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StreetAccount Summary - European Market Recap: FTSE 100 (0.32%) to 8358.25, DAX +0.38% to 19657.37, CAC40 +0.39% to 7613.05, STOXX 600 +0.21% to 524.99

Oct 18 ,2024

  • Synopsis:

    • European equity markets generally ended the day higher, as pan-European indices spent much of the session in a narrow range in slightly positive territory, with little to move shares meaningfully in either direction

    • With shares ending towards the upper half of the range, Finland +1.1% is the outlier to the upside and along with Austria, Italy, Netherland all +0.5% lead outperformers. A handful of country benchmarks ended lower on the day, Denmark, Norway both (0.8%), Portugal (0.6%) join Belgium and the FTSE100 in leading underperformers.

    • Gaza, Israel, Lebanon and Ukraine in focus as US President Biden met with Chancellor Scholz, UK's PM Starmer and France's President Macron met in Germany the parties reiterating support for Ukraine and urging Israel's PM Netanyahu to "move on" and make progress towards a ceasefire in Gaza.

    • ECB published its latest survey of professional forecasters. The report showed that Eurozone inflation may meet its target earlier than expected. Inflation expectations for 2024 at 2.4% but forecast for 2025 cut by 0.1% to 1.9% and unchanged in 2026 at 2.0%.

    • ECB's Muller said slow pace of economic recovery suggests ECB no longer needs to keep rates at current levels to slow inflation (Bloomberg)

    • The limited macro news flow included UK Sep Retail Sales unexpectedly increased by +0.3% m/m in September versus consensus (0.3%) and prior +1.0%.

    • Share price reactions to company earnings/updates were mixed and included to the upside Basic-Fit (BFIT.NA), Brunello Cucinelli (BC.IM), COMET Holding (COTN.SW), Mensch & Maschine Software (MUM.GR), Tarkett (TKTT.FP) and Volvo (VOLV.B.SS) as well as La Francaise des Jeux (FDJ.FP) preliminary Q3 revenue €669M vs year-ago €586M, EssilorLuxottica (EL.FP) Q3 revenue €6.44B vs consensus €6.54B, with upbeat commentary on conf. call and Avanza Bank Holding (AZA.SS) Q3 EPS SEK3.61 vs FactSet SEK3.52 [8 est, SEK3.22-3.71]. Movers to the downside included boohoo Group (BOO.LN), Elisa (ELISA.FH), EDP-Energias de Portugal (EDP.PL), Getinge (GETI.B.SS), Norske Skog (NSKOG.NO), Virbac (VIRP.FP) and Warehouses de Pauw (WDP.BB).

    • M&A saw Konecranes (KCR.FH) announce the acquisition of Peinemann Port Services and Container Handling, Pernod Ricard (RI.FP) agree to sell the liqueur Minttu and its whole portfolio of Nordic local brands produced in Turku with their related assets to Oy Hartwall AB. Also, Frasers Group (FRAS.LN) announced it's to vote in favour of the recommended cash acquisition of N Brown Group (BWNG.LN) by Falcon 24 Topco and also, that it's still yet to receive formal feedback from the Board of Mulberry (MUL.LN) on previously disclosed revised proposal

    • Sovereign credit rating reviews due after the close include DBRS (Lithuania), Fitch (Italy, Sweden, Switzerland), Moody's (Lithuania) and S&P (Greece, Italy, Netherlands, UK).

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Technology +2.00%, Basic Resources +1.39%, Autos & Parts +0.90%, Chemicals +0.61%, Banks +0.46%, Telecom +0.39%, Persnl & HHold Goods +0.34%, Insurance +0.26%, Travel & Leisure +0.25%

      • Underperformers:

        • Retail (1.19%), Real Estate (0.82%), Media (0.62%), Oil & Gas (0.54%), Health Care (0.36%), Utilities (0.10%), Construct & Mtls +0.05%, Ind Goods & Svcs +0.06%, Food & Beverage +0.10%, Financial Svcs +0.19%

    • Macro/Peripheral markets:

      • EU:

        • EU Green Deal faces resistance as political shifts threaten climate ambitions - Bloomberg

        • European Council meeting conclusions from Thur - release; Remarks by President Charles Michel at the press conf; von der Leyen remarks

      • Sweden:

        • Government continues to pave the way for new nuclear power - release

      • UK:

