Newsquawk Daily European Equity Opening News - 10th July 2023

10th July 2023

ASIA

Asia-Pac stocks were mostly positive albeit with gains capped for many of the regional bourses as participants digested softer-than-expected inflation data from China. ASX 200 (-0.3%) gave back early gains with price action rangebound as the gains in the commodity-related sectors are offset by losses in industrials, real estate and consumer stocks. Nikkei 225 (-0.2%) spent most of the session extending on last week’s slump before rebounding in late trade. Hang Seng (+0.8%) and Shanghai Comp. (+0.2%) traded higher with the Hong Kong benchmark boosted by the tech sector amid hopes that China could be nearing the end of the tech crackdown. Conversely, the gains in the mainland were capped after the latest Chinese inflation data missed estimates with zero consumer inflation in the mainland and a deeper contraction in factory gate prices, while there were recent comments from Treasury Secretary Yellen that they made some progress during her trip to Beijing and that ties were put on a super footing, although expectations had been set at a low level with the objective of her visit was to establish and deepen ties to the new Chinese economic team and reduce the risk of misunderstanding.

EUROPEAN CLOSES

Bourses: DAX +0.48% at 15,603.40, FTSE 100: -0.32% at 7,256.94, CAC 40 +0.42% at 7,111.88, Euro Stoxx 50 +0.32% at 4,236.60, IBEX 35 -0.39% at 9,248.80, FTSE MIB +0.99% at 27,778.32, SMI -0.96% at 10,881.30.

Sectors: Materials 1.01%, Energy 0.81%, Consumer Disc 0.77%, Financials 0.54%, IT 0.36%, Industrials 0.19%, Telecoms -0.42%, Consumer Stpl -0.82%, Utilities -1.23%, Healthcare -1.34%

FTSE 100

BT (BT/ LN) - Co. is reportedly on high alert for a takeover led by major shareholder Deutsche Telekom (DTE GY), via The Telegraph. Elsewhere, BT has begun looking for a successor to CEO Jansen who is looking to step down in 2024, according to Sky News citing sources. (Telegraph/Sky News)

Defence Names - Banks are under investigation by the Ministry of Defence, after closing accounts of military contractors to the departments. (Telegraph)

Rio Tinto (RIO LN) - Chairman says China's economy faces a "big real estate issue" and recovery remains bumpy but the long-term outlook is positive, according to Bloomberg. (Bloomberg)

Marks and Spencer (MKS LN) - CEO says he is "not happy" with the performance of Ocado (OCDO LN). (The Times)

Vodafone (VOD LN) - Threatens to cut investment if Three merger is blocked, according to the Times. (The Times)

OTHER UK COMPANIES

Boohoo (BOO LN) - Takes Revolution row to junior market regulator, according to Sky News. (Sky News)

BROKER MOVES

Assura (AGR LN) downgraded to Hold from Buy at HSBC

Big Yellow Group (BYG LN) downgraded to Hold from Buy at HSBC

British Land (BLND LN) downgraded to Reduce from Buy at HSBC

Derwent London (DLN LN) downgraded to Hold from Buy at HSBC

Land Securities (LAND LN) downgraded to Reduce from Buy at HSBC

Primary Health (PHP LN) downgraded to Hold from Buy at HSBC

Safestore Holdings (SAFE LN) downgraded to Hold from Buy at HSBC

Segro (SGRO LN) downgraded to Hold from Buy at HSBC

DAX

Deutsche Bank (DBK GY) - Wins Lufthansa frequent-flyer credit card deal from 2025 and is expected to more than double the bank's annual volume of credit card transactions, according to the FT. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

Bayer (BAYN GY) reiterated with Neutral at JP Morgan Chase

CAC

Kering (KER FP) - Co. paid EUR 3.5bln for fragrance brand Creed, according to four people familiar with the matter. (FT)

BROKER MOVES

Pernod Ricard (RI FP) downgraded to Hold from Buy at HSBC

PAN EUROPE

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Wihlborgs Fastigheter (WIHL SS) - Reports H1 (SEK): Net 625mln (Prev. 1.55bln YY), Op 1.39bln (Prev. 1.14bln YY), Rental Revenue 1.94bln (Prev. 1.6bln YY). (Newswires)

BROKER MOVES

AB Electrolux (ELUXB SS) reiterated with Underweight at JP Morgan Chase

Boliden (BOL SS) upgraded to Overweight from Equal Weight at Barclays

US

CLOSES: SPX -0.29% at 4,399, NDX -0.35% at 15,037, DJI -0.55% at 33,735, RUT +1.22% at 1,862.

SECTORS: Energy +2.06%, Materials +0.88%, Industrials +0.23%, Cons Disc +0.18%, Financials +0.16%, Technology -0.44%, Real Estate -0.5%, Communication Svs -0.58%, Utilities -0.74%, Health -1.16%, Cons Stpl -1.34%.

Amazon (AMZN) - Sees Teamsters union announce picket line expand to Connecticut from existing strikes in California (Newswires)

10 Jul 2023 - 06:50- Research Sheet- Source: Newsquawk