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StreetAccount Summary - EU Market Recap: FTSE 100 (0.27%) to 8225.33, DAX (0.12%) to 18155.24, CAC40 (0.69%) to 7609.15, STOXX 600 (0.56%) to 514.81

Jun 26 ,2024

  • Synopsis:

    • European equity markets closed broadly lower Wednesday, with worst performers including Denmark (1.4%) and Belgium (1.1%). Sweden +0.4% and Norway +0.2% bucked the trend. Markets broadly cautious ahead of US PCE inflation on Friday, which is the Fed's preferred measure. European investors also eyeing first round of voting in French election this weekend. The far-right National Rally (RN) is leading in opinion polls preceding Sunday's initial round. They are followed by the left-wing New Popular Front (NFP) coalition, with Macron's centrist alliance trailing in third place. Analysts note France could be heading for a hung parliament although post-election alliances could mean a government led by either the hard-left or far-right.

    • Hedge funds and investors bullish on UK assets with election outcome likely to reinforce perception of strong governance and stability versus instability in Europe. Relatively quiet macro calendar in Europe today. German GfK consumer confidence missed expectations. Swedish PPI came in weaker-than-forecast. French consumer confidence dipped in June, in line with expectations. ECB's Rehn said market bets for two more rate cuts in 2024 is reasonable and agreed with potential for deposit rate as low as 2.25% next year. UK Labour leader Starmer said he is seeking economic growth of at least 2.5% a year and doubled-down on focus on wealth creation if he wins power.

    • Reuters reported the dollar hit a fresh 38-year high against the Japanese yen on Wednesday, with investor speculation high that Japanese authorities could intervene to strengthen the currency.

    • Autos & Parts among the biggest sector decliner with spotlight on VOW3.GR after the company said it will invest up to $5B as part of JV with electric vehicle maker RIVN. Travel & Leisure another underperformer with EU carriers seeing ripples from Southwest Airlines (LUV) lowering Q2 RASM by (1.75pts) mid pt to down (4-4.5%) vs (1.5-3.5%) prior, driven primarily by complexities in adapting its revenue management to current booking patterns. In other notable news today: DoorDash said to have recently approached Deliveroo (ROO.LN) regarding possible acquisition; negotiations have reportedly since ended following the approach last month as the companies could not agree on valuation in a potential deal. Electrolux (ELUX.B.SS) saw a sympathy move higher on report Germany's Robert Bosch (private) considering offer for Whirlpool (WHR). Alfen (ALFEN.NA) issued a profit warning, sending its shares down over (47%). Novo Nordisk (NOVO.B.DC) announced that the CLARION-CKD phase 3 trial failed to meet its primary endpoint and that it will recognise an impairment loss of around DKK 5.7B related to the intangible asset ocedurenone in Q2 of 2024.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Technology +0.36%, Personal Care Drug and Grocery Stores (0.24%), Basic Resources (0.28%), Construct & Mtls (0.30%), Retail (0.35%), Ind Goods & Svcs (0.40%), Banks (0.41%)

      • Underperformers:

        • Travel & Leisure (1.75%), Autos & Parts (1.23%), Real Estate (1.19%), Chemicals (0.77%), Food, Beverage and Tobacco (0.77%), Health Care (0.70%), Financial Svcs (0.63%), Consumer Products and Services (0.63%), Energy(0.63%), Media (0.62%), Insurance (0.60%), Utilities (0.59%)

    • Macro:

      • Central banks

        • New Swiss National Bank Chairman Schlegel stresses price stability goal - Reuters

        • ECB Is Set to Start Next Strategy Review After Summer Break -- Bloomberg

        • ECB's Rehn Sees Bets for Two More Cuts in 2024 as Reasonable - Bloomberg

      • EU

        • Giorgia Meloni hits out at EU top jobs backroom deal - POLITICO

      • UK elections

        • Rishi Sunak and Keir Starmer in final TV showdown as PM desperately needs an election gamechanger - Standard

        • Tories fighting defensive campaign, analysis shows - BBC

        • UK retail sales go into reverse this month, CBI survey shows - Reuters

      • France

        • Even Macron's Closest Allies Fear His Brand Is Toxic - Bloomberg

        • The meteoric rise and rapid fall of Mini-Macron - Telegraph

        • 2024 French election: First TV debate misses the stakes of a major election - Le Monde

