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StreetAccount Summary - EU Market Recap: FTSE 100 +1.50% to 7711.71, DAX +0.42% to 17117.44, CAC40 +0.32% to 7768.18, STOXX 600 +0.62% to 491.59

Feb 16 ,2024

  • Synopsis:

    • European equity markets closed higher. Basic resources, media and industrial goods outperformed whilst utilities, food & beverages and telecoms underperformed.

    • Market continues to take some encouragement from disinflation process with takeaways mostly downplaying the hotter-than-expected US CPI print amid seasonal influences and one-off effects. UK data this week has also been supportive after cooler-than-expected inflation and weaker-than-expected GDP data. Officials from Fed, BoE and ECB have largely noted that disinflation process remains on track, but there remains caution. In Europe, other supportive factors include upbeat earnings, yield stabilization and positive strategist commentary.

    • On macro front, big beat in UK retail sales in January, which fits in with notion of economy already recovering from recession. Final French CPI confirmed at 3.1% y/y.

    • Elsewhere, UK press said Chancellor Hunt has dropped plans for a 2p cut in income tax after the economy entered a recession, which reduced the amount of fiscal space. Conservative government's electoral woes continue with opposition Labour overturning two big majorities in by-elections. Euro-area finance ministers have asked the European Commission to come up with proposals for more integrated supervision of capital markets.

    • On the corporate front, Norwegian Air Shuttle (NAS.NO) leads gainers post solid Q4 earnings and strong FY24 booking momentum. Rosenbauer International (ROS.AV) also higher post prelim FY numbers. Further out of DACHs, Sika Group (SIKA.SW), Swiss Re (SREN.SW), DKSH Holding (DKSH.SW) and HELLA & Co. (HLE.GR) updated with their latest numbers before the open. In France, Eutelsat Communications (ETL.FP) reported H1 and updated on OneWeb integration, with Orpea (ORP.FP) and Euronext (ENX.FP) also posting their most recent figures. Umicore (UMI.BB) lower post FY update; guides for 2024 adjusted EBITDA in the range of €900-950M vs FactSet €974.50M.

    • In M&A, Unipol Gruppo launches tender offer at €2.70/share including dividends for UnipolSai Assicurazioni. Media reports Barclays (BARC.LN) receiving interest from private equity firms regarding a stake in its merchant payments business.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Basic Resources +2.35%, Media +1.29%, Ind Goods & Svcs +1.25%, Personal Care Drug and Grocery Stores +1.01%, Banks +0.98%, Technology +0.84%, Financial Svcs +0.67%,

      • Underperformers:

        • Utilities (0.50%), Food, Beverage and Tobacco (0.30%), Telecom (0.16%), Construct & Mtls (0.08%), Real Estate (0.03%), Insurance +0.15%, Energy+0.44%, Consumer Products and Services +0.47%, Autos & Parts +0.50%, Travel & Leisure +0.55%, Chemicals +0.60%, Retail +0.62%

    • Macro:

      • EU

        • EU finance chiefs push for integrated capital market oversight - Bloomberg

        • Ursula von der Leyen calls on EU to subsidise defence production - FT

      • ECB

        • ECB's Villeroy favours gradualism and pragmatism in shifting policy - L'Echo

        • ECB's Scicluna open to March cut with inflation trending down - Bloomberg

        • Ex ECB chief says central banks should give governments space to invest - Reuters

      • UK

        • Britain suffers longest hit to living standards since records began - Telegraph

        • Labour clinches two by-election wins in Kingswood and Wellingborough - FT

        • Jeremy Hunt shelves 2p income tax cut - Telegraph

        • Investors bet on Oxford street bouncing back - Bloomberg

      • Spain

        • Spain lends out €60B cash pile in bid for higher returns - Bloomberg

    • Company news:

      • Notable Gainers

        • +62.1% AFP.SW (Aluflexpack CHF14.12, +5.41) --

          • prelim FY earnings

          • Constantia Flexibles acquires majority stake in company; will launch public tender offer for remaining shares at between CHF15.00-18.75/share in cash

        • +23.2% NETI.B.SS (Net Insight SEK6.40, +1.21) -- Q4 earnings

        • +21.0% UNI.IM (Unipol Gruppo €6.95, +1.21) -- launches tender offer at €2.70/share including dividends for UnipolSai Assicurazioni

        • +15.8% NBA.PL (Novabase SGPS €6.14, +0.84) -- FY earnings

        • +15.7% M12.GR (M1 Kliniken €12.95, +1.75) -- private equity interested in beauty segment

        • +15.4% QTCOM.FH (Qt Group €76.40, +10.22) -- Q4 earnings

        • +11.4% SOLG.LN (SolGold £0.07, +0.01) -- publishes new Cascabel Pre-Feasibility Study

        • +10.9% US.IM (UnipolSai Assicurazioni €2.66, +0.26) -- prelim FY earnings

        • +10.6% NAS.NO (Norwegian Air Shuttle NOK16.57, +1.59) -- FY earnings

        • +10.6% ALLIGO.B.SS (Alligo SEK151.80, +14.60) -- Q4 earnings

        • +9.4% ROS.AV (Rosenbauer International €32.60, +2.80) -- prelim FY earnings

        • +9.0% METSO.FH (Metso Corp. €10.40, +0.86) -- Q4 earnings

        • +8.0% BMN.LN (Bushveld Minerals £0.01, -0.00) -- receives additional outstanding funds of ZAR76M (~$4M) from Southern Point Resources

