Mar 12 ,2024
Synopsis:
European equity markets closed mostly higher Tuesday. Autos, Banks and Travel&Leisure were the best performers; Utilities and Real Estate lagged. Follows mostly negative performance on Monday.
Focus on macro data with UK wage data on the weak side as unemployment rate ticked up, while wages continued the decline. To note, on Monday BoE hawk Mann said inflation still far from reaching 2% target. Germany's final inflation estimate for February matched preliminary release at 2.5% y/y. EU finance ministers advocated slight fiscal tightening for 2025 to bring down inflation. ECB reportedly to leave MRR at 1% in framework review. In the US, headline February CPI printed in-line with consensus for a 0.4% monthly rise, but faster than January. Core CPI a bit hotter than expected, rising 0.4% m/m vs forecasts for 0.3%. Follows hotter-than-expected January print that put more traction behind concerns about sticky services inflation.
In reporting news, Tecan Group (TECN.SW), Wacker Chemie (WCH.GR) and Siltronic (WAF.GR) were among other DACH names to report before the open. In Italy, Leonardo (LDO.IM) issued its industrial plan 2024-28 whilst Generali (G.IM) released FY numbers. In the UK, Persimmon (PSN.LN), Domino's Pizza (DOM.LN) and Synthomer (SYNT.LN) pubished their most recent earnings.
In M&A, media reports Nidec, KPS invited to make second-round offers for Siemens's (SIE.GR) Innomotics. Domino's Pizza Group (DOM.LN) acquires full control of Shorecal to meaningfully accelerate growth in Ireland. Further in the UK, British American Tobacco (BATS.LN) confirms that it is evaluating a possible disposal of a small part of BAT's shareholding in ITC (500875.IN) by means of an on-market block trade.
Of note in the UK, CMA is consulting on whether to launch a market investigation into veterinary services for household pets in the UK; shares of CVS Group (CVSG.LN) and Pets At Home Group (PETS.LN) are trading lower
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Autos & Parts +2.25%, Banks +1.98%, Travel & Leisure +1.83%, Technology +1.58%, Financial Svcs +1.53%, Retail +1.50%, Basic Resources +1.49%, Ind Goods & Svcs +1.21%, Insurance +1.16%, Media +1.14%, Consumer Products and Services +1.13%
Underperformers:
Utilities (1.32%), Real Estate (1.32%), Telecom (0.29%), Food, Beverage and Tobacco +0.40%, Health Care +0.62%, Energy+0.76%, Personal Care Drug and Grocery Stores +0.78%, Chemicals +0.84%
Macro:
Central Banks:
Europe:
Eurozone finance ministers call for slight fiscal contraction in 2025 to aid disinflation and make public finances more sustainable - Reuters
France:
French lawmakers vote on Ukraine support in 'risky' Macron bet - Reuters
Germany:
Germany's far-right AfD seeking to overturn extremist designation in court - Reuters
Portugal:
Portugal's centre-right prepares to rule, far-right warns of instability (Reuters
Italy:
Meloni announces Italian AI law, 1 bn investment fund - ansa
UK:
Sweden:
Swedish PM says ready to fortify crucial Baltic island - FT
Company news:
Notable Gainers
+36.9% SYNT.LN (Synthomer £1.97, +0.53) -- FY earnings
+12.3% NPAPER.SS (Nordic Paper Holding SEK49.00, +5.35) -- to explore potential interest for the company in response to Shanying's announced intention to divest its 48.16% stake
+10.8% TCAP.LN (TP ICAP Group £2.20, +0.21) -- FY earnings; launches second share buyback programme of £30M
+9.6% BKW.SW (BKW AG CHF142.10, +12.40) -- FY earnings
+8.9% MED.SW (Medartis Holding CHF78.10, +6.40) -- FY earnings
+7.6% HAT.LN (H&T Group £3.66, +0.26) -- FY earnings
+6.1% DLG.IM (De'Longhi €32.20, +1.84) -- FY earnings
+6.0% WCH.GR (Wacker Chemie €110.00, +6.25) -- final FY earnings; current trading update
+6.0% PCZ.GR (ProCredit Holding €8.50, +0.48) -- raises medium-term outlook for the group's return on equity from around 12% to around 13 - 14%
+4.1% YIT.FH (Yit €1.65, +0.06) -- raises capital for €69.5M