      • IPOs

        • FCA urged to block Shein London listing over forced-labour concerns - FT

    • Company news:

      • Notable gainers:

        • +17.1% BAVA.DC (Bavarian Nordic A/S DKK182.80, +26.75) -- submits EMA Marketing Authorization Application for its Chikungunya Vaccine Candidate

        • +13.4% NETI.B.SS (Net Insight SEK5.59, +0.66) -- order

        • +7.4% BINV.SS (BioInvent International SEK38.95, +2.70) -- presents poster highlighting model-informed early clinical development of anti-TNFR2 agent BI-1808 at PAGE 2024

        • +7.4% HDF.FP (HDF Energy €6.99, +0.48) -- EUR 172 million in public funding for its high-power hydrogen fuel cell industrial project

        • +6.6% ELABS.NO (Elliptic Laboratories NOK10.56, +0.65) -- contract

        • +5.8% REVB.LN (Revolution Beauty Group £0.24, +0.01) -- earnings

        • +5.5% GREENH.DC (Green Hydrogen Systems DKK9.44, +0.49) -- study update

        • +4.7% AVCT.LN (Avacta Group £0.45, +0.02) -- Business Update: On track to achieve its stated clinical objectives for H2 of 2024 - AGM

        • +3.8% LTG.LN (Learning Technologies Group £0.86, +0.03) -- sells VectorVMS business to PIXID Group for cash consideration of $50M

        • +3.5% NKR.NO (Nekkar NOK10.10, +0.34) -- announces FiiZK group agrees to sell FiiZK Digital to seafood investor Bluefront for an undisclosed sum

        • +3.5% ELUX.B.SS (Electrolux SEK0.00, +3.04) -- sympathy move; Robert Bosch (private) considering offer for Whirlpool, not Bosch Ltd (500530.IN) -- Reuters

        • +3.2% MAGI.SS (MAG Interactive SEK9.80, +0.30) -- earnings

        • +2.9% ROVI.SM (Laboratorios Farmaceuticos Rovi, S.A. €85.40, +2.40) -- CVC, Cinven, KKR and Permira bid for Rovi's assets valued at €3.5B - Expansion, citing sources

        • +2.7% SOFF.NO (Solstad Offshore NOK40.38, +1.08) -- contract

        • +2.1% MRK.LN (Marks Electrical Group £0.72, +0.02) -- earnings

        • +2.0% STOR.B.SS (Storskogen Group SEK8.18, +0.16) -- divests business units and announces a non-cash flow-affecting write-down of SEK 920M in Q2

        • +1.2% ROO.LN (Deliveroo £1.29, +0.02) -- DoorDash said to have recently approached Deliveroo regarding possible acquisition -- Reuters

        • +1.1% AO.LN (AO World £1.14, +0.01) -- reports FY EPS 4.3p vs FactSet 4.3p [7 est, 4.0-4.6p]

        • +0.6% AENA.SM (Aena S.M.E. €187.70, +1.10) -- Aena updates traffic forecast for 2024

        • +0.3% AAL.LN (Anglo American £25.28, +0.07) -- announces provisional value of rough diamond sales for De Beers' fifth sales cycle of 2024, amounting to $315M vs year-ago $456M

        • +0.3% IDS.LN (International Distribution Services £3.16, +0.01) -- EP Corporate Group and J&T Capital Partners publish offer document in connection with acquisition of International Distribution Services

        • +0.3% VWS.DC (Vestas Wind Systems DKK176.00, +0.55) -- order

        • +0.2% PZC.LN (PZ Cussons £1.01, -0.00) -- trading update: expects to report FY24 revenue of ~ £528M vs FatSet £535.5M

        • +0.2% SONG.LN (Hipgnosis Songs Fund £1.03, -0.00) -- Bidco is announcing that the financial terms of its revised offer are final and will not be increased

        • +0.1% NDAQ (Nasdaq $59.98, +0.05) -- European Energy Exchange's acquisition of Nasdaq's European power trading and clearing business has been terminated; deal had been announced 20-Jun-2023

      • Notable Decliners

        • -46.8% ALFEN.NA (Alfen €16.99, -14.94) -- decides to adjust 2024 guidance downward amidst slower anticipated market; conf call from 10:00 CET

