Newsquawk Daily European Equity Opening News

6th April 2022

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

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

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/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 lower across the board following the losses on Wall Street; Mainland China returned from its long-weekend. ASX 200 conformed to the downbeat tone which isn’t helped by the RBA’s hawkish hold yesterday. Nikkei 225 saw most of its construction and machinery-related names with losses. KOSPI was pressured by its large tech exposure. Hang Seng was also weighed on by its tech exposure as yields continued to rise overnight. Shanghai Comp returned for the first time this week following its domestic holiday and saw less pronounced losses, with the Real Estate sector feeling relief from reports that over 60 Chinese cities ease policies on housing purchases to support the market.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.84% at 3,917; FTSE 100 +0.72% at 7,613; DAX -0.65% at 14,424; CAC 40 -1.28% at 6,645; IBEX 35 +1.20% at 8,623; FTSE MIB -0.86% at 24,960; SMI +0.37% at 12,386.

SECTORS: Utilities 2.34%, Healthcare 1.36%, Basic Materials 1.26%, Telecoms 1.18%, Energy 1.16%, Consumer Goods 0.30%, Consumer Services 0.15%, Financial Services -0.43%, Industrials -1.49%, Technology -1.69%

FTSE 100

Defence Names - Sources indicate the UK is intending to develop its own hypersonic missile; any such plans would be accelerated by the reported AUUKUS agreement. (Times)

Energy Names - UK PM Johnson is to announce plans to double the gov't target for low-carbon hydrogen, as an alternative to gas. Separately, Ofgem has delayed proposals to make suppliers ring-fence customers cash, amid concern over whether all firms can afford to take such a step. (Times)

GlaxoSmithKline (GSK LN) - FDA has removed the EUA designation for Sotrovimab as a COVID treatment within the US, due to an increase in the proportion of cases with Omicron variant. (Newswires)

ITV (ITV LN) - Reportedly informed UK ministers that it would be interested in making an offer for Channel 4, the network is scheduled to be privatised before 2024 at a cost of circa GBP 4bln. (Telegraph)

OTHER UK COMPANIES

BROKER MOVES

Hochschild (HOC LN) upgraded to Buy from Hold at Berenberg

IWG (IWG LN) upgraded to Buy from Hold at Peel Hunt

Polymetal (POLY LN) downgraded to Hold from Buy at Berenberg

DAX

Banking/Housing Names - Bundesbank's Wuermeling says the domestic real estate market is becoming more and more vulnerable. (Handelsblatt)

Volkswagen (VOW3 GY) - CFO says they are focusing more on quality and margins as opposed to volume and market share, will be reducing their offering of ICE vehicles by 60% within Europe in the next eight years. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

Fraport (FRA GY) downgraded to Hold from Buy at Deutsche Bank

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

Klepierre (LI FP) downgraded to Underweight from Neutral at JPMorgan

PAN EUROPE

BROKER MOVES

Campari (CPR IM) upgraded to Neutral from Underperform at Credit Suisse

Repsol (REP SM) upgraded to Buy from Hold at Jefferies

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -1.19% at 4,528, NDX -2.24% at 14,820, DJIA -0.80% at 34,641, R2K -2.22% at 2,045.

SECTORS: Consumer Discretionary -2.35%, Technology -2.19%, Energy -1.51%, Industrials -1.39%, Communication Services -1.38%, Materials -0.79%, Financials -0.75%, Real Estate +0.06%, Consumer Staples +0.07%, Health +0.18%, Utilities +0.67%.

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%

06 Apr 2022 - 06:50- MetalsResearch Sheet- Source: Newsquawk