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StreetAccount Summary - EU Market Recap: FTSE 100 (0.10%) to 8266.84, DAX +0.61% to 18610.27, CAC40 +0.14% to 8003.98, STOXX 600 +0.36% to 520.04

Jun 03 ,2024

  • Synopsis:

    • European indices ended higher, except for UK and Denmark. Markets dialed back ECB rate cut expectations beyond June following hot Eurozone CPI print. Thursday's policy decision to focus on hint about rate path for remain of the year. At the same time, yield concerns tempered somewhat by in-line fall in US core PCE inflation, which seemed to provide further support for disinflation narrative

    • On the macro-front, final manufacturing PMIs were the key releases. Also, UK May inflation expectations headed lower, according to recent Citi/YouGov inflation tracker. Expectations for one-year ahead fell to 3.1%, the lowest level since July 2021. Fits in with economist estimates anticipating official headline inflation to continue to ease in next update on 19-Jun. Citi/YouGov poll showed long-term inflation expectations (5-10 years ahead) also down to 3.2% from 3.5%. Citi highlighted this would put it back within the 2016-2019 corridor before impact of Covid pandemic and Ukraine war. Said inflation likely to fall below target in May and to offer BoE encouragement second round effects continue to fade. Recall, stickiness in core inflation and still elevated services prices saw market pushback rate cut expectations. Market split on an August move and fully priced for November with only one rate cut seen by year-end

    • In politics, ahead of Tuesday's first head-to-head TV debate between Conservative leader Sunak and Labour leader Starmer, polls still point to a big majority for the Labour Party. A poll by Electoral Calculus, which uses MRP to predict seats across the country, showed Labour's lead in the polls would translate to 485 seats versus Conservatives on 66 seats and Liberal Democrats on 59. The prediction, which has Labour on 44.7% and the Conservatives on 23.3%, considers the likelihood of tactical voting to remove the Conservatives from power. The Independent highlighted an outcome of this magnitude would have a significant impact on a future Tory leadership contest because potential leadership contenders Mordaunt and Badenoch were among those set to lose their seats. In the afternoon, wires reported that former UKIP leader Nigel Farage became leader of Reform UK and will stand as MP for Clacton

    • On the corporate newsflow front, ATOS (ATO.FP) issued a market update, in which it revealed that it has received two revised financial restructuring proposals from EPEI and Attestor Limited and one from Onepoint; still in France, the FT wrote that Sanofi (SAN.FP) is reportedly proceeding with a dual track sale process and a potential spin-off of consumer division, which is expected to value the business at ~€20B. In the UK, GSK (GSK.LN) updated on the Zantac (ranitidine) litigation and Blackstone increased its offer for Hipgnosis Songs Fund (SONG.LN) to 105/share; in Germany, Evotec (EVT.GR) and QIAGEN (QGEN) entered a software collaboration for enhanced multi-omics data insights. Elsewhere, DSM-Firmenich (DSFIR.NA) said that it forecasts mid-term organic sales growth of 5-7% and adj EBITDA margin of 22-23%

    • Looking ahead to tomorrow's calendars, Burckhardt Compression Holding (BCHN.SW), Systemair (SYSR.SS), poLight (PLT.NO), LondonMetric Property (LMP.LN), Chemring Group (CHG.LN) and Gooch & Housego (GHH.LN) will be among few other names updating investors, whilst ALK-Abello (ALK.B.DC), ITV (ITV.LN) and Kongsberg Gruppen (KOG.NO) hold CMDs. Macro-data will include Germany May unemployment change, Spain May unemployment change, Switzerland May CPI, Eurozone Apr consumer inflation expectations and UK May retail sales monitor - BRC

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers: Real Estate+1.56%, Telecom +1.54%, Retail +1.20%, Travel & Leisure +1.07%, Utilities +1.01%, Technology +0.86%, Construct & Mtls +0.80%, Insurance +0.53%, Financial Svcs +0.52%, Food & Beverage +0.49%, Media +0.47%, Persnl & HHold Goods +0.42%

      • Underperformers: Oil & Gas (0.66%), Health Care (0.20%), Basic Resources (0.09%), Autos & Parts +0.12%, Chemicals +0.14%, Banks +0.30%, Ind Goods & Svcs +0.35%

    • Macro:

      • Von der Leyen needs 361 votes to keep her job. Good luck with that (Politico)

      • Tories Fail to Dent Labour Polling Lead in Early UK Campaign (BBG)

      • Reform refuse to rule out Farage standing in election (Telegraph)

      • Cut rates - then what? Five questions for the ECB (Reuters)

      • Italy's Giorgetti Is in Frame as Meloni Reset Speculation Mounts (BBG)

    • Company news:

      • Notable Gainers

        • +5.8% GDS.FP (Ramsay Générale de Santé €16.40, +0.90) -- reaches agreement with the government on funding of private hospitals

