Daily European Equity Opening News - 7th November 2024

ASIA

APAC stocks were somewhat mixed albeit with a mostly positive bias as the dust settled from the US election and the Trump trade began to wane after reverberating across global markets with participants bracing for higher US tariffs, while participants also digested Chinese trade data as the attention turned to the incoming central bank rate decisions including from the FOMC. ASX 200 was indecisive but eventually finished positive as strength in energy, tech, industrials and financials gradually picked up the slack from weakness in real estate and defensives, while weak Australian trade data capped the upside. Nikkei 225 initially surged on the back of a weaker currency but failed to sustain the momentum and gave back its spoils. Hang Seng and Shanghai Comp shrugged off the threat of incoming blanket tariffs from the next US administration as participants continued to await a potential fiscal stimulus announcement and as the latest Chinese trade data was mostly better-than-expected with double-digit export growth. Furthermore, the PBoC held a meeting with international financial institutions and affirmed to continue its accommodative monetary policy, while China told banks to cut interbank deposit rates to boost growth.

BHP (BHP AT) - CEO Henry says he is seeing “green shoots” in China’s property market following recent Chinese stimulus measures. (FT)

EUROPEAN CLOSES

CLOSES: DAX: -1.14% at 19,037, FTSE 100: -0.07% at 8,167, CAC 40: -0.51% at 7,370, Euro Stoxx 50: -1.47% at 4,799, AEX: -0.83% at 875, IBEX 35: -2.90% at 11,495, FTSE MIB: -1.54% at 33,941, SMI: -0.16% at 11,848, PSI: -3.27% at 6,334.

SECTORS: Telecoms 0.19%, Industrials 0.14%, Healthcare -0.21%, Financials -0.25%, Energy -0.33%, Materials -0.61%, Consumer Disc -0.78%, Consumer Stpl -1.15%, IT -1.31%, Utilities -2.52%

FTSE 100

Ex-Dividend – Airtel Africa (AAF LN), BP (BP/ LN), HSBC (HSBA LN), JD Sports (JD/ LN) and Unilever (ULVR LN) will trade without entitlement to their latest dividend. (Newswires)

HSBC (HSBA LN) - PBoC held a meeting with international financial institutions including HSBC, Standard Chartered (STLAN LN) and Citi (C), while it affirmed to continue accommodative monetary policy stance and vowed to strengthen communication with the market. Furthermore, Governor Pan said they are to expand connectivity between domestic and overseas markets. (Newswires)

Rio Tinto (RIO LN) - Executive says China's steel demand will continue to shrink next year, shifting to higher grade ore. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Daimler Truck (DTG GY) - Final Q3 (EUR): Revenue 13.1bln (prev. 13.9bln Y/Y). Confirms guidance. (Newswires)

Delivery Hero (DHER GY) – Q3 (EUR): Revenue 3.23bln (prev. 2.71bln Y/Y), GMV 12.3bln (prev. 11.7bln Y/Y). FY Guidance Update: GMV at the upper-end of 7-9% Y/Y growth band, Revenue at the upper-end of 18-21% band. (Newswires) Shares +2.7% in pre-market trade

German stocks - German Chancellor Scholz has reportedly dismissed finance minister Christian Lindner over budget disputes, according to Reuters citing sources. German Chancellor Scholz will hold confidence vote in mid-January, which could trigger new elections by March. (Reuters/Newswires)

Munich Re (MUV2 GY) – Q3 (EUR): Net Result 0.93bln (prev. 1.17bln), decline due to above-average major losses from natural catastrophes. Expects to surpass its results target of 5bln in 2024. (Munich Re)

RWE (RWE GY) - Activist Investor Elliott reportedly said to take a stake in Germany's RWE, calling for a buyback, according to Bloomberg. (Bloomberg)

