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StreetAccount Summary - EU Market Recap: FTSE 100 +0.35% to 7847.99, DAX +0.02% to 17770.02, CAC40 +0.62% to 7981.51, STOXX 600 +0.06% to 498.52

Apr 17 ,2024

• Synopsis:

  • European equity markets closed higher, but well off earlier highs. Luxury, Miners and Financials the best performers. Tech, healthcare and energy the main laggards. Treasuries firmer with yields down across the curve after a sharp two-day runup in yields. Dollar index down 0.1%. Gold down 0.2%. Bitcoin down 2.5%. WTI crude down 1.0%, lower for the sixth time in the past eight sessions. Industrial metals lower. US equities mostly lower in Wednesday midday trading. Asian equities finished mixed Wednesday.

  • Global markets trying to rebound after a three-day slump, though not much change in the broad market narrative and few catalysts on deck for today. Confluence of Fed policy repricing, geopolitical tensions and elevated volatility continues. Markets now pricing in less than 50 bps of Fed easing this year amid latest Fedspeak and data resilience. However, BoE's Bailey hinted it may be able to cut rates ahead of Fed but UK data see markets reduce rate cut bets. UK interest rate markets reprice prospects of BoE rate cuts after inflation eased less than expected and yesterday's wage growth reading beat forecasts. ECB comments continue to signal a June cut. More ECB-speak from Lagarde, Cipollone and Schnabel during session. Meanwhile, UK Chancellor Hunt signals possibility of another fiscal statement ahead of election.

  • In macro date, early focus was on UK inflation, which eased in March to 3.2% y/y from prior 3.4%, which was the lowest level since Sep-21, but came ahead of 3.1% consensus. Eurozone final CPI was unchanged from flash at 2.4% y/y.

  • In notable earnings updates, in the DACHs region, Continental (CON.GR), Adidas (ADS.GR), Telekom Austria (TKA.AV), HELLA GmbH & Co. (HLE.GR) reported Q1 sales. In France, LVMH Moet Hennessy Louis Vuitton (LVMH.FP) reported Q1 revenue and Emeis (ORP.FP) issued FY earnings and adjusted its FY24 EBITDAR guidance downward. In the Netherlands, Just Eat Takeaway.com (TKWY.NA) and ASML Holding (ASML.NA) updated investors with their latest Q1 numbers, with the latter guiding Q2 and indicating that it expects FY24 total net sales to be similar to 2023. In Nordics, Volvo (VOLV.B.SS) and Tryg (TRYG.DC) reported Q1 earnings mostly ahead of consensus. In the UK, Asos (ASC.LN), Saga Plc (SAGA.LN), Brooks MacDonald Group (BRK.LN), Rio Tinto (RIO.LN) and Liontrust Asset Management (LIO.LN) updated investors with their latest numbers.

  • In M&A, Vinci SA (DG.FP) announced it has signed today an agreement to acquire an effective 50.01% stake in Edinburgh Airport Limited for £1.27B. In Italy, S.G.G. Holding S.p.A. offers to acquire SAES Getters (SG.IM) for €26.3/sh in cash (ex 2023 dividend). Deutsche Beteiligungs (DBAN.GR) sells a significant equity stake in Solvares to Five Arrows. Media reports State Street is weighing acquisition of Societe Generale's (GLE.FP) custody unit; additional headlines indicated Societe Generale hopes to receive over €1B for the business.

• Digest:

  • Sectors - STOXX Europe 600:

    • Outperformers:

      • Consumer Products and Services +2.06%, Basic Resources +1.52%, Banks +1.22%, Food, Beverage and Tobacco +0.95%, Telecom +0.48%, Chemicals +0.32%, Retail +0.31%, Insurance +0.27%, Financial Svcs +0.24%, Utilities +0.22%, Media +0.10%, Ind Goods & Svcs +0.08%

    • Underperformers:

      • Technology (2.80%), Real Estate (0.45%), Travel & Leisure (0.43%), Health Care (0.40%), Autos & Parts (0.22%), Construct & Mtls (0.10%), Personal Care Drug and Grocery Stores (0.03%)

  • Macro:

    • Central Banks:

      • ECB's Cipollone sees policy easing if inflation trend persists: Bloomberg

      • ECB's Nagel says price pressure in the Eurozone could continue for some time - Bloomberg

      • ECB's Holzmann says biggest threat to inflation is geopolitics - CNBC

      • ECB's Villeroy said the bank is set to continue cutting rates throughout 2024 and 2025: Bloomberg

      • BoE Governor Bailey hints at rate cut ahead of Fed: Bloomberg

      • Markets less certain over BoE rate cut prospects: Bloomberg

      • Eurozone inflation slows in March, reinforcing expectations for ECB June rate cut: Reuters

