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StreetAccount Summary - EU Market Recap: FTSE 100 (0.41%) to 8247.79, DAX (0.81%) to 18177.62, CAC40 (0.58%) to 7662.30, STOXX 600 (0.23%) to 517.70

Jun 25 ,2024

  • Synopsis:

    • European equity markets closed lower. Health care, Travel&leisure and Consumer products&services outperformed. Industrials, Financial services and Real estate were the big laggards.

    • No change in broader themes. Markets have overcome recent defensiveness with European investors taking encouragement from France's National Rally appearing to take a moderate stance ahead of weekend election. Sell-side strategists upbeat on outlook for EU equity markets due to Europe's better surprise index and expectations of central bank easing. However, analysts also noting stretched positioning along with signs of fatigue.

    • Light macro calendar for today with Spain final Q1 GDP coming in at +2.5% y/y vs preliminary +2.4% and May PPI at (4.6%) y/y vs consensus (5.5%) and prior (6.6%). In other macro headlines, The London Times cited study by think tank Resolution Foundation, which showed UK wages have only risen £16 a week since 2010. Like other recent reports, Resolution Foundation identified sluggish GDP and productivity growth since the GFC as a negative influence on UK living standards. In France, President Macron warned of 'civil war' if far left or far right wins.

    • On the corporate front, after the market close yesterday, Airbus (AIR.FP) issued a profit warning, cutting FY24 delivery forecasts to 770 jets from around 800 and lowering financial targets. Still in France, Eurofins Scientific (ERF.FP) rebuked short-seller Muddy Waters' report as inaccurate and misleading; as a reminder, Eurofins Scientific shares lost as much as (25%) yesterday post short report from Muddy Waters that Eurofins' financials could contain material overstatements of profits, cash balances, and other asset values.

    • In M&A headlines out of France, Capgemini (CAP.FP) announced that it has signed an agreement to acquire D+I, a leading product design and development consultancy in Australia. In the DACHs, Merck KGaA (MRK.GR) trading lower after group announced Phase III trials of xevinapant in locally advanced head & neck cancer had been discontinued. Meyer Burger (MBTN.SW) is progressing toward moving its core business to US; group has negotiated a commercial agreement to the point of signature with a U.S. industry and technology leader and a term sheet for a potential investment in Meyer Burger has been exchanged. The European Commission has granted Roche (ROG.SW) marketing authorisation for OCREVUS (ocrelizumab) subcutaneous (SC) for the treatment of relapsing multiple sclerosis (RMS) and primary progressive multiple sclerosis (PPMS). Covestro (1COV.GR) is trading higher after group launched a global transformation program STRONG; group plans to achieve annual global savings of €400M in material and personnel costs by the end of 2028.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Health Care +0.84%, Travel & Leisure +0.64%, Consumer Products and Services +0.44%, Energy+0.34%, Utilities +0.24%, Chemicals +0.21%, Technology +0.19%, Media (0.05%), Basic Resources (0.12%)

      • Underperformers:

        • Ind Goods & Svcs (1.63%), Financial Svcs (1.28%), Real Estate (0.91%), Retail (0.89%), Construct & Mtls (0.69%), Banks (0.66%), Personal Care Drug and Grocery Stores (0.54%), Telecom (0.53%), Food, Beverage and Tobacco (0.48%), Insurance (0.39%)

    • Macro:

      • ECB:

        • Schnabel downplays likelihood of significant ECB-Fed policy divergence - Bloomberg

      • EU:

        • Von der Leyen lined up for second term under EU top jobs deal - Reuters

      • UK:

        • Sunak pledges action on beting scandal amid faltering election campaign - Reuters

      • France:

        • Macon may appoint techocrats in the event of a fragmented parliament - Politico

        • Macron warns of civil war risk in French snap elections - Reuters, Bloomberg

        • Airbus issued profit warning, cut FY24 delivery forecasts to 770 jets from around 800 and lowering financial targets - Reuters

    • Company news:

      • Notable Gainers

        • +31.5% MBTN.SW (Meyer Burger Technology CHF0.01, -0.00) -- progressing toward moving its core business to US; strategic partnership pending

