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StreetAccount Summary - EU Market Recap: FTSE 100 (0.68%) to 8253.68, DAX (0.08%) to 18711.49, CAC40 (0.57%) to 7444.90, STOXX 600 (0.50%) to 514.59

Sep 18 ,2024

  • Synopsis:

    • European equity markets closed broadly lower Wednesday ahead of the Fed meeting later. Markets pricing in ~60% chance of 50 bp rate cut while economists eyeing 25 bp reduction. Previews expect policy statement to set up future cuts while Chair Powell expected to match dovish Jackson Hole messaging. New dot plot forecast to show 75 bp of cuts for 2024, though market continues to price ~110 in cuts by year-end. Back in Europe, attention on UK inflation data. Headline inflation remained at 2.2% for the second month, while core inflation and services prices accelerated in line with expectations. Fits in with cautious BoE policy decision on Thursday. Recent surveys show very big majority of sell-side economists anticipate the next rate cut in November. Sterling recorded intraday the best levels in two years versus the dollar near 1.3250 and Gilt yields sharply higher with two-year paper up ~10 bps at 3.93% and 10-year adds ~7 bps at 3.84% (Bloomberg, Reuters). Eurozone final CPI confirmed at 2.2%. Bank of France lowered French inflation forecast in 2025 to 1.5%, below ECB's 2% target.

    • Regionally, Denmark (1.8%) the worst performer on NOVO.B.DC weakness, while Germany (0.08%) relative outperformer. Among European sectors, Autos closed higher, bucking the generally negative trend. Sector led by BMW (BMW.GR) +2.2% after it was upgraded to neutral at Citi. Elsewhere, Bloomberg reported, citing sources, that Continental (CON.GR) +1.4% is pushing ahead with preparations for separation of its struggling car parts business. Tech, Media among the worst performers today. In M&A, Legal & General (LGEN.LN) (2.9%) confirmed the sale of CALA Group to Sixth Street Partners and Patron Capital for enterprise value of £1.35B, whilst Reckitt Benckiser (RKT.LN) +1.2% is beginning early talks with possible bidders regarding its home care assets; in Italy, the govt is preparing for the sale of a 14% stake in Poste Italiane (PST.IM) (3%). Sky News reported buyout firm Inflexion has been studying possible takeover bid for Advanced Medical Solutions Group (AMS.LN) +5%. New Hope reportedly joins race to acquire Anglo American's Queensland (AAL.LN) coal mines. CVC reportedly urged Deutsche Bahn to reconsider Schenker sale to DSV (DSV.DC) (1.6%). BASF (BAS.GR) +2.4% set to announce Agri Chemicals listing plan in overhaul, reported Bloomberg. According to the report, BASF may seek crop listing in few years and may also signal an openness to consider divesting or bringing in partners for portions of its coatings business. Company may unveil plans at capital markets day later this month.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Autos & Parts +0.19%, Energy+0.14%, Telecom (0.05%), Basic Resources (0.05%), Travel & Leisure (0.08%), Banks (0.09%), Construct & Mtls (0.31%), Personal Care Drug and Grocery Stores (0.42%), Insurance (0.42%), Retail (0.43%)

      • Underperformers:

        • Media (1.03%), Food, Beverage and Tobacco (1.01%), Consumer Products and Services (0.97%), Utilities (0.78%), Technology (0.69%), Chemicals (0.66%), Health Care (0.66%), Financial Svcs (0.54%), Real Estate (0.51%)

    • Macro:

      • UK

        • London house prices underperform rest of UK, ONS data shows - FT

        • UK inflation holds at 2.2% but services prices keep BoE on alert - Reuters

        • Train drivers accept pay deal to end strike action - BBC

      • Italy:

      • Germany

        • AfD loses appeal on chairing Bundestag committees - DW

    • Company news:

      • Trading Higher:

        • +57.2% ALCOX.FP (Nicox €0.25, +0.09) -- approval of ZERVIATE in China

        • +11.3% CREO.LN (Creo Medical Group £0.32, +0.03) -- announces strategic partnership with Micro-Tech & sale of 51% interest in Creo's European subsidiary for ~€36.7M in cash

        • +8.2% RLF.SW (RELIEF THERAPEUTICS Holding CHF2.25, +0.17) -- study update

        • +7.2% AGFX.LN (Argentex Group £0.34, +0.02) -- earnings

        • +4.8% AMS.LN (Advanced Medical Solutions Group £2.53, +0.12) -- Buyout firm Inflexion has been studying possible takeover bid for Advanced Medical Solutions Group -- Sky News (17-Sep, post UK market close)

        • +4.8% AMS.LN (Advanced Medical Solutions Group £2.53, +0.12) -- reports H1 EPS 5.4p vs FactSet 5.5p [1 est]

        • +2.9% SPM.IM (Saipem €2.01, +0.06) -- awarded new offshore contract in Saudi Arabia worth ~$2B

        • +2.5% BAS.GR (BASF SE €45.50, +1.11) -- set to announce Agri Chemicals listing plan in overhaul -- Bloomberg

        • +1.8% SAA.LN (M&C Saatchi £1.95, +0.03) -- reports H1 EPS 6.4p vs year-ago (5.2p); outlook in line with market expectations

        • +1.7% MPAC.LN (Mpac Group £4.38, +0.08) -- enters agreement with Jim Laverdiere to acquire Boston Conveyor & Automation; aggregate consideration $17M

        • +1.5% IGP.LN (Intercede Group £2.06, +0.03) -- orders & renewals

        • +1.5% VLA.FP (Valneva €2.70, +0.04) -- submits vaccine label extension application

        • +1.2% RKT.LN (Reckitt Benckiser £46.66, +0.56) -- said to begin early talks with possible bidders for its home care assets -- Bloomberg

        • +1.0% TEF.SM (Telefonica €4.39, +0.04) -- ACS among final bidders for Asterion and Telefonica's data center operator Nabiax - Expansion

      • Trading Lower:

        • -16.6% ALCAR.FP (Carmat €1.70, -0.34) -- capital increase

        • -14.1% PZC.LN (PZ Cussons £0.89, -0.15) -- reports FY EPS 8.0p vs FactSet 7.7p [4 est, 7.3-8.0p]

        • -11.8% MBTN.SW (Meyer Burger Technology CHF1.69, -0.23) -- CEO steps down

        • -10.1% HTRO.SS (Hexatronic Group SEK52.06, -5.88) -- CEO steps down

        • -10.0% RBW.LN (Rainbow Rare Earths £0.09, -0.01) -- updates on Phalaborwa project in South Africa; commences offtake discussions

        • -7.4% BEIJ.B.SS (Beijer Ref SEK164.70, -13.15) -- Beijer Ref holder EQT offers about 20M shares -- Dagens Industri

        • -7.2% CPR.IM (Davide Campari-Milano €7.00, -0.54) -- CEO steps down

        • -6.9% KETL.LN (Strix Group £0.78, -0.06) -- earnings

        • -6.3% ALSEN.FP (Sensorion €0.89, -0.06) -- reports H1 net income (€13.9M) vs FactSet (€12.1M) [2 est, (€12.4)-(11.8M)]

        • -4.8% PNDX.B.SS (Pandox SEK186.20, -9.40) -- share issue

        • -4.0% SCATC.NO (Scatec NOK81.40, -3.40) -- holder Scatec Innovation AS sells 7.1M shares for NOK 80.50/sh

        • -3.3% IMP.A.SS (Implantica SEK41.40, -1.40) -- study data presentation

        • -3.0% PST.IM (Poste Italiane €12.29, -0.39) -- Italy Gov. gears up for sale of ~ 14% stake in Poste Italiane -- Reuters

        • -2.7% LGEN.LN (Legal & General Group £2.22, -0.06) -- Legal & General confirms sale of CALA Group to Sixth Street Partners and Patron Capital for enterprise value of £1.35B

        • -2.5% EYE.LN (Eagle Eye Solutions Group £4.63, -0.12) -- earnings

        • -2.4% INTEG.B.SS (Integrum SEK28.00, -0.70) -- names interim COO

        • -2.3% NOVO.B.DC (Novo Nordisk DKK882.20, -21.20) -- and Quadria Capital among investors interested in taking minority stake in Aragen - Economic Times

