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StreetAccount Summary - Europe Pre-Open: FTSE +0.5%, DAX +0.3%, CAC +0.4%, IBEX +0.4%, MIB +0.1%

Sep 09 ,2024

  • Synopsis

    • European equity markets set to open marginally higher Monday morning

    • Recall that last week STOXX Europe 600 saw loss of (3.5%), with notable weakness in the EU Tech sector (down 8.4% for the week). European equities ended a four-week winning streak due to renewed concerns over a potential global growth slowdown, driven by negative data from the US and China. Stock market volatility rose alongside weaker macroeconomic momentum and tighter global liquidity, with focus on upcoming key central bank meetings this month. All eyes were on the August US nonfarm payrolls miss, with downward revisions to July and June figures, raising the chances of a 50bp Fed rate cut in September. However, little change in the unemployment rate left uncertainty about whether the cut would be 25bp or 50bp, with market pricing reflecting a near toss-up.

    • This week in Europe there is ECB interest rate decision, EU Commission due to release its latest economic forecast, OPEC/IEA monthly oil market reports, Aug CPI and Jul industrial production releases from across the region, UK employment data, as well as earnings/updates from Associated British Foods (ABF.LN), Baloise (BALN.SW) and Inditex (ITX.SM).

    • Asian equities under pressure Monday. China CPI inflation grew by less than expected in August while PPI deflation worsened by more than forecast, underlining persistently subdued pricing pressures with economy weakening further last month. Japan final Q2 GDP unexpectedly revised down. However, revision not considered material enough to sway BOJ rate hike expectations.

    • European macro data releases out today include Sweden Jul industrial production, Denmark Jul trade balance, Eurozone Sep Sentix investor confidence

    • Also on today's agenda: in central banks, BOE's Benjamin panellist at 14:00BST at SUERF BAFFI Bocconi Webinar whilst ECB's McCaul fireside chat at 18:00CET at Barclays Global Financial Conf. Bank of Italy hosts conf. on the economics of the Public Sector and Institutions (through Tue), with the bank's deputy governor giving welcoming remarks. Also on Mon, reported deadline for initial bids for Anglo American's (AAL.LN) Australian metallurgical coal mines. Hannover Re (HNR1.GR) at 8:00CET and Swiss Re (SREN.SW) press confs at 'Rendez-Vous de Septembre' conf (Sat-Wed). Network conf. of the German Transport Forum, includes speaker from Hochtief (HOT.GR). Also today EU's van der Leyen, Mario Draghi press conf at 11:00CET on the report on the Future of EU Competitiveness. Elsewhere, annual meeting of the German District Assn. speakers include vice chancellor Habeck. Metal and Electrical Industry Day, speeches from federal finance Lindner and federal defense minister Pistorius. Norway's PM visits China (through Wed) holds political meetings and will also meet Norwegian and Chinese businesses in Beijing and Shanghai together with a business delegation from Norway. The country's minister of defense Gram conclude trip to Asia in Australia.

  • Macro/politics

    • Spanish autos, pork in Beijing's sights with PM Sanchez in China - Reuters

    • Draghi Prepares Prescription for an Ailing European Economy - BBG

    • EU industry chief to berate Europe's carmakers on slow EV drive - FT

    • BOE Grapples With Pace of Gilt Wind-Down in Key UK Budget Issue - BBG

    • France asks EU to let it delay submitting budget deficit plan, La Tribune reports - Reuters

    • Up to 50 Labour MPs could rebel over cut to winter fuel allowance - Guardian

  • Top company news

    • Earnings/updates

      • EXM.BB (Exmar NV) -- reports H1 net income $69.5M vs year-ago $21.0M

      • Also reporting today

        • Earnings:

          • France: Abivax (ABVX.FP), SergeFerrari (SEFER.FP)

          • Southern Europe: Newlat Food (NWL.IM), Pharmanutra (PHN.IM)

          • UK: Sigmaroc (SRC.LN), Equals (EQLS.LN), The Pebble Group (PEBB.LN)

        • Trading Update: C&C Group (CCR.LN)

        • CMD/events: AstraZeneca (AZN.LN) meet the management event focusing on lung cancer at 21:00 BST (registration link)

    • M&A

      • OCI.NA (OCI NV) -- OCI to sell OCI Methanol to Methanex for EV of $2.05B, to be paid in cash and shares

      • ASC.LN (Asos) -- Shein, Authentic Brands outbid Heartland for Topshop, Topman - Sunday Times

      • BWY.LN (Bellway) -- halted plans to buy Crest Nicholson due to cladding-cost fears - Sunday Times

      • Owners abandon sale of Nord Anglia, consider putting in at least $5B of capital - Bloomberg

    • Healthcare

      • JNJ (Johnson & Johnson) -- RYBREVANT (amivantamab-vmjw) plus LAZCLUZE (lazertinib) show strong favorable overall survival trend versus osimertinib in EGFR-mutated advanced lung cancer

      • AZN.LN (AstraZeneca) -- Novel computational pathology-based TROP2 biomarker for datopotamab deruxtecan was predictive of clinical outcomes in patients with non-small cell lung cancer in TROPION-Lung01 Phase III trial

      • SVRA (Savara) -- announces new data from pivotal Phase 3 IMPALA-2 trial of molgramostim nebulizer solution (Molgramostim) in patients with autoimmune Pulmonary Alveolar Proteinosis (aPAP) were presented at the ERS

      • 0H79.LN (ARCA biopharma) -- SEC filing: SC 13D (Filed by Fairmount Funds Management LLC)

      • IPH.FP (Innate Pharma) -- announces Monalizumab data from NeoCOAST-2 Phase 2 Study in Early-Stage NSCLC Presented at the WCLC 2024

      • CANTA.SS (Cantargia) -- reports on data from two clinical trials including nadunolimab combination therapy in 55 cancer patients

    • Other

      • UBSG.SW (UBS Group) -- Outgoing SNB president Thomas Jordan thinks UBS needs stronger capital - Neue Zuercher Zeitung

      • STLA.IM (Stellantis) -- to recall 1.46M vehicles globally over faulty anti-lock brake system software - Reuters

      • VOW.GR (Volkswagen) -- Volkswagen's Rivian partnership causes consternation at software division Cariad, whose executives were sidelined and not involved in talks that led to the deal - FT

      • BALN.SW (Baloise) -- Activist Cevian Capital increases stake in Baloise to 9.4% to become largest shareholder; pushes for strategic overhaul - FT

      • CMBT.BB (Euronav) -- Market Court dismisses most claims by FourWorld challenging CMB's takeover bid price for Euronav

      • Estimated weekend box office revenues in US, Canada $145.6M, +64.7% y/y - Box Office Mojo

      • Italy speaking with Enel et al about forming new company to build small nuclear reactors - Bloomberg

  • Key rating changes

    • Initiations

      • LEHN.SW (LEM Holding) -- buy at UBS

      • KID.NO (Kid ASA) -- buy at DnB Markets

    • Upgrades

      • ASSA.B.SS (Assa Abloy) -- to buy from hold at Danske Bank

      • ATCO.A.SS (Atlas Copco) -- to buy from hold at Danske Bank

      • RMV.LN (Rightmove) -- to hold from underperform at Jefferies

  • Downgrades

    • BRBY.LN (Burberry Group) -- to underweight from equal weight at Barclays

    • KER.FP (Kering) -- to underweight from equal weight at Barclays, to sector perform from outperform at RBC

    • KGX.GR (Kion) -- to neutral from buy at Citi

    • VOLV.B.SS (Volvo) -- to hold from buy at Danske Bank

    • ADS.GR (Adidas) -- to equal weight from overweight at Barclays

    • SUBC.NO (Subsea 7) -- to neutral from outperform at BNP Paribas Exane

    • Morgan Stanley upgrades AZE.BB, IMCD.NA

Data

  • Nikkei (0.49%) to 36214.37

  • Hang Seng (1.85%) to 17121.85

  • Shanghai Composite (1.13%) to 2734.45

  • S&P futures +18.0 vs prior close of 5419.5

  • €-$ (0.0016) or (0.14%) to 1.1070

  • $-¥ +0.57 or +0.40% to 142.94

  • €-¥ +0.39 or +0.25% to 158.20

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