 49.6

        • France Dec Services PMI 45.7 vs cons 44.3 and prior 45.4

        • Italy Dec Services PMI 49.8 vs cons 49.8 and prior 49.5

        • Spain Dec Services PMI 51.5 vs cons 51.2 and prior 51.0

        • Sweden Dec Services PMI 50.0 vs cons 49.8 and prior revised 48.5 from 48.3

      • Germany Dec Prelim CPI +3.7% y/y vs cons +3.7% and prior +3.2%; +0.1% m/m vs cons +0.1% and prior (0.4%)

        • EU Harmonised: +3.8% y/y vs cons +3.8% and prior +2.3%; +0.2% m/m vs cons +0.3% and prior (0.7%)

      • UK Dec

        • Mortgage Approvals 50.07K vs cons 48.5K and prior revised 47.89K from 47.38K

        • M4 Money Supply (0.1%) m/m vs cons +0.1% and prior +0.3%

      • France Dec Prelim CPI +3.7% y/y vs cons +3.8% and prior +3.5%; +0.1% m/m vs cons +0.2% and prior (0.2%)

        • EU Harmonised: +4.1% y/y vs cons +4.1% and prior +3.9%; +0.1% m/m vs cons +0.3% and prior (0.2%)

    • Markets:

      • WTI Crude (24-Feb): ($1.33) or (1.83%) to $71.37

      • €-$ +0.0037 or +0.34% to 1.0960

      • £-$ +0.0030 or +0.24% to 1.2696

      • €-£ +0.0011 to 0.8634

      • S&P 500 +0.44%

      • Performance year-to-date

        • FTSE 100: (0.13%)

        • DAX: (0.80%)

        • CAC: (1.23%)

        • MIB: +0.17%

        • Stoxx 600: (0.27%)

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