Newsquawk Daily European Equity Opening News

7th 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 throughout most of the session as the downbeat mood reverberated from Wall Street. ASX 200 was dragged lower by its tech sector following a similar sectoral performance in the West. Nikkei 225 was hit by losses across its energy, mining and manufacturing names. KOSPI conformed to the global losses whilst Samsung Electronics (-0.3%) failed to benefit from better-than-expected prelim earnings. Hang Seng and Shanghai Comp were choppy and initially swung between gains and losses before stabilising in the red.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -2.38% at 3,824; FTSE 100 -0.34% at 7,587; DAX -1.89% at 14,151; CAC 40 -2.21% at 6,498; IBEX 35 -1.64% at 8,482; FTSE MIB -2.06% at 24,447; SMI -0.42% at 12,325.

SECTORS: Utilities 0.41%, Healthcare 0.30%, Telecoms -0.08%, Energy -0.42%, Basic Materials -1.08%, Financial Services -1.79%, Consumer Goods -2.11%, Consumer Services -2.83%, Industrials -2.86%, Technology -3.76%

FTSE 100

Energy Names - UK PM Johnson is, on Thursday, to launch the UK's new energy strategy; after last-minute debate, strategy will have atomic energy at its core and look for 95% of electricity to be sourced from domestic renewables by 2030. However, the gov't is refusing to set targets for onshore wind and will continue with North Sea oil and gas. Within this, up to eight more nuclear reactors may be constructed on existing sites. (Guardian/BBC)

OTHER UK COMPANIES

888 Holdings (888 LN) - On Thursday, post earnings, Co. will announce plans for a cash call to fund its takeover of the non-US components of William Hill, according to Sky News. (Sky News)

BROKER MOVES

AstraZeneca (AZN LN) maintained with Overweight at JPMorgan

LSE (LSE LN) initiated with Outperform at Credit Suisse

DAX

OTHER GERMAN COMPANIES

Aareal Bank (ARL GY) - Conclusion of investor agreement, waiving one-year blocking period for a renewed takeover offer. Atlantic BidCo is prepared to submit a renewed takeover offer at EUR 33/shr. Minimum acceptance level is 60%, thus far has commitments from 37% of shares. (Newswires)

Gerresheimer (GXI GY) - Q1 (EUR): Revenue 371mln (exp. 351mln), adj. EBITDA 62mln (exp. 155mln). Upgrades FY22 revenue guidance after a strong Q1, lifted to double-digit growth (prev. high single-digit). (Newswires)

Hella (HLE GY) - 9-month (EUR): Revenue 4.6bln (prev. 4.65bln), adj. EBIT 238mln (prev. 373mln). Confirms FY21 revenue guidance. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Q1 deliveries 140-142 craft, +13% YY. (Newswires)

Vinci (DG FP) - Purchased the remaining 70% of TollPlus. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Euronext (ENX FP) initiated with Outperform at Credit Suisse

PAN EUROPE

Atlantia (ATL IM) - Blackstone is reportedly looking into a bid for the Co., according to Bloomberg sources; reportedly in discussions around combining with the Benetto family, who own 33% of the Co. (Newswires)

BROKER MOVES

SMI

Swiss Re (SREN SW) - Targets a ROTE of 14% in 2024; via, attractive margins in property/casualty business and ongoing cost discipline. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Julius Baer (BAER SW) upgraded to Buy from Hold at Deutsche Bank

Julius Baer (BAER SW) upgraded to Buy from Hold at Societe Generale

SCANDINAVIA

Clas Ohlson (CLASB DC) - March revenue SEK 639mln, +22% YY. (Newswires)

BROKER MOVES

Telia (TELIA SS) downgraded to Hold from Buy at Handelsbanken

US

CLOSES: SPX -0.98% at 4,480, NDX -2.17% at 14,498, DJIA -0.42% at 34,496, R2K -1.30% at 2,016.

SECTORS: Consumer Discretionary -2.63%, Technology -2.55%, Communication Services -2.11%, Materials -1.12%, Industrials -0.76%, Financials -0.66%, Energy +0.54%, Consumer Staples +1.39%, Health +1.55%, Real Estate +1.55%, Utilities +2%.

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%