        • -12.4% AXS.LN (Accsys Technologies £0.55, -0.08) -- earnings

        • -6.7% ATO.FP (ATOS SE €1.12, -0.08) -- receives revised global financial restructuring proposal taking into account decision from Onepoint, Butler Industries and Econocom to withdraw from discussions on 25-Jun

        • -6.5% VLX.LN (Volex £3.31, -0.23) -- earnings

        • -3.3% ATORX.SS (Alligator Bioscience SEK1.17, -0.04) -- announces financing of up to SEK 80M extending cash runway to Q1 2025

        • -3.3% LIO.LN (Liontrust Asset Management £7.26, -0.25) -- earnings

        • -3.0% SEE.LN (Seeing Machines £0.05, -0.00) -- trading update

        • -2.9% ALCJ.FP (Crossject €1.66, -0.05) -- additional, clinically meaningful perspectives on ZEPIZURE in light of its recently published bioequivalence study results

        • -2.0% NOVO.B.DC (Novo Nordisk DKK0.00, -21.00) -- CLARION-CKD phase 3 trial failed to meet its primary endpoint and that it will recognise an impairment loss of around DKK 5.7B related to the intangible asset ocedurenone in Q2 of 2024

        • -1.6% VOW3.GR (Volkswagen €104.80, -1.75) -- Volkswagen AG resolves on investment by Volkswagen of initially $1B USD in Rivian Automotive, Inc., and intends to establish a joint venture

        • -1.5% PHNX.LN (Phoenix Group Holdings £5.19, -0.08) -- Phoenix Group to explore potential sale of SunLife business

        • -1.3% AIG (American International Group $73.55, -0.99) -- AIG to sell global personal travel insurance and assistance business to Zurich Insurance Group for $600M in cash plus additional earn-out consideration

        • -1.3% MC.FP (LVMH Moet Hennessy Louis Vuitton €727.00, -9.80) -- acquisition of L'Epée 1839; terms not disclosed

        • -1.1% ZURN.SW (Zurich Insurance Group CHF480.20, -5.10) -- to acquire AIG's (AIG) global personal travel insurance and assistance business

        • -0.9% A28890.GR (CompuGroup Medical €24.82, -0.22) -- acquires Pridok AS

        • -0.9% FNM.IM (FNM €0.45, -0.00) -- agrees to acquire the remainder of Nordcom S.p.A. from TIM Group for €8.3M (post EU close 25-Jun)

        • -0.8% BHG.SS (Lightshop SEK16.40, -0.13) -- to record SEK99M impairment of inventory in Q2; will reduce warehouse space (post EU close 25-Jun)

        • -0.7% 1COV.GR (Covestro €54.12, -0.38) -- denies any connection between takeover negotiations and cost savings program - Handelsblatt

        • -0.6% WPP.LN (WPP Group £7.39, -0.04) -- KKR approached WPP over acquiring majority control of FGS Global -- FT, citing people with knowledge of the dea

        • -0.5% DANSKE.DC (Danske Bank DKK207.20, -1.10) -- raises FY net income guidance

        • -0.3% DG.FP (VINCI SA €101.15, -0.35) -- Vinci completes acquisition of 50.01% of Edinburgh Airport

        • -0.3% W7L.LN (Warpaint London £5.88, -0.02) -- AGM statement

        • -0.1% SAN.FP (Sanofi €90.79, -0.08) -- reportedly seeking bids for consumer division by mid-July - Bloomberg

    • 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:

      • Germany Jul GfK Consumer Confidence (21.8) vs consensus (18.9) and prior revised (21.0) from (20.9)

      • Switzerland Jun ZEW Expectations 17.5 vs consensus 20.0 and prior 18.2

      • France Jun Consumer Confidence 89 vs consensus 89 and prior 90

      • Finland May Unemployment Rate 10.2% vs prior 9.2%

      • Sweden May PPI +2.6% y/y vs consensus +3.8% and prior +0.9%

    • Markets:

      • WTI Crude (Aug 24): ($0.60) or (0.74%) to $80.23

      • €-$ (0.0034) or (0.32%) to 1.0683

      • £-$ (0.0061) or (0.48%) to 1.2624

      • €-£ +0.0016 to 0.8464

      • S&P 500 (0.13%)

      • Performance year-to-date

        • FTSE 100: +6.36%

        • DAX: +8.38%

        • CAC: +0.87%

        • MIB: +10.51%

        • Stoxx 600: +7.48%

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