Apr 25 ,2024
Synopsis:
European equity markets closed lower with FTSE 100 one of the only outperformers on M&A news in mining sector with BHP making approach for Anglo American. Miners, Personal Care and Banks were the best performers. Ind Goods & Services and Consumer Products & Services were the main laggards.
In politics, Spanish Socialist PM Sanchez announced on Wednesday he will step back from public duties to decide whether he wants to continue leading the government after a court launched a corruption probe into his wife's private dealings. He said he will reflect on the situation and announce decision Monday.
On the macro front, German GfK consumer confidence hit a two-year high, with May reading at -24.2 versus consensus -25.9 and prior revised -27.3 from -27.4. It was the third consecutive month of improvement, which was boosted by an increase in income expectations and the propensity to buy. While the headline reading hit a two-year high, GfK pointed out that it was still an extremely low level. However, consumers are responding to an increase in real incomes as inflation eases, which has boosted purchasing power. French business confidence missed.
Among notable names who reported today were BASF (BAS.GR), Nestle (NESN.SW), AstraZeneca (AZN.LN), Holcim (HOLN.SW), STMicroelectronic (STM.FP), Dassault Systemes (DSY.FP), Michelin (ML.FP) (last night), Carrefour (CO.FP) (last night), Unilever (ULVR.LN), Adyen (ADYEN.NA), Sanofi (AN.FP) and Schneider Electric (SU.FP) were among several other companies to update investors whilst - on the banking front - BNP Paribas (BNP.FP), Deutsche Bank (DBK.GR), Swedbank (SWED.A.SS), Barclays (BARC.LN) and Banco Sabadell (SAB.SM) published their Q1 numbers before the open.
In M&A news, spotlight on Anglo American (AAL.LN) after it confirmed earlier speculation that BHP (BHP) made an approach about a takeover in a move that would result in the biggest shakeup of the global mining industry in more than a decade and would rank as one of the year's biggest M&A deals.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Basic Resources +1.90%, Personal Care Drug and Grocery Stores +1.49%, Banks +0.33%, Health Care +0.24%, Energy(0.13%), Utilities (0.40%), Telecom (0.50%)
Underperformers:
Ind Goods & Svcs (1.86%), Consumer Products and Services (1.50%), Insurance (1.46%), Autos & Parts (1.36%), Construct & Mtls (1.27%), Chemicals (1.24%), Technology (1.03%), Media (0.96%), Travel & Leisure (0.96%), Food, Beverage and Tobacco (0.90%), Retail (0.87%), Real Estate (0.85%)
Macro:
Central Banks:
SNB returns to quarterly profit due to Swiss franc weakness - Bloomberg
EU:
Macron struggles to deliver his vision for a stronger Europe - Bloomberg
UK:
SNP ends power-sharing deal with Scottish Greens over climate strategy row - Guardian; BBC
UK car output falls in March in preparation for EV transition - Reuters
UK competition regulator seeking views on tech giant deals with AI firms - London Times
London's big firms 'could double valuations with New York switch' - London Times
