Apr 03 ,2024
Synopsis:
European equity markets ended mostly higher. Greece (0.7%), FTSE100 and Portugal both flat led the underperformers whilst Ireland +1.7%, Denmark +1.0%, Belgium +0.7% led the outperformers.
In geopolitical developments, NATO meeting in Brussels gets underway. Will discuss proposal for $100B five-year fund for Ukraine.
From a macroeconomic calendar perspective, Eurozone CPI came softer than forecast, down to +2.4% y/y vs consensus +2.6%, and unemployment rate steady at 6.5% vs consensus 6.4% and prior revised 6.5% from 6.4%. Italy unemployment ticked higher to 7.5% vs consensus 7.2% and prior 7.2%.
Meanwhile, central banks narrative continues as longstanding ECB hawk Holzmann highlighted importance of incoming data, while remaining open to June cut, which is baseline assumption
In earnings/trading updates, Montana Aerospace (AERO.SW) reported FY23 adjusted EBITDA €137.7M vs FactSet €139.6M. Still in Switzerland, Glarner Kantonalbank (GLKBN.SW) published its FY earnings report and proposed an unchanged dividend payment of CHF 1.10/sh to AGM. In the UK, Hilton Food Group (HFG.LN) reported FY preliminary numbers along with a final dividend proposal of 23.0p.Topps Tiles (TPT.LN) issued a H1 trading update including revenue £122.6M, (5.9%) y/y. Company also reaffirmed it expects the group's profits in 2024 to be weighted towards H2.
In other corporate developments, Swiss Re (SREN.SW) CEO Christian Mumenthaler to step down, effective 1-Jul
On M&A front, Genmab (GMAB.DC) agreed to acquire ProfoundBio for $1.8B in cash. Siemens (SIE.GR) noted the recent press speculation in relation to Renishaw (RSW.LN) and confirmed that it does not intend to make an offer for Renishaw. Assicurazioni Generali (G.IM) completed the acquisition of Conning and its affiliates from Cathay Life.
Digest:
Sectors - STOXX Europe 600:
Outperformers
Banks +1.39%, Autos & Parts +0.88%, Construct & Mtls +0.84%, Technology +0.83%, Oil & Gas +0.80%, Chemicals +0.72%, Basic Resources +0.64%, Travel & Leisure +0.64%, Media +0.63%, Retail +0.58%, Ind Goods & Svcs +0.31%
Underperformers
Food & Beverage (0.93%), Insurance (0.69%), Persnl & HHold Goods (0.59%), Real Estate(0.54%), Utilities (0.45%), Telecom (0.04%), Health Care +0.23%, Financial Svcs +0.23%
Macro/Peripheral markets:
ECB
Germany
Germany's Lindner criticizes coalition partners for use of taxpayer money - Rheinische Post
Outperformance by Italy, Spain, Portugal and Greece contrasts sharply with stagnation in Germany - FT
France
French Finance Minister Le Maire ruled out tax increase despite increasingly challenging fiscal backdrop - Les Echos
Geopolitics
NATO planning a $100B military aid package for Ukraine over five years to counter potential policy shift under Trump presidency, and give Ukraine more enduring support - Politico
Portugal
Doubts over stability of Portuguese government - Reuters
Sweden
Government submits a bill to the Riksdag with proposals for new rules for companies' sustainability reporting - release
Italy
Italy says it can cope with expected EU deficit procedure - Reuters
Company news:
Notable Gainers
+28.6% ADXN.SW (Addex Therapeutics CHF0.13, +0.03) -- and Perceptive Advisors form Neurosterix venture; Addex contributes assets to venture for cash and 20% stake
+6.4% VNV.SS (VNV Global SEK21.70, +1.30) -- portfolio company BlaBlaCar closes €100M financing
+4.5% NXI.FP (Nexity €9.71, +0.41) -- completes sale of retail service activities to Bridgepoint
+4.3% OX2.SS (OX2 AB SEK48.92, +2.00) -- signs agreement with Flower to sell energy storage facility Bredhälla in Sweden; terms undisclosed
+4.1% OVS.IM (OVS €2.47, +0.10) -- signs a binding investment agreement with the aim of acquiring in multiple stages the control and, ultimately, 100% of Goldenpoint S.p.A.
+4.1% ACTI.SS (Active Biotech SEK0.61, +0.02) -- study enrollment start
+4.0% VIRP.FP (Virbac €347.50, +13.50) -- aquires Sasaeah in Japan. Terms were not disclosed
+3.5% BNOR.NO (BlueNord NOK593.00, +20.00) -- first production has been achieved from Halfdan Well HBA-27B
+3.2% SKA.B.SS (Skanska SEK193.25, +5.95) -- contract
+3.1% AERO.SW (Montana Aerospace CHF17.80, +0.54) -- earnings
+3.0% CLN.SW (Clariant CHF12.66, +0.37) -- International Flavors & Fragrances completes sale of Cosmetics Ingredients business to Clariant; deal was announced 30-Oct
+2.6% RYA.ID (Ryanair Holdings €21.07, +0.54) -- Mar passengers
+2.3% SAA.LN (M&C Saatchi £1.75, +0.04) -- divests certain French associate investments
+2.1% ABDP.LN (AB Dynamics £17.25, +0.35) -- acquires Venshure Test Services for $30M
+2.1% HFG.LN (Hilton Food Group £8.72, +0.18) -- earnings
+2.0% RBI.AV (Raiffeisen Bank International €19.21, +0.37) -- issues update on acquisition of 28.5M shares of STRABAG SE
+2.0% SBB.B.SS (Samhällsbyggnadsbolaget i Norden SEK4.19, +0.08) -- updates on PPI's IPO
+1.9% WIZZ.LN (Wizz Air Holdings £21.60, +0.40) -- Mar traffic
+1.8% HAG.GR (HENSOLDT €43.78, +0.78) -- completes acquisition of ESG Elektroniksystem- und Logistik-GmbH
+1.7% ECONB.BB (Econocom Group €2.14, +0.04) -- finalises and sign the agreements to sell Les Abeilles to the Boluda group
+1.6% SEQUA.BB (Sequana Medical €1.55, +0.02) -- study results publication
+1.4% KCR.FH (Konecranes €48.54, +0.66) -- acquires business of German crane and service supplier Kocks Kranbau; terms undisclosed
+1.2% HO.FP (Thales €159.20, +1.90) -- completes acquisition of Cobham Aerospace Communications
+1.1% CFR.SW (Richemont CHF137.75, +1.55) -- Mytheresa (MYTE), Bain Capital and Permira among potential bidders for Richemont's Yoox Net-a-Porter -- FT, citing people familiar with the situation
+1.0% BGEO.LN (Bank of Georgia Group £50.50, +0.50) -- completes the acquisition of Ameriabank
Notable Decliners
-25.1% MBTN.SW (Meyer Burger Technology CHF0.02, -0.01) -- capital increase
-16.4% SDRY.LN (Superdry £0.10, -0.02) -- follow-through on failed talks with CEO
-5.7% MINEST.SS (Minesto SEK2.58, -0.16) -- announces the final outcome of the company's rights issue; final outcome is identical to the preliminary results
-3.5% BAKKA.NO (Bakkafrost NOK660.00, -24.00) -- reports Q1 harvest volume 21.6Kt
-3.2% TPT.LN (Topps Tiles £0.43, -0.01) -- trading update
-3.1% SSAB.A.SS (SSAB SEK71.90, -2.28) -- short-term recommendation downgraded to hold from buy at Handelsbanken
-3.0% RSW.LN (Renishaw £42.20, -1.30) -- Siemens AG does not intend to make an offer for Renishaw
-2.1% GMAB.DC (Genmab DKK2,042.00, -44.00) -- agrees to acquire ProfoundBio for $1.8B in cash
-0.8% OBD.LN (Oxford BioDynamics £0.09, -0.00) -- opens clinical testing facility in UK
-0.6% SPI.LN (Spire Healthcare Group £2.32, -0.02) -- announces sale of Spire Tunbridge Wells hospital to Maidstone and Tunbridge Wells NHS Trust for ~ £10M
EU companies reporting tomorrow:
Earnings:
AKWEL (AKW.FP), Genfit (GNFT.FP), Mauna Kea Technologies (ALMKT.FP), Vinpai (ALVIN.FP), Xilam Animation (XIL.FP), lastminute.com (LMN.SW), BKS Bank (BKS.AV), CENIT (CSH.GR), Bioporto (BIOPOR.DC), Sistema (AFKS.RU)
Data:
Economics:
Eurozone
Feb Unemployment Rate 6.5% vs cons 6.4% and prior revised 6.5% from 6.4%
Mar Preliminary CPI +2.4% y/y vs cons +2.6% and prior +2.6%; +0.8% m/m vs cons +0.9% and prior +0.6%
Mar core CPI +2.9% y/y vs cons +3.0% and prior +3.1%
Italy Feb Unemployment Rate 7.5% vs cons 7.2% and prior 7.2%
Netherlands Mar prelim CPI +3.1% y/y vs cons +2.8% and prior +2.8%
Austria Mar prelim CPI +4.2% y/y vs cons +4.0% and prior +4.3%; +0.5% m/m vs cons +0.3% and prior +0.7%
EU Harmonised: +4.2% y/y vs cons +3.6% and prior +4.2%; +0.7% m/m vs cons +0.3% and prior +0.7%
Markets:
WTI Crude (May 24): +$0.67 or +0.79% to $85.82
€-$ +0.0056 or +0.52% to 1.0827
£-$ +0.0054 or +0.43% to 1.2631
€-£ +0.0009 to 0.8572
S&P 500 +0.41%
Performance year-to-date
FTSE 100: +2.64%
DAX: +9.65%
CAC: +8.09%
MIB: +13.55%
Stoxx 600: +6.48%
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