Newsquawk Daily European Equity Opening News

5th April 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0300EDT recapping all of the overnight equity news.

From 0700GMT/0300EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0315EDT.

There will be an additional audio rundown at 0750GMT/0350EDT recapping any company news which has hit the wires since 0715GMT/0215EDT 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

APAC stocks traded mixed as the region also observed mass closures. Mainland China, Hong Kong, and Taiwan were all closed today due to domestic holidays. ASX 200 traded in the green in the run-up to the RBA release but trimmed those gains following the RBA's hawkish hold. Nikkei 225 reversed the gains seen at the open amid unfavourable currency dynamics after verbal jawboning from Japanese officials. KOSPI traded lacklustre as South Korean March CPI rose at its fastest pace since 2011.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.83% at 3,951; FTSE 100 +0.27% at 7,557; DAX +0.50% at 14,518; CAC 40 +0.70% at 6,731; IBEX 35 +0.17% at 8,518; FTSE MIB +0.03% at 25,171; SMI +1.33% at 12,340.

SECTORS: Technology 2.14%, Healthcare 1.67%, Consumer Services 1.54%, Consumer Goods 1.53%, Utilities 0.58%, Industrials 0.45%, Telecoms 0.42%, Financial Services -0.10%, Energy -0.23%, Basic Materials -0.35%

FTSE 100

Gambling Names - Cos will be banned from utilising adverts which include sports personalities, reality TV and social media stars, as part of a new set of rules to protect vulnerable groups. (Guardian)

ITV (ITV LN) - UK Gov't is to sell off Channel 4 before the next general election. (FT)

OTHER UK COMPANIES

BROKER MOVES

Darktrace (DARK LN) initiated with Underweight at JPMorgan

Lloyds (LLOY LN) downgraded to equal weight from overweight at Barclays

Vodafone (VOD LN) downgraded to Hold from Buy at Berenberg

DAX

Bayer (BAYN GY) - New data for finerenone on the risk reduction of cardiovascular and renal outcomes in patients with a combination of atherosclerotic cardiovascular disease, chronic kidney disease and type 2 diabetes (Bayer)

OTHER GERMAN COMPANIES

Aareal Bank (ARL GY) - Shareholders representing around 37% of shares have expressed their support to the Atlantic BidCo offer. (Newswires)

Kion Group (KGX GY) withdrawn FY22 guidance, due to substantial uncertainties exacerbated by Ukraine-Russia. (Newswires)

BROKER MOVES

Basler (BSL GY) upgraded to Buy from Hold at Berenberg

Schaeffler (SHA GY) maintained with Overweight at JPMorgan

Traton (8TRA GY) downgraded to Hold from Buy at Jefferies

CAC

OTHER FRENCH COMPANIES

Air France (AF FP) - In discussions with the GE (GE)/Safran (SAF FP) JV re. the purchase of Leap-1A engines. For use in Airbus (AIR FP) A320/21neo craft. (Newswires)

BROKER MOVES

LVMH (MC FP) resumed with Overweight at JPMorgan

PAN EUROPE

Auto Names - Nio, a Chinese EV startup, is in discussions with other carmakers re. the licensing of its battery swapping technology. Nio believes that its network of charging stations will increase from 800 to 5000 by the middle of the decade. (FT)

Airliners/Flight Names - Travellers have been warned to expect disruption when travelling over the spring and summer, as airlines and airports struggle to rehire staff. (FT)

Russian Sanctions - New EU Russian sanctions likely to include steel, luxuries and jet fuel among other areas, according to sources. (CNBC)

BROKER MOVES

SMI

Roche (ROG SW) - To showcase next gen. diagnostic solutions at EuroMedLab on April 10th-14th. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Richemont (CFR SW) resumed with Overweight at JPMorgan

SCANDINAVIA

BROKER MOVES

Swedbank (SWEDA SS) upgraded to Buy from Hold at Deutsche Bank

US

CLOSES: SPX +0.84% at 4,584, NDX +2.01% at 15,159, DJIA +0.30% at 34,922, R2K +0.60% at 2,096.

SECTORS: Consumer Discretionary +2.33%, Communication Services +2.28%, Technology +1.91%, Energy +0.07%, Materials -0.04%, Industrials -0.18%, Real Estate -0.31%, Consumer Staples -0.32%, Financials -0.48%, Health -0.75%, Utilities -0.79%.

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/Google Order: Descending market cap

Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.
BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.
Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.
OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field. [No longer pursuing investments in Russia (Mar 7)]
Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.
Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.
Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

VEON (VEON AV) (Telecom) 48%
Polymetal (POLY LN) (Basic Materials) 42%
EVRAZ (EVR LN) (Basic Materials) 38%
Uniper (UN01 GY) (Utilities) 25%
Fortum (FORTUM FH) (Utilities) 25%
NOKIAN (TYRES FH) (Autos) 21%