Rheinmetall (RHM GY) - Q3 (EUR): Sales 2.45bln (exp. 2.39bln, prev. 1.75bln Y/Y), EBIT 270mln (exp. 298mln, prev. 172mln Y/Y). Confirms FY guidance. Now aiming for an op. result margin at upper end of guidance. (Newswires)

Lanxess (LXS GY) - Q3 (EUR): Net Income 1mln (exp. 20mln, prev. 131mln Y/Y), Adj. EBITDA 173mln (exp. 168mln, prelim 181mln), Revenue 1.6bln (exp. 1.64bln). For Q4 expects a subdued performance due to normal seasonal nature of its business. (Newswires) Shares +1.7% in pre-market trade

OTHER GERMAN COMPANIES

Heidelberg Materials (HEI GY) - Q3 (EUR): Revenue 5.76bln (exp. 5.63bln, prev. 5.61bln Y/Y). Raises FY24 RCO 3.1-3.5bln (prev. guided 3-3.3bln). (Newswires)

Qiagen (QIA GY) - Q3 (USD): Adj. EPS 0.57 (exp. 0.55), Net Sales 502mln (exp. 490mln). Affirms outlook. (Newswires)

Nemetschek (NEM GY) - Q3 (EUR): Revenue 252mln (exp. 251mln). Confirms outlook. (Newswires)

Nordex (NDX1 GY) - 9m (EUR): Revenue 5.11bln (prev. 4.48bln Y/Y). FY EBITDA margins expected to be at top end of guidance. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - China Airlines (2610 TT) is nearing a decision to split order of up to 20 large passenger plains between Boeing (BA) and Airbus, while it is also close to ordering Boeing or Airbus freighters, according to Reuters sources. (Reuters)Engie (ENGI FP) – 9m (EUR): EBIT 7.1bln (prev. 8bln Y/Y), EBITDA 12bln (prev. 11.9bln). (Newswires)

Safran (SAF FP) - Has appointed Stephane Cueille as CEO of its Aircraft Engines unit, replacing Jean-Paul Alary effective in the first few months of 2025. (Newswires)

Teleperformance (TEP FP) - Q3 (EUR): Revenue 2.52bln (exp. 2.56bln). (Newswires)

OTHER FRENCH COMPANIES

Legrand (LR FP) - 9m (EUR): Revenue 6.23bln (prev. 6.21bln Y/Y). (Newswires)

SES (SESG FP) - 9m (EUR): Revenue 1.48bln (prev. 1.49bln Y/Y). (Newswires)

Veolia Entertainment (VIE FP) - 9m (EUR): EBITDA 4.94bln (prev. 4.79bln Y/Y). Affirms guidance. (Newswires)

BROKER MOVES

SocGen (GLE FP) reiterated with Sector Perform at RBC

Sodexo (SW FP) downgraded to Hold from Buy at Jefferies

PAN EUROPE

ams-OSRAM (AMS AV) – Q3 (EUR): Revenue 881mln (exp. 880mln), adj. EBITDA 166mln (exp. 162mln), adj. EBIT 82mln (exp. 70mln). Expects a weak Q1, but sees growth in semiconductor core-portfolio for the FY. (Newswires)

Adyen (ADYEN NA) - Q3 (EUR): Revenue 498mln (exp. 504mln). Aims to improve EBITDA margin to levels above 50% in 2026. (Newswires)

ArcelorMittal (MT NA) - Q3 (USD): Revenue 15.2bln (exp. 15.2bln), EBITDA 1.58bln (exp. 1.47bln). Affirms guidance, and sees positive FCF outlook in 2024 and beyond. Says China's excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports. Expects apparent demand in aggregate markets to be higher in H2'24 vs H2'23. (Newswires)

Banco BPM (BPM IM) - Unit Vita launches voluntary public tender offer; offer to pay EUR 6.20/shr and aims to list Anima's shares from Euronext Milan. (Newswires)

China-exposed stocks - Chinese Imports YY (Oct) -2.3% vs. Exp. -1.5% (Prev. 0.3%); Exports YY (Oct) 12.7% vs. Exp. 5.2% (Prev. 2.4%)

Enel (ENEL IM) - 9mth (EUR): Ordinary EBITDA 17.4bln (exp. 17.3bln), Net income 5.8bln (exp. 5.7bln). Revenue 57.6bln. Confirms 2024 guidance. Approves interim dividend of EUR 0.215/shr. (Newswires)

KBC (KBC BB) - Q3 (EUR): Net Income 868mln (prev. 877mln Y/Y), Revenue 2.79bln (prev. 2.72bln Y/Y). (Newswires)

Pirelli (PIRC IM) - Administrative procedure launched for the possible breach by CNRC of the measures contained in Golden Power legislation. (Newswires)

Stellantis (STLA IM/STLAP FP) - To indefinitely lay off 1.1k workers in Toledo, Ohio at Jeep plant, citing the need to reduce inventory. (Newswires)

Telefonica (TEF SM) – Q3 (EUR): Revenue 10.02bln (exp. 10.04bln), adj. EBITDA 3.26bln (exp. 3.25bln). On track for FY guidance. Reached an agreement with Vodafone (VOD LN) Espana to incorporate a joint Co. for the commercialisation of FTTH network. (Newswires)

BROKER MOVES

SMI

Swiss Re (SREN SW) - Strengthens reserves for US liability business following a comprehensive review of reserves. In the P&C business in Q3'24 by USD 2.4bln. (Newswires)

Zurich Insurance (ZURN SW) - 9m (USD): P&C GWP 36.1bln, +4.4% Y/Y. Insurance revenue 33.3bln, +5.8% Y/Y. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

GN Store Nord (HN DC) - Q3 (DKK): Revenue 4.16bln (exp. 4.37bln). (Newswires)

Kojamo (KOJAMO FH) - Q3 (EUR): Revenue 113.2mln (prev. 108.2mln Y/Y). (Newswires)

Zealand Pharma (ZEAL DC) - Q3 (DKK): Revenue 53.3mln (prev. 319.6mln Y/Y), Net Loss 872.9mln (prev. 318.8mln Y/Y). Affirms guidance. Expects to initiate a Phase 2b trial with Petrelintide in people with overweight or obesity without Type 2 diabetes in Q4'24. (Newswires)

BROKER MOVES

US

CLOSES: SPX +2.53% at 5,929, NDX +2.74% at 20,781, DJIA +3.57% at 43,730, RUT +5.84% at 2,393

SECTORS: Real Estate -2.64%, Consumer Staples -1.57%, Utilities -0.98%, Health +0.15%, Materials +1.2%, Communication Services +2.38%, Technology +2.52%, Energy +3.54%, Consumer Discretionary +3.62%, Industrials +3.93%, Financials +6.16%.

Arm Holdings (ARM) - Q2 2025 (USD): Adj. EPS 0.30 (exp. 0.26), Revenue 0.844bln (exp. .81bln). (Newswires)

Coty Inc (COTY) - Q1 2024 (USD): EPS 0.09 (exp. 0.19), operating income 304mln (exp. 298mln), adj. EBITDA 360mln (exp. 362mln). (Newswires) Of note for L'Oreal (OR FP)

Qualcomm Inc (QCOM) - Q4 2024 (USD): Adj. EPS 2.69 (exp. 2.56), Adj. revenue 10.24bln (exp. 9.9bln), approves USD 15bln share repurchase planGuides Q1 ADJ EPS USD 2.85-3.05 (exp. 2.81). Guides Q1 revenue USD 10.5bln-11.3bln (exp. 10.54bln). (Newswires)

Take-Two Interactive Software Inc (TTWO) - Q2 2025 (USD): EPS -2.08 (exp. 0.41), Revenue 1.35bln (exp. 1.43bln). (Newswires)

07 Nov 2024 - 06:58- Research Sheet- Source: Newsquawk