Newsquawk Daily European Equity Opening News

9th June 2023

ASIA

Asia-Pac stocks traded mostly higher following the gains on Wall St where the S&P 500 entered a bull market and tech outperformed as yields declined due to labour market concerns after Initial Jobless Claims spiked to the highest level since October 2021. ASX 200 (+0.4%) was led by strength in the tech and the mining industries but with upside capped by pressure in the energy sector after oil prices dropped on reports that Iran and US were near an interim deal on nuclear enrichment and oil exports which was later refuted by the White House. Nikkei 225 (+1.8%) spearheaded the advances amongst the major indices with the index back above the 32,000 milestone. Hang Seng (+0.2%) and Shanghai Comp. (Flat) were indecisive after weaker-than-expected Chinese inflation data continued to point to an uneven economic rebound, although there were some hopes of a thawing in US-China relations with Secretary of State Blinken’s delayed trip to Beijing said to be in planning for next week.

EUROPEAN CLOSES

BOURSES: Euro Stoxx 50 +0.13% at 4,297, FTSE 100 -0.32% at 7,599, DAX 40 +0.18% at 15,989, CAC 40 +0.27% at 7,222, FTSE MIB +0.81% at 27,275, IBEX 35 -0.23% at 9,338, SMI -0.35% at 11,308.

SECTORS: Energy 0.40%, Consumer Disc 0.28%, Materials 0.21%, Industrials 0.18%, Healthcare 0.12%, Utilities 0.11%, Financials 0.05%, IT -0.38%, Consumer Stpl -0.48%, Telecoms -1.10%.

FTSE 100

AstraZeneca (AZN LN)/Sanofi (SAN FP) - FDA Advisory Committee recommends AstraZeneca/Sanofi's drug Nirsevimab for preventing respiratory syncytial virus (RSV) in newborns and infants, with potential approval before the 2023-2024 RSV season. (Newswires)

Energy Names - UK is to introduce a floor for oil and gas windfall tax with Chancellor Hunt expected to confirm plans to introduce a floor on the 35% levy so that it will only apply if oil and gas prices are above a certain level, according to FT. (FT)

Glencore (GLEN LN) - Bunge (BG) reportedly nears a cash-and-stock deal to merge with Glencore's Viterra at combined valuation of more than USD 30bln, according to Reuters sources. (Reuters)

Housing Names - Moody's writes that UK house prices are likely to decrease by 10% over the next two years, adding that a more severe downturn could spark a lengthy recession. (Newswires)

HSBC (HSBA LN) - Co. has pulled all of its mortgage deals due to being overwhelmed by a number of customers seeking to lock-in deals prior to rates increasing. (Telegraph)

OTHER UK COMPANIES

BROKER MOVES

DAX

Mercedes-Benz (MBG GY) - California has issued an autonomous vehicle deployment permit to Co. allowing it to offer drive pilot automated driving system on designated highways; Co. says will be available for model year 2024 S-class and EQS Sedan. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Casino (CO FP) - Co. and Teract have decided to end exclusive discussions around the combination of their domestic retail activities. Elsewhere, a trio of French investors has created a EUR 300mln investment vehicle for Casino, via Reuters citing sources. (Newswires/Reuters)

Dassault Systemes (DSY FP) - Daloz appointed CEO, from January 2024. (Newswires)

Reshuffle - Inclusion: Edenred (EDEN FP). Exclusion: Vivendi (VIV FP). Effective from June 19th. (Euronext)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Telecom Italia (TIT IM) - KKR and the rival CDP/Macquarie consortium are reportedly preparing to submit slightly improved bids for Co's network ahead of the June 9th deadline, via Reuters citing sources. (Reuters)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - Co. and JV partner are reportedly looking for buyers for the China securities brokerage business, via Reuters citing sources; Citi (C) reportedly showed interest, but has since left discussions. (Reuters)

GAM Holding (GAM SW) - Liontrust expects to publish the circular and offer prospectus on/around 13th June. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.62% at 4,293, NDX +1.27% at 14,484, DJIA +0.50% at 33,833, RUT -0.41% at 1,880.

SECTORS: Consumer Discretionary +1.56%, Technology +1.2%, Consumer Staples +0.74%, Health +0.65%, Utilities +0.41%, Communication Services +0.27%, Industrials +0.18%, Financials -0.11%, Materials -0.35%, Energy -0.44%, Real Estate -0.62%.

09 Jun 2023 - 06:50- Research Sheet- Source: Newsquawk