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StreetAccount Summary - EU Market Recap: FTSE 100 (0.34%) to 8241.71, DAX (0.08%) to 18576.50, CAC40 (0.92%) to 7431.96, STOXX 600 (0.54%) to 512.05

Sep 05 ,2024

  • Synopsis:

    • European equity markets closed in negative territory and near the lowest levels of the session. Luxury and healthcare were the big decliners with utilities and real estate the best performers. Follows broadly negative performance on Wednesday, with EU bourses ending near worst levels.

    • In France, President Macro has appointed Michel Barnier as new prime minister. Barnier is a conservative and former EU Brexit negotiator and has been chosen after two-month political deadlock following inconclusive snap elections. Move represents Macron's attempt to form a stable government in a deeply divided parliament, where his centrist coalition lacks an absolute majority. Barnier's appointment has drawn mixed reactions across political spectrum (Reuters).

    • On the macro front, German July factory orders bounced, beating estimates. Construction PMIs highlighted growing divergence between stronger UK performance and ongoing Eurozone woes. Eurozone retail sales continued to flatline in July. IFO institute now sees 0% growth for Germany in 2024. Switzerland Aug Unemployment Rate (sa) came in at 2.5% vs consensus 2.5% and prior 2.5%.

    • Central bank speakers included ECB's Holzmann. Former BoE member Saunders sees scope for quicker BoE easing citing inflation, wages, fiscal tightening. Spanish government appointed minister for digital affairs Escriva as new Bank of Spain governor.

    • In corporate news, bioMerieux (BIM.FP) reports H1 net income €215M vs year-ago €162M with FY24 guidance revised upward. Also in France, Voltalia (VLTSA.FP) reports H1 net income (€15.7M) vs year-ago (€19.4M) and confirms 2027 operational and financial targets. Chargeurs (CRI.FP) is also out with H1 earnings. From DACHs, SFS Group (SFSN.SW) releases presentation material in connection with its CMD and reaffirms FY guidance. Helvetia Holding (HRLN.SW) reports H1 underlying earnings CHF285.2M vs year-ago CHF289.7M. Out of the Nordics, Tomra Systems (TOM.NO) reaffirms its strategy launched in 2022 in connection with today's CMD; sets new target of achieving >18% ROCE by 2030. In the UK, ASOS (ASC.LN) published a trading update and announced JV for Topshop and Topman. Ashmore Group (ASHM.LN) reports FY Adj. EPS 10.5p vs consensus 11.4p. Associated British Foods (ABF.LN) posted H2 trading update with Primark revenue growth expected to be ~4% and FY24 outlook for adj operating profit for Primark is unchanged.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Utilities +1.67%, Real Estate +1.25%, Banks +0.98%, Travel & Leisure +0.95%, Telecom +0.76%, Insurance +0.41%, Personal Care Drug and Grocery Stores +0.24%, Construct & Mtls (0.13%), Energy(0.22%), Autos & Parts (0.43%), Food, Beverage and Tobacco (0.45%), Media (0.47%)

      • Underperformers:

        • Consumer Products and Services (2.11%), Health Care (1.52%), Chemicals (1.41%), Ind Goods & Svcs (1.12%), Technology (1.10%), Retail (0.89%), Financial Svcs (0.57%)

    • Macro/Peripheral markets:

      • Geopolitics

        • US, Britain and Brussels to sign agreement on AI standards - FT

        • Hamas accuses Netanyahu of trying to 'thwart' ceasefire and hostage deal - The Guardian

      • EU

        • European Parliament's scheduling fiasco risks delaying commissioner hearings - Politico

        • Europe launches last Vega rocket with observation satellite - Reuters

      • France:

        • Michel Barnier appointed French prime minister - FT

      • Netherlands:

        • Netherlands hikes defence spending to face new threats - Reuters

      • UK

        • Rayner's workers' rights overhaul 'will create two-tier jobs market' - The Telegraph

        • UK's private sector economy grew faster than expected in August - The Times

      • Germany

        • Christian Lindner: "The FDP stands by the coalition agreement" - Handelsblatt

        • "'Business as usual' would be life-threatening" - SPD politicians call for a change of course - Handelsblatt

        • German factory orders post surprise jump in July - Baha

      • Sweden

        • Sweden Plans $1.75 Billion Tax Breaks to Help Households - Bloomberg

    • Company news:

      • Notable Gainers

        • +29.8% FCH.LN (Funding Circle Holdings £1.29, +0.30) -- H1 earnings

        • +18.1% ASC.LN (Asos £4.34, +0.66) -- trading update

        • +11.6% 93M1.GR (MPH Health Care €25.00, +2.60) -- H1 earnings

        • +10.3% ALFA.LN (Alfa Financial Software Holdings £2.14, +0.20) -- H1 earnings

        • +8.5% VTY.LN (Vistry Group £14.30, +1.12) -- H1 earnings; £130M share buyback

        • +7.3% KOA.NO (Kongsberg Automotive NOK1.42, +0.10) -- Apollo Asset Limited's Arne Fredly acquires 142.4M shares

        • +6.9% VLTSA.FP (Voltalia €8.18, +0.53) -- H1 earnings

        • +4.2% BIM.FP (bioMerieux €107.30, +4.30) -- H1 earnings; raises FY guidance

        • +3.9% HELN.SW (Helvetia Holding CHF137.50, +5.10) -- H1 earnings

        • +3.8% VOW.NO (Vow ASA NOK3.16, +0.12) -- to participate in FEED study for first large-scale carbon refinery project in the Caribbean

