Feb 08 ,2024
Synopsis:
European equity markets closed mixed to higher, with pan-European indices fluctuating in a relatively narrow range either side of unchanged through much of the session, before moving to new lows in late trading.
Ireland +1.8%, Netherlands +1.6% and Belgium +1.1% lead outperformers, whilst Portugal (1.1%), Denmark, Norway both (1.0%) lead underperformers
Focus was on central banker commentary and the prospect for future interest rate cuts as well as the slew of company earnings. Also the war in Ukraine, Israel's Binyamin Netanyahu rejection of a ceasefire with Hamas and the overnight US strike in Iraq receiving a "furious response" provided geopolitical backdrop
Riksbank's Jansson delivered a lecture on the economic situation and current monetary policy at a meeting arranged by Nordea. The Deputy Governor stated that with inflationary pressures having continued to ease, a rate cut in H1 of the year is a possibility.
National Bank of Belgium's Wunsch spoke at event organised by Bruegel think tank. BOE's Mann spoke at event organised by OMFIF 'Inflation Dynamics and drivers: looking under the bonnet'. ECB's Lane was involved in a fire-side chat at the Brookings Institution and ECB's Elderson was a panelist at joint ISPT and Port of Rotterdam Conf '24 "Material change". Bank of Latvia's Krasovska participates in the "Fintech Day" 2024 in Vilnius.
ECB published its latest economic bulletin
Central banks in Serbia and Czech Republic announced policy decisions, with the latter cutting its benchmark interest rate by more than expected. Governor Michl commented at the post decision press conf. that
The limited economic data releases included Netherlands final Jan CPI and Denmark Dec trade balance. In the UK, Recruitment and Employee Confederation (REC) published its latest Report on Jobs and the Royal Institution of Chartered Surveyors (RICS) its latest Residential Survey
Latest EU Parliament plenary session concludes today. In a debate with Commissioner Johansson, MEPs will outline their expectations for the upcoming meeting of the WTO's highest governing body from 26/29-Feb. Also voted on a resolution about tackling Russian attempts to interfere in the EU's democratic processes
The 27 EU governments due to vote on a historic overhaul of the EU's border and migration rules (Politico). Chancellor Scholz arrives in USA today and will meet U.S. lawmakers for dinner at the German ambassador's residence in Washington DC before tomorrow's meeting with President Biden
With the war in Ukraine now in its 715th day, sources in the German government said it was examining the possibility of nationalising Russian oil company Rosneft's operations in Germany. Whilst on Gaza, it's Health Ministry says the death toll from Israel's aggression on the blockaded territory has risen to 27,840 Palestinians killed since 7-Oct
Among the regions leading companies with earnings/update that weren't among the significant movers were ArcelorMittal (MT.NA) reports Q4 EBITDA $1.27B vs consensus $1.20B, raises dividend ~ +14% y/y and guides FY24, Siemens (SIE.GR) reports Q1 EPS pre-PPA €3.19 vs consensus €2.32, Societe Generale (GLE.FP) reports Q4 net income €430M vs StreetAccount €391.0M, expects FY24 revenue growth at or above +5% y/y and Unilever (ULVR.LN) reports FY underlying EPS €2.60 vs consensus €2.61, announces new share buyback program of up to €1.5B to be conducted during 2024.
