Jun 04 ,2024
Synopsis
European equity markets are set to open in negative territory amid Asian equities weaker Tuesday. Regional benchmarks all lower with Indian stocks selling off following Monday's post-election rally. Korean stocks logging mild declines while Greater China, Japan and Australian markets little changed. S&P 500 futures little changed afterhours. Bonds mixed with Treasuries little changed and JGB and Australian curves bull flattening. Yen weakening against other currencies, dollar steady elsewhere. Crude selloff continues, lowest since Feb-2024. Gold, copper, and Bitcoin flat.
On today's agenda, BDEW Congress kicks off (through Thu). In the UK, there's the first head-to-head General Election tv debate between Rishi Sunak, leader of the Conservative Party, and Labour leader, Sir Keir Starmer, at 21:00BST on ITV.
In central banks, ECB's Fernandez-Bollo participates at 9:20CET in event organised by Association Europe-Finances-Régulations (AEFR). Bundesbank's Mauderer gives a speech at 10:05BST at Net Zero Delivery Summit. ECB's Buch delivers a speech at 11:00CET at event organised by the Deutsche Bundesstiftung Umwelt (DBU) (livestream). Riksbank's Breman gives a speech at 12noon CET at a seminar arranged by Teknikföretagen (livestream link) and representatives of the Riksbank, the Swedish FSA, the Swedish National Debt Office and the Government will gather for a meeting of the Financial Stability Council.
Economic due today include: Germany May unemployment change, Spain May unemployment change, Switzerland May CPI, Eurozone Apr consumer inflation expectations, UK May retail sales monitor (BRC).
In corporate news, Maersk (MAERSK.B.DC) updated its FY outlook yesterday after the close and now expects FY24 underlying EBIT $1B-3B vs prior guidance ($2B)-0B and FactSet $138.6M. Still in the Nordics, Systemair (SYSR.SS) released Q4 earnings today before the open including Q4 EPS SEK0.88 vs FactSet SEK0.81 and raised dividend +8.3% y/y. In the DACH region, Burckhardt Compression Holding (BCHN.SW) posted FY EPS CHF26.63 vs FactSet CHF27.51 and raised 2027 sales guidance. In France, AFYREN (ALAFY.FP) provides business update on its AFYREN NEOXY Plant whilst Vallourec (VK.FP) presents new energies solutions to investors.
ALK-Abello (ALK.B.DC), ITV (ITV.LN) and Kongsberg Gruppen (KOG.NO) are due to host CMD/events.
Politics/Macro/World News
YouGov poll shows Labour on track to beat 1997 landslide - yougov.co.uk
Tory election hopes hit after Nigel Farage decides to stand for Reform UK - FT
Conservatives plan cap on migrant visas - BBC
Business urges next UK Government to cut Brexit trade friction - Bloomberg
Putin's a bigger deal than EU election in Europe's frontline states - Politico
Meloni and Le Pen: the relationship at the heart of European politics - FT
Dollar wallows at multi-month lows as Fed cut bets firm - Reuters
Top company news
Earnings/updates
MAERSK.B.DC (Maersk) -- guides FY24 underlying EBIT $1B-3B vs prior guidance ($2B)-0B and FactSet $138.6M [20 est, ($2.54)-1.94B]
ALK.B.DC (ALK-Abello) -- sees projected EBIT margin of around 25% until 2028 -- new growth strategy and 2028 financial ambition
SYSR.SS (Systemair) -- reports Q4 EPS SEK0.88 vs FactSet SEK0.81 [4 est, SEK0.60-1.38]; raises dividend +8.3% y/y
BCHN.SW (Burckhardt Compression Holding) -- reports FY EPS CHF26.63 vs FactSet CHF27.51 [4 est, CHF25.08-30.96]; Raises 2027 sales guidance
ALAFY.FP (FYREN) -- Provides Business Update on Its AFYREN NEOXY Plant
M&A
EBOX.LN (Tritax EuroBox) -- confirms that it has not received a proposal from Brookfield
SGO.FP (Compagnie de Saint-Gobain) -- completes acquisition of Bailey in light construction in Canada
ACA.FP (Credit Agricole) -- subsidiary Indosuez Wealth Management finalizes acquisition of Degroof Petercam
ORP.FP (emeis) -- announces disposal of real estate portfolio in Ireland worth a total value of around €56M
METEX.FP (METabolic EXplorer) -- announces receipt of takeover offer relating to activities of METEX NØØVISTAGO and part of commercial and R&D activities of METabolic EXplorer
ALKAL.FP (Kalray) -- has entered exclusive negotiations to merge with the Israeli company Pliops
Healthcare
SAN.FP (Sanofi) -- publishes full results of IMROZ phase 3 study
IPH.FP (Innate Pharma) -- Presents Positive Phase 2 TELLOMAK Study Results for Lacutamab in Mycosis Fungoides
VLA.FP (Valneva) -- Announces Publication of Lyme Disease Phase 2 Trials in the Lancet Infectious Diseases
BGBIO.NO (BerGenBio) -- announces registration of reverse share split
B8F.GR (Biofrontera AG) -- Biofrontera reports result of previously resolved capital increase following end of subscription period
Other
DTE.GR (Deutsche Telekom) -- KfW sells 110M shares in Deutsche Telekom at €22.13/share via accelerated bookbuild offering to institutional investors
FGR.FP (Eiffage) -- Génie Civil and VINCI Construction secured in consortium with Veolia the design and build contract for the civil engineering of three SEDIF water treatment plants, worth more than €400M
Key rating changes
Upgrades
FNTN.GR (Freenet) -- to buy from neutral at UBS
FUTR.LN (Future Plc) -- to buy from hold at Berenberg
HNR1.GR (Hannover Re) -- to neutral from sell at UBS
WISE.LN (Wise Plc) -- to buy from hold at Peel Hunt
Downgrades
ALFEN.NA (Alfen) -- to hold from buy at Berenberg
NIBE.B.SS (NIBE Industrier) -- to underweight from equal weight at Barclays
Initiations
FLTR.LN (Flutter Entertainment) -- outperform at Oppenheimer
GAMA.LN (Gamma Communications) -- buy at Berenberg
Data
Nikkei (0.24%) to 38829.63
Hang Seng +0.42% to 18480.94
Shanghai Composite (0.16%) to 3073.61
S&P futures +0.3 vs prior close of 5297.3
€-$ +0.0003 or +0.03% to 1.0907
$-¥ +0.02 or +0.01% to 156.12
€-¥ +0.09 or +0.05% to 170.27
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