UK employers scaling back on adverts offering flexible work - Bloomberg
Spain:
Sanchez threatens to quit, putting Spain on course for elections - Bloomberg
Company news:
Notable Gainers
+29.9% SEDANA.SS (Sedana Medical SEK18.92, +4.36) -- Q1 earnings; completes trial recruitment
+24.8% NTI.NO (Norsk Titanium NOK2.82, +0.56) -- agreement with Boeing for serial production
+23.4% PRIC.B.SS (Pricer SEK11.56, +2.19) -- Q1 earnings
+16.1% AAL.LN (Anglo American £25.52, +3.55) -- BHP Group confirms all-share proposal to acquire Anglo American
+14.2% CIRCA.NO (Circa Group NOK1.65, +0.21) -- OEM agreement for supply and sale of Cyrene
+12.9% FRACTL.SS (Fractal Gaming Group SEK36.00, +4.10) -- Q1 earnings
+10.9% SDIP.B.SS (Sdiptech SEK275.00, +27.00) -- Q1 earnings
+10.5% MVIR.SS (Medivir SEK3.05, +0.29) -- trial update
+9.3% INCH.LN (Inchcape £7.87, +0.67) -- trading update
+9.0% EAH.LN (Eco Animal Health Group £1.03, +0.09) -- trading update
+8.7% SAB.SM (Banco de Sabadell €1.64, +0.13) -- Q1 earnings
+8.4% HUM.SS (Humana AB SEK27.85, +2.15) -- Q1 earnings
+8.0% ENEA.SS (Enea AB SEK50.80, +3.75) -- Q1 earnings; SEK 10M share buyback
+7.1% KMK.LN (Kromek Group £0.08, -0.00) -- contract
+6.7% BINV.SS (BioInvent International SEK24.75, +1.55) -- two abstracts have been selected for presentation at ASCO 2024
+6.3% BARC.LN (Barclays £2.03, +0.12) -- Q1 earnings
+6.2% AKSO.NO (Aker Solutions NOK39.26, +2.30) -- Q1 earnings
+5.9% AZN.LN (AstraZeneca £120.26, +6.74) -- Q1 earnings
+5.7% ULVR.LN (Unilever £40.72, +2.19) -- Q1 revenue
+5.6% ANOD.B.SS (Addnode Group SEK114.00, +6.00) -- Q1 earnings
+5.4% SOBI.SS (Swedish Orphan Biovitrum SEK280.80, +14.40) -- Q1 earnings
+5.3% ARPL.SS (Arla Plast $45.40, +2.30) -- Q1 earnings
+4.1% ALIG.SS (Alimak Group SEK97.10, +3.80) -- Q1 earnings
+2.3% FLOW.NA (Flow Traders €19.95, +0.44) -- trading update
+1.3% SRV1V.FH (SRV Group €4.70, +0.06) -- Q1 earnings
Notable Decliners
-18.6% CINT.SS (Cint Group SEK11.80, -2.69) -- Q1 earnings
-18.1% ADYEN.NA (Adyen €1,161.60, -256.80) -- Q1 business update
-16.6% BFSA.GR (Befesa €26.20, -5.22) -- Q1 earnings
-14.4% SF.SS (Stillfront Group SEK10.11, -1.70) -- Q1 earnings
-13.0% NESTE.FH (Neste €22.49, -3.36) -- Q1 earnings
-12.6% INDT.SS (Indutrade SEK253.00, -36.60) -- Q1 earnings
-12.1% EPR.NO (Europris NOK69.50, -9.55) -- Q1 earnings
-11.6% NEWA.B.SS (New Wave Group SEK95.40, -12.50) -- Q1 earnings
-11.5% I3E.LN (i3 Energy £0.11, -0.01) -- capital budget update
-11.2% BUFAB.SS (Bufab SEK342.20, -43.20) -- Q1 earnings
-10.2% ONCO.SS (Oncopeptides SEK2.89, -0.33) -- NICE unable to make recommendation on Oncopeptides's Pepaxti
-10.0% RESURS.SS (Resurs Holding SEK14.47, -1.60) -- Q1 earnings
-8.2% ENZY.SS (Enzymatica SEK3.24, -0.29) -- Q1 earnings
-7.8% ADOC.FP (Adocia €8.07, -0.68) -- FY earnings
-7.8% OX2.SS (OX2 AB SEK38.18, -3.24) -- Q1 earnings
-7.6% TIETO.FH (Tietoevry €17.35, -1.42) -- Q1 earnings
-7.5% INDV.LN (Indivior £14.09, -1.14) -- Q1 earnings
-7.1% CKT.LN (Checkit £0.20, -0.02) -- FY earnings
-7.0% OKDBV.FH (Oriola €0.98, -0.07) -- Q1 earnings
-6.8% XFAB.FP (X-FAB Silicon Foundries €6.56, -0.48) -- Q1 earnings
-6.8% KGX.GR (Kion Group €44.15, -3.22) -- Q1 earnings
-6.7% NAS.NO (Norwegian Air Shuttle NOK15.01, -1.09) -- Q1 earnings
-6.4% FNOX.SS (Fortnox SEK61.00, -4.16) -- Q1 earnings
-6.1% ITP.FP (Interparfums €48.35, -3.15) -- Q1 revenue
-6.0% KIT.NO (Kitron NOK29.68, -1.90) -- Q1 earnings
-5.8% ALLIGO.B.SS (Alligo SEK129.00, -8.00) -- Q1 earnings; acquisition
-5.5% SMWH.LN (WH Smith £11.89, -0.69) -- H1 earnings
-5.4% LEMON.FH (Lemonsoft €5.66, -0.32) -- Q1 earnings
-5.4% KESKOB.FH (Kesko €15.92, -0.91) -- Q1 earnings
-5.3% ANDR.AV (Andritz €52.40, -2.95) -- Q1 earnings
-5.3% FABG.SS (Fabege SEK80.80, -4.55) -- Q1 earnings
-5.0% ATO.FP (ATOS SE €1.89, -0.10) -- Q1 revenue
-4.9% KCR.FH (Konecranes €46.50, -2.42) -- Q1 earnings
-4.8% TELIA.SS (Telia Co. SEK25.90, -1.31) -- Q1 earnings
-4.7% GEMD.LN (Gem Diamonds £0.08, -0.00) -- trading update
-4.5% REG1V.FH (Revenio Group €23.86, -1.12) -- Q1 earnings
-4.4% PCELL.SS (PowerCell Sweden SEK26.28, -1.20) -- Q1 earnings
-4.4% MEDI.NO (MediStim NOK174.00, -8.00) -- Q1 earnings
EU companies reporting tomorrow:
Earnings:
Austria: Palfinger (PAL.AV)
Benelux: Signify (LIGHT.NA), Proximus (PROX.BB), Cofinimmo (COFB.BB)
Finland: Wartsila (WRT1V.FH), Kemira (KEMIRA.FH), Terveystalo (TTALO.FH), Lassila & Tikanoja (LAT1V.FH), F-Secure (FESECURE.FH)
France: TotalEnergies (TE.FP), Amundi (AMUN.FP)
Germany: Porsche (PAH3.GR), TRATON (8TRA.GR), STRATEC (SBS.GR)
Norway: Yara International (YAR.NO), Schibsted (SCHB.NO), Tomra Systems (TOM.NO)
Southern Europe: Jeronimo Martins (JMT.PL)
Sweden: Hexagon (HEXA.B.SS), Investment AB Latour (LATO.B.SS), Saab (SAAB.B.SS), Svenska Cellulosa (SCA.B.SS), SKF (SKF.B.SS), Holmen (HOLM.B.SS), HEXPOL (HPOL.B.SS), Thule Group (THULE.SS), Electrolux (ELUX.B.SS), Medicover (MCOV.B.SS), engcon (ENGCON.B.SS), Beijer Alma (BEIA.B.SS), Boozt (BOOZT.SS), Momentum Group (MMGR.B.SS), Hexatronic Group (HTRO.SS), Cloetta (CLA.B.SS), CTT Systems (CTT.SS), MilDef Group (MILDEF.SS)
Switzerland: ams-OSRAM (AMS.SW)
UK: NatWest Group (NWG.LN)
Trading Update:
France: Safran (SAF.FP), Aeroports de Paris ADP (ADP.FP), Sopra Steria Group (SOP.FP)
Other: SGS (SGSN.SW), IMCD (IMCD.NA), Basic-Fit (BFIT.NA), Corbion (CRBN.NA), Lindex Group (LINDEX.FH)
UK/Ireland: Kingspan Group (KRX.ID), Smurfit Kappa (SKG.LN), Pearson (PSON.LN)
Data:
Economics:
Germany May GfK Consumer Confidence (24.2) vs consensus (25.9) and prior revised (27.3) from (27.4)
Norway Mar Unemployment Rate 4.0% vs consensus 3.7% and prior 3.6%
France Apr Business Survey 100 vs consensus 102 and prior revised 103 from 102
Spain Mar PPI (8.2%) y/y vs consensus (7.0%) and prior revised (8.5%) from (8.2%)
Markets:
WTI Crude (Jun 24): ($0.55) or (0.66%) to $82.26
€-$ +0.0020 or +0.19% to 1.0718
£-$ +0.0028 or +0.22% to 1.2492
€-£ (0.0005) to 0.8581
S&P 500 (1.23%)
Performance year-to-date
FTSE 100: +4.47%
DAX: +6.96%
CAC: +6.28%
MIB: +11.96%
Stoxx 600: +4.88%
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