Jun 13 ,2024
Synopsis
European equity markets are set to open lower amid Asian equities mixed Thursday. Tech/semis driving outperformance of Korean and Taiwan markets. Hang Seng leading China market gains with mainland indexes turning negative. Shares in Australia and India gaining while Nikkei a touch lower. S&P 500 futures adding to gains afterhours. Treasuries extending post-CPI rally as regional bond yields fall alongside. Dollar strongest against yen and Aussie, steady elsewhere. Crude, metals and cryptos all pulling back from earlier highs.
In central banks, Bank of Lithuania's Kuniyoshi to participate in the Economic and Financial Committee meeting (through Fri) and Šau�?iūnienė participates in the annual meeting of the Bank of Lithuania and the Central Bank of Portugal on managing foreign reserves. Bank of Italy's Angelini speech at 9:00CET at conf. hosted by Bank of Italy/IMF. Czech National Bank Michl speech at 9:45BST at Central Banking's Summer Meetings, event also covers sustainability. Denmark Central Bank's governor Christian Kettel Thomsen speaks at 13:00CET at Folkemødet.
Further on today's agenda, in Switzerland, SECO presents its latest economic forecast. Also. G7 Summit (through Sat) and NATO-Ukraine Council meeting at the level of Defence Ministers. In UK, there's a multi-party general election tv debate (leaders or senior representatives from the Conservative Party, Labour Party, Liberal Democrats, SNP, Reform UK, Green Party and Plaid Cymru) on ITV at 20:30BST. Finland's PM Orpo hosts Netherlands PM Rutte, Rutte will also participate in Kultaranta Talks, as does EU's Urpilainen. Finnish Energy Day organised by Montel, speakers include minister of climate and the environment Mykkänen, execs from Metsä Group, Alpiq. Handelsblatt conf. on Gas stations, Convenience shops, e-Food emerging into a new era. Paris Air Forum 2024, EU's Breton speaks at 9:50CET.
Macroeconomic releases due today include: Spain May final CPI, Switzerland May PPI, Eurozone Apr industrial production, UK May house price balance (RICS), Ireland May CPI.
In corporate news, OVS (OVS.IM) reported Q1 earnings yesterday after the close including Q1 pretax income €10.1M vs year-ago €7.7M. Fraport (FRA.GR) released this morning May Frankfurt Airport traffic statistics: passengers 5.5M, +6.9%y/y. Rusta (RUSTA.SS) is out with Q4 numbers. In the UK, companies expected to update the market with their respective earnings/trading updates include Halma (HLMA.LN), PayPoint (PAY.LN), Virgin Money UK (VMUK.LN) and Wise (WISE.LN).
Stellantis (STLAM.IM), OMV (OMV.AV), Europa Oil & Gas (EOG.LN) are due to host CMD/events.
Politics/Macro/World News
EU to impose tariffs of up to 48% on imports of some Chinese EVs - Bloomberg
Six lame ducks and Giorgia Meloni: Meet the G7 class of 2024 - Politico
Fed leaves rates unchanged, sees only one 2024 cut despite inflation progress - Reuters
How Macron got ensnared by the chaos of his own election gambit - FT
French conservative party ousts leader over alliance with far right - Politico
Rishi Sunak pledges up to £250m to keep lights on in Ukraine - The Times
German government plans supplementary budget for 2024 - Bild
Top company news
Earnings/updates
FRA.GR (Fraport) -- reports May Frankfurt Airport traffic statistics: passengers 5.5M, +6.9%y/y
FHZN.SW (Flughafen Zuerich) -- reports May traffic statistics
OVS.IM (OVS) -- reports Q1 pretax income €10.1M vs year-ago €7.7M
RUSTA.SS (Rusta) -- reports Q4 EPS (SEK0.60) vs FactSet (SEK0.34) [2 est, (SEK0.67)-0.00]
M&A
NHOA.FP (NHOA SA) -- TCC Group Holdings to launch offer for remaining 11.13% of NHOA S.A at €1.1/sh cash
SHEL.LN (Shell Plc) -- reportedly the frontrunner in bidding for Pavilion Energy LNG assets - Bloomberg
LGEN.LN (Legal & General Group) -- Patron Capital Partners among bidders for Legal & General's Cala - Sky News
DOCS.LN (Dr. Martens) -- PLC notes technical change in Permira ownership structure
PLX.FP (Pluxee) -- to acquire Spanish digital player Cobee; terms undisclosed
VIRI.FP (Viridien) -- sells Sercel Marlin vessel monitoring and alert system to ExxonMobil Guyana Ltd
Healthcare
AZN.LN (AstraZeneca) -- AstraZeneca's Farxiga approved in the US for the treatment of paediatric type-2 diabetes
UCB.BB (UCB) -- to present new data to support value of CIMZIA for women living with chronic rheumatic diseases throughout pregnancy and post-partum, and for people living with RA and high rheumatoid factor levels
ALCLS.FP (Cellectis SA) -- Cellectis unveils a non-viral Gene therapy approach for sickle cell disease in Nature Communications magazine
FYB.GR (Formycon) -- starts clinical development program for FYB206 with the inclusion of the first patient
Other
BMW.GR (Bayerische Motoren Werke) -- BMW releases sustainability overview FY23
TE.FP (Technip Energies) -- JV awarded a major EPC contract by ADNOC of the lower-carbon Ruwais LNG project, in Abu Dhabi
AZE.BB (Azelis Group) -- Index changes: Euronext announces results of Jun-24 quarterly review for BEL 20; Azelis to be added effective from Monday 24-Jun
Key rating changes
Upgrades
FDEV.LN (Frontier Developments) -- to hold from sell at Deutsche Bank
GPE.LN (Great Portland Estates) -- to hold from sell at Jefferies
SAND.SS (Sandvik) -- to buy from hold at DnB Markets
Downgrades
TEF.SM (Telefonica) -- to sell at Deutsche Bank
SWON.SW (SoftwareONE Holding) -- to Add from Buy at Baader Helvea
SFSN.SW (SFS Group) -- to Add from Buy at Baader Helvea
Initiations
NHY.NO (Norsk Hydro) -- buy at Goldman Sachs
ETL.FP (Eutelsat Communications) -- market perform at Bernstein
GTT.FP (Gaztransport & Technigaz) -- outperform at Bernstein
TKA.AV (Telekom Austria) -- outperform at Bernstein
Data
Nikkei (0.14%) to 38823.32
Hang Seng +0.36% to 18002.51
Shanghai Composite (0.12%) to 3033.85
S&P futures +10.0 vs prior close of 5427.5
€-$ (0.0008) or (0.07%) to 1.0804
$-¥ +0.45 or +0.29% to 157.16
€-¥ +0.36 or +0.21% to 169.79
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