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StreetAccount Summary - EU Market Recap: FTSE 100 +0.77% to 8301.48, DAX +0.99% to 18342.83, CAC40 +1.09% to 7711.41, STOXX 600 +0.81% to 519.28

Jun 24 ,2024

  • Synopsis:

    • European equity markets ended in positive territory with pan-European indices around session highs. Belgium +1.8% followed by Switzerland, Spain, Italy all up ~ +1.2% led the outperformers whilst Denmark and Finland +0.3% led the underperformers.

    • Focus on reports that UK assets could benefit from instability in Europe as investors look to shield from uncertainty in France. China and EU agree to hold talks on electric car tariffs. Reports said top officials from both regions spoke about tariffs in call on Saturday. Elsewhere, ECB's Schnabel said potential shocks means it can't pre-commit on rates.

    • In political developments in the UK, tv debates/interviews ahead of general election on 4-Jul include UK Business Secretary Badenoch head-to-head tv debate with her Labour counterpart Jonathan Reynolds at ~12noon BST - IoD/Bloomberg. The Sun newspaper hosting Never Mind the Ballots: Election Showdown, at 17.30, with PM Sunak and Labour's Starmer answering questions from readers. The Panorama Interviews series on BBC1 at 19:00BST, is with co-leader of the Green Party Adrian Ramsay, the same time as ITV has interviews with co-leader of the Green Party Carla Denyer, and Reform UK's Richard Tice, as well as STV has an interview with SNP Leader John Swinney.

    • Meanwhile in France, first round of voting taking place in French elections next weekend. Polls continue to point to far-right National Rally leading ahead of vote. Reuters cited RN's Tanguy, head of economic policy and most likely candidate to lead the finance ministry, who said it won't left deficits run out of control and intends to stick with the EU's fiscal rules.

    • In corporate news, SIG (SHI.LN) issued a trading update and now expects 2024 full year underlying operating profit to be in range £20M-£30M, below current analyst range of £36.7M to £43.0M. In pharma sector, ROVI (ROVI.SM) forecasts potential Risperidone ISM sales of between €200 and €300M globally in upcoming years. Elsewhere, shares in Deutz (DEZ.GR) traded notably higher after CEO Sebastian Schulte said, in what appears to be an interview with German newspaper Welt over the weekend, that the company plans a return to the defence business and expansion into the generators market

    • On M&A front, THG to sell its portfolio of luxury goods websites to Frasers Group (FRAS.LN). Also, Covestro (1COV.GR) confirmed it enters into concrete negotiations with Adnoc; starting point for talks is possible offer price of €62 per Covestro share. Elsewhere, Carlsberg (CARL.B.DC) confirmed that it has reached agreement with PepsiCo, Inc. whereby PepsiCo has agreed to waive the change of control clause in the bottling arrangements it has with Britvic .

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers

        • Banks +1.86%, Autos & Parts +1.75%, Chemicals +1.52%, Telecom +1.31%, Real Estate+1.12%, Media +1.09%, Oil & Gas +1.00%, Insurance +0.92%, Ind Goods & Svcs +0.89%, Persnl & HHold Goods +0.89%, Food & Beverage +0.85%

      • Underperformers

        • Technology (0.72%), Travel & Leisure +0.14%, Utilities +0.36%, Retail +0.47%, Construct & Mtls +0.60%, Basic Resources +0.56%, Health Care +0.74%, Financial Svcs +0.76%

    • Macro/Peripheral markets:

      • EU:

        • Council adopts a 14th package of sanctions on Russia for it's war of aggression against Ukraine - release

      • Geopolitics

        • Israeli PM Netanyahu signals intense stage of Gaza fighting is close to end; open to partial deal with Hamas - Bloomberg

        • China wants EU to scrap EV tariff plans as talks start - Reuters

      • ECB:

        • Publishes first progress report on digital euro preparation phase - release

      • France

        • Ipsos poll reveals far-right RN leads on economic trust, Macron's centrists struggle ahead of elections - FT

        • France could trigger the next euro crisis - FT

      • UK

        • Salaries for new jobs fell for the first time since October, according to a jobs search service - London Times

        • Economists question Labour's growth-driven budget strategy amid optimistic projections - FT

        • Conservatives hit record low in polls as Reform UK closes in - Telegraph

        • Main parties have ducked addressing public finance challenges in election campaign - IFS release

      • Ireland

        • Q2 average homes list price +3.8% q/q and +6.7% y/y - Daft.ir report

        • Minister for Finance Michael McGrath expected to be put forward for the position of Ireland's next European Commissioner - RTE

      • Sweden

        • Swedish government claims victory in fight against inflation - Bloomberg

    • Company news:

      • Notable Gainers

        • +23.2% FCT.IM (Fincantieri €4.74, +0.89) -- key info document in connection with previously announced rights issue

        • +19.6% DEZ.GR (Deutz AG €5.93, +0.97) -- CEO interview

        • +15.3% BINV.SS (BioInvent International SEK38.00, +5.05) -- granted patent for BI-1808 in China

        • +11.5% VLA.FP (Valneva €3.46, +0.36) -- IXCHIQ approved by Health Canada

        • +8.9% HOT.GR (Hochtief €108.00, +8.80) -- Jefferies upgrade

        • +7.5% PRU.LN (Prudential £7.60, +0.53) -- $2B buyback

        • +6.9% BVIC.LN (Britvic £11.69, +0.75) -- Carlsberg, PepsiCo, Inc. agreement on Britvic bottling arrangements; Investec upgrade

        • +4.0% FRAS.LN (Frasers Group £9.05, +0.35) -- partnership and acquisition of portfolio of luxury goods websites from THG

        • +3.8% UQA.AV (UNIQA Insurance Group €7.99, +0.29) -- Kepler Cheuvreux upgrade

        • +3.7% NAVA.NO (Navamedic NOK33.90, +1.20) -- Navamedic and Orion Corporation sign license & supply agreement for Flexilev in Europe

        • +3.4% OSE.FP (OSE Immunotherapeutics €6.16, +0.20) -- commercial and revenue sharing agreement in the field of CAR T-cell therapies with a global cancer center

        • +3.0% ABI.BB (Anheuser-Busch InBev €56.70, +1.66) -- UBS upgrade

        • +2.9% TIT.IM (Telecom Italia €0.23, +0.01) -- sets closing for the sale of NetCo to Optics BidCo S.p.A. as of 1-Jul; publishes amended corporate calendar

        • +2.9% TETY.SS (Tethys Oil SEK33.65, +0.95) -- May production update

        • +2.8% RDC.GR (Redcare Pharmacy €120.40, +3.30) -- Warburg Research upgrade

        • +2.5% EVO.SS (Evolution SEK1,108.00, +26.50) -- buy recommendation at Dagens Industri

        • +2.4% NKT.DC (NKT A/S DKK602.00, +14.00) -- Carnegie Securities upgrade

        • +2.2% JLP.LN (Jubilee Metals Group £0.07, -0.00) -- update on roll-out of copper strategy in Zambia and acquisition of two copper resources

        • +1.6% CHAR.LN (Chariot £0.08, -0.00) -- gas commercialisation agreement with Vivo Energy for Loukos

      • Notable Decliners

        • -54.2% BMN.LN (Bushveld Minerals £0.00, -0.00) -- issues update on SPR funding & Orion 2024 financing package

        • -6.8% SHI.LN (SIG £0.26, -0.02) -- trading update; Peel Hunt downgrade

        • -6.2% YOU.LN (YouGov £4.38, -0.29) -- Liberum Capital downgrade

        • -3.7% ZAL.GR (Zalando €21.73, -0.83) -- assumed equal-weight at Morgan Stanley; prior rating was overweight

        • -3.1% FLTR.LN (Flutter Entertainment £146.05, -4.65) -- Peel Hunt downgrade

        • -2.3% BRK.LN (Brooks MacDonald Group £19.05, -0.45) -- CEO to retire

        • -0.8% CRNA.NO (Circio Holding NOK2.58, -0.02) -- commencement for the subscription period for the rights issue

    • EU companies reporting tomorrow::

      • Earnings: HORNBACH Holding & Co. (HBH.GR), IG Design Group (IGR.LN)

  • Data:

    • Economics:

      • Netherlands Q1 GDP (0.7%) y/y v preliminary (0.7%)

      • Finland May PPI (0.4%) y/y vs prior (2.1%)

      • Germany Jun IFO survey

        • Business climate 88.6 vs consensus 89.4, prior 89.3

        • Current Conditions 88.3 vs consensus 88.4, prior 88.3

        • Expectations 89.0 vs consensus 91.0 vs prior revised 90.3 from 90.4

      • UK Jun CBI Industrial Trends Orders (18) vs consensus (26), prior (33

    • Markets:

      • WTI Crude (Aug 24): +$0.84 or +1.04% to $81.57

      • €-$ +0.0037 or +0.35% to 1.0730

      • £-$ +0.0048 or +0.38% to 1.2691

      • €-£ +0.0001 to 0.8457

      • S&P 500 +0.34%

        • Performance year-to-date

        • FTSE 100: +7.35%

        • DAX: +9.50%

        • CAC: +2.23%

        • MIB: +11.52%

        • Stoxx 600: +8.41%

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