May 06 ,2024
Synopsis:
European equity markets closed higher with the exception of UK, Irish and Greek markets remaining closed for a bank holiday.
BoE is widely expected to stand pat this week with rates at 5.25%, as UK inflation lower than US rate for first time since 2022 (Bloomberg). Governor Bailey pointed out divergence between UK and US economy recently. Main focus expected to be how the MPC will guide for the prospect of a rate cut at subsequent meetings. Analysts suggest softening of MPC language required, to convince markets of an impending cut. New MPC forecasts may also offer further support for policy easing.
On the macro-calendar, Eurozone Final Services PMI for April beat expectations at 53.3 vs consensus 52.9. Was the third month of expansion and highest since May 2023. Composite reading hit 51.7 vs 51.4 expected, an 11-month high. Growth in services sector highest since data collection began in 1998, supported by increased inflows of new business and the fastest job creation rate in ten months. However, region also facing intensifying inflationary pressures, with both input costs and output charges rising significantly over the month. Highlights need for ECB to balance inflationary prospects from services sector with underwhelming manufacturing performance and broadly stagnant economic growth prospects. Growth becoming more important than inflation given current disinflationary trend, confirmed also by today's PPI data. Other macro data out included Spain Apr Services PMI 56.2 vs consensus 56.0 and prior 56.1 and Sweden Apr Services PMI 48.1 vs consensus 53.2 and prior revised 54.1 from 53.9.
On the earnings front, PostNL (PNL.NA) closed lower after reporting Q1 Normalised EBIT (€9M) vs consensus (€2.0M) and confirming FY guidance whilst Demant (DEMANT.DC) also closed in negative territory out with Q1 revenue DKK5.42B vs consensus DKK5.55B. In the DACHs region, Hypoport (HYQ.GR) reports final Q1 with net income €3.0M vs year-ago €0.2M and confirmed FY24 forecast. Alligator Bioscience ((ATORX.SS) reports Q1 EPS (SEK0.10) vs year-ago (SEK0.28). Volvo Car (VOLCAR.B.SS) reports Apr car sales +27% y/y to 65,838 units.
Elsehwere, AstraZeneca (AZN.LN) completes equity investment with Cellectis (ALCLS.FP) whilst Humana ( (HUM.SS) appoints Nathalie Boulas Nilsson as president and CEO, effective 22-Jul. ATOS (ATO.FP) receives four financial restructuring proposal
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Insurance +1.66%, Energy+1.06%, Banks +1.00%, Technology +0.99%, Ind Goods & Svcs +0.71%, Autos & Parts +0.67%, Construct & Mtls +0.64%, Chemicals +0.57%
Underperformers:
Food, Beverage and Tobacco (0.22%), Health Care (0.02%), Real Estate +0.05%, Retail +0.12%, Consumer Products and Services +0.13%, Travel & Leisure +0.25%, Media +0.28%, Utilities +0.28%, Personal Care Drug and Grocery Stores +0.29%, Telecom +0.35%, Basic Resources +0.39%
Macro:
Eurozone:
UK:
Sunak predicts potential hung parliament in the UK, emphasizing Labour's shortfall despite Conservative losses in local elections - London Times
Sunak scraps plans for summer election, hoping improving economic picture and Rwanda flights finally leaving can improve re-election chances - Telegraph
