Newsquawk Daily European Equity Opening News - 11th July 2023

11th July 2023

ASIA

Asia-Pac stocks were mostly positive following the tailwinds from the US where cyclicals benefitted from encouraging inflation proxies ahead of this week's US CPI data, while participants also reflected on China's support efforts. ASX 200 (+1.2%) was led higher by the tech and mining-related industries, with risk sentiment also facilitated by an improvement in Westpac consumer confidence and NAB business surveys. Nikkei 225 (Flat) was the laggard and failed to sustain early momentum with the upside capped by a firmer currency, while Sumco outperformed after reports that the government is to provide the Co. with a subsidy of up to USD 530mln to boost wafer capacity, although this was later refuted by Industry Minister Nishimura. Hang Seng (+1.5%) and Shanghai Comp. (+0.5%) conformed to the upbeat mood as developers benefitted from news that China will extend two financial policies supporting the stable and healthy development of the real estate market to the end of 2024.

EUROPEAN CLOSES

Bourses: DAX +0.45% at 15,673.16, FTSE 100: +0.23% at 7,273.79, CAC 40 +0.45% at 7,143.69, Euro Stoxx 50 +0.47% at 4,256.51, IBEX 35 +0.04% at 9,252.90, FTSE MIB +0.34% at 27,872.00, SMI +0.43% at 10,922.01.

Sectors: IT 0.72%, Industrials 0.46%, Consumer Disc 0.41%, Energy 0.38%, Healthcare 0.17%, Consumer Stpl 0.16%, Financials 0.01%, Materials -0.07%, Telecoms -0.19%, Utilities -0.73%

FTSE 100

BAE Systems (BA/ LN) - Received an order from the UK Government to boost the production of battlefield munitions, according to the FT; a GBP 280mln agreement, which could increase to over GBP 400mln. (FT)

Pension Names – UK Chancellor Hunt announced plans for pension providers to commit 5% of their default funds for defined contribution pensions to unlisted equities by 2030; currently, only 0.5% is invested in unlisted equities. Hunt said nine pension providers had signed the initiative. Schroders (SDR LN) CEO spoke positively on the reform. (Newswires/FT)

OTHER UK COMPANIES

BROKER MOVES

DAX

Daimler Truck (DTG GY) - Raises FY23 Revenue guidance to EUR 52-58bln (exp. 55.49bln) following strong sales in the second quarter, based on stabilising supply chains and stronger core markets. Announces share buy-back program. (Newswires)

OTHER GERMAN COMPANIES

Evotec (EVT GY) - Co. and Myers Squibb enter license agreement within neuroscience partnership. (Newswires)

BROKER MOVES

CAC

Dassault Aviation (AM FP) - According to reports, India's Defence Ministry has given initial approval for the purchase of 26 Rafale fighter jets and 3 Scorpene submarines from France. Announcements to come next week as Macron and Modi meet in France. (Deccan Chronicles)

Renault (RNO FP) - The Co. and Geely sign JV agreement to launch leading powertrain technology company, with a 50% stake in new company. The new company will include 17 engine plants and 5 R&D centres on 3 continents with 19k employees. Expected to complete by H2'23, with a HQ in the UK. (Newswires)

BROKER MOVES

Michelin (ML FP) downgraded to Hold from Buy at Jefferies

PAN EUROPE

Chip Names - Vedanta (VEDL IS) said it is fully committed to its semiconductor fab project and has lined up other partners to set up India’s first foundry following Foxconn's (2354 TT) withdrawal from the JV. (ET)

BROKER MOVES

SMI

Roche (ROG SW) - European Commission approves Roche’s fixed-duration Columvi (glofitamab) for people with relapsed or refractory diffuse large B-cell lymphoma. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker Carbon Capture (ACC NO) - Q2 (NOK): Net -46.5mln (Prev. -49.8mln YY), EBITDA -53.2mln (Prev. -48.6mln YY), Revenue 306mln (Prev. 194mln YY). Appoints Egil Fagerland as CEO, effective immediately. (Newswires)

Ambu (AMBUB DC) - Prelim Q3 (DKK): Revenue 1.2bln (Prev. 1.1bln YY), Organic Growth +8% (Prev. +8% YY), Gross Margin 56.2% (Prev. 55.8% YY), EBIT 91mln (Prev. 42mln) (Newswires)

Nordic Semiconductor (NOD NO) - Q2 (USD): EBITDA 29mln (Exp. 17mln), Revenue 154mln (Exp. 153mln). Provides Forward Guidance. Q3 Revenue USD 145-165mln, Gross Margin >52%. (Newswires)

Tryg (TRYG DC) - Q2 (DKK): Pretax Profit 1.23bln (Exp. 1.4bln), Combined Ratio 80.9% (Est. 80.4%), Technical Result 1.759mln. (Newswires)

BROKER MOVES

Orsted (ORSTED DC) initiated with Hold at Stifel Nicolaus

US

CLOSES: SPX +0.24% at 4,410, NDX +0.06% at 15,046, DJI +0.62% at 33,944, RUT +1.64% at 1,895

SECTORS: Industrials: +1.39% Health: +0.81% Energy: +0.76% Financials: +0.44% Real Estate: +0.34% Cons Disc: +0.11% Cons Stpl: +0.03% Materials: -0.01% Technology: -0.02% Utilities: -0.42% Communication Svs: -0.92%

WD-40 (WDFC) - Q3 EPS 1.38 (vs 1.07 Y/Y), Q3 revenue USD 141.7mln (vs 123.7mln Y/Y). CEO said results showed a return to solid top-line growth in Q3 after two quarters of flat or declining sales, and the company's global sales showed positive growth on a constant currency basis. Reiterates FY23 EPS outlook for USD 4.80-5.00 (exp. 4.90), and FY23 of USD 535-600mln (exp. 535.1mln). (Newswires) 

11 Jul 2023 - 06:44- EquitiesEconomic Commentary- Source: Newsquawk