        • +7.3% AKVA.NO (AKVA Group NOK52.60, +3.60) -- Q4 earnings

        • +7.3% PGS.NO (PGS ASA NOK6.80, +0.46) -- Kepler Cheuvreux upgrade

        • +7.1% NWG.LN (NatWest Group £2.30, +0.15) -- FY earnings; intends to commence on-market buyback programme of up to £300M in 2024; appoints new CEO

        • +6.1% TGS.NO (TGS-NOPEC Geophysical Co. NOK105.20, +6.05) -- Kepler Cheuvreux upgrade

        • +5.7% ANTO.LN (Antofagasta £17.85, +0.96) -- updates near-term GHG emissions targets

        • +5.5% PREC.SS (Precise Biometrics SEK1.05, +0.06) -- Q4 earnings

        • +5.0% BOUV.NO (Bouvet NOK60.90, +2.90) -- Q4 earnings

        • +5.0% FPIP.SS (FormPipe Software SEK29.50, +1.40) -- Q4 earnings

        • +4.5% WRKS.LN (TheWorks.co.uk £0.26, +0.01) -- holder Kelso Group Holdings raises stake to 5.992% as of 14-Feb

        • +4.1% NHY.NO (Norsk Hydro NOK58.30, +2.30) -- signs $1.0B revolving multi-currency credit facility

        • +2.8% SIKA.SW (Sika Group CHF254.30, +7.00) -- FY earnings

        • +2.5% POM.FP (Plastic Omnium €10.60, +0.26) -- Stifel upgrade

        • +2.3% BARC.LN (Barclays £1.47, +0.03) -- Barclays receiving interest from private equity firms regarding a stake in its merchant payments business - Bloomberg

        • +2.0% BAYN.GR (Bayer AG €28.61, +0.56) -- First patient randomized in AskBio phase II Gene therapy trial for congestive heart failure

        • +1.8% KCR.FH (Konecranes €48.07, +0.85) -- order

      • Notable Decliners

        • -35.4% XPP.LN (XP Power £9.68, -5.30) -- FY trading update

        • -16.9% IVA.FP (Inventiva €2.99, -0.61) -- prelim FY earnings; update on clinical trial NATiV3

        • -15.9% PHLY.NO (Philly Shipyard $38.70, -7.30) -- Q4 earnings

        • -13.3% NIBE.B.SS (NIBE Industrier SEK58.42, -9.00) -- Q4 earnings

        • -6.5% ALFEN.NA (Alfen €57.02, -3.94) -- Van Lanschot Kempen downgrade

        • -6.4% PDL.LN (Petra Diamonds £0.41, -0.03) -- final sales results for Tender 4 FY24

        • -5.5% SATS.NO (SATS ASA NOK17.34, -1.00) -- successfully completes secondary placing

        • -4.6% TEMN.SW (Temenos CHF60.62, -2.92) -- refutes the report published today by Hindenburg Research; confirms results in line with pre-results announced 19-Jan

        • -3.7% REG1V.FH (Revenio Group €26.90, -1.04) -- Inderes downgrade

        • -3.2% PSAN.GR (PSI Software €22.80, -0.75) -- discovered cyberattack on IT systems on 15-Feb-24

        • -3.2% KDEV.SS (Karolinska Development SEK1.61, -0.05) -- Q4 earnings

        • -3.1% ENI.IM (Eni €14.15, -0.45) -- Q4 earnings

        • -1.4% UMI.BB (Umicore €20.67, -0.30) -- FY earnings

    • EU companies reporting on Monday:

      • Earnings: Temenos (TEMN.SW), BIC (BB.FP), Icade (ICAD.FP), Almirall (ALM.SM), OEM International (OEM.B.SS), Moneysupermarket.com Group (MONY.LN), Wilmington (WIL.LN), NNIT (NNIT.DC), Dialight (DIA.LN)

      • Trading Update: Forvia (FRVIA.FP)

  • Data:

    • Economics:

      • Sweden Jan Unemployment Rate 8.5% vs consensus 8.2% and prior 7.7%

      • UK Jan Retail Sales +0.7% y/y vs consensus (1.4%) and prior (2.4%); +3.4% m/m vs consensus +1.5% and prior revised (3.3%) from (3.2%)

      • France Jan CPI +3.1% y/y vs preliminary +3.1%; (0.3%) m/m vs preliminary (0.2%)

    • Markets:

      • WTI Crude (Mar 24): +$0.38 or +0.49% to $78.41

      • €-$ (0.0001) or (0.01%) to 1.0772

      • £-$ (0.0010) or (0.08%) to 1.2589

      • €-£ +0.0006 to 0.8557

      • S&P 500 (0.02%)

      • Performance year-to-date

        • FTSE 100: (0.28%)

        • DAX: +2.18%

        • CAC: +2.98%

        • MIB: +4.55%

        • Stoxx 600: +2.63%

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