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StreetAccount Summary - EU Market Recap: FTSE 100 (0.83%) to 8682.84, DAX +1.47% to 23419.48, CAC40 +0.29% to 8197.67, STOXX 600 (0.03%) to 555.90

Mar 06 ,2025

• Synopsis:

  • European equity markets closed mixed with Germany +1.5% the top performing regional index and Denmark (1.9%) the weakest. Construction & Mtls, Autos and Basic Resources outperformed. Real Estate, Travel & Leisure and Health Care lagged.

  • Risk appetite softer on velocity and magnitude of bond yield backup, and fears of US slowdown. Comes despite Trump considering agricultural carveouts in Canada, Mexico tariffs, and big European spending plans on defense. Limited nature of automotive tariff relief also drawing scrutiny. European leaders meet in Brussels and expect to agree to substantial increase in defense spending. Germany's plan to allow limitless borrowing to fund defense has put the EU Commission under pressure to consider additional funding sources after proposing €800B in additional borrowing.

  • ECB cut rates by 25 bps to 2.5%, as expected. Statement said monetary policy becoming meaningfully less restrictive. Follows five consecutive cuts and cumulative easing of 150 bps since last June. BoE Governor Bailey warned yesterday with other policymakers there was a substantial risk to UK economy from tariffs but impact on inflation was less certain. Meanwhile, BCC cut its quarterly UK growth forecast. Elsewhere, BoE monthly survey showed rise in firms' inflation expectations.

  • In macro data, Eurozone retail sales missed. Construction PMIs in euro area and UK contracted further. Swedish inflation unexpectedly accelerated, which could reduce the chance of another Riksbank rate cut

  • In earnings, DACHs region companies out with results included Merck (MRK.GR), DHL Group (DHL.GR), Zalando (ZAL.GR), Zumtobel Group (ZAG.AV), ProSiebenSat.1 Media (PSM.GR), Stroeer KGaA (SAX.GR) and Logitech International (LOGN.SW). In the airline sector, Deutsche Lufthansa (LHA.GR) and Air France-KLM (AF.FP) issued Q4/FY24 numbers. Further in France, Bouygues (EN.FP), SPIE (SPIE.FP) and JCDecaux (DEC.FP) posted their most recent earnings. In the UK, Informa (INF.LN), Entain (ENT.LN), Melrose Industries (MRO.LN), Rentokil Initial (RTO.LN) and Reckitt Benckiser (RTO.LN) released their earnings before the open.

  • Of note in Italy, Lottomatica Group (LTMC.IM) holder Gamma Intermediate S.à r.l. places 26M shares at €15.60/sh through Barclays and Deutsche Bank; Suez is mulling an exit from Acea (ACE.IM) and Metro Holding Torino acquired further 3.12% stake in Iren (IRE.IM).

• Digest:

  • Sectors - STOXX Europe 600:

    • Outperformers:

      • Construct & Mtls +2.24%, Autos & Parts +2.13%, Basic Resources +1.25%, Chemicals +1.00%, Ind Goods & Svcs +0.91%, Banks +0.78%, Oil & Gas +0.76%, Technology +0.52%

    • Underperformers:

      • Real Estate (2.73%), Travel & Leisure (1.21%), Health Care (1.19%), Media (1.18%), Persnl & HHold Goods (1.04%), Financial Svcs (0.94%), Telecom (0.89%), Utilities (0.39%), Retail (0.36%), Food & Beverage (0.34%), Insurance (0.05%)

  • Macro:

    • Central Banks:

      • ECB poised for rate cut amid economic uncertainty and policy divisions - Bloomberg, Reuters

      • BoE's Bailey urges US to abandon tariffs, embrace dialogue on global economy - Reuters

    • EU:

      • EU leaders to endorse massive defense spending boost amid Ukraine crisis - Reuters, FT

      • Goldman Sachs raises growth forecast for Germany and Eurozone on military spending boost - Reuters, Bloomberg

    • Germany:

      • Germany's €500B fiscal shift a bold move to revitalize economy and defense - FT, Reuters

    • France:

      • Macron urges France to prepare for potential US disengagement from Europe - Politico

      • Macron proposes extending French nuclear deterrence to EU allies amid rising tensions - FT

    • UK:

      • Chancellor Reeves may be forced to make difficult decisions in upcoming budget - Reuters

      • BCC downgrades UK growth forecast amid rising business costs - London Times

  • Company news:

    • Notable Gainers

      • +42.2% KMR.LN (Kenmare Resources £3.91, +1.16) -- confirms receiving and rejecting cash offer from Oryx Global Limited and Michael Carvill at 530p/share

