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StreetAccount Summary - EU Market Recap: FTSE 100 (0.04%) to 8144.13, DAX (1.03%) to 17932.17, CAC40 (0.99%) to 7984.93, STOXX 600 (0.68%) to 504.89

Apr 30 ,2024

• Synopsis:

  • European equity markets closed lower after trading mixed throughout the morning. Autos & Parts, Telecom and Retail the biggest decliners whilst Health Care, Real Estate, Food & Beverage the best performers. US equities down in midday trading. Treasuries weaker across the curve after yields fell on Monday. Dollar index up 0.3%. Gold down ~ (2%). Bitcoin futures off 3.5%. WTI crude down (0.4%), reversing some earlier strength.

  • A heavy macro calendar in Europe with focus on GDP and inflation updates from Eurozone and several euro area member states. Eurozone inflation steady at 2.4%, as expected. Q1 GDP beat amid better readings from Germany, France, Italy and Spain. German retail sales stronger-than-expected, but unemployment picked up. BRC reported UK shop prices saw slowest rise in more than two years in April. Lloyds barometer showed UK business confidence held steady for second month and optimism on economy at two-year high. BoE mortgage approvals highest since Sept-22.

  • Also a busy earnings calendar today; out of DACHs, earnings from Volkswagen (VOW3.GR), Deutsche Lufthansa (LHA.GR), Mercedes-Benz Group (MBG.GR), adidas (ADS.GR) and Logitech (LOGN.SW) in the spotlight. In the banking sector, Banco Santander (SAN.SM), HSBC (HSBA.LN) and CaixaBank (CABK.SW) also posted Q1 numbers. In the UK, Glencore (GLEN.LN) released its Q1 production numbers and Hargreaves Lansdown (HL.LN) posted better-than-expected Q3 revenue along with good momentum into tax year end with increased gross inflows, net new clients and share dealing volumes. In France, Capgemini (CAP.FP), Rexel (RXL.FP), Exclusive Networks (EXN.FP) and Thales (HO.FP) issued Q1 updates with the latter confirming its targets for 2024. In Nordics, Kongsberg Gruppen (KOG.NO), Aker Horizons (AKH.NO), Sparebanken Vest (SVEG.NO) and Telenor (TEL.NO) posted latest results.

  • In M&A news, in the afternoon, following market rumours of early stage in negotiations, Banco de Sabadell (SAB.SM) confirmed an indicative written proposal from Banco Bilbao Vizcaya Argentaria (BBVA.SM) for a merger. Board of Banco Sabadell will properly analyze all aspects of the proposal next. Further in M&A, SES S.A. (SESG.FP) and Intelsat S.A. announced an agreement for SES to acquire Intelsat through the purchase of 100% of the equity of Intelsat Holdings S.a.r.l. for a cash consideration of $3.1B (€2.8B). Media report suggests LVMH Moet Hennessy Louis Vuitton (MC.FP) is considering options surrounding Marc Jacobs brand. Further in the rumor mill, Goldman Sachs (GS) in talks to transfer General Motors (GM) credit-card business to Barclays (BARC.LN). BFMTV reports that candidates to take over Atos (ATO.FP) are due to submit their bids on Friday; by taking over sovereign activities, the state has removed the major obstacle for Daniel Kretinsky and Atos, and its banks favour his offer over that of Onepoint. Thales (HO.FP) reportedly is open to buying a limited part of the strategic assets of Atos.

• Digest:

  • Sectors - STOXX Europe 600:

    • Outperformers:

      • Personal Care Drug and Grocery Stores +0.47%, Real Estate +0.39%, Health Care +0.18%, Food, Beverage and Tobacco +0.02%, Chemicals (0.13%), Media (0.26%), Banks (0.37%), Utilities (0.66%)

    • Underperformers:

      • Autos & Parts (4.18%), Telecom (1.37%), Retail (1.36%), Insurance (1.22%), Technology (1.19%), Basic Resources (1.17%), Construct & Mtls (1.15%), Financial Svcs (0.91%), Ind Goods & Svcs (0.85%), Consumer Products and Services (0.80%), Oil & Gas(0.70%)

  • Macro:

    • ECB:

      • ECB's Knot says June rate cut realistic, citing declining inflationary pressure in the Eurozone: Nikkei

      • ECB's Guindos says inflation outlook faces 'substantial risks': Bloomberg

    • Economy:

      • Eurozone exits recession with Germany driving the growth: Bloomberg; FT

      • Eurozone inflation steady in April, reinforcing ECB rate cut case: Reuters

    • Germany:

      • German retail sales rise more than expected in March, boding well for economy: Reuters

      • German unemployment rises more than expected, labor office says: Reuters

    • UK:

      • UK businesses most optimistic in economy in over two years: Lloyds Bank UK business barometer

      • UK shop prices rise by lowest amount since Dec-21: British Retail Consortium

      • BoE mortgage approvals highest since September 2022: BoE data

      • Starmer's Labour seen at the biggest winner from Scotland turmoil: Bloomberg

      • Britain starts physical checks on fresh food imports from the EU: Reuters

  • Peripheral markets:

    • Poland:

      • Poland is still not ready to adopt the euro, its finance minister says: Kathimerini

    • Ireland:

      • Ireland to redesignate UK as 'safe' for asylum: BBC

  • Company news:

    • Notable Gainers

      • +29.6% IGR.LN (IG Design Group £1.58, +0.36) -- FY trading update

      • +15.7% CGCBV.FH (Cargotec €73.50, +10.00) -- Q1 earnings

      • +15.5% VU.FP (VusionGroup €154.30, +20.70) -- contract

      • +13.8% BRNK.GR (Branicks Group €1.65, +0.20) -- FY earnings

      • +10.0% SCATC.NO (Scatec NOK81.55, +7.40) -- Q1 earnings

      • +8.7% CARD.LN (Card Factory £1.09, +0.09) -- FY earnings

      • +7.5% NWRN.SW (Newron Pharmaceuticals CHF8.21, +0.57) -- study update

      • +5.6% MSAB.B.SS (Micro Systemation SEK51.20, +2.70) -- Q1 earnings

      • +5.5% PEBB.LN (The Pebble Group £0.58, +0.03) -- FY trading update; Chair to step down

      • +4.9% AKTIA.FH (Aktia Bank €9.51, +0.44) -- Q1 earnings

      • +3.9% VNA.GR (Vonovia €27.18, +1.03) -- Q1 earnings

      • +3.9% WTB.LN (Whitbread £31.67, +1.20) -- earnings; buyback; job cuts

      • +3.6% HL.LN (Hargreaves Lansdown £8.14, +0.28) -- Q3 trading update

      • +3.4% SAB.SM (Banco de Sabadell €1.80, +0.06) -- confirms that it has received an indicative written proposal from Banco Bilbao Vizcaya Argentaria (BBVA.SM) for a merger

      • +3.3% SHLF.NO (Shelf Drilling NOK18.74, +0.59) -- contract

      • +3.3% CVC.NA (CVC Capital Partners €17.00, +0.54) -- CVC Capital Partners weighs options for DKV Mobility stake as IPO plans shelved -- Reuters, citing sources

      • +3.2% STLN.SW (Swiss Steel Holding CHF0.08, -0.00) -- Lhyfe signs green hydrogen MoU with company subsidiary Ugitech

      • +2.7% CLN.SW (Clariant CHF13.78, +0.36) -- Q1 earnings

      • +2.5% OMV.AV (OMV €44.68, +1.10) -- Q1 earnings

      • +2.5% DWNI.GR (Deutsche Wohnen €17.74, +0.44) -- prelim Q1 earnings

      • +2.3% ROR.LN (Rotork £3.23, +0.07) -- Q1 trading update

  • Notable Decliners

    • -28.8% ESYS.LN (essensys £0.13, -0.05) -- H1 earnings

    • -14.3% RBGP.LN (RBG Holdings £0.11, -0.02) -- FY earnings

    • -11.4% STMN.SW (Straumann Holding CHF123.00, -15.80) -- Q1 revenue

    • -10.2% OKDBV.FH (Oriola €0.89, -0.10) -- Swedish Competition Authority prohibits company's sale of Svensk dos AB to Apotekstjänst Sverige AB

    • -10.1% STLAM.IM (Stellantis €20.88, -2.35) -- Q1 revenue

    • -7.8% SESG.FP (SES €4.56, -0.39) -- Q1 earnings; to acquire Intelsat for a cash consideration of $3.1B

    • -6.7% BBVA.SM (Banco Bilbao Vizcaya Argentaria €10.18, -0.73) -- confirms interest in initiating negotiations to explore a potential merger with Banco de Sabadell (SAB.SM)

    • -6.5% SATS.NO (SATS ASA NOK17.30, -1.20) -- Q1 earnings

    • -6.0% STORY.B.SS (Storytel SEK50.50, -3.25) -- CEO to step down

    • -5.9% DEZ.GR (Deutz AG €5.46, -0.35) -- Q1 earnings

    • -5.4% PRU.LN (Prudential £7.01, -0.40) -- Q1 update

    • -5.1% MBG.GR (Mercedes-Benz Group €70.94, -3.85) -- Q1 earnings

    • -4.9% RXL.FP (Rexel €24.43, -1.25) -- Q1 sales

    • -4.6% VOW3.GR (Volkswagen €115.15, -5.60) -- Q1 earnings

    • -4.6% RLF.SW (RELIEF THERAPEUTICS Holding CHF1.24, -0.06) -- FY earnings

    • -4.3% AF.FP (Air France-KLM €9.64, -0.43) -- Q1 earnings

    • -4.3% VETO.FP (Vetoquinol €94.30, -4.20) -- Q1 revenue

    • -3.9% ARCAD.NA (ARCADIS €58.15, -2.35) -- Q1 earnings; Degroof downgrade

    • -3.7% SAN.SM (Banco Santander €4.57, -0.18) -- Q1 earnings

    • -3.3% LECN.SW (Leclanché CHF0.58, -0.02) -- prelim FY earnings

    • -3.2% CABK.SM (CaixaBank €4.95, -0.17) -- Q1 earnings

    • -2.7% SIGN.SW (SIG Combibloc Group CHF18.40, -0.52) -- Q1 earnings

    • -1.9% GFG.GR (Global Fashion Group €0.24, -0.00) -- Q1 earnings

    • -1.0% LOGN.SW (Logitech International CHF72.06, -0.72) -- Q4 earnings

    • -1.0% CARL.B.DC (Carlsberg DKK943.20, -9.60) -- earnings; buyback

• EU companies reporting tomorrow:

  • Earnings:

    • Nordics: Sydbank (SYDB.DC)

    • Southern Europe: National Bank of Greece (ETE.GA)

    • UK: GSK (GSK.LN), Aston Martin Lagonda Global Holdings (AML.LN), Georgia Capital (CGEO.LN), HSS Hire Group (HSS.LN)

  • Trading Update: Haleon (HLN.LN), Next (NXT.LN), Smith & Nephew (SN.LN), Computacenter (CCC.LN), Glanbia (GL9.ID), Wolters Kluwer (WKL.NA)

  • CMD/events: Norcros (NXR.LN)

Data:

• Economics:

  • Eurozone

    • Apr Prelim CPI +2.4% y/y vs cons +2.4% and prior +2.4%; +0.6% m/m vs cons +0.6% and prior +0.8%

      • Apr core CPI +2.7% y/y vs consensus +2.6% and prior +2.9%

    • Q1 Prelim GDP +0.4% y/y vs cons +0.2% and prior +0.1%; +0.3% q/q vs consensus +0.1% and prior 0.0%

  • UK Mar

    • M4 Money Supply +0.7% m/m vs cons +0.4% and prior revised +0.6% from +0.5%

    • Mortgage Approvals 61.33K vs cons 61.0K and prior revised 60.50K from 60.38K

  • Germany

    • Q1 Prelim GDP (0.2%) y/y vs cons (0.2%) and prior (0.2%); +0.2% q/q vs cons +0.1% and prior (0.3%)

    • Apr Unemployment Change +10K vs cons +7K and prior +4K

    • Apr Unemployment Rate 5.9% vs cons 5.9% and prior 5.9%

    • Mar Retail Sales +0.3% y/y vs cons (2.0%) and prior (2.7%); +1.8% m/m vs cons +1.3% and prior (1.9%)