        • +5.0% ATORX.SS (Alligator Bioscience SEK1.13, +0.05) -- Phase 2 mitazalimab pancreatic cancer data published in The Lancet Oncology

        • +5.0% MRL.LN (Marlowe £5.86, +0.28) -- completes sale of certain Governance, Risk & Compliance software and services assets for an Enterprise Value of £430M

        • +5.0% WIZZ.LN (Wizz Air Holdings £24.06, +1.14) -- IATA 2024 Airline Profitability Outlook

        • +4.8% EGTX.SS (Egetis Therapeutics SEK8.47, +0.39) -- awarded promising innovative medicine designation in the UK for Emcitate (tiratricol) for treatment of MCT8 deficiency

        • +4.5% AKAST.NO (Akastor NOK14.80, +0.64) -- affiliate HMH to pursue US listing

        • +4.3% SPR.LN (Springfield Properties £0.98, +0.04) -- strategic collaboration with Barratt for Durieshill

        • +3.3% EZJ.LN (EasyJet £4.76, +0.15) -- IATA 2024 Airline Profitability Outlook

        • +3.2% TNG.FP (Transgene €1.28, +0.04) -- first patient enrolled in Phase II part of trial evaluating lead cancer vaccine TG4050 in head and neck cancer

        • +2.0% HTG.LN (Hunting £4.25, +0.09) -- second OCTG order worth $86M from Kuwait Oil Company

        • +1.8% IDIA.SW (Idorsia CHF2.64, +0.05) -- new data with daridorexant presented at SLEEP 2024

        • +0.2% SAN.FP (Sanofi €89.91, +0.19) -- proceeding with dual track sale process and potential spin-off of consumer division; expected to value business at ~€20B - FT

        • +0.2% DB1.GR (Deutsche Börse €183.25, +0.30) -- May cash markets turnover €114.19B vs year-ago €106.54B

      • Notable Decliners

        • -16.8% ATO.FP (ATOS SE €1.39, -0.28) -- receives two revised financial restructuring proposals

        • -9.4% GSK.LN (GSK Plc £16.01, -1.66) -- Zantac (ranitidine) litigation update

        • -4.0% DSFIR.NA (DSM-Firmenich €101.25, -4.25) -- sees mid-term organic sales growth of 5-7% and adj EBITDA margin of 22-23% -- CMD

        • -3.4% HCM.LN (Hutchmed £2.89, -0.10) -- updated results of Phase ІІІ FRUTIGA in Nature Medicine (

        • -2.6% SAS.SS (SAS SEK0.03, -0.00) -- IATA issues 2024 Airline Profitability Outlook

        • -0.3% BOWL.LN (Hollywood Bowl Group £3.31, -0.01) -- H1 earnings

    • EU companies reporting tomorrow:

      • DACHs: Burckhardt Compression Holding (BCHN.SW)

      • Nordics: Systemair (SYSR.SS), poLight (PLT.NO)

      • UK: LondonMetric Property (LMP.LN), Chemring Group (CHG.LN), Gooch & Housego (GHH.LN)

      • CMD/events: ALK-Abello (ALK.B.DC), ITV (ITV.LN), Kongsberg Gruppen (KOG.NO)

  • Data:

    • Economics:

      • May manufacturing PMI

        • UK 51.2 vs preliminary 51.3

        • France 46.4 vs preliminary 46.7

        • Germany 45.4 vs preliminary 45.4

        • Eurozone 47.3 vs preliminary 47.4

        • Netherlands 52.5 vs consensus 51.5, prior 51.3

        • Russia 54.4 vs consensus 540, prior 54.3

        • Sweden 54.0 vs consensus 51.5, prior revised 51.9 from 51.4

        • Spain 54.0 vs consensus 52.5, prior 52.2

        • Switzerland 46.4 vs consensus 43.5, prior 41.4

        • Italy 45.6 vs consensus 48.0, prior 47.3

        • Norway 52.3 vs consensus 52.0, prior revised 52.6 from 52.4

        • Greece 54.9 vs consensus 54.9, prior 55.2

      • Netherlands Apr Retail Sales +2.3% y/y vs consensus +4.9% and prior revised +4.3% from +4.8%

      • Austria

        • Q1 GDP (1.1%) y/y vs preliminary (1.3%); +0.1% q/q vs preliminary +0.2%

        • May Unemployment Rate 6.4% vs consensus 6.5% and prior 6.8%

    • Markets:

      • WTI Crude (Jul 24): ($2.56) or (3.33%) to $74.43

      • €-$ +0.0039 or +0.36% to 1.0887

      • £-$ +0.0051 or +0.40% to 1.2789

      • €-£ (0.0006) to 0.8513

      • S&P 500 +0.67%

      • Performance year-to-date

        • FTSE 100: +6.90%

        • DAX: +11.10%

        • CAC: +6.11%

        • MIB: +14.34%

        • Stoxx 600: +8.57%

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