Jan 14 ,2025
Synopsis:
European equity markets mostly higher, but off best levels. Banks, Autos & Parts and Telecom outperformed whilst Health Care, Retail and Energy lagged. Follows lower close on Monday with tech and industrial lagging while energy and miners advanced. CAC outperforming on hopes of potential deal on budget. FTSE lagging.
Report that Trump tariffs could be implemented gradually the big story for today. Also some better headlines surrounding big tech with report EU could dial back its regulatory push against the group given its proximity to Trump. Complications surrounding Trump 2.0 legislation continue get attention with Semafor highlighting lack of consensus on taxes. Potential for more targeted tariff approach a positive for market sentiment, but there remains great deal of uncertainty with Trump recently denying Washington Post story about tariffs covering only critical imports. Markets will also focus on US PPI ahead of CPI tomorrow.
In central banks, ECB's Rehn reiterated ECB will keep cutting rates and should end policy restriction in the coming months. However looming trade tariffs cloud the outlook. Hawk ECB Holzmann sees 2% inflation target in sight by end-2025. Press reports suggest Spain plans 100% tax for homes bought by non-EU residents.
Quiet day for macro releases with Italy Industrial Production only notable data, +0.3% m/m in November, above consensus.
In earnings news, out of UK, BP (BP.LN) posted Q4 numbers with upstream production expected to be lower compared to the prior quarter. JD Sports Fashion (JD.LN), Persimmon (PSN.LN), Ocado (OCDO.LN) and Crest Nicholson (CRST.LN) among other UK companies to update investors. In the DACHs, Temenos (TEMN.SW), Lindt & Spruengli (LISN.SW), Suedzucker (SZU.GR) and OMV (OMV.AV) also reported their most recent numbers.
In other notable developments, media reports Reinter Investments to place ~2% stake in British American Tobacco (BATS.LN). Bayer's (BAYN.RG) head of Pharmaceuticals Stefan Oelrich in an interview with Bloomberg, said the company will pause business development in the Pharmaceutical segment, and focus on paying down its debt load. Further in Germany, the government is said to be weighing options with Uniper (UN0.GR) with people with knowledge of the matter saying that the German government has gauged interest in the company as it is considering options including selling a stake, a re-IPO (of potentially ~25%), or selling the entire 99.12% holding.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Banks +1.05%, Autos & Parts +0.84%, Telecom +0.68%, Real Estate +0.66%, Travel & Leisure +0.56%, Technology +0.54%, Insurance +0.52%, Ind Goods & Svcs +0.24%, Financial Svcs +0.16%, Media +0.14%, Construct & Mtls +0.13%, Basic Resources +0.02%
Underperformers:
Health Care (1.59%), Retail (0.79%), Oil & Gas (0.73%), Food & Beverage (0.68%), Persnl & HHold Goods (0.35%), Chemicals (0.28%), Utilities (0.26%)
Macro:
ECB:
UK:
France:
Spain:
Spain plans 100% tax for homes bought by non-EU residents - BBC
Company news:
Notable Gainers
+291.8% QLINEA.SS (Q-linea SEK0.50, +0.37) -- first US customer signs commercial contract for ASTar instrumentation
+21.4% ALBPS.FP (Biophytis €0.32, +0.06) -- enters exclusive negotiations with Chinese pharmaceutical company to license BIO101
+13.6% AMS.LN (Advanced Medical Solutions Group £2.17, +0.26) -- FY trading update
+12.7% HTG.LN (Hunting £3.46, +0.39) -- FY trading update
+9.3% OCDO.LN (Ocado Group £2.95, +0.25) -- Q4 trading update
+7.5% SANN1.SW (Santhera Pharmaceuticals Holding CHF13.24, +0.92) -- receives positive recommendation from Scottish Medicines Consortium for the use of AGAMREE
+5.9% IHP.LN (Integrafin Holdings £3.41, +0.19) -- Q1 trading update, Peel Hunt and Shore Capital Stockbrokers upgrades
+5.5% SAGA.B.SS (Sagax SEK222.40, +11.60) -- Carnegie Securities upgrade
+5.5% PSN.LN (Persimmon £11.15, +0.58) -- trading statement
+5.4% GYM.LN (Gym Group £1.50, +0.08) -- FY trading update
+5.3% TEMN.SW (Temenos CHF71.00, +3.60) -- preliminary FY earnings
+4.4% EVD.GR (CTS Eventim €90.40, +3.85) -- initiated buy at UBS
+4.1% MYCR.SS (Mycronic SEK408.60, +16.20) -- Handelsbanken upgrade
+3.6% 8TRA.GR (TRATON €27.00, +0.95) -- Q4 sales
+3.3% LISN.SW (Chocoladefabriken Lindt & Spruengli CHF100,200.00, +3,200.00) -- preliminary FY earnings
+3.2% AHT.LN (Ashtead Group £50.22, +1.56) -- sympathy move cited on news United Rentals to acquire H&E Equipment Services for $92 per share in cash
+3.2% ARJO.B.SS (Arjo SEK37.00, +1.14) -- CEO steps down; preliminary Q4 earnings
+2.9% HCM.LN (Hutchmed £2.49, +0.07) -- NMPA approves supplemental NDA for Hutchmed's ORPATHYS for NSCLC, gives full approval for previously treated patients
+2.6% IDIA.SW (Idorsia CHF0.74, +0.02) -- receives positive recommendation from Scottish Medicines Consortium for the use of AGAMREE
+2.6% GRF.SM (Grifols €9.01, +0.23) -- receives a grant from The Michael J. Fox Foundation for Parkinson's Research
+2.5% NDX1.GR (Nordex €11.90, +0.29) -- order
+2.3% PIRC.IM (Pirelli & C. €5.69, +0.13) -- Goldman Sachs upgrade
+2.2% HSW.LN (Hostelworld Group £1.38, +0.03) -- FY trading update
+1.9% MOWI.NO (Mowi NOK197.30, +3.75) -- Danske Bank upgrade
+1.9% CARD.LN (Card Factory £0.92, +0.02) -- trading statement
+1.8% LDO.IM (Leonardo €27.90, +0.50) -- completes the acquisition of Leonardo's UAS underwater business
+1.7% DTG.GR (Daimler Truck Holding $38.26, +0.64) -- 2024 sales
+1.6% LAND.SW (Landis+Gyr Group CHF58.60, +0.90) -- and Southwestern Electric Cooperative sign agreement for advanced metering and grid edge intelligence platform
+1.6% RNO.FP (Renault €46.55, +0.73) -- to acquire significant stake in Free To X, a subsidiary of Autostrade per l'Italia
+1.6% BAS.GR (BASF SE €42.49, +0.66) -- Clariant rejects company's allegations against four companies related to the 2020 competition law infringement
+1.6% A2A.IM (A2A €2.21, +0.03) -- Equita upgrade
Notable Decliners
-53.8% THRU.LN (Thruvision Group £0.03, -0.04) -- launches strategic review including launch of formal sale process
-14.2% LNZ.AV (Lenzing €24.45, -4.05) -- Lenzing offering of ~1.49M shares was priced at €26.05 per share via Morgan Stanley -- Bloomberg, citing terms
-13.2% COOR.SS (Coor Service Management Holding SEK31.78, -4.84) -- Q4 trading update
-8.7% EXENS.FP (Exosens €20.42, -1.96) -- Exosens offering by holder prices at €20.30/share -- Bloomberg, citing terms
-6.8% JD.LN (JD Sports Fashion £0.90, -0.07) -- FY trading update
-5.5% SOI.FP (SOITEC €82.25, -4.75) -- Van Lanschot Kempen downgrade
-4.8% GAW.LN (Games Workshop Group £126.00, -6.30) -- H1 earnings
-4.2% EKI.FP (Ekinops €3.31, -0.15) -- Q4 revenue
-3.6% RCO.FP (Remy Cointreau €52.65, -1.95) -- BofA downgrade
-2.7% BP.LN (BP £4.20, -0.12) -- Q4 trading statement
-2.6% ATS.AV (AT & S Austria Technologie & Systemtechnik €11.42, -0.30) -- Deutsche Bank downgrade
-2.6% DATA.LN (GlobalData £1.84, -0.05) -- FY trading update
-2.5% EQNR.NO (Equinor NOK290.70, -7.40) -- confirms awarded 27 new production licences in the APA 2024 licensing round
-2.3% GVS.IM (GVS SpA €4.51, -0.11) -- confirms completes acquisition of Haemonetics' whole blood assets
-2.2% CRNA.NO (Circio Holding NOK0.71, -0.02) -- holder Star Kapital AS raises stake to 6.55%
-1.3% WPU.NO (WPU-Waste Plastic Upcycling NOK14.85, -0.20) -- CEO Niels Henrik Bagge to resign effective tomorrow
EU companies reporting tomorrow:
Earnings: Victorian Plumbing Group (VIC.LN), Gateley (Holdings) (GTLY.LN), BRAIN Biotech (BNN.GR)
Trading Update:
DACHs: Bossard (BOSN.SW)
France: CATANA Group (CATG.FP)
UK: Experian (EXPN.LN), Vistry (VTY.LN), Hays (HAS.LN), Currys (CURY.LN), Ashmore (ASHM.LN), Liontrust Asset Management (LIO.LN), Brooks MacDonald (BRK.LN), Xaar (XAR.LN)
Traffic: Aeroports de Paris ADP (ADP.FP)
Data:
Economics:
Dec CPI
Netherlands +4.1% y/y vs preliminary +4.1%
Finland +0.7% y/y vs consensus +1.0% and prior +1.0%
Markets:
WTI Crude (Feb 25): ($1.00) or (1.27%) to $77.82
€-$ +0.0045 or +0.44% to 1.0291
£-$ (0.0013) or (0.11%) to 1.2191
€-£ +0.0044 to 0.8440
S&P 500 (0.11%)
Performance year-to-date
FTSE 100: +0.35%
DAX: +1.82%
CAC: +0.58%
MIB: +2.74%
Stoxx 600: +0.13%
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