    • UK:

      • UK Chancellor Hunt opens door to tax cuts before election: Bloomberg

      • MPs warn UK failing to fight dirty money epidemic: CityAM

    • France:

      • Fiscal watchdog says Macron's budget forecasts would require unprecedented spending cuts: Bloomberg

    • Germany:

      • ECB President Lagarde sees German economy at inflection point: Bloomberg

    • Geopolitics:

      • Germany urges dozen of allies to send air defence systems to Ukraine: FT

      • Ukraine is heading for defeat: Politico

  • Peripheral markets:

    • Italy:

      • Italy saw slight growth in Q1, Central Bank says: Bloomberg

      • Investors in Italian bonds worried the ECB's backstop program may not apply to Italy due to fiscal issues: Reuters

      • Meloni 'turning Italian broadcaster into megaphone for far right': The Guardian

    • Greece:

      • Unions in Greece call widespread strikes, seeking a return to bargaining rights axed during bailouts: Kathimerini

    • Georgia:

      • Georgia presses on with 'foreign agents' bill opposed by EU: Reuters

  • Company news:

    • Notable Gainers

      • +19.3% SFR.LN (Severfield £0.64, +0.10) -- trading update; Chair appointment

      • +8.7% SPEX.SW (Spexis CHF0.06, -0.00) -- notes moratorium extention, receives additional payment related to transaction with Santhera (SANN.SW)

      • +8.6% ADS.GR (Adidas €220.10, +17.50) -- preliminary earnings

      • +7.6% NIL.B.SS (Nilörngruppen SEK73.00, +5.20) -- earnings

      • +7.4% SPEC.LN (Inspecs Group £0.51, +0.04) -- earnings

      • +5.0% ADMIE.GA (Admie Holdings (IPTO) €2.20, +0.11) -- earnings

      • +4.9% ASC.LN (Asos £3.51, +0.16) -- earnings; CFO appointment

      • +4.8% BVB.GR (Borussia Dortmund €3.59, +0.17) -- raises earnings forecast

      • +4.5% SG.IM (SAES Getters €38.15, +1.65) -- S.G.G. Holding S.p.A. offers to acquire SAES Getters for €26.3/sh in cash (ex 2023 dividend)

      • +3.5% AAL.LN (Anglo American £21.72, +0.73) -- announces value of rough diamond sales for De Beers' third sales cycle of 2024

      • +3.4% ORX.SS (Orexo SEK17.20, +0.58) -- extends patent protection for its nasal epinephrine powder product OX640 in US

      • +3.4% DIS.IM (D'Amico International Shipping €6.44, +0.21) -- acquires two new Long Range product tanker vessels at a contract price of $ 55.4M each

      • +3.0% ALO.FP (Alstom €14.33, +0.41) -- Alstom in "intense discussions" with UK government and Transport for London about a potential order for the Elizabeth line -- tweet by company

      • +2.8% ANTO.LN (Antofagasta £22.71, +0.61) -- production report

      • +2.8% MC.FP (LVMH Moet Hennessy Louis Vuitton €807.70, +22.20) -- Q1 sales

      • +2.6% TREL.B.SS (Trelleborg SEK383.20, +9.60) -- acquires Finnish pipe repair specialist BP-Tech Group; terms undisclosed

      • +2.6% RIO.LN (Rio Tinto $53.93, +1.34) -- production report

      • +2.4% GREEN.SS (Green Landscaping Group SEK77.00, +1.80) -- acquires Gartenidee Kuchler GmbH; price undisclosed

      • +2.4% VIRP.FP (Virbac €370.00, +8.50) -- earnings

      • +1.9% VOLV.B.SS (Volvo SEK288.20, +5.50) -- earnings

      • +1.8% DLAR.LN (De La Rue £0.80, +0.01) -- trading update

    • Notable Decliners

      • -41.2% CRNA.NO (Circio Holding NOK2.85, -2.00) -- terminates TG01 cancer vaccine license option agreement with IOVaxis in China for non-payment; announces intention to raise around NOK 50-60M in Q2 2024 to extend cash runway to Q2 2025; H2 earnings

      • -15.3% IDIA.SW (Idorsia CHF1.82, -0.33) -- continues to engage with bondholders on options and terms regarding the repayment of the convertible bond maturing on 17-Jul-24; earnings