        • +3.8% WTB.LN (Whitbread £30.08, +1.09) -- Redburn Atlantic upgrade

        • +3.6% ACE.SS (Ascelia Pharma SEK2.77, +0.10) -- final outcome in fully subscribed SEK 105M rights issue

        • +3.4% MGN.NO (Magnora NOK23.00, +0.75) -- restarts its share buyback program

        • +3.3% ZAG.AV (Zumtobel Group €5.56, +0.18) -- Q1 earnings

        • +3.2% DBK.GR (Deutsche Bank €14.95, +0.47) -- reaches settlement with long-standing plaintiff Effecten-Spiegel AG in Postbank takeover litigation matter

        • +3.1% LXS.GR (Lanxess €25.13, +0.75) -- assumed overweight at Morgan Stanley

        • +2.9% EVT.GR (Evotec €6.07, +0.17) -- and X-Chem announces collaboration agreement focused on accelerating early-stage drug discovery

        • +2.3% BAKK.LN (Bakkavor Group £1.58, +0.03) -- H1 earnings; new CFO

        • +1.7% KENDR.NA (Kendrion €12.88, +0.22) -- new targets at CMD

        • +1.7% EDEN.FP (Edenred €37.57, +0.63) -- Morgan Stanley upgrade

        • +1.7% LI.FP (Klepierre €28.04, +0.46) -- JPMorgan upgrade

        • +1.5% RS1.LN (RS Group plc £7.76, +0.12) -- Citi upgrade

      • Notable Decliners

        • -12.2% KING.NO (The Kingfish Company NOK5.75, -0.80) -- H1 earnings

        • -8.7% BAVA.DC (Bavarian Nordic A/S DKK238.40, -22.60) -- Moderna discloses results of trial of its RNA-based mpox vaccine compared to Bavarian Nordic's Jynneos vaccine in non-human primates -- Stat News

        • -8.5% ABF.LN (Associated British Foods £22.89, -2.12) -- trading update; initial view of FY25 and buyback

        • -8.3% CHH.LN (Churchill China £9.90, -0.90) -- H1 earnings

        • -7.8% ACX.GR (bet-at-home.com €3.19, -0.27) -- to recognise a provision of ~€4.8M in Q3 related to dispute over VAT liability for sports betting in Switzerlan

        • -7.0% NSKOG.NO (Norske Skog NOK34.26, -2.58) -- containerboard production at Norske Skog Golbey in France expected to start during Q1 of 2025 vs previously H2 of 2024

        • -6.6% SL.IM (Sanlorenzo €34.05, -2.40) -- H1 earnings

        • -6.3% IDL.FP (ID Logistics Group €376.50, -25.50) -- placement of 375,000 new shares priced at €360

        • -4.6% TOM.NO (Tomra Systems NOK151.00, -7.30) -- CMD update

        • -4.5% SSPG.LN (SSP Group £1.63, -0.08) -- Morgan Stanley downgrade

        • -3.1% AI.FP (Air Liquide €163.10, -5.26) -- assumed underweight at Morgan Stanley

        • -2.7% GNS.LN (Genus £17.46, -0.48) -- FY earnings

        • -2.5% VALMT.FH (Valmet €23.97, -0.61) -- new Chief Legal officer; to start change negotiations in Finland in its Paper business line's board and Paper Mills business unit; ~ 1,300 people affected

        • -2.0% DDRIL.NO (Dolphin Drilling AS NOK3.90, -0.08) -- Fearnley downgrade

        • -1.9% SYENS.BB (Syensqo €72.10, -1.40) -- assumed underweight at Morgan Stanley

        • -1.6% UPM.FH (UPM-Kymmene €29.62, -0.49) -- CMD update

    • EU companies reporting tomorrow:

      • Earnings:

        • Benelux: InPost (INPT.NA), EXMAR (EXM.BB)

        • France: Viel & Cie (VIL.FP)

        • Nordics: Sectra AB(SECT.B.SS)

      • Trading Update: SAS (SAS.SS), Finnair (FIA1S.FH)

  • Data:

    • Economics:

      • UK Aug Construction PMI 53.6 vs consensus 54.9 and prior 55.3

      • Switzerland Aug Unemployment Rate (sa) 2.5% vs consensus 2.5% and prior 2.5%

      • Germany

        • Jul Factory Orders +2.9% m/m vs consensus (1.5%) and prior revised +4.6% from +3.9%

        • Aug Construction PMI 38.9 vs consensus 39.8 and prior 40.0

      • Eurozone Jul Retail Sales (0.1%) y/y vs consensus +0.1% and prior revised (0.4%) from (0.3%); +0.1% m/m vs consensus +0.1% and prior revised (0.4%) from (0.3%)

    • Markets:

      • WTI Crude (Oct 24): +$0.66 or +0.95% to $69.86

      • €-$ +0.0001 or +0.01% to 1.1085

      • £-$ +0.0011 or +0.08% to 1.3157

      • €-£ (0.0003) to 0.8426

      • S&P 500 (0.55%)

      • Performance year-to-date

        • FTSE 100: +6.58%

        • DAX: +10.89%

        • CAC: (1.47%)

        • MIB: +10.98%

        • Stoxx 600: +6.90%

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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