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StreetAccount Summary - EU Market Recap: FTSE 100 +0.03% to 8166.76, DAX +0.30% to 18290.66, CAC40 +1.09% to 7561.13, STOXX 600 +0.32% to 513.04

Jul 01 ,2024

  • Synopsis:

    • European equity markets opened higher, as expected, with pan-European indices quickly paring advances and shares range-bound from mid-morning, as attempts to ger back to initial levels provided short-lived

    • With shares ending above session lows and at the upper end of the range established for much of the day, Portugal +1.9%, Italy +1.7% and Finland +1.6% join the CAC (having pared over half of the initial gains) in leading outperformers. Netherlands (0.1%), Belgium, Denmark both +0.3% and Norway +0.4%, join the UK in leading underperformers.

    • In central banks, Ireland Central Bank's McKiernan was a panellist at event hosted by The House of the Euro, title What are the implications of a Digital Euro for EU competitiveness and strategic autonomy?. Bundesbank's Balz spoke on the publication of the study Payment behaviour in Germany in 2023 and Nagel spoke at Frankfurt Finance Summit. ECB Forum on Central Banking (through Wed), ECB's Lagarde speech at 20:00CET. Slovakia Central Bank publishes latest macroprudential commentary.

    • First round of the French legislative election saw the performance of Le Pen's RN in the spotlight (La Tribune), but the Party's lack of absolute majority, led to a bounce in French assets, though election now heads to complex second round as far-right surge threatens Macron's majority (IPSOS projects RN on course to win 230-280 seats in the 577-seat National Assembly)

    • Campaign continued ahead of the UK general election on Thur.

    • Norway's energy minister Aasland began a 4-day visit to Indonesia and Singapore. EU's Šef�?ovi�? spoke at the Jacques Delors​ Agora event, Europe's Next Generation (through Thu).

    • Jun manufacturing PMIs topped the economic news flow, whilst German Jun inflation showed signs of easing and on the UK, the Nationwide measure shows UK house prices increase in June, though the major provider of both mortgages and savings' chief economist noted housing affordability is still stretched.

    • France Jun new passenger car registration +4.7% y/y (comparable working days) to 181,712 vehicles, whilst in Spain Jun new passenger car registrations 103,357 units, +2.2% y/y. Data for Italy is awaited.

    • In addition to a number of small deals being announced/completed including Zehnder Group completing the sale of Climate Ceiling Solutions business to Private Assets SE & Co. KGaA, M&A news flow included Wendel (MF.FP) agreeing to acquire ~50% of Globeducate, one of the world's leading international K-12 education groups, Maersk (MAERSK.B.DC) withdraws bid for DB Schenker, Alm. Brand (ALMB.DC) enters conditional agreement with Norwegian insurer Gard on the divestment of its Energy & Marine business for DKK 1.6B and Intrum (INTRUM.SS) completes the sale of assets to Cerberus, net cash of SEK 7.2B will be used in its entirety to reduce indebtedness

    • Company earnings/updates were limited with Orion upgrading FY24 outlook, RTX lowering FY guidance and and Porvair reporting H1 EPS 19.5p ex-items vs year-ago 20.3p, the shares reversing initial gains

    • Elsewhere, Cargotec (CGCBV.FH) completes the demerger of Kalmar (KALMAR.FH)

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Banks +2.06%, Utilities +1.20%, Telecom +0.88%, Energy+0.87%, Insurance +0.69%, Ind Goods & Svcs +0.58%, Construct & Mtls +0.56%, Retail +0.46%, Personal Care Drug and Grocery Stores +0.43%

      • Underperformers:

        • Media (1.31%), Technology (0.84%), Consumer Products and Services (0.36%), Health Care (0.15%), Financial Svcs (0.11%), Real Estate (0.06%), Chemicals (0.04%), Food, Beverage and Tobacco (0.03%), Travel & Leisure +0.06%, Basic Resources +0.11%

    • Macro/Peripheral markets:

      • France:

        • At least 167 candidates have now withdrawn from three-way run-off races (making them two candidate races) in second round of legislative elections this coming Sun - Le Monde

        • Rival parties race to block far right in second round of legislative elections - France 24

      • Greece:

      • Ireland:

        • Sinn Féin 20% (3%-pts), Fine Gael 21% (1), Fianna Fáil +4 - Business Post/Red C opinion poll

      • Norway:

        • The strategy and preparedness plan for covid-19 expires and is incorporated into the general infection control work - press release

      • UK:

        • A combination of tailwinds to consumption and falling inflation should support modest positive growth over the remainder of this year and 2025 - KPMG

    • Company news:

      • Notable Gainers

        • +115.0% JAY.LN (Bluejay Mining) -- hydrogen and helium discovery at Outokumpu Finland

        • +13.0% OSE.FP (OSE Immunotherapeutics) -- preclinical efficacy results with Lusvertikimab in Acute Lymphoblastic Leukemia in the Journal 'Blood'

        • +11.1% FCT.IM (Fincantieri) -- buy from hold at Stifel

        • +8.7% NEL.NO (Nel) -- receives >€7M purchase order for electrolyser equipment

        • +6.6% SWP.FP (Sword Group) -- makes two acquisitions in Scotland, terms were not disclosed

        • +6.1% BRNK.GR (Branicks Group) -- announces well over half of the transaction target in own portfolio achieved by mid-year; Further sales in the pipeline

        • +5.8% VLTSA.FP (Voltalia) -- and TAQA Arabia to develop a cluster of renewable energy and green hydrogen production

        • +4.6% UCG.IM (UniCredit) -- makes application to general court of European Union for clarification of the obligation set by the ECB for its activities in Russia

        • +4.0% MATAS.DC (Matas) -- Dagens Industri out with buy recommendation

        • +4.0% INTRUM.SS (Intrum) -- completes the sale of assets to Cerberus; net cash of SEK 7.2B will be used in its entirety to reduce indebtedness

        • +4.0% VIVE.SS (Vivesto) -- Cantrixil preclinical efficacy data

        • +3.9% RBW.LN (Rainbow Rare Earths) -- signs royalty agreement with Ecora and announces $10M capital raise

        • +3.7% ORNBV.FH (Orion) -- upgrades FY24 outlook after exercising the option to convert co-development and co-commercialisation agreement with MSD regarding opevesostat

        • +3.7% IDIA.SW (Idorsia) -- JERAYGO (aprocitentan) approval in Europe as first and only ERA for the treatment of resistant hypertension

        • +3.6% VLA.FP (Valneva) -- granted marketing authorization in Europe fo Chikungunya vaccine, IXCHIQ

        • +3.4% CLN.SW (Clariant) -- buy from neutral at Goldman Sachs

        • +3.3% HBH.GR (Hornbach Holding) -- upgraded to buy from hold at Berenberg

        • +2.9% AIR.FP (Airbus) -- provides details on potential deal with Spirit AeroSystems

        • +2.6% APAM.NA (Aperam) -- guides Q2 adjusted EBITDA higher than €55M vs FactSet €74.5M [2 est, €71-78M]

        • +2.1% EDPR.PL (EDP Renovaveis) -- to sell 191 MW wind portfolio in Italy for EV of €0.4B

        • +1.8% TIETO.FH (Tietoevry) -- notes strategic review of Tietoevry Tech Services progressing; active sales process ongoing with timeline extended

        • +1.7% JTC.LN (JTC ) -- to acquire Hanway Advisory Limited for an undisclosed sum

        • +1.6% CNA.LN (Centrica) -- upgraded to buy from hold at Berenberg

        • +1.4% TIGO.SS (Millicom International Cellular) -- Atlas Luxco S.à r.l. formally offer to acquire Millicom International Cellular S.A. for $24/share and per SDR, in cash

        • +1.4% MF.FP (Wendel) -- agrees to acquire ~50% of Globeducate, one of the world's leading international K-12 education groups

        • +1.3% STERV.FH (Stora Enso) -- upgraded to buy from neutral at Citi

        • +1.0% BOSN.SW (Bossard Holding) -- acquires Dejond Fastening NV; terms not disclosed

        • +0.9% KEMIRA.FH (Kemira ) -- acquires Norit's UK reactivation operations; terms undisclosed

        • +0.8% PGHN.SW (Partners Group Holding ) -- confirms press reports it has agreed to acquire majority stake in FairJourney Biologics; terms undisclosed

        • +0.5% FG.SS (Fasadgruppen Group) -- acquires Brenden Materialer AS and Brenden & Co Stillasutleie AS

        • +0.4% BVIC.LN (Britvic) -- Top-ten Britvic holder tells Carlsberg to raise its offer - Mail on Sunday

      • Notable Decliners

        • -24.2% RTX.DC (RTX) -- lowers FY guidance

        • -8.5% AFAGR.FH (Afarak Group) -- expects H1 EBITDA of €4-5M, (70%) y/y

        • -7.2% BC8.GR (Bechtle) -- downgraded to underperform from neutral at BNP Paribas Exane

        • -3.0% NCAB.SS (NCAB Group) -- acquires ICOM Industrial Components AG in Switzerland, for an undisclosed sum

        • -2.5% ARCH.NO (Archer) -- agrees to acquire the floating offshore wind solutions provider Moreld Ocean Wind AS for an undisclosed sum

        • -2.4% XXL.NO (XXL) -- appoints Lars Syse Christiansen as new CFO

        • -2.3% AAL.LN (Anglo American) -- suspends production at Grosvenor steelmaking coal mine following underground coal gas ignition incident on 29-Jun

        • -2.2% MTG.B.SS (Modern Times Group MTG) -- short-term recommendation downgraded to hold from buy at Handelsbanken

        • -1.6% CRH.LN (CRH) -- completes previously announced acquisition of majority stake in Adbri

        • -1.6% CO.FP (Casino Guichard-Perrachon ) -- sells over €200M of real estate assets to Tikehau Capital (TKO.FP)

        • -1.5% PRV.LN (Porvair) -- H1 EPS 19.5p ex-items vs year-ago 20.3p; The trading outlook for H2 of the year is positive

        • -1.2% AKZA.NA (Akzo Nobel) -- to sell from neutral at Goldman Sachs

        • -0.9% AF.FP (Air France-KLM) -- provides update on Summer bookings: Air France and Transavia France are currently experiencing pressure on projected unit revenues for the summer season

        • -0.6% ATO.FP (ATOS) -- reaches agreement on financial restructuring terms between the company and a group of banks and bondholders

        • -0.6% PGHN.SW (Partners Group Holding)

          • Buys majority stake in FairJourney Biologics from GHO Capital

          • Deal valuation of €900M (CHF870.8M) - FT

        • -0.5% ACTI.SS (Active Biotech) -- clinical study agreement for a Phase II investigator-initiated clinical study on the use of tasquinimod in myelofibrosis

    • EU companies reporting tomorrow:

      • Earnings: Dustin Group (DUST.SS), Kitwave Group (KITW.LN), Supreme (SUP.LN), Mercia Asset Management (MERC.LN), CML Microsystems (CML.LN)

      • Trading Update: Sodexo (SW.FP), J Sainsbury (SBRY.LN)

  • Data:

    • Economics:

      • Jun manufacturing PMI

        • Ireland 47.7 vs consensus 49.3, prior 49.8

        • Netherlands 50.7 vs consensus 52.0, prior 52.5

        • Sweden 53.6 vs consensus 51.6, prior revised 54.1 from 54.0

        • Spain 52.3 vs consensus 53.5, prior 54.0

        • Italy 45.7 vs consensus 44.4, prior 45.6

        • France 45.4 vs preliminary 45.3

        • Germany 43.5 vs preliminary 43.4

        • Eurozone 45.8 vs preliminary 45.6

        • Norway 47.7 vs consensus 51.5, prior revised 51.7 from 52.3

        • Greece 54.0 vs consensus 54.6, prior 54.9

        • UK 50.9 vs preliminary 51.4

      • UK

        • Jun house price index +1.5% y/y vs consensus +1.5%, prior +1.3%; +0.2% m/m vs consensus 0.0%, prior +0.4% - Nationwide release

        • May

          • Mortgage approvals 59.99K vs consensus 61.0K, prior revised 60.82K from 61.14K

          • M4 money supply (0.1%) m/m vs consensus +0.2%, prior +0.1%

      • Netherlands May retail sales +2.9% y/y vs consensus +2.9%, prior revised +2.2% from +2.3%

      • Switzerland May retail sales +0.4% y/y vs consensus +2.5%, prior revised +2.2% from +2.7%

      • Greece May unemployment rate 10.6% vs consensus 10.7%, prior revised 10.7% from 10.8%

      • Ireland Jun preliminary HICP +1.5% y/y vs consensus +2.4%, prior +2.0%; +0.3% m/m vs consensus +0.4%, prior +0.6%

      • Portugal May unemployment rate 6.5% vs consensus 6.3%, prior revised 6.4% from 6.3%

      • Germany Jun preliminary CPI +2.2% y/y vs consensus +2.3%, prior +2.4%; +0.1% m/m vs consensus +0.2%, prior +0.1%

    • Markets:

      • WTI Crude (Aug 24): +$1.14 or +1.40% to $82.68

      • €-$ (0.0019) or (0.18%) to 1.0726

      • £-$ (0.0010) or (0.08%) to 1.2641

      • €-£ (0.0008) to 0.8484

      • S&P 500 +0.01%

      • Performance year-to-date:

        • FTSE 100: +5.61%

        • DAX: +9.19%

        • CAC: +0.24%

        • MIB: +11.09%

        • Stoxx 600: +7.11%

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.
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