The limited M&A news flow included Mondi shares closed down (3.2%) after confirms that it is in the early stages of considering a possible all share combination with DS Smith. Reportedly, Italian Treasury considering selling further 8-10% stake in Monte Paschi (BMPS.IM) and Moratti family approached by potential buyers of stake in Saras (SRS.IM)
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Persnl & HHold Goods +1.91%, Autos & Parts +1.49%, Ind Goods & Svcs +0.89%, Technology +0.88%, Media +0.52%, Financial Svcs +0.50%, Travel & Leisure +0.47%, Retail +0.03%
Underperformers:
Health Care (1.92%), Utilities (1.17%), Insurance (0.88%), Chemicals (0.69%), Banks (0.56%), Basic Resources (0.39%), Real Estate (0.38%), Oil & Gas (0.36%), Food & Beverage (0.32%), Telecom (0.25%), Construct & Mtls (0.22%)
Macro/Peripheral markets:
Interest rate decisions
Serbia unchanged at 6.5%, as expected; motivated by the continued subsiding of global inflationary pressures, the established downward trajectory of inflation at home and its anticipated retreat within the target tolerance band in mid-2024 - release
Czech Republic cut benchmark interest rate by a more than expected (50bps) to 6.25% - press release; presentation
ECB:
EU:
EU's von der Leyen speech at the roundtable meeting on green hydrogen
Finland:
Germany:
Coalition divided and already looking ahead to next election - Handelsblatt
Ireland:
EY forecasts Irish GDP 2024 +2.2% and 2025 +3.8%; Modified Domestic Demand 2024 +2.2% and 2025 +2.5% - release
Sinn Féin 28% (6), Fianna Fáil 20% unch, Fine Gael 19% +1 - B&A poll/Irish Times
UK:
Job recruiters report sharp slowdown in pay for new hires in Jan; Permanent placements fell at a sharp and accelerated pace, while the downturn in temp billings remained mild. Overall vacancies meanwhile declined slightly for the fourth time in five months - Recruitment and Employee Confederation (REC)
Jan house price balance (18%) vs consensus (25%) and prior revised (29%) from (30%); Further recovery for UK Residential sector expected in 2024 - RICS
CBI CEO speaks at LEAD 2024 conf; warns against 'large scale tax cuts driven by short-termism' - release
Labour ditches £28B green investment pledge - BBC
Company news:
Notable Gainers
+21.3% ADYEN.NA (Adyen) -- H2 net income €416M vs FactSet €336.1M [11 est, €255.6-379M]
+17.8% VBK.GR (Verbio) -- H1 EBITDA €74.9M vs year-ago €170.3M, guides FY EBITDA in the range of €120-150M vs FactSet €161.7M
+14.9% HAUTO.NO (Höegh Autoliners) -- Q4 EPS $1.03 vs year-ago $0.75, expects to transport lower volumes for Q1 than the average for the last quarters; January 2024 trading update
+14.0% NEWA.B.SS (New Wave Group) -- Q4 EPS SEK2.76 vs FactSet SEK2.66 [3 est, SEK2.50-2.85]
+13.0% AMBEA.SS (Ambea) -- Q4 EPS SEK1.48 vs year-ago SEK0.24; to launch a share buyback to repurchase 3M shares
+11.8% BAR.BB (Barco) -- FY net income €80.2M vs FactSet €88.8M [6 est, €82-96M]; downgraded to accumulate from buy at KBC
+10.7% MIPS.SS (MIPS) -- Q4 EPS SEK0.60 vs FactSet SEK0.90 [6 est, SEK0.70-1.24]
+10.1% FING.B.SS (Fingerprint Cards) -- Q4 EPS (SEK0.22) vs year-ago (SEK1.48)
+10.0% SF.SS (Stillfront Group) -- upgraded to buy from hold at Kepler Cheuvreux
+9.8% SMDS.LN (DS Smith)
receives highly preliminary expression of interest from Mondi
Mondi (MNDI.LN) confirms that it is in the early stages of considering a possible all share combination with DS Smith
+9.7% MTG.B.SS (Modern Times Group MTG)
Q4 EPS (SEK0.91) and unclear if comparable to FactSet SEK1.21 [3 est, SEK0.32-1.90]
combines Kongregate with Monumental for a 30% stake in the joined entity