+3.8% GE.IM (Gefran €8.13, +0.30) -- FY earnings
+3.7% ENT.LN (Entain £7.62, +0.27) -- Entain hires bankers to prepare a sale of PartyPoker - Sky News
+3.6% SAR.GA (GR Sarantis €9.79, +0.34) -- FY earnings
+3.3% NHY.NO (Norsk Hydro NOK56.88, +1.82) -- ABG Sundal Collier upgrade
+2.6% ELK.NO (Elkem NOK22.42, +0.56) -- concludes waiver process with the lenders regarding the financial covenants in its loan agreements
+2.4% VNV.SS (VNV Global SEK21.58, +0.50) -- portfolio company Voi completes $25M funding round
+1.9% HILS.LN (Hill & Smith £18.86, +0.36) -- FY earnings; acquires FM Stainless for initial cash consideration of $8.25M
+1.8% INDV.LN (Indivior £16.80, +0.30) -- results from a pharmacodynamic study on OPVEE
+1.8% AENA.SM (Aena S.M.E. €182.25, +3.15) -- Feb traffic
+1.7% GEN.LN (Genuit Group £4.09, +0.07) -- FY earnings
Notable Decliners
-24.4% CVSG.LN (CVS Group £11.02, -3.55) -- responds to CMA update on their review into the veterinary services market
-21.3% RENX.LN (Renalytix £0.32, -0.09) -- announces $10M equity placing
-13.8% SDRY.LN (Superdry £0.27, -0.04) -- confirms discussions with Hilco
-8.2% SCHP.FP (Seche Environnement €104.60, -9.40) -- Q4 earnings
-8.0% KOA.NO (Kongsberg Automotive NOK1.50, -0.13) -- FY earnings
-6.7% SENS.SW (Sensirion Holding CHF64.00, -4.60) -- FY earnings
-6.4% MMK.AV (Mayr-Melnhof Karton €108.00, -7.40) -- FY earnings
-5.9% BVC.LN (BATM Advanced Communications £0.19, -0.01) -- FY earnings
-4.0% PSN.LN (Persimmon £13.20, -0.55) -- FY earnings
-3.7% PETS.LN (Pets At Home Group £2.65, -0.10) -- UK's CMA consulting on whether to launch a market investigation into veterinary services for household pets in the UK
-3.7% PETS.LN (Pets At Home Group £2.65, -0.10) -- issues response to CMA announcement
-3.4% TEG.GR (TAG Immobilien €11.90, -0.42) -- FY earnings
-2.9% ROVI.SM (Laboratorios Farmaceuticos Rovi, S.A. €76.40, -2.30) -- to form venture that will engage in R&D of advanced therapies
-2.4% MTX.GR (MTU Aero Engines €220.30, -5.50) -- Redburn Atlantic downgrade
-2.2% DOM.LN (Domino's Pizza Group £3.60, -0.08) -- FY earnings; acquires remaining 85% of Shorecal for €72M
EU companies reporting tomorrow:
Earnings:
Benelux: Solvay (SOLB.BB), Agfa-Gevaert (AGFB.BB)
DACHs: Volkswagen (VOW.GR), adidas (ADS.GR), E.ON (EOAN.GR), Zalando (ZAL.GR), MorphoSys (MOR.GR), Grand City Properties (GYC.GR), Klockner & Co. (KCO.GR), Geberit (GEBN.SW), Sandoz (SDZ.SW), Stadler Rail (SRAIL.SW), Medacta (MOVE.SW), Autoneum (AUTN.SW), ORIOR (ORON.SW), Rieter (RIEN.SW), Kuros Biosciences Ltd. (KURN.SW), Oesterreichische Post (POST.AV)
France: Believe (BLV.FP), Mersen (MRN.FP), Assystem (ASY.FP), Jacquet Metals (JCQ.FP)
Nordics: Kobenhavns Lufthavne (KBHL.DC), Columbus (COLUM.DC)
Southern Europe: Inditex (ITX.SM), Greek Organisation of Football Prognostics (OPAP.GA), Reply (REY.IM), Titan Cement International (TITC.IM), Openjobmetis (OJM.IM), FNM (FNM.IM)
UK: Balfour Beatty (BBY.LN), 4imprint (FOUR.LN), Keywords Studios (KWS.LN), Hochschild Mining (HOC.LN), IP Group (IPO.LN), Ferrexpo (FXPO.LN), PensionBee (PBEE.LN), The Gym Group (GYM.LN), Nexteq (NXQ.LN), Faron Pharmaceuticals (FARN.LN), Metro Bank (MTRO.LN), Centaur Media (CAU.LN)
CMD/events: Electrolux Professional (EPRO.B.SS), McBride (MCB.LN), Vår Energi (VAR.NO), Gedeon Richter (RICHT.HB)
Traffic: Fraport AG Frankfurt Airport Services Worldwide (FRA.GR), Flughafen Wien (FLU.AV)
Data:
Economics:
Netherlands Feb CPI +2.8% y/y vs preliminary +2.8%
Germany Feb CPI +2.5% y/y vs preliminary +2.5%
UK Feb Claimant Count Change +16.8K vs consensus +20.3K and prior revised +3.1K from +14.1K
Markets:
WTI Crude (Apr 24): +$0.37 or +0.47% to $78.30
€-$ (0.0009) or (0.08%) to 1.0918
£-$ (0.0033) or (0.26%) to 1.2780
€-£ +0.0014 to 0.8543
S&P 500 +0.68%
Performance year-to-date
FTSE 100: +0.19%
DAX: +7.24%
CAC: +7.22%
MIB: +11.16%
Stoxx 600: +5.75%
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