Newsquawk Daily European Equity Opening News

8th 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 were choppy and eventually conformed to a mixed picture; some weakness was seen shortly after the Chinese cash open. ASX 200 bucked the trend and was propped up by its energy and gold names. Nikkei 225 was choppy and moved in tandem with action in USD/JPY whilst the KOSPI was weighed on by its chip and telecoms sectors. Hang Seng remained pressured by losses across its large constituents - Alibaba and JD.com. Shanghai Comp swung between gains and losses but overall remained supported by reports from China's Securities Journal which noted of a potential PBoC RRR in Q2.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.59% at 3,802; FTSE 100 -0.47% at 7,551; DAX -0.52% at 14,078; CAC 40 -0.57% at 6,461; IBEX 35 -0.17% at 8,467; FTSE MIB -0.59% at 24,302; SMI +0.42% at 12,372.

SECTORS: Healthcare 1.39%, Telecoms -0.03%, Industrials -0.19%, Consumer Services -0.49%, Basic Materials -0.60%, Financial Services -0.66%, Consumer Goods -0.89%, Utilities -0.90%, Technology -1.04%, Energy -1.57%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Intertek (ITK LN) downgraded to Hold from Buy at HSBC

DAX

Volkswagen (VOW3 GY) - Board confirms support for the potential entry of Audi and Porsche into F1. (Newswires)

OTHER GERMAN COMPANIES

Aareal Bank (ARL GY) - Atlantic BidCo confirms its intention to launch a new EUR 33/shr takeover. (Newswires)

Hugo Boss (BOSS GY) - Frasers Group (FRAS LN) has increased its stake in the Co. to 2.1% of share capital. (Newswires)

Scout24 (G24 GY) - Is reportedly eyed by buyout groups including H&F, EQT and Permira, according to Dealreporter citing sources. (Newswires)

BROKER MOVES

BASF (BAS GY downgraded to Add from Buy at Baader Helvea

Covestro (1COV GY downgraded to Add from Buy at Baader Helvea

Fuchs Petrolub (FPE GY) downgraded to Add from Buy at Baader Helvea

K&S (SDF GY) downgraded to Add from Buy at Baader Helvea

K&S (SDF GY) upgraded to Overweight from Underweight at JPMorgan

Lanxess (LXS GY) downgraded to Add from Buy at Baader Helvea

Uniper (UN01 GY) reiterated with Overweight at JPMorgan

CAC

French Cos - EU approves EUR 155bln in French aid for firms hit by Russia invasion. (Newswires)

Renault (RNO FP) - Executives are reportedly heading to Japan next month to meet with Nissan (NSANY) counterparts in Japan where they will discuss the Renault split plan and Russia issues, according to Bloomberg sources. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Sodexo (SW FP) upgraded to Outperform from Sector Perform at RBC

PAN EUROPE

Atlantia (ATL IM) - Edizione and Blackstone were planning a bid for Atlantia of EUR 22/shr, may increase to circa. EUR 24/shr after the stock benefitted amid leaks, according to Reuters citing a paper; bid could be launched around Easter. (Newswires) Atlantia closed at EUR 20.30/shr

Telecom Italia (TIT IM) - Board reportedly unanimously rejects giving KKR (KKR) due diligence access as it has not confirmed its EUR 10.8bln bid, according to sources. (Newswires)

BROKER MOVES

Galp Energia (GALP PL) downgraded to Underweight from Equal Weight at Morgan Stanley

Moncler (MONC IM) upgraded to Overweight from Equal Weight at Barclays

SMI

Holcim (HOLN SW) - Following a record FY21, will be increasing the dividend by 10%. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Sika (SIKA SW) downgraded to Add from Buy at Baader Helvea

SCANDINAVIA

Volvo (VOLVB SS) - Foresees a SEK 4bln negative impact on operating income due to the war in Ukraine, has total assets of circa. SEK 9bln relating to Russia; SEK 6bln of this is cash items which could be materialised in the coming years. For FY21 3% of net sales were attributable to Russia. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.44% at 4,500, NDX +0.23% at 14,531, DJIA +0.25% at 34,583, R2K -0.50% at 2,007.

SECTORS: Health +1.86%, Energy +1.36%, Consumer Staples +1.18%, Materials +0.63%, Consumer Discretionary +0.39%, Industrials +0.31%, Technology +0.23%, Financials -0.1%, Utilities -0.25%, Communication Services -0.73%, Real Estate -0.86%.

Taiwan-based Apple (AAPL) supply chain companies have pointed out that they have yet to receive instructions from customers about revising orders, according to Digitimes sources. (DigiTimes)

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%

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