+8.3% VEI.NO (Veidekke) -- Q4 EPS NOK3.50 vs FactSet NOK2.47 [3 est, NOK2.38-2.56]
+8.1% ALK.B.DC (ALK-Abello) -- Q4 net income DKK140M vs FactSet DKK157.4M [5 est, DKK140-182M], provides 2024 outlook
+7.6% HUH1V.FH (Huhtamaki) -- Q4 EPS €0.68 vs FactSet €0.60 [8 est, €0.48-0.74]
+7.4% SIGHT.FP (GenSight Biologics) -- completes €5.0M capital increase subscribed by existing shareholders
+7.4% RECSI.NO (REC Silicon) -- Q4 EPS $0.25; Reaffirms first delivery from Moses Lake in Q1 in 2024
+7.1% BATS.LN (British American Tobacco) -- FY Adj EPS 375.6p vs consensus 376.3p; continues to pursue all opportunities to enhance balance sheet flexibility and, as part of this, regularly reviews stake in ITC
+7.0% NEM.GR (Nemetschek) -- preliminary FY EBITDA €257.7M vs FactSet €255.3M [18 est, €234-279.1M]
+7.0% ONTEX.BB (Ontex Group) -- Q4 operating income €23.5M vs year-ago €11.7M
+6.5% NOD.NO (Nordic Semiconductor) -- upgraded to neutral from sell at UBS; to equal weight from underweight at Barclays
+6.3% GN.DC (GN Store Nord) -- Q4 Adj. EPS DKK2.86 vs year-ago DKK3.92
+6.3% OUT1V.FH (Outokumpu) -- Q4 EPS (€0.51) vs consensus €0.00
+6.2% KBC.BB (KBC Group) -- Q4 net result €677M vs consensus €686.9M
+5.5% KER.FP (Kering) -- FY recurring net income €3.06B vs consensus €3.17B, guides H1 of 2024
+5.2% SOI.FP (SOITEC) -- Q3 revenue €240M vs FactSet €269.5M [2 est, €244-295M], now guides FY revenue down ~ (10%) y/y; announces $2.1B revenue ambition initially modeled for FY26, will be postponed by around one year due to a weaker smartphone market
On earnings/updates: URW.FP (Unibail-Rodamco-Westfield), BOL.SS (Boliden), COOR.SS (Coor Service Management Holding), CPG.LN (Compass Group), ULVR.LN (Unilever), MT.NA (ArcelorMittal), BUFAB.SS (Bufab), ATT.SS (Attendo), AVON.LN (Avon Protection), FLOW.NA (Flow Traders), NSKOG.NO (Norske Skog), SAMPO.FH (Sampo), MYCR.SS (Mycronic), ACTI.SS (Active Biotech), INWI.SS (Inwido), NANO.LN (Nanoco Group), PNDX.B.SS (Pandox), BOOZT.SS (Boozt Fashion), SOLAR.B.DC (Solar), ORX.SS (Orexo), RNO.FP (Renault), DNO.NO (DNO), SIE.GR (Siemens), PUB.FP (Publicis Groupe), AIR.FP (Airbus), BFF Bank (BFF.IM), BMED.IM (Banca Mediolanum), ETTE.FH (Etteplan), STLAM.IM (Stellantis), ENT.LN (Entain) and reversing initial falls SRBNK.NO (Sparebank 1 SR-Bank), DB1.GR (Deutsche Börse),
Notable Decliners
-19.4% XXL.NO (XXL) -- Q4 adjusted net income (NOK441M) vs FactSet (NOK134.7M)
-14.7% MAERSK.B.DC (Maersk)
Q4 Underlying net income ($442M) vs consensus ($593.0M); to immediately suspend the share buy-back program
initiates demerger and separate listing of its towage and marine services activities in Svitzer; expected first day of trading is on 30-Apr
-12.3% NESTE.FH (Neste) -- Q4 EPS €0.66 vs consensus €0.63
-11.8% FSJ.LN (James Fisher & Sons) -- FY trading update: overall underlying trading in H2 in line with market expectations
-9.3% RUG.SS (Rugvista Group) -- Q4 EPS SEK1.17 vs FactSet SEK1.34 [2 est, SEK1.30-1.38]
-8.9% KWS.GR (KWS Saat) -- H1 EPS (€3.30) vs year-ago (€2.41); forecasts for FY23/2024 confirmed
-8.5% SOBI.SS (Swedish Orphan Biovitrum) -- Q4 Adj. EPS SEK3.21 vs FactSet SEK3.98 [7 est, SEK3.37-5.79]; guides 2024 revenue to grow by a high single-digit percentage at CER
-8.5% DNORD.DC (D/S Norden) -- FY EPS $12.3 vs FactSet $12.44 [2 est, $12.03-12.85], guides 2024 net income $150-250M vs FactSet $250M [2 est, $221-279M], initiates ~DKK105M (~$15M) share buy-back program
-7.2% ATEA.NO (Atea) -- Q4 EPS NOK2.22 vs FactSet NOK2.93 [7 est, NOK2.80-3.10]
-6.7% IBT.B.SS (Infant Bacterial Therapeutics) -- Q4 EPS (SEK3.04) vs year-ago (SEK3.57)
-6.7% ORK.NO (Orkla) -- Q4 Adjusted EPS NOK1.31 vs FactSet NOK1.45 [9 est, NOK1.34-1.58]
