Newsquawk Daily European Equity Opening News - 10th July 2024

10th July 2024

ASIA

APAC stocks were mixed following the indecisive performance stateside where the major indices finished rangebound after Fed Chair Powell largely stuck to the script and refrained from providing any signals on the timing of future policy action. ASX 200 was mildly pressured amid underperformance in the heavy industry sectors.Nikkei 225 swung between gains and losses despite initially printing fresh intraday record highs. Hang Seng and Shanghai Comp. diverged with the former kept afloat by outperformance among tech names such as Baidu, JD, Meituan & Alibaba, while the mainland conformed to the mostly downbeat mood after softer-than-expected Chinese CPI data and several companies also flagged losses for H1.

Samsung Electronics (005930 KS) - Union in South Korea decided to launch another strike indefinitely, according to YTN. (YTN)

TSMC (2330 TW) - June (TWD): Sales 207.87bln (May's 229.6bln). Q2: 673.5bln (exp. 654.27bln). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -1.34% at 18,224, CAC 40: -1.56% at 7,509, FTSE 100: -0.66% at 8,140, IBEX 35: -1.12% at 10,899, FTSE MIB: -0.53% at 33,864, SMI: flat at 12,043, Euro Stoxx 50: -1.32% at 4,904

SECTORS: Consumer Stpl -0.26%, Telecoms -0.36%, Utilities -0.46%, Healthcare -0.65%, Materials -0.66%, Financials -0.84%, Consumer Disc -0.88%, Industrials -1.31%, IT -1.56%, Energy -1.64%

FTSE 100

Shell (SHEL LN) - Monitoring improving offshore conditions in the wake of tropical depression Beryl; started process of redeploying personnel to Perdido and Whale assets. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Wood (WG/ LN) downgraded to Underweight from Equal Weight at Barclays

DAX

Porsche SE (PAH3 GY) - Cuts profit forecasts: After-tax result now expected to be in the range of EUR 3.5-5.5bln; confirms guidance for FY net debt between EUR 5.0-5.5bln. (Newswires)

Volkswagen (VOW3 GY) - Now sees operating return on sales of 6.5%-7.0% (prev. 7-7.5%) for FY2024. Says support for information and consultation process at its Brussels site has been resolved; expenses expected as a result of alternative uses or a plant closure, which are expected to be accrued in Q3. Audi's Brussels site may, among other things, be closed down. The aforementioned matters has led to the Co. to lower its margin outlook; total burden on operation results of up to EUR 2.6bln in FY24; Co. has also cited disappointing demand for some EV and other unplanned expenses. (Newswires)

OTHER GERMAN COMPANIES

Evotec (EVT GY) - Co. and Pfizer (PFE) collaborate to advance drug discovery in France; will initially focus on early discovery research for metabolic and infectious diseases. (Newswires) Shares +5.1% in pre-market trade

Encavis (ECV GY) - Has acquired another solar park in Spain to expand its generation capacity in Spain to more than 800 MW at year-end 2025. (Newswires)

Hapag Lloyd (HLAG GY) - H1 2024 (EUR): EBITDA 2bln (exp. 1.16bln), EBIT 0.9bln (exp. 0.62bln); raises earnings outlook for the current year. FY24 EBITDA between EUR 3.2-4.2B (prev. guided 2-3bln), citing recent strong demand and increased short-term freight rates. (Newswires)

BROKER MOVES

Covestro (1COV GY) downgraded to Equal Weight from Overweight at Barclays

Deutsche Lufthansa (LHA GY) downgraded to Underweight from Equal Weight at Morgan Stanley

Hugo Boss (BOSS GY) downgraded to Equal Weight from Overweight at Morgan Stanley Shares -2.8% in pre-market trade.

CAC

BNP Paribas (BNP FP) - Co. and Mistral AI sign a partnership agreement covering all Mistral AI models; the agreement is a multi-year partnership. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

China exposed stocks - Chinese CPI MM (Jun) -0.2% vs. Exp. -0.1% (Prev. -0.1%); PPI YY (Jun) -0.8% vs. Exp. -0.8% (Prev. -1.4%); CPI YY (Jun) 0.2% vs. Exp. 0.4% (Prev. 0.3%).

Chip Names - Updates from Samsung Electronics & TSMC, see Asia section above for full details.

Enagas (ENG SM) - Reached deal to sell its 30.2% stake in Tallgrass Energy for USD 1.1bln; expected to close by the end of July. Transaction at closing to generate accounting loss in 2024 trading income statement of around EUR 360mln. To have a very positive impact on Co's cash flow statement. (Newswires)

Puig (PUIG SM) - To join the IBEX 35 index replacing Melia Hotels (MEL SM), effective July 22nd. (Newswires)

Telecom Italia (TIT IM) - S&P Global upgraded the Co. to BB on NetCo disposal; says the outlook is Stable and takes rating off Credit Watch. (Newswires)

BROKER MOVES

Prysmian (PRY IM) resumed with Overweight at JP Morgan

SMI

OTHER SWISS COMPANIES

SGS (SGSN SW) - Acquired IEC, a cosmetics Co., which employs around 150 employees. (Newswires)

BROKER MOVES

Julius Baer (BAER SW) downgraded to Hold from Buy at HSBC

SCANDINAVIA

Kongsberg Gruppen (KOG NO) - Q2 (NOK): Revenue 11.59bln (prev. 9.61bln Y/Y), EBITDA margin 15.7% (prev. 14.4% Y/Y). (Newswires)

Orsted (ORSTED DC) - Closed acquisition of Eversource's share of Sunrise Wind; purchase price at closing is at USD 152mln. (Newswires)

BROKER MOVES

Volvo AB (VOLVB SS) initiated with Equal Weight at Barclays

US

CLOSES: SPX +0.07% at 5,577, NDX +0.07% at 20,453, DJI -0.13% at 39,292, RUT -0.45% at 2,029.

SECTORS: Materials -1.01%, Energy -0.93%, Industrials -0.45%, Consumer Staples -0.24%, Communication Services flat, Technology flat, Real Estate flat, Consumer Discretionary +0.26%, Utilities +0.28%, Health +0.43%, Financials +0.65%.

Microsoft (MSFT) - Co. said it has given up a non-voting board observer seat at OpenAI, amid regulatory scrutiny; the seat is not necessary after OpenAI's significant progress. (Newswires)

10 Jul 2024 - 06:51- Fixed IncomeResearch Sheet- Source: Newsquawk