Back to Daily DR Market Summary

StreetAccount Summary - EU Market Recap: FTSE 100 +1.35% to 8505.22, DAX +1.20% to 20903.39, CAC40 +0.98% to 7709.75, STOXX 600 +0.69% to 523.62

Jan 17 ,2025

  • Synopsis:

    • European market recap closed higher near best levels. China-exposed sectors like miners, construction/materials and autos and parts the best performers. Healthcare biggest laggards. FTSE at fresh all-time high. Follows strong positive performance on Wednesday and Thursday which took Stoxx 600 to a five-week high and DAX to fresh record high.

    • Big retreat in Treasury yields this week has been supportive for risk assets, getting some help from cooler core US CPI/PPI numbers as well as a bit of dovish Fedspeak. Eurozone bond yields also steadying following last week's big backup. Early reports from the Q4 earnings season have also been generally well received, particularly US big banks (where better 2025 NII guidance was a theme) and the European luxury sector. Still some Trump 2.0 optimism in the markets but also a level of uncertainty about the exact shape of coming policies, some of which could begin to be rolled out through executive orders as soon as Monday. Not a lot of obvious impact from China's Q4 GDP beat given tariff concerns. Israel-Hamas ceasefire said to be still on track to begin Sunday. Houthi leader also signaled pause on Red Sea ship attacks.

    • Focus in Europe on UK core retail sales posted surprise 0.6% decline m/m, with headline also lower than analyst estimates. December uptick in Eurozone inflation confirmed, but unlikely to deter ECB easing plans. French PM Bayrou survived no-confidence vote, as expected. Late Thursday, European carmakers called for 'grand bargain' with Trump to avoid trade war. Bloomberg reported Trump plans to designate cryptocurrency as a White House priority. Markets will be closed for the US holiday on Monday.

    • In M&A news, press suggests Glencore (GLEN.LN) and Rio Tinto (RIO.LN) held early-stage talks about combining the businesses, with talks brief and now concluded. Of note. neither company has officially commented on the reports; also in the UK, the FT reported that Bureau Veritas (BVI.FP) ended merger talks with Intertek (ITRK.LN) in favor of pursuing deal with SGS and - still on the same newspaper - US activist investor Engine Capital called for Smiths Group (SMDS.LN) to explore a break-up or selling the group entirely.

    • On the reporting front, DACH names kicked off the session, with Zehnder Group (ZEHN.SW), SÜSS MicroTec (SMHN.GR), Swissquote Group Holding (SQN.SW) and Flughafen Wien (FLU.AV) among few other names posting their most recent numbers. Elsewhere, Swedish FSA opened a case on Evolution (EVO.SS) regarding late publication of review by UK Gambling Commission.

    • Looking ahead to Monday's calendar (see - Europe Week Ahead: 20-Jan to 24-Jan attached) TF Bank (TFBANK.SS), BELIMO Holding (BEAN.SW), Oeneo (SBT.FP), Nacon (NACON.FP), Alphawave IP Group (AWE.LN), and Midwich Group (MIDW.LN) will be among other names to update investors, whilst the macro-calendar releases will include Germany Dec PPI, Switzerland Dec PPI, Eurozone Nov construction output.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Basic Resources +2.04%, Construct & Mtls +1.66%, Ind Goods & Svcs +1.46%, Chemicals +1.40%, Media +1.30%, Retail +1.26%, Autos & Parts +1.15%, Food & Beverage +1.11%, Financial Svcs +1.03%, Utilities +1.02%, Real Estate +1.00%, Insurance +0.85%, Oil & Gas +0.85%, Persnl & HHold Goods +0.75%,

      • Underperformers:

        • Health Care (0.78%), Technology +0.30%, Travel & Leisure +0.55%, Banks +0.59%, Telecom +0.59%,

    • Macro/Peripheral markets:

      • Geopolitics

        • Putin and Iranian president hold Moscow talks ahead of treaty signing - Reuters

        • Israel security cabinet approves Gaza ceasefire agreement - The Guardian

        • Trump and Xi talk on the phone for the first time in four years - Handelsblatt

      • EU

        • EU, Mexico Seal Trade Deal as Trump Threatens Tariffs - Bloomberg, FT

        • EU Mulls Dropping China Trade Case, Frustrating Trump Team - Bloomberg

      • UK

        • EU fumes as Britain delays banking shake-up over Trump - Politics

        • IMF upgrades UK growth forecast and takes swipe at Trump plans - The Guardian

        • How retail misery is piling pressure on Bank of England for rate cuts - The Telegraph

        • UK's Growing US Trade Surplus Highlights Trump Tariff Threat - Bloomberg

        • Strict mortgage rules could be eased to allow more people to borrow for a home - BBC

      • France

        • France's Bayrou gets spending plan approved by EU - Politics

        • German foreign minister Baerbock attacks Scholz over Ukraine aid - FT

      • Germany

      • Italy

        • Bank of Italy Says Economy Remained Weak at the End of 2024 - Bloomberg

    • Company news:

      • Trading Higher:

        • +22.2% MCB.LN (McBride £1.24, +0.23) -- 6m trading update

        • +20.3% SMHN.GR (SÜSS MicroTec €49.35, +8.30) -- preliminary Q4 earnings

        • +9.3% MAIRE.IM (MAIRE €9.71, +0.83) -- Kepler Cheuvreux upgrade

        • +7.7% AVOL.SW (Avolta CHF38.90, +2.78) -- to launch up-to-CHF200M share buyback

        • +7.4% EVOK.LN (Evoke Plc £0.74, +0.05) -- FY post-close trading update

        • +6.9% BYG.LN (Big Yellow Group £9.30, +0.60) -- Q3 trading update

        • +6.9% TLGO.SM (Talgo €3.78, +0.25) -- Polish Development Fund interested in Talgo - El Confidencial

        • +6.5% RENX.LN (Renalytix £0.12, +0.01) -- discloses transition to foreign private issuer reporting

        • +6.1% ENT.LN (Entain £6.70, +0.39) -- BofA upgrade

        • +6.1% CLTN.SW (Coltene Holding CHF55.60, +3.20) -- preliminary FY earnings

        • +5.6% VAIAS.FH (Vaisala €53.20, +2.80) -- Evli Bank upgrade

        • +5.2% ZEHN.SW (Zehnder Group CHF45.90, +2.25) -- preliminary FY sales

        • +4.9% SMIN.LN (Smiths Group £18.51, +0.86) -- US activist investor Engine Capital calling for Smiths Group to explore break-up or sell group entirely -- FT

        • +4.5% HEX.NO (Hexagon Composites NOK41.45, +1.80) -- initiated buy at Pareto

        • +4.3% DFS.LN (DFS Furniture £1.44, +0.06) -- trading update

        • +3.6% ORSTED.DC (Ørsted DKK311.50, +10.90) -- ABG Sundal Collier upgrade

        • +3.5% NEL.NO (NEL ASA NOK2.25, +0.08) -- acquires a 4.85% stake in Cavendish Hydrogen

        • +3.3% IMCD.NA (IMCD €145.20, +4.65) -- Barclays upgrade

        • +3.2% TW.LN (Taylor Wimpey £1.15, +0.04) -- Peel Hunt upgrade

        • +2.8% GLEN.LN (Glencore £3.81, +0.11) -- Glencore, Rio Tinto not currently in active talks -- Reuters

        • +2.3% SAA.LN (M&C Saatchi £1.81, +0.04) -- FY trading update; Peel Hunt upgrade

        • +1.5% SDR.LN (Schroders £3.26, +0.05) -- Schroders plans to reduce workforce by up to ~3% - Bloomberg

      • Trading Lower:

        • -58.6% IGR.LN (IG Design Group £0.59, -0.84) -- 9M trading update

        • -4.4% EVO.SS (Evolution SEK836.00, -38.80) -- Swedish FSA opens case on Evolution regarding late publication of review by UK Gambling Commission - DI; Redburn Atlantic upgrade

        • -2.7% VIRP.FP (Virbac €309.00, -8.50) -- FY revenue; CIC Market Solutions upgrade

        • -1.6% CCT.LN (Character Group £2.49, -0.04) -- trading update

    • EU companies reporting Monday:

      • Earnings: TF Bank (TFBANK.SS)

      • Trading Update:

        • Benelux: BELIMO Holding (BEAN.SW)

        • France: Oeneo (SBT.FP), Nacon (NACON.FP)

        • UK: Alphawave IP Group (AWE.LN), Midwich Group (MIDW.LN)

  • Data:

    • Economics:

      • UK Dec Retail Sales +3.6% y/y vs consensus +4.2% and prior revised 0.0% from +0.5%

      • Eurozone Dec CPI +2.4% y/y vs preliminary +2.4%; Eurozone Dec CPI +0.4% m/m vs preliminary +0.4%

    • Markets:

      • WTI Crude (Feb 25): ($0.69) or (0.88%) to $77.99

      • €-$ +0.0000 or +0.00% to 1.0302

      • £-$ (0.0049) or (0.40%) to 1.2190

      • €-£ +0.0034 to 0.8451

      • S&P 500 +1.17%

      • Performance year-to-date

        • FTSE 100: +4.06%

        • DAX: +4.99%

        • CAC: +4.46%

        • MIB: +6.09%

        • Stoxx 600: +3.15%

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