-6.1% AZN.LN (AstraZeneca) -- Q4 core EPS $1.45 vs consensus $1.50, issues FY24 guidance
-6.0% HUM.SS (Humana) -- Q4 net income SEK8M vs FactSet SEK26.7M [3 est, SEK1-42M]
-5.6% ELK.NO (Elkem) -- Q4 EPS (NOK0.73) vs year-ago NOK1.41
-5.5% ACA.FP (Credit Agricole) -- Q4 underlying net income €1.30B vs consensus €1.28B; raises dividend +24% y/y
-5.5% AKSO.NO (Aker Solutions) -- Q4 Adjusted EBITDA NOK615M vs FactSet NOK455.5M [12 est, NOK293.7-644M], guides 2024 revenue ~+15% y/y, EBITDA margins, excluding net income from the OneSubsea JV, to increase significantly y/y
-5.0% XANO.B.SS (XANO Industri) -- Q4 EPS SEK0.30 vs year-ago SEK0.40
-4.8% VONN.SW (Vontobel Holding) -- FY EPS CHF3.75 vs FactSet CHF3.93 [5 est, CHF3.29-4.43], announces additional cost cuts; agrees to acquire a significant minority stake in Ancala Partners LLP
-4.6% BRNK.GR (Branicks Group) -- downgraded to reduce from hold at Kepler Cheuvreux
-4.5% SSE.LN (SSE) --Q3 Trading Statement: Reaffirms FY24 adjusted EPS guidance, lower than planned Q3 renewables output narrows range of probable financial outcomes
On earnings/updates: IPN.FP (Ipsen), BPE.IM (BPER Banca), AKRBP.NO (Aker BP), PCELL.SS (PowerCell Sweden), MAREL.IR (Marel), SLIGR.NA (Sligro Food Group), GET.FP (Getlink), SPSN.SW (Swiss Prime Site), SCMN.SW (Swisscom), TLX.GR (Talanx), ANIM.IM (Anima Holding), WAGA.FP (Waga Energy), IPN.FP (Ipsen), AKTIA.FH (Aktia Bank), WALL.B.SS (Wallenstam), FPAR.A.SS (Fastpartner), BGN.IM (Banca Generali) and reversing initial gains WSU.GR (Washtec), WOSG.LN (Watches of Switzerland Group), ALMB.DC (Alm. Brand), LMN.SW (lastminute.com), DG.FP (VINCI), ALD.FP (Ayvens), BCVN.SW (Banque Cantonale Vaudoise), SVIK.SS (Studsvik), AAL.LN (Anglo American)
EU companies reporting tomorrow:
Earnings:
Benelux: Aperam (APAM.NA), NX Filtration (NXFIL.NA), Orange Belgium (OBEL.BB)
DACHs: EMS-Chemie (EMSN.SW), ams-OSRAM (AMS.SW), Mobimo (MOBN.SW), CECONOMY (CEC.GR), Carl Zeiss Meditec (AFX.GR), All for One Group (A1OS.GR), Fabasoft (FAA.GR)
Denmark: Coloplast (COLO.B.DC), DFDS (DFDS.DC)
Finland: Kemira (KEMIRA.FH), Enento (ENETO.FH), Stockmann (STOCKA.FH), YIT Oyj (YIT.FH), Lassila & Tikanoja (LAT1V.FH), Remedy Entertainment (REMEDY.FH), Digia (DIGIA.FH), HKScan (HKSAV.FH), Teleste Corp. (TLT1V.FH)
France: Hermes (RMS.FP)
Norway: Kongsberg Gruppen (KOG.NO), Yara International (YAR.NO), Entra (ENTRA.NO), Arendals Fossekompani (AFK.NO), ABG Sundal Collier (ABG.NO), Hofseth Biocare (HBC.NO)
Sweden: Saab (SAAB.B.SS), Fastighets AB Balder (BALD.B.SS), Skanska (SKA.B.SS), Sweco (SWEC.B.SS), Thule (THULE.SS), Medicover (MCOV.B.SS), Troax (TROAX.SS), Sdiptech (SDIP.B.SS), Volati (VOLO.SS), MedCap (MCAP.SS), Duni (DUNI.SS), Bergman & Beving (BERG.B.SS), Hexatronic (HTRO.SS), Scandi Standard (SCST.SS), Traction (TRAC.B.SS), Catella (CAT.B.SS), Exsitec (EXS.SS), Svedbergs (SVED.B.SS), Dedicare (DEDI.SS), Nilarngruppen (NIL.B.SS), Ascelia Pharma (ACE.SS)
Southern Europe: Mediobanca Banca di Credito Finanziario (MB.IM), illimity Bank (ILTY.IM), Banca Sistema (BST.IM), Iveco Group (IVG.IM)
Trading Update: Bellway (BWY.LN)
Data:
Economics:
Netherlands Jan CPI +3.2% y/y vs preliminary +3.2%
Denmark Dec trade balance DKK32.8B vs consensus DKK19.0B, prior revised DKK27.7B from DKK26.2B
Markets:
WTI Crude (Mar 24): +$1.89 or +2.56% to $75.75
€-$ (0.0008) or (0.07%) to 1.0765
£-$ (0.0017) or (0.13%) to 1.2612
€-£ +0.0006 to 0.8536
S&P 500 (0.12%)
Performance year-to-date:
FTSE 100: (1.78%)
DAX: +1.27%
CAC: +1.62%
MIB: +2.35%
Stoxx 600: +1.31%
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.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE