Newsquawk Daily European Equity Opening News

2nd February 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0200EST recapping all of the overnight equity news.

From 0700GMT/0200EST all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0215EST.

There will be an additional audio rundown at 0750GMT/0250EST recapping any company news which has hit the wires since 0715GMT/0215EST ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asia-Pac took impetus from the continued gains on Wall St where late buying helped stocks breakout from the early tentative mood and saw the S&P 500 notch its best 3-day performance since November 2020, while US equity futures were also mostly underpinned after-market led by Nasdaq 100 futures following strong Alphabet and AMD earnings. ASX 200 (+1.1%) was higher with the index led by outperformance in the commodity-related sectors and after RBA Governor Lowe reiterated that the board is prepared to be patient and that the end of bond purchases does not mean a Cash Rate hike is imminent, although kept the door open for when the first-rate hike will occur. Nikkei 225 (+1.4%) was underpinned by a predominantly weaker currency and climbed above 27,500 as earnings results continued to drive price action for individual stocks, while Japan’s government further refrained from considering state of emergency declarations. As a reminder, several key markets in the region remained closed with China, Hong Kong, Taiwan, Singapore, South Korea and Malaysia observing holidays.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.2% at 4,224, FTSE 100 +1% at 7,535, DAX 40 +1% at 15,619, CAC 40 +1.4% at 7,099, FTSE MIB +1.5% at 27,224, IBEX 35 +1.3% at 8,726, SMI +1.1% at 12,359.

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

BAE Systems (BA LN) reiterated with Underweight at JPMorgan

DAX

OTHER GERMAN COMPANIES

Siltronic (WAF GY) Q4 (EUR) - Revenue 377mln (prev. 284mln), EBITDA 144mln (prev. 67mln). Continue to record high demand, highlights ongoing uncertainties for 2022, expects a good start to the year. CEO remarks that they are in a better position now than prior to the GlobalWafers offer. (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Gaming Names - Electronic Arts Inc (EA) Q3 2022 (USD): Adj. EPS 3.20 (exp. 3.22), Revenue 1.79bln (exp. 2.66bln). (BusinessWire)

Santander (SAN SM) Q4 (EUR) - Revenue 11.8bln (exp. 11.56bln), net 2.28bln (exp. 2.09bln), CET1 12.1% (exp. 12.1%), NII 8.72bln (prev. 8.46bln). (Santander)

Solvay (SOLB BB) - Announce capacity investment within Europe given increasing demand for EV batteries. (Newswires)

BROKER MOVES

SMI

Clariant (CLN SW) - Divests a 50% stake within the Scientific Design JV for USD 130mln. (Newswires)

Julius Baer (BAER SW) FY (CHF) - Net profit 1.08bln, +55%; adj. net profit 1.14bln (exp. 1.14bln), AUM 482bln, +11%. CET1 16.4% (prev. 14.9%). Dividend payout ratio increase to around 50% of adj. net profit, propose a dividend of 2.60/shr (exp. 2.07/shr). (Julius Baer)

Novartis (NOVN SW) Q4/FY21 (USD) - Q4: Revenue 13.23bln (exp. 13.35bln), Core EPS 1.40 (prev. 1.34). Net Income 16.3bln (prev. 2.09bln), benefitting from the Roche (ROG SW) divestment gain of 14.6bln. Sandoz net sales 2.5bln, +2%. Key Drugs Growth Drivers (Q4): Entresto 949mln (exp. 994mln), Cosentyx 1.24bln (exp. 1.29bln), Kesimpta 147mln, Kisqali 285mln +58%, Zolgensma 342mln +36%. FY: Revenue 51.63bln (exp. 52.07bln), Core EPS 6.29 (prev. 5.78). FY22 outlook: Innovative Medicines sales expected to grow mid single digit; Sandoz sales expected to be broadly in line with prior year; Group sales expected to grow mid single digit. Propose a dividend of CHF 3.10/shr (prev. 3.00/shr). Propose that shareholders authorise the Board to repurchase an additional CHF 10bln between the 2022 and 2025 AGMs. (Novartis)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Swedbank (SWEDA SS) Q4 (SEK) - Net 4.84bln (exp. 4.70bln), NII 6.55bln (exp. 6.61bln). CET1 18.3% (prev. 18.6%). Proposes a special dividend of 2.00/shr. (Newswires)

BROKER MOVES

Schibsted (SHB NO) initiated with Buy at Jefferies

US

Alphabet Inc (GOOGL) Q4 2021 (USD): EPS 30.69 (exp. 27.32), Revenue 75.33bln (exp. 72.13bln), approved 20-for-1 stock split in the form of a one-time special stock dividend. Full release here +9.3% in after-hours trade

Advanced Micro Devices Inc (AMD) Q4 2021 (USD): Adj. EPS 0.92 (exp. 0.76), Revenue 4.8bln (exp. 4.52bln) (GlobeNewswire)

General Motors Co (GM) Q4 2021 (USD): Adj. EPS 1.35 (exp. 1.19), Revenue 33.6bln (exp. 34.01bln). (PR Newswire)

PayPal Holdings Inc (PYPL) Q4 2021 (USD): Adj. EPS 1.11 (exp. 1.12), Revenue 6.90bln (exp. 6.86bln). (PayPal)

CLOSES: S&P 500 +0.6% at 4,542, Nasdaq 100 +0.6% at 15,019, Dow Jones +0.8% at 35,404, Russell 2000 +1% at 2,045.

SECTORS: Energy +3.5%, Materials +1.7%, Financials +1.4%, Industrials +1.4%, Communication Services +1.3%, Consumer Discretionary +0.6%, Health +0.3%, Technology +0.2%, Consumer Staples -0.1%, Real Estate -0.7%, Utilities -1.3%.

02 Feb 2022 - 06:50- EquitiesEconomic Commentary- Source: Newsquawk