Feb 09 ,2024
Synopsis:
European equity markets closed mostly lower, off best levels. US equity markets mostly higher at this time. Treasuries mostly weaker, with yields notably higher on the week. Dollar not doing much on the major crosses. Gold down 0.6%. Bitcoin futures up 3.5%. WTI crude up 0.2%. Industrial metals mixed. Healthcare leading in European trade. Technology and Media also outperforming, whilst Basic Resources, Food, beverage and tobacco, Real Estate amidst the main laggards.
On the macro front today, of note, Destatis confirmed Germany's final CPI for Jan, in line with the preliminary release, and lowest since Jun-21. Jan CPI was 0.2% m/m or 2.9% y/y vs Dec inflation level of 3.7%. Norway Jan CPI +4.7% y/y vs consensus +4.6%; PPI (12.9%) y/y vs consensus (23.0%). Sweden Dec Industrial Production +0.1% y/y vs consensus +0.6%; Italy Dec Industrial Production at (2.1%) y/y vs cons (2.2%).
In earnings news, out of DACHs, CECONOMY (CEC.GR), EMS-Chemie Holding (EMSN.SW) and ams-OSRAM (AMS.SW) reported Q4/FY earnings. Verbund (VER.AV) announced material profit warning for 2024, with earnings expectation ~30% below consensus. In France, L'Oreal (OR.FP), Hermes (RMS.FP), Viel & Cie (VIL.FP), and Ubisoft Entertainment (UBI.FP) issued Q3/FY numbers, with the latter confirming its financial targets of strong topline growth and FY non-IFRS operating income of ~ €400M. In Nordics, Sweco (SWEC.B.SS), Skanska (SKA.B.SS), Saab (SAAB.B.SS), Kongsberg Gruppen (KOG.NO), Yara International (YAR.NO), DFDS (DFDS.DC) and Coloplast (COLO.B.DC) are amongst others from the region to update investors with their latest numbers. In Italy, Mediobanca (MB.IM) and Iveco Group (IVG.IM) reported Q2 and Q4 earnings, respectively.
In M&A, Barclays (BARC.LN) to acquire Tesco's (TSCO.LN) retail banking business and announced a long-term strategic partnership with Tesco. Tesco says in its press release that Its existing banking operations in credit cards, loans and savings will be sold to Barclays, removing £7.7B of capital-intensive assets and £6.7B of financial liabilities from the Tesco balance sheet.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Technology +1.28%, Media +1.08%, Health Care +0.75%, Travel & Leisure +0.75%, Autos & Parts +0.38%, Oil & Gas+0.12%, Financial Svcs +0.11%
Underperformers:
Food, Beverage and Tobacco (1.77%), Real Estate (1.51%), Utilities (1.02%), Basic Resources (0.92%), Chemicals (0.83%), Insurance (0.58%), Construct & Mtls (0.51%), Personal Care Drug and Grocery Stores (0.49%), Telecom (0.43%), Banks (0.31%), Consumer Products and Services (0.22%), Retail (0.19%)
Macro:
ECB:
ECB's Kazaks says investor hopes for monetary easing at one of the next two meetings might be too aggressive: Bloomberg
ECB's Villeroy says will likely lower interest rates in 2024 as the pace of price increases eases toward 2% by next year: Bloomberg
Money markets price in less than 50% chance of ECB rate cut in April: Reuters
BoE:
UK:
Opposition party Labour says not sorry for ditching £28B green pledge: London Times
Hunt very attracted to idea of British ISA to boost UK stocks: Bloomberg
Germany:
German inflation for January confirms picture of slowing economy: Reuters
France:
French central bank says meager growth expected to resume: Bloomberg
ch macro topic separately
Peripheral markets:
Italy:
Meloni promises farmers action to ensure they get fair price - ANSA
Spain:
Farmers in Spain and Poland stage tractor protests over European Union policies and competition - AP
Finland
Second round Presidential election campaign drawing to a close ahead of Sunday's polls - Helsingin Sanomat
Company news:
Notable Gainers
+34.1% RENX.LN (Renalytix £0.14, +0.04) -- draft LCD set Medicare price for KidneyIntelX and kidneyintelX.dkd at $950 per test
+14.3% VICO.SS (Vicore Pharma Holding SEK14.90, +1.86) -- exclusive license agreement with Nippon Shinyaku
+14.2% UBI.FP (Ubisoft Entertainment €22.75, +2.83) -- Q3 earnings
+12.6% AMS.SW (ams-OSRAM CHF2.20, +0.25) -- Q4 earnings
+10.5% KOG.NO (Kongsberg Gruppen NOK600.00, +57.00) -- Q4 earnings
+9.7% COLO.B.DC (Coloplast DKK891.00, +78.80) -- Q1 earnings; launches Biatain Silicone Fit in the US