        • Treasury unveils "guardrails" for investment borrowing ahead of budget - FT

        • Chancellor Reeves will take advice from an infrastructure taskforce to ensure borrowing for investment will not lead to market turmoil - Guardian

    • Company news:

      • Notable Gainers

        • +40.6% MTC.LN (Mothercare) -- FY EPS 0.6p vs year-ago 0.0p; JV with Reliance Brands

        • +20.2% WHATS.BB (What's Cooking Group) -- announces agreement with Aurelius on intention to sell its SBU Savoury

        • +11.5% DWL.LN (Dowlais Group) -- outperform from neutral at BNP Paribas Exane

        • +10.4% ONC.LN (Oncimmune Holdings) -- Places 12M shares as well as a subscription of a minimum of 2.3M new shares at 15p/share

        • +10.1% ELAN.B.SS (Elanders) -- Q3 EPS SEK1.31 ex-items vs FactSet SEK1.71 [2 est, SEK1.41-2.01]

        • +9.1% TKA.GR (thyssenkrupp) -- JSW Steel-JFE Steel Corp to acquire thyssenkrupp Electrical Steel India for INR40.51B (€443.7M) cash

        • +7.8% NOKIA.FH (Nokia) -- short-term recommendation upgraded to buy from hold at Handelsbanken, buy from hold at Danske Bank; downgraded to sell from reduce at Inderes

        • +7.5% TKTT.FP (Tarkett) -- Q3 revenue €1.00B, +2% vs year-ago €984.3M

        • +7.3% MUM.GR (Mensch & Maschine Software) -- 9M net income €24.4M vs year-ago €21.3M

        • +5.3% SOBI.SS (Swedish Orphan Biovitrum) -- EU's CHMP adopted a positive opinion recommending the granting of a marketing authorisation for the medicinal product Korjuny

        • +4.5% BFIT.NA (Basic-Fit) -- 9M revenue €892M, +17% y/y; well on track to reach the 2024 targets

        • +4.3% COTN.SW (COMET Holding) -- Q3 revenue CHF113.2M vs FactSet CHF122.0M [1 est]; sees FY at lower end of guidance range

        • +3.5% BNOR.NO (BlueNord) -- updates on Tyra redevelopment project and Tyra production guidance

        • +3.4% VOLV.B.SS (Volvo) -- Q3 EPS SEK4.93 vs consensus SEK5.65; raises FY24 Europe 30 heavy-duty forecast; issues FY25 truck forecast and total market development

        • +2.8% CCEP.NA (Coca-Cola Europacific Partners) -- confirms notification of transfer of UK listing category

        • +2.6% BC.IM (Brunello Cucinelli) -- 9M revenue €920.3M vs consensus €916.7M, reaffirms FY guidance

        • +2.5% YOYO.DC (OrderYOYO) -- Q3 adjusted EBITDA DKK14.5M vs FactSet DKK14.0M [1 est]; acquires UK-based company App4

        • +2.0% CO.FP (Casino Guichard-Perrachon ) -- initiates statutory buyout proceedings to acquire all issued shares in Cnova

        • +2.0% MUL.LN (Mulberry) -- Fraser Group still yet to receive formal feedback from the Board of Mulberry on previously disclosed revised proposal; seeks to engage with Challice directly

        • +2.0% HMS.SS (HMS Networks) -- Q3 EPS SEK1.89 vs FactSet SEK1.96 [4 est, SEK1.50-2.52]

        • +2.0% SBS.GR (Stratec) -- preliminary 9M revenue €176.3M vs year-ago €187.7M; sell from hold at Hauck & Aufhäuser; shares reverse initial falls

        • +1.5% GEBN.SW (Geberit) -- buy from neutral at Goldman Sachs

        • +1.4% RI.FP (Pernod Ricard) -- sells the liqueur Minttu and its whole portfolio of Nordic local brands produced in Turku with their related assets to Oy Hartwall AB

        • +1.4% ADS.GR (Adidas) -- Add from Reduce at Baader Helvea

        • +1.2% GNC.LN (Greencore Group) -- hold from sell at Deutsche Numis

          • On earnings/updates: FDJ.FP (La Francaise des Jeux), EL.FP (EssilorLuxottica), 2HRA.GR (H&R), PRS.NO (Prosafe), CMCOM.NA (CM.com), AZA.SS (Avanza Bank Holding) and reversing initial falls FGR.FP (Eiffage), DAM.GR (Data Modul)

