European indices held steady throughout the session after the initial runup over the 1st hour. Gains were broad with all sectors up, led by Miners and Construction names. 520 of the Stoxx 600 names gained on the session. Volumes slowed a bit as the day wore on, closing down 10% on the day vs the recent month’s elevated turnover.
Despite better FY17 margins and an increase expected of 10% for US sales Puma -2.3% today is trading lower. The range though for ebit is seen at €305-325M vs the consensus estimate of €320.2M with currency headwinds also of a concern. Shares have moved lower since Kering’s announcement they will distribute their holding in the firm via a dividend with the hoped-for acquisition of the co not materializing.
French RE firm Icade +2.8% saw a strong FY17 followed by a better divi thus boosting shares today. Additionaly, the firm will fully acquire ANF Immobilier +7.1% in which it already hold 85% of their shares.
On the rebound in the space ArcelorMittal +1.9% was a standout today as it partners with Nippon Steel & Sumitomo Metal to try to acquire India’s Essar Steel. Tata Steel dropped out of the race with Russia’s VTB making a play for Essar’s assets as well.
After the close Michelin +2.7% said they see recurring FY operating income inline with estimates but added raw material prices could increase in the second half of this year. Conversely, their CFO said no price hikes are currently planned for the year potential crimping margins.
From earlier: Heineken -2%, AB Inbev +.9%, Airbus -1.2%, Barclays +.2%, Akzo Nobel +1.9%.
For Tuesday, Japan will release PPI with Machine Tool Orders due at the close. NAB readings will be released in Australia with trade prices due in Korea. Inflation readings are due from the UK and in Switzerland. Earnings are due from Kering, Metro, Tui, Telekom Austria, and Vontobel Holdings.