      • -15.0% TOM2.NA (TomTom €6.23, -1.09) -- earnings

      • -13.4% ULTI.NO (Ultimovacs NOK8.75, -1.35) -- business update

      • -10.6% MAGI.SS (MAG Interactive SEK9.00, -1.06) -- earnings

      • -9.5% NEL.NO (NEL ASA NOK4.65, -0.49) -- earnings

      • -6.7% ASML.NA (ASML Holding €854.80, -61.00) -- earnings

      • -5.5% CON.GR (Continental €62.06, -3.58) -- preliminary earnings

      • -5.2% DBG.FP (Derichebourg €4.19, -0.23) -- business update

      • -4.4% TKWY.NA (Just Eat Takeaway.com €13.34, -0.62) -- trading update

      • -4.2% CMCOM.NA (CM.com €6.95, -0.30) -- trading update

      • -3.7% SAGA.LN (Saga Plc £1.06, -0.04) -- earnings

      • -2.9% BRK.LN (Brooks MacDonald Group £17.55, -0.52) -- earnings

  • EU companies reporting tomorrow:

    • Earnings:

      • Benelux: SIPEF (SIP.BB)

      • DACHs: Schindler (SCHN.SW), Mensch und Maschine Software (MUM.GR), 2G Energy (2GB.GR), Hawesko (HAW.GR), M1 Kliniken (M12.GR)

      • Finland: Nordea Bank (NDA.FI.FH), Nokia (NOKIA.FH), Olvi (OLVAS.FH), Talenom (TNOM.FH)

      • France: Sartorius Stedim Biotech (DIM.FP)

      • Norway: Elkem (ELK.NO), ABG Sundal Collier (ABG.NO)

      • Sweden: EQT (EQT.SS), Tele2 (TEL2.B.SS), Mycronic (MYCR.SS), Kinnevik (KINV.B.SS), Vitrolife (VITR.SS), FastPartner (FPAR.A.SS), Vitec Software Group (VIT.B.SS), Arjo (ARJO.B.SS), AQ Group (AQ.SS), Note (NOTE.SS), Plejd (PLEJD.SS), Hansa Biopharma (HNSA.SS)

      • UK: Centamin (CEY.LN), Keystone Law Group (KEYS.LN), LBG Media (LBG.LN)

    • Trading Update:

      • Benelux: Sligro Food Group (SLIGR.NA), NSI (NSI.NA), Econocom (ECONB.BB)

      • DACHs: Gurit (GURN.SW)

      • France: L'Oreal (OR.FP), EssilorLuxottica (EL.FP), Danone (BN.FP), Edenred (EDEN.FP), Forvia (FRVIA.FP), Ipsos (IPS.FP), Etablissements Maurel & Prom (MAU.FP), Mercialys (MERY.FP), Amplitude Surgical (AMPLI.FP), Focus Entertainment (ALFOC.FP), Damartex (ALDAR.FP)

      • Nordics: Investor (INVE.B.SS)

      • UK: SEGRO (SGRO.LN), easyJet (EZJ.LN), Rentokil Initial (RTO.LN), Dunelm (DNLM.LN), Deliveroo (ROO.LN), AJ Bell (AJB.LN), discoverIE (DSCV.LN), Foxtons (FOXT.LN)

    • Events/CMD: Mobimo Holding (MOBN.SW), Hawesko Holding (HAW.GR), Oxford Metrics (OMG.LN)

• Data:

  • Economics:

    • Eurozone Mar CPI +2.4% y/y vs preliminary +2.4%; +0.8% m/m vs preliminary +0.8%

      • Mar core CPI +2.9% y/y vs preliminary +2.9%

    • UK Mar

      • CPI +3.2% y/y vs consensus +3.1% and prior +3.4%; +0.6% m/m vs consensus +0.5% and prior +0.6%

        • Core +4.2% y/y vs consensus +4.1% and prior +4.5%

      • RPI +4.3% y/y vs consensus +4.2% and prior +4.5%; +0.5% m/m vs prior +0.8%

      • Output PPI +0.6% y/y vs consensus +0.2% and prior +0.4%; +0.2% m/m vs consensus +0.2% and prior +0.3%

      • Input PPI (2.5%) y/y vs consensus (2.2%) and prior revised (2.2%) from (2.7%); (0.1%) m/m vs consensus +0.1% and prior revised +0.3% from (0.4%)

    • Austria Mar CPI +4.1% y/y vs preliminary +4.2%; +0.5% m/m vs preliminary +0.5%

      • EU Harmonised: +4.1% y/y vs preliminary +4.2%; +0.7% m/m vs preliminary +0.7%

  • Markets:

    • WTI Crude (May 24): ($1.15) or (1.35%) to $84.21

    • €-$ +0.0029 or +0.27% to 1.0648

    • £-$ +0.0025 or +0.20% to 1.2452

    • €-£ +0.0004 to 0.8551

    • S&P 500 (0.37%)

    • Performance year-to-date

      • FTSE 100: +1.48%

      • DAX: +6.08%

      • CAC: +5.81%

      • MIB: +10.85%

      • Stoxx 600: +4.08%