+9.6% GBT.FP (Guerbet €25.70, +2.25) -- FY revenue; Oddo and CIC Market Solutions upgrades
+8.0% SRS.IM (Saras €1.79, +0.13) -- disseminates release on behalf of Moratti family, others following yesterday's media reports
+6.4% THULE.SS (Thule Group SEK293.30, +17.50) -- Q4 earnings
+5.1% RMS.FP (Hermes €2,181.00, +106.00) -- FY earnings
+5.0% ASY.FP (Assystem €54.60, +2.60) -- Q4 revenue
+4.8% SKA.B.SS (Skanska SEK188.65, +8.70) -- Q4 earnings
+4.6% AFX.GR (Carl Zeiss Meditec €110.80, +4.85) -- Q1 earnings
+4.1% SAAB.B.SS (Saab SEK723.40, +28.60) -- Q4 earnings
+3.7% YAR.NO (Yara International NOK357.20, +12.90) -- Q4 earnings
+3.3% NIL.B.SS (Nilörngruppen SEK63.00, +2.00) -- Q4 earnings
+2.8% TRI.LN (Trifast £0.74, +0.02) -- shareholder Harwood Capital LLP raises stake to ~ 14.07%
+0.6% HNL.GR (Dr. Hönle €15.65, +0.10) -- preliminary Q1
+0.5% TIT.IM (Telecom Italia €0.27, -0.00) -- CEO Labriola meets with Vivendi in Paris - Reuters
Notable Decliners
-15.3% VOLO.SS (Volati SEK103.00, -18.60) -- Q4 earnings
-13.5% SWEC.B.SS (Sweco SEK104.00, -16.20) -- Q4 earnings
-12.0% XFAB.FP (X-FAB Silicon Foundries €7.90, -1.08) -- Q4 earnings; Oddo downgrade
-10.2% SDIP.B.SS (Sdiptech SEK233.60, -26.60) -- Q4 earnings
-10.2% MCOV.B.SS (Medicover SEK156.70, -17.70) -- Q4 earnings
-9.7% LAT1V.FH (Lassila & Tikanoja €9.25, -0.99) -- Q4 earnings
-7.7% CEM.IM (Cementir Holding €9.18, -0.77) -- prelim. FY earnings
-7.6% DEDI.SS (Dedicare SEK97.00, -8.00) -- Q4 earnings
-7.5% CAT.B.SS (Catella SEK27.00, -2.20) -- Q4 earnings
-7.3% OR.FP (L'Oreal €420.10, -33.05) -- FY earnings; exclusive worldwide licence agreement with Prada Miu Miu
-5.7% CYAD.BB (Celyad Oncology €0.36, -0.02) -- intends to terminate its SEC reporting obligations
-5.4% CEC.GR (CECONOMY €2.01, -0.11) -- Q1 earnings
-5.0% HKSAV.FH (HKScan €0.76, -0.04) -- Q4 earnings
-5.0% VER.AV (Verbund €65.70, -3.45) -- cuts FY earnings guidance; Oddo downgrade
-5.0% DUNI.SS (Duni SEK103.00, -5.40) -- Q4 earnings
-4.8% KCT.LN (Kin + Carta £1.28, -0.06) -- Apax confirms cash offer of 120p per Kin and Carta share is final and will not be increased; Kin + Carta reiterates its unanimous recommendation that shareholders vote in favour of the Ken Bidco Limited Scheme at the Court Meeting
-4.6% ENTRA.NO (Entra Eiendom NOK107.30, -5.20) -- Q4 earnings
-4.0% DIGIA.FH (Digia €5.24, -0.22) -- Q4 earnings
-3.8% ACE.SS (Ascelia Pharma SEK8.85, -0.35) -- Q4 earnings
-3.6% STOCKA.FH (Stockmann €2.82, -0.11) -- Q4 earnings
-3.1% PARKEN.DC (PARKEN Sport & Entertainment DKK125.00, -4.00) -- prelim FY sales
-2.2% TLT1V.FH (Teleste €2.72, -0.06) -- Q4 earnings
-2.1% ENGI.FP (ENGIE €14.09, -0.30) -- Marubeni, Engie may sell their shares in Senoko Energy - Bloomberg
-1.7% YIT.FH (Yit €1.84, -0.03) -- Q4 earnings
-1.4% BAS.GR (BASF SE €44.10, -0.60) -- BASF SE to divest shares in its two joint ventures in Korla, China
EU companies reporting Monday 12-Feb:
Earnings:
France: Michelin (ML.FP)
Nordics: Investment AB Latour (LATO.B.SS), Ratos (RATO.B.SS), Alimak (ALIG.SS), Humble (HUMBLE.SS)
Southern Europe: Galp Energia (GALP.PL)
Traffic: Flughafen Zurich (FHZN.SW)
Data:
Economics:
Germany Jan CPI +2.9% y/y vs prelim +2.9%; +0.2% m/m vs prelim +0.2%
EU Harmonised: +3.1% y/y vs prelim +3.1%; (0.2%) m/m vs prelim (0.2%)
Italy Dec Industrial Production (2.1%) y/y vs cons (2.2%) and prior revised (2.9%) from (3.1%); +1.1% m/m vs cons +0.8% and prior revised (1.3%) from (1.5%)
Sweden Dec Industrial Production +0.1% y/y vs cons +0.6% and prior revised (0.8%) from +0.2%; +1.4% m/m vs cons +0.7% and prior revised (1.3%) from (1.1%)
Norway Jan
CPI +4.7% y/y vs cons +4.6% and prior +4.8%; +0.1% m/m vs cons +0.1% and prior +0.1%
PPI (12.9%) y/y vs cons (23.0%) and prior (25.6%)
Greece Dec Industrial Production +4.3% y/y vs cons +4.0% and prior revised +3.2% from +3.1%
Netherlands Dec Manufacturing Production +6.8% m/m vs cons +0.5% and prior (0.8%)
Markets:
WTI Crude (Mar 24): +$0.09 or +0.12% to $76.31
€-$ +0.0006 or +0.06% to 1.0786
£-$ +0.0013 or +0.10% to 1.2630
€-£ (0.0003) to 0.8539
S&P 500 +0.20%
Performance year-to-date
FTSE 100: (2.08%)
DAX: +1.04%
CAC: +1.38%
MIB: +2.65%
Stoxx 600: +1.22%
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