Swinney to become SNP leader after rival drops out - BBC
Company news:
Notable Gainers
+21.9% ASA.NO (Atlantic Sapphire NOK1.21, +0.22) -- CEO step down
+21.5% FING.B.SS (Fingerprint Cards SEK0.57, +0.10) -- patent license agreement
+11.7% KNOW.SS (Knowit SEK171.40, +18.00) -- Handelsbanken and Nordea upgrades
+9.8% ALCAR.FP (Carmat €3.37, +0.30) -- confirms FY guidance
+8.8% IDR.SM (Indra Sistemas €19.60, +1.59) -- Q1 earnings
+7.3% MAU.FP (Maurel et Prom €6.45, +0.44) -- license received
+5.7% MTU.FP (Manitou BF €24.00, +1.30) -- divestment
+5.5% BRE2.SS (Bredband2 i Skandinavien SEK2.03, +0.11) -- Q1 earnings
+5.3% ALCLS.FP (Cellectis SA €2.91, +0.15) -- AstraZeneca completes equity investment with Cellectis
+5.3% KLARA.B.SS (KlaraBo $20.00, +1.00) -- Danske Bank downgrade
+4.2% WAGA.FP (Waga Energy €16.96, +0.68) -- commissions RNG production unit in Northeastern France with Arcavi
+4.2% NETC.DC (Netcompany Group DKK292.00, +11.80) -- Handelsbanken upgrade
+4.1% HUM.SS (Humana AB SEK30.60, +1.20) -- new CEO
+4.0% HYQ.GR (Hypoport €269.40, +10.40) -- Q1 earnings
+3.7% IRLAB.A.SS (IRLAB Therapeutics SEK11.35, +0.40) -- trial approval
+3.1% SBB.B.SS (Samhällsbyggnadsbolaget i Norden SEK4.34, +0.13) -- Q1 earnings
+2.6% LMN.SW (lastminute.com CHF22.00, +0.55) -- announces dividend and new dividend policy
+2.4% FER.SM (Ferrovial €35.04, +0.82) -- completes regulatory review process for NASDAQ listing
+2.0% AGN.NA (Aegon €6.00, +0.12) -- Nordea upgrade
+2.0% AGAS.NO (Avance Gas Holding NOK165.80, +3.20) -- DnB Markets downgrade
+1.9% ROVI.SM (Laboratorios Farmaceuticos Rovi, S.A. €84.45, +1.60) -- KKR among firms looking at buying stake in Rovi's third-party manufacturing business - Expansion
+1.7% RDC.GR (Redcare Pharmacy €131.30, +2.20) -- eHealth-CardLink solution has been launched
Notable Decliners
-9.1% LUMEN.SS (LumenRadio SEK106.00, -10.60) -- CEO resigns
-7.9% ATORX.SS (Alligator Bioscience SEK0.85, -0.07) -- Q1 earnings
-5.3% BAKKA.NO (Bakkafrost NOK612.00, -34.00) -- Q1 earnings
-4.4% ATO.FP (ATOS SE €2.08, -0.10) -- receives four financial restructuring proposals
-4.4% AEIN.GR (Allgeier €18.60, -0.85) -- Q1 earnings
-3.9% PNL.NA (PostNL €1.19, -0.05) -- Q1 earnings
-3.8% ETL.FP (Eutelsat Communications €3.72, -0.15) -- confirms press speculation it is analysing options to partner with external infrastructure investors in its ground network
-3.6% DEMANT.DC (Demant DKK313.00, -11.80) -- Q1 sales
-2.6% 2020.NO (2020 Bulkers NOK167.30, -4.40) -- DnB Markets downgrade
-2.4% GOGL.NO (Golden Ocean Group NOK155.00, -3.75) -- DnB Markets downgrade
-2.2% BERG.B.SS (Bergman & Beving SEK225.00, -5.00) -- Handelsbanken downgrade
-2.2% MNTC.SS (Mentice SEK31.00, -0.70) -- Pareto downgrade
-2.2% COLR.BB (Colruyt Group €42.38, -0.96) -- initiated reduce at Kepler Cheuvreux
-2.0% NB2.GR (Northern Data €24.85, -0.50) -- initiated buy at B Riley Securities
-1.6% VATN.SW (Valiant Holding CHF108.40, -1.80) -- Kepler Cheuvreux downgrade
EU companies reporting tomorrow:
Earnings:
Benelux: Solvay (SOLB.BB), AMG Critical Materials (AMG.NA), Kendrion (KENDR.NA)
