Back to Daily DR Market Summary

StreetAccount Summary - EU Market Recap: FTSE 100 +0.48% to 8276.65, DAX (0.58%) to 19213.14, CAC40 (0.81%) to 7574.07, STOXX 600 (0.38%) to 520.88

Oct 01 ,2024

  • Synopsis:

    • European equity markets mixed to lower with pan-European indices reversing earlier gains. Norway +0.8%, Belgium +0.5%, Denmark +0.3% led the outperformers whilst Spain (2.0%), France and Austria both down (1.0%) led the underperformers.

    • In geopolitical developments, Israeli military announced it conducted precise strikes on weapons manufacturing sites and infrastructure belonging to Hezbollah in Dahiyeh (Beyrouth suburb) on Monday.

    • Focus in Europe on Eurozone inflation data, which is a key input ahead of the next ECB meeting. Headline reading under 2% first time since 2021. Comes after some national readings surprised on the downside. When taken together with weakness in PMI data, October ECB rate cut bets have moved up to ~90% in recent sessions. President Lagarde said Monday it would take inflation trend into account at next meeting, though has previously highlighted September reading exacerbated by base effects and will edge up into year-end. Meanwhile, Fed Chair Powell also said Monday that policy committee not in a rush to cut rates.

    • In other releases, Eurozone final manufacturing PMI revised up, though still weakest since December 2023. BRC update shows UK shop price inflation sees fastest drop since 2021. Confidence data from CBI and Institute of Directors down ahead of October budget. Attention on French PM Barnier's first address to lawmakers to outline policy agenda. Reports on Monday suggests he could levy tax on big firms to rein in budget deficit, which weighed on French equities.

    • In corporate news, earnings and trading updates were light today. In the the UK, Greggs (GRG.LN) issued Q3 trading update with LFL sales growth of +5% and continues to expect FY outcome to be in line with its previous expectations. Renew (RNWH.LN) expects to report FY revenue ahead of market consensus with operating profit also marginally ahead. Out of the Nordics, NCAB (NCAB.SS) posted prelim Q3 update with net sales seen between SEK 880-900M vs FactSet SEK962.50M; group expects negative impact on net sales in Q3 and Q4 as well as on the EBITA result.

    • On M&A front, ADNOC offered to acquire Covestro (1COV.GR) for €62/sh; Covestro's boards currently assume that they will recommend shareholders to accept the offer. LVMH (MC.FP) sells Off-White to Bluestar Alliance. Mulberry Group (MUL.LN) rejected possible offer from Frasers Group (FRAS.LN); board looks forward to engaging further with Frasers regarding a pro rata participation in the subscription announced on 27-Sep. Virgin Money UK (VMUK.LN) and Nationwide (NBS.LN) announced scheme of arrangement has now become effective; cancellation of listing expected to take effect today. Pfizer sold 640M ordinary shares in Haleon plc (HLN.LN) at 380p/each raising gross sale proceeds of ~£2.43B (~$3.26B).

    • In other corporate news, Siemens Energy (ENR.GR) pleaded guilty to stealing confidential competitor information; to pay $104M to resolve US DOJ investigation. NEL ASA (NEL.NO) reported Hy Stor Energy has terminated capacity reservation agreement for Mississippi Clean Hydrogen Hub. Cellnex Telecom (CLNX.SM) appointed Óscar Fanjul Martín as new Chair.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers

        • Oil & Gas +1.36%, Real Estate+0.96%, Health Care +0.30%, Utilities +0.23%, Media +0.16%, Food & Beverage +0.06%, Telecom +0.04%, Basic Resources (0.13%), Financial Svcs (0.37%), Construct & Mtls (0.38%), Ind Goods & Svcs (0.38%)

      • Underperformers

        • Banks (2.24%), Persnl & HHold Goods (1.89%), Retail (1.42%), Travel & Leisure (1.26%), Autos & Parts (1.14%), Chemicals (0.72%), Technology (0.65%), Insurance (0.57%)

