Newsquawk Daily European Equity Opening News - 11th July 2024

11th July 2024

ASIA

APAC stocks took impetus from Wall St where the major indices rallied as outperformance in tech spear-headed the S&P 500 and Nasdaq to fresh record highs once again following TSMC's record quarterly sales and as Apple aims to boost iPhone shipments. ASX 200 gained with all sectors in the green and notable strength in tech, real estate, and heavy industries. Nikkei 225 continued its record-setting streak and advanced above the 42,000 level for the first time. Hang Seng and Shanghai Comp. conformed to the broad constructive mood amid the rising tide across equities despite NATO's firm rhetoric on China which it called a decisive enabler of Russia’s war effort in Ukraine, while sentiment was also unfazed by reports that Germany is cut Huawei from its mobile networks.

EUROPEAN CLOSES

CLOSES: DAX: +0.99% at 18,418, CAC 40: +0.86% at 7,574, PSI: +1.37% at 6,742, FTSE 100: +0.66% at 8,194, IBEX 35: 1.59% at 11,072, FTSE MIB: +1.3% at 34,306, SMI: +0.89% at 12,145, Euro Stoxx 50: +1.11% at 4,958, AEX: +0.96% at 940.

SECTORS: IT 1.20%, Consumer Disc 1.19%, Utilities 1.18%, Healthcare 1.06%, Financials 1.03%, Industrials 1.01%, Consumer Stpl 0.93%, Telecoms 0.85%, Materials 0.31%, Energy 0.06%

FTSE 100

Barclays (BARC LN) - Announced a reverse split of the iPath Series B S&P 500 VIX Short-Term Futures ETNs and the iPath Series B S&P 500 VIX Mid-Term Futures ETNs. (Newswires)

BP (BP/ LN) - Signed a deal with Simon Property Group (SPG) to expand an ultra-fast EV charging network in the US. (Newswires)

Ex-Dividends – Halma (HLMA LN) will trade without entitlement to their latest dividend payout. (Newswires)

Shell (SHEL LN) - Co. said it looks to resume drilling operations and bring production back online at Perdido in the coming days. In other news, Separately, Canada's Unifor said the new collective agreement was reached with Shell which will increase wages by 16% over four years. (Newswires)

Severn Trent (SVT LN) - The government is said to be cracking down on the water industry, mandating higher compensation for sewage failures, establishing customer panels for scrutiny, and potentially allowing bill increases of up to GBP 300 annually to fund infrastructure upgrades. (Telegraph)

UK Housing Names - UK RICS Housing Survey* (Jun) -17.0 vs. Exp. -15.0 (Prev. -17.0). RICS said, "Current conditions remain subdued but the market is expected to regain some impetus in the months ahead". "Buyer demand metric continues to sit in slightly negative territory... National house prices are still seeing some downward pressure". "However, the outlook does appear to be brightening somewhat, with near-term sales expectations improving noticeably". (RICS)

OTHER UK COMPANIES

BROKER MOVES

Anglo American (AAL LN) downgraded to Sector Perform from Outperform at RBC; cuts target price to 2600p from 3100p. (Newswires)

Rotork (ROR LN) upgraded to Buy from Hold at HSBC

DAX

OTHER GERMAN COMPANIES

Fraport (FRA GY) – June traffic: 5.6mln passengers at Frankfurt Airport, +1.4% Y/Y. Total passenger traffic rose to 18.9mln. (Newswires)

Gerresheimer (GXI GY) – H1 (EUR): Revenue 968.5mln (prev. 857.4mln Y/Y), Adj. EBITDA 188.2mln (prev. 188.2mln Y/Y). Confirms 2024 guidance. For H2’24, expect a significant upturn in business. (Newswires) Shares +4.3% in pre-market trade

Hugo Boss (BOSS GY) – Frasers increases investment in Hugo Boss; now holds 7.99% of common stock (vs 2.47% reported on 31st May). (Newswires)

Suedzucker (SZU GY) – Q1 (EUR): Revenue 2.55bln (exp. 2.67bln, prev. 2.51bln Y/Y), EBITDA 230mln (exp. 263mln, prev. 356mln Y /Y), Op. result 155mln (prev. 282mln Y/Y). (Newswires) Shares seen opening -1.4%.

