Back to Daily DR Market Summary

StreetAccount Summary - EU Market Recap: FTSE 100 (0.21%) to 8146.86, DAX (1.44%) to 18002.02, CAC40 (2.66%) to 7503.27, STOXX 600 (0.97%) to 511.05

Jun 14 ,2024

  • Synopsis:

    • European equity markets ended broadly lower Friday, with the Stoxx Europe 600 down (1%) for the day and down (2.4%) for the week. Regionally, French CAC40 fell (2.7%) on Friday making losses of (6.3%) for the week. Italian FTSE MIB down (2.8%) today and worst regional performer. Markets focused on European peripheral spreads following spike in French OAT yields amid political uncertainty. Current 10-year OAT/PGB spread at a record level since the euro's inception. Analysts flag growing concerns about Eurozone political stability and economic integration. Banks among worst performing sector in Europe today with names such as SocGen (GLE.FP) (3.7%) and Unicredit (UCG.IM) (5.6%) closing down sharply. Autos & Parts sector also under pressure; recall the EU Commission this week announced tariffs on Chinese EVs. Defensives outperformed today.

    • In the UK, the BoE/Ipsos Inflation Attitudes survey showed inflation expectations have come down but above target over the medium term. Expectations for the next 12 months showed 2.8% versus 3% in February, while 12-months after that at 2.6% versus 2.8%- and five-years' time unchanged at 3.1%. The BoE will welcome the fact inflation expectations are well anchored but also fits in with other surveys showing above target inflation. Supports the BoE's cautious and gradual move towards policy easing. Sell-side previews expect the BoE to leave its Bank Rate unchanged at 5.25% next week. Note, since the BoE last met inflation and wage growth came in on the firmer side of expectations. Against this backdrop, statement likely to reiterate data-dependence and meeting-by-meeting approach. Some thoughts the MPC minutes might express concern over persistence of inflation. A Reuters poll published on Wednesday showed most economists still anticipate an August cut. Market is pricing in only ~15 bps worth of easing in August and ~35 bps by year-end.

    • Limited macro updates of note in Europe today. Final French CPI revised down from flash. Eurozone trade surplus narrower than expected. G7 meeting saw US and Ukraine sign a 10-year bilateral security agreement seen as a stopgap on the road to Kyiv joining Nato. Ukraine also signed security deal with Japan on Thursday. Agreement also reached on guaranteeing $50B loan to Ukraine using profits from frozen Russian central bank assets held in Europe. .

    • Among stocks in focus today, Tesco (TSCO.LN) among gainers after the company reported Q1 LFL Sales +3.4% vs consensus +3.4% in its trading update and reiterated FY guidance. In housebuilder M&A news, Crest Nicholson's (CRST.LN) +13.7% board rejected Bellway's (BWY.LN) (4.4%) non-binding all-share offer to for an implied value of 253p per Crest Nicholson share saying it undervalues Crest Nicholson and its future standalone prospects. In other M&A news, ATOS SE (ATO.FP) received an offer for the acquisition of BDS at EV of €700M and Casino Group (CO.FP) entered into exclusive negotiations with Auchan Retail France and Rocca with a view to selling its Corsican subsidiary Codim 2. In Germany, Carlyle Group and KfW are reportedly in talks to jointly purchase a majority of ThyssenKrupp Marine Systems (TKA.GR).

    • Looking to the week ahead, highlights include Eurogroup meetings, policy decisions from BoE, SNB and Norges Bank, Eurozone prelim June Consumer Confidence, Flash June Manufacturing and Services PMIs for Eurozone, UK, Germany and France, as well as earnings/updates from the likes of Ashtead Group (AHT.LN), H&M Hennes & Mauritz (HM.B.SS), Whitbread (WTB.LN) and DS Smith (SMDS.LN). Note, a few market holidays next week will include Iceland closed Mon for Independence Day, US markets closed Wed for Juneteenth and Finland closed Fri for Midsummer Day.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Health Care +0.56%, Food, Beverage and Tobacco +0.39%, Personal Care Drug and Grocery Stores +0.36%, Telecom (0.22%), Financial Svcs (0.43%), Real Estate (0.67%), Energy(0.68%), Media (0.91%)

      • Underperformers:

        • Ind Goods & Svcs (2.23%), Autos & Parts (2.18%), Consumer Products and Services (2.03%), Construct & Mtls (2.00%), Technology (1.75%), Travel & Leisure (1.72%), Chemicals (1.45%), Banks (1.26%), Basic Resources (1.18%), Utilities (1.08%), Insurance (1.02%)

    • Macro:

      • Central banks

        • ECB Officials See No Cause for Alarm Over France's Market Turmoil - Bloomberg

      • France

        • French Finance Chief Warns Left-Wing Win Would Mean EU Exit - Bloomberg

        • French left-wing alliance New Popular Front vows 'total break' with Macron policies - France24

      • UK

        • Labour considers largest Whitehall shake-up in decades - FT

        • Moods of the two main parties' general election campaigns do not tell us what will happen on 4 July - BBC

        • Farage declares Reform the 'new opposition' as he makes false postal vote claim - Independent

      • Germany

        • Chancellor Olaf Scholz is coming under increasing pressure from within his own ranks - Handelsblatt

      • EU

        • Leaders to stress defence and competitiveness as strategic goals - Reuters

      • Greece

        • PM reshuffles cabinet after worse than expected EU vote result - Reuters

    • Company news:

      • Notable Gainers

        • +14.6% ATO.FP (ATOS SE €0.84, +0.11) -- receives non-binding offer for acquisition of BDS at EV of €700M

        • +13.7% CRST.LN (Crest Nicholson Holdings £2.42, +0.29) -- board rejects Bellway's offer; Investec upgrade

        • +12.5% MOLN.SW (Molecular Partners CHF5.96, +0.66) -- presents positive preclinical data for first switch-darpin candidate MP0621 at EHA 2024

        • +5.9% KWS.LN (Keywords Studios £22.48, +1.26) -- extension to PUSU deadline to 28-Jun-24 regarding possible offer by EQT for the company's share capital

        • +5.0% PANR.LN (Pantheon Resources £0.29, +0.01) -- update on private placement, funding strategy, quarterly repayment of unsecured convertible bonds

        • +2.5% TSCO.LN (Tesco plc £3.09, +0.08) -- Q1 trading update

        • +2.4% HM.B.SS (H&M Hennes & Mauritz SEK187.85, +4.45) -- UBS upgrade

        • +1.2% MYCR.SS (Mycronic SEK436.60, +5.00) -- order

        • +1.0% ABDP.LN (AB Dynamics £20.75, +0.20) -- re-initiated buy at Berenberg

        • +0.2% MPE.LN (M.P. Evans Group £8.40, +0.02) -- trading statement

      • Notable Decliners

        • -6.5% GPH.LN (Global Ports Holding £2.46, -0.17) -- FY earnings

        • -4.4% BWY.LN (Bellway £25.98, -1.20) -- Crest Nicholson Holdings PLC's board rejects company's offer

        • -3.8% KEMIRA.FH (Kemira €22.76, -0.90) -- Stifel downgrade

        • -3.6% BIOS.BB (BioSenic €0.02, -0.00) -- received the homologation judgment for the restructuring plan filed with the Enterprise Court of Nivelles

        • -2.7% BNP.FP (BNP Paribas €57.81, -1.59) -- to create strategic partnership in the field of payments with BPCE

    • EU companies reporting Monday:

      • Earnings: Mind Gym (MIND.LN)

      • Trading Update: H&M Hennes & Mauritz (HM.B.SS)

      • Traffic: Aeroports de Paris ADP (ADP.FP)

  • Data:

    • Economics:

      • Finland May CPI +1.5% y/y vs consensus +2.6% and prior +1.9%; (0.1%) m/m vs consensus +0.2% and prior 0.0%

      • Sweden May CPI +3.7% y/y vs consensus +3.5% and prior +3.9%; +0.2% m/m vs consensus (0.1%) and prior +0.3%

      • France May CPI +2.3% m/m vs preliminary +2.2%; 0.0% m/m vs preliminary 0.0%

      • Italy Apr Trade Balance €4.81B vs consensus €4.25B and prior €4.34B

      • Eurozone Apr Trade Balance €15.0B vs consensus €17.0B and prior €24.1B

    • Markets:

      • WTI Crude (Jul 24): ($0.35) or (0.45%) to $78.27

      • €-$ (0.0041) or (0.38%) to 1.0697

      • £-$ (0.0083) or (0.65%) to 1.2680

      • €-£ +0.0021 to 0.8435

      • S&P 500 (0.33%)

      • Performance year-to-date

        • FTSE 100: +5.35%

        • DAX: +7.46%

        • CAC: (0.53%)

        • MIB: +7.63%

        • Stoxx 600: +6.69%

This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".

DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE