Newsquawk Daily European Equity Opening News - 11th August 2023

11th August 2023

ASIA

Asia-Pac stocks traded mostly lower after the post-CPI dovish unwind seen stateside and amid Chinese developer concerns, with trade also hampered by thinned conditions with Japanese participants away for Mountain Day. ASX 200 (-0.3%) was lacklustre with the upside in consumer stocks negated by the losses in the commodity-related sectors, while RBA Governor Lowe’s testimony provided very little in the way of fresh insight in which he reiterated that further tightening may be required but will depend on the data and the outlook with monetary policy in restrictive territory. KOSPI (Flat) was indecisive with price action uneventful and earnings releases the main driver. Hang Seng (-0.7%) and Shanghai Comp. (-1.2%) declined with developers pressured including Country Garden Holdings after it flagged a loss of up to CNY 55bln for H1 and hired CICC for debt restructuring. Furthermore, shares in Fantasia Holdings dropped more than 50% on resumption of trade after being halted since March last year, while participants also await details from the securities regulator’s emergency meeting with developers and financial institutions. Conversely, Alibaba, China Mobile and Li Ning are among the best performers in Hong Kong following their results including the beat on top and bottom lines by China’s e-commerce giant.

Country Garden Holdings (2007 HK) - Hires CICC for restructuring and is preparing for debt restructuring soon. (Newswires)

EUROPEAN CLOSES

Bourses: DAX +0.91% at 15,997, FTSE 100 +0.41% at 7,619, CAC 40 +1.52% at 7,434, Euro Stoxx 50 +1.56% at 4,385, IBEX 35 +1.58% at 9,502, FTSE MIB +0.94% at 28,575, SMI +0.65% at 11,153.

Sectors: Consumer Disc 1.96%, IT 1.57%, Financials 1.28%, Consumer Stpl 1.03%, Utilities 0.87%, Telecoms 0.70%, Materials 0.40%, Healthcare 0.21%, Energy 0.05%, Industrials -0.20%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Bechtle (BC8 GY) - Q2 (EUR): Revenue 1.51bln (exp. 1.53bln), EBIT 93.8mln (prev. 88.5mln YY), EPS 0.53 (prev. 0.50), EBIT Margin 6.4% (prev. 6.3%). Net Income 65.95mln (prev. 63.62mln). (Newswires)

Fraport (FRA FP) - Over 6mln passengers travelled with the Co. in July, +19.7% YY. (Newswires)

Varta (VAR1 GY) - H1 (EUR): Adj. EBITDA -6.8mln (prev. +68.9mln YY), Revenue 339mln (prev. 377mln YY). Cuts FY23 Revenue guidance to 820mln (prev. 820-870mln) and Adj. EBITDA guidance to 40-60mln (prev flat Y/Y). (Newswires)

BROKER MOVES

Henkel (HEN3 GY) upgraded to Hold from Sell at Berenberg

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Saipem (SPMI IM) - Wins two new contracts from Eni Congo (ENI IM) and BP (BP/ LN) for about USD 700mln. (Newswires)

Telecom Italia (TIT IM) - Italy to get up to 20% of Telecom Italia Network in KKR deal, bid worth EUR 23bln, according to Bloomberg. (Newswires)

Unipol Grouppo (UNI IM) - H1 (EUR): Net 517mln (prev. 684mln YY), Direct Insurance Income 7.5bln (+12.6% Y/Y). (Newswires)

BROKER MOVES

SMI

UBS (UBS SW) - Begun process of killing of Credit Suisse's international brand by replacing signs at the US-based HQ, according to the FT. In other news, the Co. voluntarily terminates CHF 9bln Loss Protection Agreement with Swiss Government and Public Liquidity Backstop with SNB. Will pay CHF 40mln to compensate Swiss Confederation for establishment of LPA. (FT/Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Holmen (HOLMB SS) downgraded to Sell from Hold at DNB Markets

Novo Nordisk (NOVOB DC) downgraded to Hold from Buy at DNB Markets

US

CLOSES: SPX +0.03% at 4,468, NDX +0.18% at 15,128, DJIA +0.15% at 35,175, RUT -0.42% at 1,922.

SECTORS: Communication Services +0.43%, Consumer Discretionary +0.28%, Materials +0.10%, Financials +0.08%, Energy +0.08%, Technology +0.01%, Health -0.04%, Consumer Staples -0.20%, Industrials -0.28%, Real Estate -0.31%, Utilities -0.32%.

Ford (F) - Learned from supplier a vulnerability in the Wi-Fi software driver supplied for use in the sync 3 infotainment system available; to date, have seen no evidence that vulnerability has been exploited. (Newswires)

11 Aug 2023 - 06:51- EquitiesResearch Sheet- Source: Newsquawk