    • Macro/Peripheral markets:

      • Geopolitics

        • Israel says intense fighting with Hezbollah in south Lebanon - Reuters, BBC, FT

        • Mark Rutte set for NATO top job amid Ukraine, US uncertainty - Reuters, Politico

        • US warns Iran planning 'imminent' ballistic missile attack on Israel as Lebanon invasion begins - Euronews

      • Central Banks

        • ECB's Rehn Says Direction of Rates Is Clear But Data to Set Pace - Bloomberg

        • Nagel Says ECB Bond Purchases to Be Limited to Exceptional Cases - Bloomberg

      • EU

        • SAP chief warns EU against over-regulating artificial intelligence - FT

        • Eurozone inflation dips below target to 1.8% in September - FT

      • UK

        • Energy bills rise by £149 for typical household - BBC, The Telegraph

        • Families with children 'worse off than pensioners' despite Reeves's winter fuel raid - The Telegraph

        • Robert Jenrick in touching distance of Kemi Badenoch, poll shows - Sky news

        • UK regulator preparing for 'strong action' against tech giants - FT

      • France

        • Michel Barnier dives into the cauldron of the Assembly - Les Echos

      • Germany

        • German manufacturing activity at 12-month low in September - Baha

        • Lindner wants to make private pension provision more attractive - Handelsblatt

      • Sweden

        • Swedish Bankruptcies Rise Again as Recovery Sputters - Bloomberg

      • Finland

        • Inflation rate expected to stabilise at the target - release

    • Company news:

      • Notable Gainers

        • +97.6% ALDVI.FP (Advicenne €1.84, +0.91) -- achieves major milestones in the US thanks to several positive FDA opinions on ADV7103

        • +23.1% FING.B.SS (Fingerprint Cards SEK0.11, +0.02) -- unveils 4th generation iris recognition software platform

        • +8.6% RNWH.LN (Renew Holdings £11.42, +0.90) -- FY trading update

        • +8.3% VICO.SS (Vicore Pharma Holding SEK7.86, +0.60) -- $10M investment from Sanofi

        • +6.8% FTK.GR (flatexDEGIRO €13.72, +0.88) -- resolves to implement share buyback program of up to €50M

        • +6.3% RENX.LN (Renalytix £0.09, +0.01) -- FY earnings; places £10M of new shares at 9p per share; appoints new Executive Chairman

        • +4.2% WRKS.LN (TheWorks.co.uk £0.25, +0.01) -- FY earnings

        • +3.9% PAF.LN (Pan African Resources $0.33, +0.01) -- appoints new finacial director

        • +3.9% 1COV.GR (Covestro €58.10, +2.16) -- ADNOC offers to acquire company for €62/share

        • +3.6% IDIA.SW (Idorsia CHF1.55, +0.05) -- study results

        • +3.4% JHD.LN (James Halstead £1.83, +0.06) -- FY earnings

        • +1.8% SLR.SM (Solaria Energia €11.67, +0.21) -- H1 earnings

        • +1.7% ABI.BB (Anheuser-Busch InBev €60.40, +0.98) -- Citi upgrade

        • +1.6% AZN.LN (AstraZeneca £117.78, +1.82) -- FDA panel to meet on 21-Nov to discuss AstraZeneca's AndexXa when reversal of anticoagulation is needed for life-threatening or uncontrolled bleeding

        • +1.5% ORY.SM (Oryzon Genomics €1.81, +0.03) -- FDA's feedback supports the initiation of vafidemstat's PORTICO-2 Phase III trial

        • +1.5% SANN1.SW (Santhera Pharmaceuticals Holding CHF8.98, +0.13) -- study results

        • +1.1% PDX.SS (Paradox Interactive SEK182.00, +1.90) -- Handelsbanken upgrade

        • +1.0% CLNX.SM (Cellnex Telecom €36.86, +0.38) -- appoints Óscar Fanjul Martín as new Chair; succeeds Anne Bouverot

