Newsquawk Daily European Equity Opening News

12th June 2023

ASIA

Asia-Pac stocks traded mixed with the region mostly cautious at the start of a risk-packed week as participants await the upcoming key events including major central bank meetings and data releases, while Australian markets were shut in observance of the King’s Birthday holiday. Nikkei 225 (+0.4%) initially outperformed and tested the 32,500 level amid expectations for the BoJ to maintain its ultra-easy policy settings later this week with officials said to see little need to adjust the YCC program given the improvement in the functioning of the bond market and the smooth shape of the yield curve. In addition, the latest PPI data was softer-than-expected and showed wholesale inflation eased for a 5th consecutive month which further supports the case for the BoJ to refrain from any policy tweaks. Hang Seng (-0.6%) and Shanghai Comp. (-0.3%) were subdued amid weakness in healthcare and the property sector with the latter pressured by a warning from Goldman Sachs. However, losses were stemmed amid some expectations for potential PBoC rate cuts to support the economy as more banks reduced their deposit rates and following comments last week from PBoC Governor Yi that there is plenty of room for policy adjustment and that they will continue targeted and forceful monetary policy.

EUROPEAN CLOSES

BOURSES: Euro Stoxx 50 -0.18% at 4,289, FTSE 100 -0.49% at 7,562, DAX 40 -0.25% at 15,949, CAC 40 -0.12% at 7,213, FTSE MIB -0.41% at 27,162, IBEX 35 -0.31% at 9,309, SMI -0.53% at 11,248.

SECTORS: Utilities 0.69%, Telecoms 0.24%, IT 0.18%, Consumer Disc 0.10%, Energy 0.07%, Consumer Stpl -0.06%, Industrials -0.28%, Healthcare -0.36%, Financials -0.38%, Materials -0.83%.

FTSE 100

HSBC (HSBA LN) - To announce intentions to utilise the takeover of SVB's UK arm to increase reach in tech/life science sectors globally. To announce it has hired a team of bankers in the US, Israel and Hong Kong. (Times)

ITV (ITV LN) - CEO McCall is to be questioned at a parliamentary select committee hearing on June 14th in relation to the Schofield scandal. (Telegraph)

LSE (LSEG LN) - CEO has pushed back against remarks made by the Euronext (ENX FP) CEO in the Sunday Times, where the Euronext CEO said in the post-Brexit world international listings have moved to their platforms. (CityAM)

OTHER UK COMPANIES

Greggs (GRGS LN) - Co. is on track to open 150 new sites this year, particularly interested in Cornwall and the south west of England. (Sky News)

THG (THG LN) - ISS and Glass Lewis have reportedly advised investors to vote against the re-election of McDonald as a non-executive director at the June 21st AGM. (CityAM)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Danone (BN FP) - Danone UK has called on the UK Gov't to consider a tax on products which have elevated fat, sugar or salt. (Guardian)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Chip Names - TSMC's (2330 TT) utilization rate has reportedly increased to 80% (prev. 70%) for 5nm and 50% (prev. 30/40%) for 7nm, via money.udn.

Energy Names - US DoE says it is to issue new solicitation to buy another 3mln barrels for the strategic stockpile for delivery in September; awards contracts for its 3mln barrel crude oil purchase for the SPR in August, averaging USD 73/bbl.

Telecom Italia (TIT IM) - Announces two offers received as part of bidding process for purchase of NetCo; submitted by consortium formed by CDP and Macquarie Infrastructure and Real Assets (Europe) Limited. Consortium acting on behalf of group of investment funds managed or advised by Macquarie Group and by KKR. Follows, Italian state lender CDP and Australian fund Macquarie table new bid for Telecom Italia's grid, according to a CDP statement. Sources via Reuters add the value of KKR's offer could surpass EUR 23bln overall. Additionally, CDP CEO said negotiations would probably go on for longer than imagined. (Newswires)

BROKER MOVES

SMI

Novartis (NOVN SW) - Co. to acquire Chinook (KDNY) for USD 3.2bln, expected to close in H2. Agreed deal will include Atrasentan and Zigakibart. (Newswires)

UBS (USBG SW) - Co. has completed the takeover of Credit Suisse. Elsewhere, FT reports that UBS is to impose tight restrictions on Credit Suisse bankers which will include a new-client ban in high-risk nations and on complex products, according to sources. (Newswires/FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Telenor (TEL NO) - Appeals court has ruled in favour of the Co. in a tax case, determining that the loss is deductible. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.12% at 4,298, NDX +0.30% at 14,528, DJIA +0.13% at 33,876, RUT -0.80% at 1,865.

SECTORS: Technology +0.46%, Consumer Discretionary +0.44%, Health +0.19%, Communication Services +0.13%, Financials +0.07%, Consumer Staples -0.12%, Industrials -0.27%, Real Estate -0.57%, Utilities -0.58%, Energy -0.58%, Materials -0.82%.

12 Jun 2023 - 06:50- EquitiesData- Source: Newsquawk