        • +25.0% G4M.LN (Gear4music (Holdings) £1.68, +0.34) -- FY earnings

        • +16.0% OBD.LN (Oxford BioDynamics £0.07, +0.01) -- consortium shortlisted for Strategic Government Initiative to Improve Cancer Immunotherapy

        • +9.5% ZEAL.DC (Zealand Pharma DKK888.00, +77.00) -- directed share offering through an accelerated bookbuilding for gross proceeds of up to ~$900M/DKK6.257B

        • +8.0% CRTA.LN (Cirata £0.62, +0.05) -- General Motors (GM) is proceeding to phase 2 under master license agreement announced in Aug-23

        • +7.0% NRC.NO (NRC Group NOK13.05, +0.85) -- initiated buy at Pareto

        • +6.7% NANO.FP (Nanobiotix €4.26, +0.27) -- initiated buy at Stifel

        • +4.7% FCH.LN (Funding Circle Holdings £0.89, +0.04) -- to sell its US business to iBusiness Funding for £33M ($41.9M)

        • +4.0% ERF.FP (Eurofins Scientific €46.00, +1.78) -- responds to Muddy Waters report

        • +2.7% EVT.GR (Evotec €8.83, +0.23) -- selected by US Department of Defense for Manufacturing Optimization Program worth up to $39M

        • +2.5% FAG.SS (Fagerhult Group SEK69.70, +1.70) -- initiated buy at SEB

        • +2.3% ADM.LN (Admiral Group £26.27, +0.58) -- Berenberg upgrade

        • +1.9% NEOEN.FP (Neoen €37.78, +0.70) -- Brookfield agrees to acquire ~ 53.12% stake in company from Impala at €39.85 per share

        • +1.5% HBH.GR (Hornbach Holding €79.10, +1.20) -- Q1 earnings

      • Notable Decliners

        • -10.8% RENX.LN (Renalytix £0.15, -0.02) -- to appeal receipt of Nasdaq Delisting Determination

        • -9.4% AIR.FP (Airbus SE €134.78, -14.00) -- updates FY24 outlook; Deutsche Bank downgrade

        • -8.8% MOB.SS (Moberg Pharma SEK30.04, -2.90) -- receives SEK336M through exercise of warrants and directed issue issued to top guarantors

        • -5.7% MRK.GR (Merck KGaA €157.50, -9.55) -- study update

        • -3.7% ALCAR.FP (Carmat €2.37, -0.09) -- Chairman steps down

        • -2.9% LDO.IM (Leonardo €21.64, -0.65) -- selects its Grottaglie production site for the final assembly of the AW609 tiltrotor in Italy

        • -2.4% IGR.LN (IG Design Group £2.24, -0.05) -- FY earnings

        • -2.0% SAGA.LN (Saga Plc £1.11, -0.02) -- AGM trading update

        • -2.0% CPHN.SW (CPH Group AG CHF69.60, -1.40) -- Perlen Industrieholding AG completes spinoff from CPH Group AG

        • -1.8% BMPS.IM (Banca Monte dei Paschi di Siena €4.54, -0.08) -- Not in Unipol's plans to enter the capital of Monte dei Paschi di Siena -- Unipol CEO Carlo Cimbri tells Sole24Ore

    • EU companies reporting tomorrow:

      • Earnings: Volex (VLX.LN), Accsys Technologies (AXS.LN), Revolution Beauty Group (REVB.LN), Marks Electrical Group (MRK.LN), Procook Group (PROC.LN), MAG Interactive (MAGI.SS)

  • Data:

    • Economics:

      • Spain May PPI (4.6%) y/y vs consensus (5.5%) and prior (6.6%)

      • Spain Q1 GDP +2.5% y/y vs preliminary +2.4%

    • Markets:

      • WTI Crude (Aug 24): ($0.25) or (0.31%) to $81.38

      • €-$ (0.0026) or (0.24%) to 1.0709

      • £-$ (0.0008) or (0.06%) to 1.2678

      • €-£ (0.0017) to 0.8447

      • S&P 500 +0.28%

      • Performance year-to-date

        • FTSE 100: +6.65%

        • DAX: +8.51%

        • CAC: +1.58%

        • MIB: +11.06%

        • Stoxx 600: +8.08%

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