        • +1.0% CCL.LN (Carnival £12.28, +0.12) -- Q3 earnings

      • Notable Decliners

        • -22.0% VVY.NA (Vivoryon Therapeutics €2.34, -0.66) -- announced key takeaways from its virtual Kidney Disease Key Opinion Leader

        • -21.6% EAH.LN (Eco Animal Health Group £0.76, -0.21) -- H1 trading update

        • -10.0% IOM.LN (iomart Group £1.04, -0.12) -- H1 trading update

        • -9.2% CREO.LN (Creo Medical Group £0.22, -0.02) -- H1 earnings; raises £12M (before expenses) by the issue of 50.0M shares at issue price of 24p/share

        • -6.4% LECN.SW (Leclanché CHF0.16, -0.01) -- extends publication deadline for 2024 interim results

        • -6.4% NCAB.SS (NCAB Group SEK63.10, -4.35) -- prelim Q3 earnings

        • -6.0% NEL.NO (NEL ASA NOK4.69, -0.30) -- terminated capacity reservation agreement for Mississippi Clean Hydrogen Hub

        • -5.2% GRG.LN (Greggs £29.60, -1.62) -- Q3 trading update; Panmure Liberum downgrade

        • -4.8% WIHN.SW (WISeKey International Holding CHF3.60, -0.18) -- H1 earnings

        • -4.3% AGY.LN (Allergy Therapeutics £0.05, -0.00) -- update on funding and preliminary results; extends its cash runway into late-October

        • -3.4% KER.FP (Kering €248.15, -8.70) -- Goldman Sachs upgrade

        • -3.0% CO.FP (Casino Guichard-Perrachon €2.92, -0.09) -- agreements signed with the trade unions in the 7 Group host companies concerned by the employment protection plan

        • -3.0% SKIS.B.SS (SkiStar SEK159.70, -4.90) -- Q4 earnings

    • EU companies reporting tomorrow:

      • Earnings:

        • France: Carbios (ALCRB.FP), Bilendi (ALBLD.FP), Mauna Kea Technologies (ALMKT.FP)

        • UK: JD Sports Fashion (JD.LN), Pinewood Technologies Group (PINE.LN), Saga (SAGA.LN)

  • Data:

    • Economics:

      • Sep Manufacturing PMI

        • Sweden 51.3 vs consensus 51.8 and prior revised 52.6 from 52.7

        • Spain 53.0 vs consensus 50.1 and prior 50.5

        • Switzerland 49.9 vs consensus 48.2 and prior 49.0

        • Italy 48.3 vs consensus 49.0 and prior 49.4

        • France 44.6 vs preliminary 44.0

        • Germany 40.6 vs preliminary 40.3

        • Eurozone 45.0 vs preliminary 44.8

        • Norway 51.8 vs consensus 52.4 and prior revised 52.0 from 52.1

        • UK 51.5 vs preliminary 51.5

      • Sep preliminary CPI

        • Netherlands +3.5% vs consensus +3.1% and prior +3.6%

        • Austria +1.8% y/y vs consensus +2.1% and prior +2.3%

      • Aug Retail Sales

        • Netherlands +1.8% y/y vs consensus +2.4% and prior revised +1.7% from +2.6%

        • Switzerland +3.2% y/y vs consensus +2.6% and prior revised +2.9% from +2.7%

    • Markets:

      • WTI Crude (Nov 24): +$3.06 or +4.49% to $71.23

      • €-$ (0.0076) or (0.68%) to 1.1061

      • £-$ (0.0106) or (0.79%) to 1.3269

      • €-£ +0.0010 to 0.8337

      • S&P 500 (1.04%)

        • Performance year-to-date

        • FTSE 100: +7.04%

        • DAX: +14.62%

        • CAC: +0.26%

        • MIB: +11.25%

        • Stoxx 600: +8.71%

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.
Please refer to "Terms Of Use".

DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE