Apr 19 ,2024
Synopsis
European indices are set to open lower as tensions in the Middle East further escalate after it was confirmed by a US senior official that Israel launched missiles on Iranian territory. Sources report the airstrike by Israeli air force may have targeted the 8th tactical airbase of the Iranian air force, within Isfahan international airport. The IAEA said no nuclear site was damaged.
S&P futures (43.5) to 5,005.5, (0.86%) vs settlement
Asian equities are sharply lower Friday. Regional benchmarks took a sharp turn lower amid Middle East headlines, though have come off session lows.
US equities finished mostly lower in Thursday trading, ending near worst levels. Market unable to sustain early bounce attempt, and S&P logged its fifth-straight decline (longest streak since October). Laggards included semis ex-NVDA, software, casinos, refiners, hospitals, MedTech, and asset managers. Big tech was mixed with TSLA down for a fifth straight day but META better.
On Friday in Central Banks, BOE's Ramsden panellist at 15:15BST at event hosted by PIIE, other panellists include Netherland Central Bank's Knot. Bundesbank's Nagel panellist at 21:00CET at event hosted by PIIE. Two months ahead of the European Parliament election 2024, POLITICO Pro hosts event on trends and expectations
Economic today : UK Mar Retail Sales +0.8% y/y vs consensus +0.7% and prior revised (0.3%) from (0.4%). Germany Mar PPI (2.9%) y/y vs consensus (4.2%) and prior (4.1%)
In Earnings: Yesterday after the close L'Oreal (OR.FP) reported Q1 Sales €11.245B vs consensus €10.85B whilst EssilorLuxottica (EL.FP) reported Q1 revenue €6.34B vs StreetAccount €6.38B. Alma Media (ALMA.FH) reports Q1 EPS €0.13 vs FactSet €0.14 [4 est, €0.12-0.15]; reaffirms FY guidance. Pluxee (PLX.FP) reports H1 net income €68M, (26%) vs year-ago €92M. Raising 2024 Outlook. Sodexo (SW.FP) reports H1 underlying operating profit €612M vs consensus €600M; FY24 organic growth now expected at top of +6%-+8% range.
Trading Update due this morning: Gaztransport & Technigaz (GTT.FP), COMET Holding (COTN.SW)
Politics/Macro/World News
Top company news
Earnings/updates
EL.FP (EssilorLuxottica) -- reports Q1 revenue €6.34B vs StreetAccount €6.38B
VIE.FP (Veolia Environnement) -- Veolia aims to increase US revenue by 50% by 2027 and double in size by 2030
SW.FP (Sodexo) -- reports H1 underlying operating profit €612M vs consensus €600M; FY24 organic growth now expected at top of +6%-+8% range
RBREW.DC (Royal Unibrew) -- reports Q1 EPS DKK2.00 vs FactSet DKK1.86 [7 est, DKK1.53-2.20]; raises FY organic EBIT growth guidance
COTN.SW (COMET Holding) -- trading update; Q1 revenue CHF80.9M vs year-ago CHF107.5M
WDP.BB (Warehouses de Pauw) -- reports Q1 EPRA EPS €0.33 vs year-ago €0.31
IPS.FP (Ipsos) -- reports Q1 revenue €557.5M vs FactSet €559.2M [2 est, €559-559.4M]
NSKOG.NO (Norske Skog) -- reports Q1 EPS (NOK3.86) vs FactSet (NOK1.05) [2 est, (NOK1.10)-(1.01)]
MERY.FP (Mercialys) -- reports Q1 Rental revenues €45.5M, +4% vs year-ago €43.6M
GURN.SW (Gurit Holding) -- reports Q1 revenue CHF97.2M vs FactSet CHF112.7M [3 est, CHF103-123M]
NYR.BB (Nyrstar) -- reports FY net income (€1.5M) vs year-ago (€0.8M)
M&A
BSY (Bentley Systems) -- exploring options following takeover interest - Reuters, citing sources
Healthcare
ROG.SW (Roche Holding) -- FDA approves Genentech's Alecensa as first adjuvant treatment for people with alk-positive early-stage lung cancer
Other
ML.FP (Cie Generale des Etablissements Michelin SA) -- Michelin publishes global tire market data for March
ALV.GR (Allianz) -- receives approval to commence wholly foreign-owned public fund management business in Mainland China
SCMN.SW (Swisscom) -- notes Federal Supreme Court upholds appeal and overturned original penalty decision of COMCOt
JMT.PL (Jeronimo Martins) -- holders approve proposal to allocate up to €40M a year to recently-created charitable foundation
FLOW.NA (Flow Traders) -- reports March ETP market data
Key rating changes
Upgrades
ABB.SS (ABB Limited) -- to buy from hold at DnB Markets
EDPR.PL (EDP Renovaveis) -- to outperform from sector perform at RBC Capital Markets
INDT.SS (Indutrade) -- to hold from sell at ABG Sundal Collier
OVS.IM (OVS) -- to buy from hold at Kepler Cheuvreux
Downgrades
BBVA.SM (Banco Bilbao Vizcaya Argentaria) -- downgraded to neutral from outperform at Santander
EURN.BB (Euronav) -- to hold from buy at Kepler Cheuvreux
RHM.GR (Rheinmetall) -- to hold from buy at Deutsche Bank
SPM.IM (Saipem) -- to hold from buy at Stifel
SSAB.A.SS (SSAB) -- to equal weight from overweight at Barclays
BFSA.GR (Befesa) -- to underweight from equal-weight at Morgan Stanley
Initiations
AVOL.SW (Avolta) -- outperform at Mediobanca
SAB.SM (Banco de Sabadell) -- outperform at RBC Capital Markets
Other Actions
JDW.LN (JD Wetherspoon) -- reinstated overweight at Barclays
Data
Nikkei (2.41%) to 37161.79
Hang Seng (1.47%) to 16145.44
Shanghai Composite (0.49%) to 3059.13
S&P futures (40.8) vs prior close of 5049.0
€-$ (0.0014) or (0.13%) to 1.0633
$-¥ (0.35) or (0.23%) to 154.29
€-¥ (0.60) or (0.36%) to 164.02
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