      • Notable Decliners

        • -18.2% FUTR.LN (Future) -- CEO to step down

        • -13.6% SMHN.GR (SÜSS MicroTec) -- hold from buy at Stifel

        • -11.1% VIRP.FP (Virbac) -- 9M revenue €1.04B vs year-ago €925.3M, reaffirms FY outlook

        • -8.3% BOO.LN (boohoo Group) -- confirms review of options to unlock and maximise shareholder value; CEO to step down; reports H1 Adj EBITDA £21M vs year-ago £31.0M; reinstated hold at Peel Hunt; prior rating was buy

        • -7.9% CRAYN.NO (Crayon Group Holding) -- hold from buy at ABG Sundal Collier

        • -7.3% NSKOG.NO (Norske Skog) -- Q3 EPS (NOK1.80) vs FactSet (NOK2.10) [1 est]

        • -5.8% AAD.GR (Amadeus FiRe) -- preliminary 9M operating EBITA €46.4M, below company expectations; cuts FY guidance

        • -5.1% BIOG.B.SS (BioGaia) -- preliminary Q3 results did not reach market expectations

        • -4.7% ELISA.FH (Elisa) -- Q3 EPS €0.63 vs FactSet €0.64 [9 est, €0.56-0.66]

        • -4.6% WDP.BB (Warehouses de Pauw) -- Q3 EPRA EPS €0.38 vs FactSet €0.39 [1 est]; reaffirms FY guidance

        • -4.5% GETI.B.SS (Getinge) -- Q3 adjusted EPS SEK2.24 vs FactSet SEK2.43 [4 est, SEK2.28-2.65]

        • -4.5% CANTA.SS (Cantargia) -- hold from buy at Carnegie Securities

        • -4.0% BWY.LN (Bellway) -- hold from add at Peel Hunt

        • -2.2% SRP.FP (SRP Groupe) -- Q3 net income €128.6M, (8%) vs year-ago €139.6M

        • -2.5% ARJO.B.SS (Arjo) -- hold from buy at Pareto; to hold from buy at DnB Markets

        • -1.3% WITH.FH (WithSecure) -- hold from buy at Carnegie Securities

        • -1.2% BNZL.LN (Bunzl) -- neutral from buy at Citi

        • -1.0% CPG.LN (Compass Group) -- hold from buy at Deutsche Bank

          • On earnings/updates: MMB.FP (Lagardere), MODU.FH (Modulight), EDP.PL (EDP-Energias de Portugal), EDPR.PL (EDP Renovaveis) and reversing initial gains EVOK.LN (Evoke)

    • EU companies reporting Monday:

      • Earnings: SAP (SAP.GR), Sandvik (SAND.SS), Logitech International (LOGN.SW), Icade (ICAD.FP), Freelance.com (ALFRE.FP), Tristel (TSTL.LN), Linea Directa Aseguradora (LDA.SM), Vastned Belgium (VASTB.NA)

      • Trading Update/Sales: METRO (B4B.GR), Ros Agro (AGRO.LN), Belysse Group (BELYS.BB), Aryzta (ARYN.SW), Econocom Group (ECONB.BB), Forvia (FRVIA.FP), Lumibird (LBIRD.FP), Prodways Group (PWG.FP)

  • Data:

    • Economics:

      • Sweden Sep unemployment rate 8.2% vs consensus 7.8%, prior 7.9%

      • UK Sep retail sales +3.9% y/y vs consensus +3.2%, prior revised +2.3% from +2.5%

      • Spain Aug trade balance (€4.8B) vs consensus (€3.9B), prior (€3.2B)

      • Eurozone Aug construction output (2.5%) y/y vs consensus (1.7%), prior revised (2.3%) from (2.2%)

    • Markets:

      • WTI Crude (Nov 24): ($1.67) or (2.36%) to $69.00

      • €-$ +0.0028 or +0.26% to 1.0856

      • £-$ +0.0019 or +0.15% to 1.3030

      • €-£ +0.0006 to 0.8332

      • S&P 500 +0.30%

      • Performance year-to-date:

        • FTSE 100: +8.08%

        • DAX: +17.35%

        • CAC: +0.93%

        • MIB: +15.99%

        • Stoxx 600: +9.60%

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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