        • -2.3% NOVO.B.DC (Novo Nordisk DKK882.20, -21.20) -- Senator Sanders announces that generic drugmakers can profitably sell Ozempic for $100 a month

        • -2.1% ELO.NO (Elopak NOK42.00, -0.90) -- holder Ferd AS sells 20.0M shares for NOK 41 per share

        • -2.1% LSL.LN (LSL Property Services £3.19, -0.07) -- reports H1 EPS 11.0p ex-items vs year-ago 2.6p

        • -2.0% BRG.NO (Borregaard NOK194.00, -4.00) -- releases presentation material in connection with today's CMD

        • -2.0% MONC.IM (Moncler €49.53, -1.03) -- Moncler holder Grinta offers 2.29M shares via JPMorgan -- Bloomberg, citing terms

        • -1.9% MOON.LN (Moonpig Group £1.99, -0.04) -- Trading Update: trading performance remains in line with expectations, reiterates existing guidance

        • -1.7% ALL.LN (Atlantic Lithium £0.13, -0.00) -- earnings

        • -1.1% LOGN.SW (Logitech International CHF72.70, -0.82) -- CEO says company's business in China weaker than she would like -- FuW, citing interview

        • -1.0% XAR.LN (Xaar £0.99, -0.01) -- earnings

        • -0.7% AAL.LN (Anglo American £21.22, -0.16) -- New Hope joins race to acquire Anglo American's Queensland coal mines - Australian Financial Review

        • -0.2% GAW.LN (Games Workshop Group £104.80, -0.20) -- trading update: trading for the three months to 1-Sep has been in line with the board's expectations

        • -0.1% DG.FP (VINCI SA €110.50, -0.10) -- VINCI Airports Aug airport passenger traffic +3.7%

    • EU companies reporting tomorrow:

      • Earnings:

        • Benelux: Viohalco (VIO.BB), BenevolentAI (BAI.NA)

        • DACHs: AEVIS VICTORIA (AEVS.SW), Xlife Sciences (XLS.SW), Newron Pharmaceuticals (NWRN.SW), CREALOGIX Holding (CLXN.SW)

        • France: Alten (ATE.FP), Esker (ALESK.FP), Savencia (SAVE.FP), AKWEL (AKW.FP), Genfit (GNFT.FP), Maat Pharma (MAAT.FP), Adocia (ADOC.FP), Kalray (ALKAL.FP)

        • Southern Europe: Juventus Football Club (JUVE.IM), OVS (OVS.IM)

        • UK: Next (NXT.LN), Judges Scientific (JDG.LN), Galliford Try Holdings (GFRD.LN), S4 Capital (SFOR.LN), Capricorn Energy (CNE.LN), Distribution Finance Capital Holdings (DFCH.LN)

      • Trading Update: Ocado Group (OCDO.LN)

  • Data:

    • Economics:

      • Eurozone Aug CPI +2.2% y/y vs preliminary +2.2%; +0.1% m/m vs preliminary +0.2%

      • UK Aug

        • CPI +2.2% y/y vs consensus +2.2% and prior +2.2%; +0.3% m/m vs consensus +0.3% and prior (0.2%)

        • Output PPI +0.2% y/y vs consensus +0.5% and prior +0.8%; (0.3%) m/m vs consensus 0.0% and prior 0.0%

      • Sweden Aug Unemployment Rate 7.9% vs consensus 7.9% and prior 7.7%

    • Markets:

      • WTI Crude (Oct 24): +$0.08 or +0.11% to $71.27

      • €-$ (0.0000) or (0.00%) to 1.1114

      • £-$ +0.0036 or +0.28% to 1.3195

      • €-£ (0.0023) to 0.8422

      • S&P 500 (0.09%)

      • Performance year-to-date

        • FTSE 100: +6.73%

        • DAX: +11.70%

        • CAC: (1.30%)

        • MIB: +10.84%

        • Stoxx 600: +7.43%

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