  • Italy

    • Apr Preliminary CPI +0.9% y/y vs cons +1.0% and prior +1.2%; +0.2% m/m vs cons +0.3% and prior 0.0%

      • EU Harmonised: +1.0% y/y vs cons +1.2% and prior +1.2%; +0.6% m/m vs cons +0.8% and prior +1.2%

    • Q1 Prelim GDP +0.6% y/y vs cons +0.4% and prior revised +0.7% from +0.6%; +0.3% q/q vs cons +0.1% and prior revised +0.1% from +0.2%

    • Apr Preliminary CPI +0.9% y/y vs cons +1.0% and prior +1.2%; +0.2% m/m vs cons +0.3% and prior 0.0%

      • EU Harmonised: +1.0% y/y vs cons +1.2% and prior +1.2%; +0.6% m/m vs cons +0.8% and prior +1.2%

  • France

    • Apr Prelim CPI +2.2% y/y vs cons +2.1% and prior +2.3%; +0.5% m/m vs cons +0.5% and prior +0.2%

      • EU Harmonised: +2.4% y/y vs cons +2.2% and prior +2.4%; +0.6% m/m vs consensus +0.5% and prior +0.2%

    • Mar PPI (7.5%) y/y vs cons (7.7%) and prior (5.5%); (0.2%) m/m vs cons (0.5%) and prior (1.7%)

    • Q1 Prelim GDP +1.1% y/y vs cons +0.9% and prior revised to +0.8% from +0.7%; +0.2% q/q vs cons +0.1% and prior +0.1%

    • Mar Consumer Spending +0.4% m/m vs cons +0.2% and prior revised to +0.1% from 0.0%

  • Switzerland Apr KOF Leading Indicators 101.8 vs cons 102.1 and prior 100.4 revised from 101.5

  • Spain Q1 Preliminary GDP +2.4% y/y vs cons +1.9% and prior +2.0%; +0.7% q/q vs cons +0.4% and prior +0.6%

  • Denmark Mar

    • Unemployment Rate 2.5% vs cons 2.5% and prior 2.5%

    • Retail Sales +3.7% y/y vs cons +4.0% and prior revised to +5.9% from +6.6%

    • Retail Sales +0.2% m/m vs cons (0.4%) and prior revised to +1.9% from +2.2%

  • Portugal

    • Apr Prelim CPI +2.2% y/y vs cons +2.4% and prior +2.3%; +0.5% m/m vs cons +0.7% and prior +2.0%

    • Q1 Prelim GDP +1.4% y/y vs cons +1.7% and prior +2.2%; +0.7% q/q vs cons +0.3% and prior revised +0.7% from +0.8%

  • Netherlands Apr prelim CPI +2.7% y/y vs cons +3.0% and prior +3.1%

  • Greece

    • Mar PPI (0.1%) vs cons (4.0%) and prior (4.3%)

    • Feb Retail Sales (9.8%) y/y vs cons (7.0%) and prior revised (9.6%) from (8.9%)

  • Austria

    • Apr prelim CPI +3.5% y/y vs cons +4.0% and prior +4.1%; +0.1% m/m vs cons +0.6% and prior +0.5%

      • EU Harmonised: +3.4% y/y vs cons +4.0% and prior +4.1%; +0.2% m/m vs cons +0.7% and prior +0.7%

    • Q1 Prelim GDP (1.3%) y/y vs cons (0.8%) and prior revised (1.4%) from (1.7%); +0.2% q/q vs cons +0.3% and prior 0.0%

• Markets:

  • WTI Crude (Jun 24): ($0.35) or (0.42%) to $82.28

  • €-$ (0.0034) or (0.32%) to 1.0689

  • £-$ (0.0045) or (0.36%) to 1.2518

  • €-£ +0.0000 to 0.8540

  • S&P 500 (0.76%)

  • Performance year-to-date

    • FTSE 100: +5.31%

    • DAX: +7.05%

    • CAC: +5.86%

    • MIB: +11.19%

    • Stoxx 600: +5.41%