Jun 27 ,2024
Synopsis
European equity markets are set to open in negative territory mirroring Asian markets. Broad-based weakness on major indexes with Hang Seng logging biggest decline amid sell-off in property developers. Growth stocks underperforming in Mainland China and Japan. S&P500 and Nasdaq futures lower. Bonds under pressure with Treasury, JGB and Australian yields sharply higher. Dollar weaker against most other currencies, yen off lows. Gold flat near two-week low. Crude peeling lower. Bitcoin little changed.
On today's agenda, EU leaders meeting (through Fri) with formally nomination of the candidate for next Commission President expected to be in focus. EU's von der Leyen currently scheduled to participate. EU's Vestager speech at 9:00CET in Forum Europa's briefing event and at event organised by Open Markets. EU's Simson participates at 13:30CET in the 10th Energy Infrastructure Forum (through Fri). ifo holds its annual meeting. Bruegel hosting event at 15:00CET title Repowering EU global green reach.
In political developments in the UK, Labour leader Keir Starmer interview on ITV1 at 20:30BST and on BBC1 at 20:00, Question Time Leaders' Special, featuring representatives from Reform UK and the Green Party
Among central banks updates, Riksbank interest rate decision released at 9:30CET, press conf. at 11:00. The bank is expected to leave policy on hold but adjust rate path downwards. Turkey's central bank interest rate decision at 13:00 CET. It is expected to leave its benchmark interest rate unchanged at 50%. Latvia Central Bank's Kaz�?ks participates in the radio program "Krustpunkt�?" at 12:05CET. ECB's Elderson speech at 14:15CET on banking supervision at conf by Allen & Overy. Czech central bank interest rate decision at 15:30CET. In an interview on 17-Jun, Deputy Governor Zamrazilova said will decide between a 25 bps and a 50 bps interest rate cut at the policy meeting. Consensus expectations are for a cut of 50bps to 4.75%. BOE's Financial Stability Report published at 10:30BST.
Macroeoconomic releases today include: Italy Jun business/consumer confidence, May PPI, Spain May retail sales, Eurozone Jun economic sentiment, May M3 money supply, Denmark May retail sales, Norway May unemployment rate, Belgium Jun CPI
In corporate news, ASR Nederland (ASRNL.NA) presents targets for the 2024-2026 plan period ahead of its ASR Nederland presents targets for the 2024-2026 plan period. Company raises OCC target to €1.35B in 2026. Other companies to update the market with their respective earnings/trading updates: H&M Hennes & Mauritz (HM.B.SS), Currys (CURY.LN) and Moonpig Group (MOON.LN).
On M&A front, Saint-Gobain (SGO.FP) signs agreement to acquire India-based Fosroc for $1.025B (~€960M) in cash. Also, Eni (ENI.IM) to sell upstream assets in Alaska to Hilcorp; value of the transaction to be announced upon closing
Elsewhere, Covestro (1COV.GR), ASR Nederland (ASRNL.LN), Petra Diamonds (PDL.LN) CMD/events are due.
Politics/World/Macro
New Swiss National Bank Chairman Schlegel stresses price stability goal - Reuters
EU Leaders set to pick Von der Leyen as Bloc's Executive Chief - Bloomberg
Will Meloni crash von der Leyen's reappointment party? - FT
Sunak and Starmer clash in final election debate - BBC
Rishi Sunak rams home tax message in final election debate - Times
Top company news
Earnings/updates
ASRNL.NA (ASR Nederland) -- presents targets for the 2024-2026 plan period - Capital Markets Day; raises OCC target to €1.35B in 2026
EAPI.FP (Euroapi) -- announces its FOCUS-27 plan; udpates FY24 outlook updated to include the impact of the temporary suspension of production in Brindisi
OVH.FP (OVHCloud) -- reports Q3 revenue €250.8M vs FactSet €247.0M [2 est, €247-247M]
M&A
SGO.FP (Compagnie de Saint-Gobain) -- Saint-Gobain signs agreement to acquire India-based Fosroc for $1.025B (~€960M) in cash
LECN.SW (Leclanché) -- Leclanch signs partnership agreement with Pinnacle International Capital to secure expansion funding; Pinnacle may acquire up to 70% of Leclanché
MTX.GR (MTU Aero Engines) -- Safran and MTU Aero Engines create EURA joint venture
WIRE (Encore Wire) -- Prysmian currently anticipates acquisition Encore Wire will be consummated on 2-Jul-24
CLARI.FP (Clariane) -- finalizes disposal of residence services activity "Les Essentielles"
ALFLE.FP (Fleury Michon) -- announces sale of shares in Platos Tradicionales to Familia Martínez
EDP.PL (EDP-Energias de Portugal) -- sells Portuguese tariff adjustment for €100M
Healthcare
APPH.GR (APONTIS PHARMA) -- appoints appoints CFO Thomas Zimmermann to the management board with a view to the strategic development of the company
Other
CPR.IM (Davide Campari-Milano) -- main holder Garavoglia family holding company, Lagfin, denies media reports of its alleged non-compliance of tax obligations
FGR.FP (Eiffage) -- Eiffage, SPIE Nucléaire and ABC secured in consortium the contract for the main diesel backup generators for the projects of six EPR2-type nuclear reactors
KOG.NO (Kongsberg Gruppen) -- subsidiary signs contract with NAV CANADA
TGS.NO (TGS-NOPEC Geophysical Co.) -- announces new mutli-client onshore 3D seismic survey in the Appalachian basin
TOM2.NA (TomTom) -- completes €50M share buyback program
ALSEN.FP (Sensorion) -- announces appointment of Laurene Danon as CFO
Key rating changes
Upgrades
URW.FP (Unibail-Rodamco-Westfield) -- to neutral from underweight at JPMorgan
LEG.GR (LEG Immobilien) -- to buy from hold at Deutsche Bank
TEG.GR (TAG Immobilien) -- to buy from hold at Deutsche Bank
Downgrades
DSY.FP (Dassault Systemes) -- to hold from buy at Deutsche Bank
GFC.GR (Gecina) -- to hold from buy at Deutsche Bank
AHT.LN (Ashtead Group) -- to underperform from neutral at BNP Paribas Exane
EGTX.SS (Egetis Therapeutics) -- to hold from buy at Pareto
Initiations
PTSB.ID (Permanent TSB Group Holdings) -- underweight at Barclays
PSPN.SW (PSP Swiss Property) -- hold at Deutsche Bank
STGN.SW (StarragTornos Group) -- buy at Kepler Cheuvreux
Data
Nikkei (0.99%) to 39274.95
Hang Seng (1.98%) to 17731.17
Shanghai Composite (0.54%) to 2956.42
S&P futures (12.8) vs prior close of 5543.5
€-$ +0.0016 or +0.15% to 1.0696
$-¥ (0.41) or (0.26%) to 160.39
€-¥ (0.18) or (0.10%) to 171.55
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