Newsquawk Daily European Equity Opening News - 11th November 2024

ASIA

APAC stocks began the week mostly subdued amid China-related headwinds following the recent fiscal stimulus disappointment and softer-than-expected Chinese inflation data from over the weekend. ASX 200 was dragged lower by weakness in the commodity and consumer-related sectors. Nikkei 225 traded indecisively but with the initial downside cushioned alongside currency weakness. Hang Seng and Shanghai Comp were pressured with underperformance in Hong Kong amid losses in property and tech although some chipmakers were boosted after the US ordered TSMC to halt shipments to China of chips used in AI applications. Elsewhere, the mainland traded cautiously after last Friday's announcement of fiscal measures disappointed those hoping for a more forceful stimulus in the aftermath of the Trump election victory, while Chinese CPI and PPI data were softer-than-expected and showed a worsening of the factory-gate deflation.

EUROPEAN CLOSES

CLOSES: DAX: -0.81% at 19,205, FTSE 100: -0.84% at 8,072, CAC 40: -1.17% at 7,339, Euro Stoxx 50: -1.03% at 4,802, AEX: -0.50% at 874, IBEX 35: +0.49% at 11,552, FTSE MIB: -0.48% at 33,817, SMI: -0.94% at 11,805, PSI: +0.61% at 6,388.

SECTORS: Healthcare 0.69%, Telecoms 0.48%, Utilities 0.18%, IT -0.30%, Consumer Stpl -0.43%, Industrials -0.55%, Financials -1.18%, Energy -1.45%, Consumer Disc -2.05%, Materials -2.11%

FTSE 100

Shell (SHEL LN) - Co. is beginning the process of redeploying personnel to Gulf of Mexico assets. (Newswires)

Sainsburys (SBRY LN) - Moody's downgrades Sainsbury's Bank's deposit ratings to BAA2; outlook negative. (Newswires)

OTHER UK COMPANIES

Burberry (BRBY LN) - Daily Mail writes that Burberry is "set for a takeover" by Moncler (MONC IM), adding that staff have already been told about the takeover, according to sources cited by Daily Mail. Other sources have said that Burberry has paused discussions with affiliates who sell its merchandise, awaiting more tails of the Moncler bid. In other news, the Burberry boss is to unveil turnaround plans, noting that it will reduce its focus on leather goods and focus on outerwear and accessories, via The Times. (Daily Mail / The Times)

Drax (DRX LN) - Three Drax power plants, built to strengthen the UK's energy security, have been paused due to grid connection delays, according to City AM. (City AM)

BROKER MOVES

DS Smith (SMDS LN) upgraded to Equal weight from Underweight at Barclays

Mondi (MNDI LN) downgraded to Underweight from Equal weight at Barclays

DAX

Continental (CON GY) - Q3 (EUR): Revenue 9.8bln (exp. 9.9bln), Adj. EBIT Margin 8.9% (exp. 7.9%), Adj. EBIT 873mln (exp. 787mln). Confirms 2024 outlook for auto tires, but cuts rev. and earnings outlook for Contitech. Cuts outlook citing weaker demand for passenger cars in Europe and for tire replacement in North America. Cuts 2024 group revenue outlook to range of 39.5-42bln (prev. guided 40-42.5bln). (Newswires) Shares +3.5% in pre-market trade

Hannover Re (HNR1 GY) - 9m (EUR): EPS 15.13 (prev. 11.60 Y/Y), EBIT 2.4bln (prev. 1.8bln Y/Y). FY profit target for 2024 raised to around EUR 2.3bln. (Newswires) Shares +2.7% in pre-market trade

OTHER GERMAN COMPANIES

Delivery Hero (DHER GY) - Co. to pursue an IPO of 15% of total issued shares of Talabat. To list Talabat on Dubai Financial Market in Q4'24. Talabat targets 90% net income payout in dividends. (Newswires)

Encavis (ECV GY) - 9m (EUR): Op. revenue 321.6mln (prev. 356.1mn Y/Y). For FY24 expects; Revenue 425mln (prev. guided 460mln), EBIT 135-145mln (prev. guided "more than" 175mln). (Newswires)

Salzgitter (SZG GY) - Final 9m (EUR): Pretax profit -141.2mln (prev. +254.3mln Y/Y), Adj. EBITDA 320.6mln (prev. 576mln Y/Y). Cuts FY24 revenue 9.5-10bln (prev. guided 10bln). CFO says "we are currently engaged in discussions on structural adjustment with employee representatives. If such offer were to be made, management board and supervisory board would issue a reasoned statement in accordance with their legal obligations". (Newswires)

BROKER MOVES

Nemetschek (NEM GY) downgraded to Neutral from Buy at UBS

CAC

OTHER FRENCH COMPANIES

Atos (ATO FP) - Bull unit issues preferred share to the French state to protect national interests. (Newswires)

BROKER MOVES

PAN EUROPE

ASML (ASML NA) - Spokesperson says co. was hit by an IT outage on Friday, issue has been resolved and all systems recovered. (Newswires)

Eni (ENI IM) - Signs an agreement for energy infrastructure partners to further invest in Plenitude. EIP's stake in Plenitude through a capital increase of about EUR 209mln. Transaction implies a post-money equity value of Plenitude of around EUR 8bln, and an EV of over EUR 10bln. (Newswires)

Stellantis (STLAM IM/STLAP FP) - And LeapMotor JV drop plan to add second EV model for production in Poland, considers Germany and Slovakia for a potential site to its 2nd EV manufacturing site in Europe, via Reuters sources. (Reuters)

UMG (UMG NA) - Co. has taken note of Bill Ackman's comments, which noted that UMG will achieve a US-listing "some time next year". Co. says neither board or Co. were involved in the formulation of those comments. (Newswires)

BROKER MOVES

Banco BPM (BAMI IM) initiated with Neutral at JPMorgan

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Richemont (CFR SW) upgraded to Buy from Hold at HSBC

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.38% at 5,996, NDX +0.07% at 21,117, DJIA +0.59% at 43,989, RUT +0.71% at 2,400

SECTORS: Materials -0.91%, Communication Services -0.66%, Technology -0.34%, Energy +0.44%, Health +0.71%, Financials +0.78%, Industrials +1.01%, Consumer Discretionary +1.23%, Consumer Staples +1.45%, Real Estate +1.66%, Utilities +1.79%.

11 Nov 2024 - 07:00- Research Sheet- Source: Newsquawk