      • +29.3% AF.FP (Air France-KLM €11.83, +2.68) -- Q4 earnings

      • +14.6% TNXT.IM (Tinexta €9.37, +1.19) -- FY earnings

      • +14.1% DEC.FP (JCDecaux €16.47, +2.04) -- FY earnings

      • +13.7% DHG.ID (Dalata Hotel Group €5.41, +0.65) -- FY earnings; strategic review and commencement of formal sale process

      • +13.3% DHL.GR (DHL Group €43.94, +5.17) -- FY earnings

      • +12.4% SDR.LN (Schroders £4.27, +0.47) -- FY earnings; strategy update

      • +12.2% RSGN.SW (R&S Group Holding CHF18.90, +2.05) -- prelim FY earnings

      • +11.9% LHA.GR (Deutsche Lufthansa €8.04, +0.85) -- Q4 earnings

      • +10.5% SPIE.FP (SPIE €41.60, +3.96) -- FY earnings

      • +10.4% TRMD.A.DC (TORM Plc DKK132.90, +12.50) -- Q4 earnings

      • +9.4% TKA.GR (ThyssenKrupp €9.85, +0.85) -- ThyssenKrupp Automotive Technology to impose hiring freeze and plan a cost reduction focusing on personnel costs exceeding €150M following disappointing Q1 numbers

      • +8.4% ELIS.FP (Elis €21.82, +1.70) -- FY earnings

      • +8.2% ITV.LN (ITV £0.75, +0.06) -- FY earnings

      • +8.2% FBK.IM (FinecoBank €19.25, +1.46) -- Feb sales

      • +7.8% CICN.SW (Cicor Technologies CHF80.00, +5.80) --

        • FY earnings

        • submits public offer to acquire part of the Éolane France business, transaction would add ~CHF 125M to Cicor group sales with positive profit contribution

      • +7.6% FIA1S.FH (Finnair €3.89, +0.27) -- Feb traffic

      • +6.7% EKI.FP (Ekinops €3.76, +0.24) -- FY earnings; "Bridge" strategic plan

      • +6.5% WCH.GR (Wacker Chemie €79.46, +4.88) -- gradually replaces fossil coal with biogenic carbon in its silicon production at its Holla site

      • +6.4% EVK.GR (Evonik Industries €22.31, +1.34) -- exclusive agreement with Sea-Land Chemical for the distribution of its cleaning solutions in the U.S. as of 1-Mar-25

      • +5.9% HAVAS.NA (Havas NV €1.41, +0.08) -- FY earnings; JPMorgan upgrade

      • +5.9% PSM.GR (ProSiebenSat.1 Media €6.38, +0.36) --

        • FY earnings

        • discussions with General Atlantic regarding potential acquisition of minority shareholdings in NuCom Group and ParshipMeet Group

      • +5.7% ASA.NO (Atlantic Sapphire NOK4.97, +0.27) -- releases presentation material to be used at the North Atlantic Seafood Forum

      • +5.3% PFC.LN (Petrofac £0.07, -0.00) -- update on retail shareholder support during financial restructuring

      • +5.3% ARIS.IM (Ariston Holding €4.45, +0.22) -- prelim FY earnings

      • +5.0% GFTU.LN (Grafton Group £8.64, +0.41) -- FY earnings; update on buyback

      • +4.9% DBAN.GR (Deutsche Beteiligungs €25.85, +1.20) -- FY earnings

      • +4.6% DR0.GR (Deutsche Rohstoff €36.20, +1.60) -- prelim FY earnings

      • +4.4% ADM.LN (Admiral Group £30.29, +1.28) -- FY earnings

      • +4.1% NTG.DC (NTG Nordic Transport Group DKK255.00, +10.00) -- Q4 earnings

      • +4.0% SAX.GR (Stroeer SE & Co. KGaA €56.70, +2.20) -- FY earnings

      • +3.8% ANDR.AV (Andritz €61.15, +2.25) -- Q4 earnings

      • +3.4% NAS.NO (Norwegian Air Shuttle NOK11.85, +0.39) -- Feb traffic

      • +3.2% AZM.IM (Azimut Holding €26.78, +0.82) -- Q4 earnings

      • +2.9% EOAN.GR (E.ON SE €12.55, +0.36) -- BofA upgrade

      • +2.7% PAGE.LN (PageGroup £3.34, +0.09) -- FY earnings

      • +2.5% IOT.IM (SECO SpA €1.88, +0.05) -- expands its technology collaboration with Qualcomm Technologies, Inc

      • +2.1% WAF.GR (Siltronic €50.40, +1.04) -- FY earnings

    • Notable Decliners

      • -17.1% MRO.LN (Melrose Industries £5.64, -1.16) -- FY earnings

      • -15.6% SPI.LN (Spire Healthcare Group £1.89, -0.35) -- FY earnings

      • -15.0% AMP.IM (Amplifon €20.57, -3.62) -- Q4 earnings

      • -13.3% ONEF.SS (Oneflow SEK24.70, -3.80) -- prelim ARR

      • -12.9% COPN.SW (Cosmo Pharmaceuticals CHF56.60, -8.40) -- FY earnings

      • -11.6% COTN.SW (COMET Holding CHF231.50, -30.50) -- FY earnings

      • -10.4% FDJ.FP (La Francaise des Jeux €33.78, -3.94) -- FY earnings

      • -10.4% HBR.LN (Harbour Energy £1.92, -0.22) -- FY earnings; CMD update

      • -9.8% RTO.LN (Rentokil Initial £3.50, -0.38) -- FY earnings

      • -9.7% GALD.SW (Galderma Group CHF101.38, -10.86) -- FY earnings

      • -7.2% HTG.LN (Hunting £2.85, -0.22) -- FY earnings

      • -6.5% IGD.IM (IGD SIIIQ €2.65, -0.19) -- FY earnings

      • -6.3% HEALTH.FH (Nightingale Health €2.55, -0.17) -- H1 earnings

      • German real estate shares extend losses following German debt brake news:

        • -6.2% AT1.GR (Aroundtown €2.46, -0.16)

        • -5.5% TEG.GR (TAG Immobilien €12.43, -0.73)

        • -4.7% VNA.GR (Vonovia €25.74, -1.27)

        • -4.3% DWNI.GR (Deutsche Wohnen €21.20, -0.95)

        • -3.6% LEG.GR (LEG Immobilien €71.04, -2.68)

      • -5.5% LRE.LN (Lancashire Holdings £5.87, -0.34) -- FY earnings

      • -5.4% BACTI.B.SS (Bactiguard Holding SEK35.30, -2.00) -- updated longer-term targets

      • -5.0% INF.LN (Informa £7.79, -0.41) -- FY earnings

      • -4.9% QLT.LN (Quilter £1.53, -0.08) -- BofA upgrade

      • -4.8% SGSN.SW (SGS CHF88.56, -4.44) -- Groupe Bruxelles Lambert successfully sold 8.5M shares of SGS for total proceeds of €0.8B

      • -4.5% WALL.B.SS (Wallenstam SEK42.92, -2.00) -- FY earnings

      • -4.2% RLF.SW (RELIEF THERAPEUTICS Holding CHF2.95, -0.13) -- terminates discussions for merger with Renexxion

      • -3.8% ACE.IM (ACEA €16.36, -0.64) -- Suez mulling exit from Acea -- MF

      • -3.3% DUE.GR (Duerr €25.48, -0.88) -- prelim FY earnings

  • EU companies reporting tomorrow:

    • Earnings:

      • Austria: Osterreichische Post (POST.AV)

      • Benelux: Elia Group (ELI.BB), Belysse Group (BELYS.BB)

      • France: bioMerieux (BIM.FP)

      • Nordics: Componenta (CTH1V.FH), Tokmanni Group (TOKMAN.FH), Aiforia Technologies (AIFORIA.FH)

      • Switzerland: Coltene Holding (CLTN.SW), SFS Group (SFSN.SW), mobilezone holding (MOZN.SW), Mikron Holding (MIKN.SW), Flughafen Zurich (FHZN.SW)

      • Southern Europe: BasicNet (BAN.IM)

      • UK/Ireland: Just Group (JUST.LN), Stelrad Group (SRAD.LN), FBD Holdings (EG7.ID)

    • CMD/events: SPIE (SPIE.FP)

• Data:

  • Economics:

    • Switzerland Feb Unemployment Rate (sa) 2.7% vs consensus 2.7% and prior 2.7%

    • Sweden Feb preliminary CPI +1.3% y/y vs consensus +1.1% and prior +0.9%

    • Eurozone Jan Retail Sales +1.5% y/y vs consensus +1.9% and prior revised +2.2% from +1.9%

    • Feb Construction PMI

      • Germany 41.2 vs consensus 44.0 and prior 42.5

      • UK 44.6 vs consensus 49.5 and prior 48.1

  • Markets:

    • WTI Crude (Apr 25): ($0.43) or (0.65%) to $65.88

    • €-$ +0.0042 or +0.39% to 1.0833

    • £-$ +0.0005 or +0.04% to 1.2901

    • €-£ +0.0029 to 0.8397

    • S&P 500 (0.85%)

    • Performance year-to-date

      • FTSE 100: +6.24%

      • DAX: +17.63%

      • CAC: +11.07%

      • MIB: +13.44%

      • Stoxx 600: +9.51%