BROKER MOVES

CAC

Eurofins Scientific (ERF FP) - Eurofins updates on current and upcoming actions following communications published by Muddy Waters since 24 June 2024. Plans to present investors, in due course. Eurofins financed site improvements on laboratory campuses rented from ABSCA subsidiaries, there was of course no increase in lease payments made by Eurofins companies to ABSCA subsidiaries in connection to these improvements. (Eurofins)

Sanofi (SAN FP) – Ships US influenza vaccines for the 204/25 season; additional shipments of the full Sanofi flu vaccine portfolio will continue through October. (Newswires)

OTHER FRENCH COMPANIES

Ipsen (IPN FP) - Ipsen and Foreseen Biotechnology announce exclusive global licensing agreement for antibody-drug conjugate with first-in-class potential. (Ipsen)

BROKER MOVES

Alstom (ALO FP) resumed with Overweight at JP Morgan

Publicis (PUB FP) downgraded to Neutral from Overweight at JP Morgan

PAN EUROPE

Repsol (REP SM) - Q2 estimated refining margin indicator in Spain a USD 6.30/bbl (prev. USD 11.40/bbl in Q1); estimated production of 589k BPD (prev. 590k BPD in Q1). (Newswires)

BROKER MOVES

MediaForEurope (MFE IM) upgraded to Overweight from Neutral at JP Morgan

Wolters Kluwer (WKL NA) downgraded to Neutral from Overweight at JP Morgan

SMI

Barry Callebaut (BARN SW) – 9M (CHF): Revenue 7.3bln, +23.1% Y/Y, Sales Vol +0.4%. Reiterated FY 23/24 guidance. (Newswires)

OTHER SWISS COMPANIES

Flughafen Zurich (FHZN SW) – June traffic: 2.8mln passengers were handled at Zurich airport, +8% Y/Y; number of flights +4% Y/Y. (Newswires)

BROKER MOVES

SCANDINAVIA

Ambu (AMBUB DC) – Q3 (DKK): Revenue 1.38bln (exp. 1.36bln). Outlook FY Organic growth 18%. (Newswires)

Norsk Hydro (NHY NO) - Alcoa (AA) shares rose 1.4% after-market following above-forecast prelim Q2 guidance. (Newswires)

Novo Nordisk (NOVOB DC) - Novo Nordisk announced that the US Food and Drug Administration (FDA) has issued a letter. In the letter, the FDA has requests related to the manufacturing process and the type 1 diabetes indication before the review of the application can be completed. Novo Nordisk does not expect to be able to fulfil the requests during 2024. (Novo Nordisk) In other news, US Senate Health Committee Chair Bernie Sanders said there is a 'real shot' at getting Novo Nordisk (NOVOB DC) to cut obesity drug prices, adds currently focused on Novo Nordisk but will 'certainly' look into Eli Lilly (LLY) in the future. (Newswires)

Sweco (SWECB SS) - Won SEK 400mln contract from Swedish Transport Administration. (Newswires)

Volvo (VOLVB SS) / Polestar – Polestar continues to target cash flow break-even towards the end of 2025. Received notice that the Co. is not currently in compliance with the USD 1 minimum bid price requirement. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.02% at 5,633, NDX +1.09% at 20,675, DJI +1.09% at 39,721, RUT +1.10% at 2,051.

SECTORS: Technology +1.63%, Materials +1.34%, Health +0.98%, Utilities +0.95%, Industrials +0.90%, Real Estate +0.73%, Energy +0.72%, Communication Services +0.69%, Consumer Discretionary +0.65%, Consumer Staples +0.45%, Financials +0.42%.

Alcoa (AA) - Prelim Q2 USD: Revenue seen between USD 2.85bln - 2.925bln (exp. 2.8bln); adj. EPS 0.08-0.19 (exp. 0.06). (Newswires) Shares rose 1.4% after-market.

Alphabet (GOOGL) - Co. is said to have shelved its interest in Hubspot (HUBS), according to Bloomberg. (Newswires)

Apple (AAPL) - Co. reportedly aims to ship 10% more new iPhones in 2024 after a bumpy 2023, according to Bloomberg. Apple Intelligence AI features are expected to boost iPhone demand, AAPL looks to ship 90mln iPhone 16 units in the latter half of the year. (Newswires)

Google (GOOGL) - Co. Cloud Head says it is exploring options on continuing to fight against Microsoft's (MSFT) licensing practices. (Newswires)

Insulin Stocks - FTC to sue UnitedHealth (UNH) Opturmx, Cigna Group's (CI) express scripts and CVS Health's (CVS) caremark over insulin prices, according to WSJ. (WSJ)

11 Jul 2024 - 06:53- EquitiesExclusive- Source: Newsquawk