Denmark: Coloplast (COLO.B.DC), Jyske Bank (JYSK.DC), NTG Nordic Transport Group (NTG.DC), NNIT (NNIT.DC), Trifork (TRIFOR.DC), RTX (RTX.DC)
Finland: Sampo (SAMPO.FH), Outokumpu (OUT1V.FH), Anora (ANORA.FH), Raisio (RAIVV.FH), Taaleri (TAALA.FH), Aspo (ASPO.FH), NoHo Partners (NOHO.FH), Suominen (SUY1V.FH)
France: Bouygues (EN.FP), Arkema (AKE.FP), Valneva (VLA.FP)
Germany: ABOUT YOU (YOU.GR), Basler (BSL.GR), Biotest (BIO.GR), Deutsche Post (DHL.GR), Elmos Semiconductor (ELG.GR), ElringKlinger (ZIL2.GR), Fresenius Medical Care (FME.GR), Heidelberg Materials (HEI.GR), HENSOLDT (HAG.GR), Infineon Technologies (IFX.GR), Jungheinrich (JUN3.GR), Klockner & Co. (KCO.GR), Koenig & Bauer (SKB.GR), Medios (ILM1.GR), METRO (B4B.GR), New Work (NWO.GR), NORMA Group (NOEJ.GR), Schaeffler (SHA.GR), Siemens Healthineers (SHL.GR), Sixt (SIX2.GR), TeamViewer (TMV.GR), Uniper (UN01.GR), Wacker Neuson (WAC.GR), Westwing (WEW.GR), Zalando (ZAL.GR)
Norway: BlueNord (BNOR.NO), Odfjell (ODF.NO), SmartCraft (SMCRT.NO), Salmon Evolution (SALME.NO), Cambi (CAMBI.NO), Nordic Mining (NOM.NO), Zalaris (ZAL.NO), Axactor (ACR.NO)
Southern Europe: UniCredit (UCG.IM), Leonardo (LDO.IM), Davide Campari-Milano (CPR.IM), Infrastrutture Wireless Italiane (INW.IM), Banco BPM (BAMI.IM), FinecoBank (FBK.IM), Banca Popolare di Sondrio (BPSO.IM), Credito Emiliano (CE.IM), Ariston (ARIS.IM), Philogen (PHIL.IM), Antares Vision (AV.IM), IGD SIIQ (IGD.IM), Sonaecom (SNC.PL)
Sweden: Sinch (SINCH.SS), Bravida (BRAV.SS), Truecaller (TRUE.B.SS), BioGaia (BIOG.B.SS), INVISIO (IVSO.SS), Storskogen (STOR.B.SS), Karnov (KAR.SS), RVRC (RVRC.SS), Calliditas Therapeutics (CALTX.SS), Storytel (STORY.B.SS), BICO (BICO.SS), Proact IT (PACT.SS), Hanza (HANZA.SS), Acast (ACAST.SS), Arise (ARISE.SS), Wanstbygg (WBGR.B.SS), Awardit (AWARD.SS), Infant Bacterial Therapeutics (IBT.B.SS), Tethys Oil (TETY.SS), Moberg Pharma (MOB.SS)
Switzerland: UBS Group (UBSG.SW), Adecco (ADEN.SW), Geberit (GEBN.SW), OC Oerlikon Corp. (OERL.SW), PSP Swiss Property (PSPN.SW), Datacolor (DCN.SW)
UK: BP (BP.LN)
Trading Update: Sandoz (SDZ.SW), IWG (IWG.LN), Trident Royalties (TRR.LN), Applus Services (APPS.SM), HEXAOM (ALHEX.FP), Claranova (CLA.FP), Rubis (RUI.FP), Equasens (EQS.FP), Heijmans (HEIJM.NA), Safilo (SFL.IM)
Traffic: Finnair (FIA1S.FH), Getlink (GET.FP), Norwegian Air Shuttle (NAS.NO)
CMD/events: Royal Unibrew (RBREW.DC), GN Store Nord (GN.DC), Norcros (NXR.LN)
Data:
Economics:
Apr Services PMI
Germany 3.2 vs consensus 53.3 and prior 50.1
Eurozone 53.3 vs consensus 52.9 and prior 51.5
France 51.3 vs consensus 50.5 and prior 48.3
Italy 54.3 vs consensus 54.7 and prior 54.6
Sweden 48.1 vs consensus 53.2 and prior revised 54.1 from 53.9 (2:30ET)
Spain 56.2 vs consensus 56.0 and prior 56.1
Spain Apr Unemployment Change (60.5K) vs consensus (74.5K) and prior (33.4K) (3:00 ET)
Markets:
WTI Crude (Jun 24): +$0.48 or +0.61% to $78.59
€-$ +0.0015 or +0.14% to 1.0779
£-$ +0.0023 or +0.18% to 1.2574
€-£ (0.0003) to 0.8572
S&P 500 +0.59%
Performance year-to-date
FTSE 100: +6.21%
DAX: +8.50%
CAC: +6.01%
MIB: +11.98%
Stoxx 600: +6.10%
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