Newsquawk Daily European Equity Opening News - 12th August 2024

12th August 2024

ASIA

APAC stocks began the week mostly higher following last Friday's gains on Wall St and light macro newsflow over the weekend but with gains capped amid an indecisive mood in China and holiday closure in Japan for Mountain Day. ASX 200 advanced with the upside led by outperformance in Consumer Discretionary, Tech, Telecoms and Financials. Hang Seng and Shanghai Comp. were indecisive as lingering economic concerns offset the PBoC's liquidity efforts.

EUROPEAN CLOSES

CLOSES: DAX: +0.1% at 17,702, FTSE 100: +0.3% at 8,168, CAC 40: +0.3% at 7,270, Euro Stoxx 50: +0.1% at 4,675, AEX: -0.1% at 883, IBEX 35: +0.8% at 10,639, FTSE MIB: +0.1% at 31,782, SMI: +0.4% at 11,876, PSI: -0.3% at 6,551.

SECTORS: Healthcare 1.84%, Financials 0.66%, Telecoms 0.47%, Energy 0.44%, Materials 0.44%, Consumer Disc 0.38%, Industrials 0.28%, Utilities 0.02%, Consumer Stpl -0.30%, IT -0.32%

FTSE 100

BT Group plc (BT/ LN) - Patrick Drahi has reportedly sold a significant portion of his nearly 25% stake in BT to raise cash, possibly reducing his direct ownership to around 10%, The Times reports. The rest is now held as borrowed shares. This move comes amid growing debt pressure on Drahi’s Altice group, which is negotiating with bondholders over its USD 60bln debt. (The Times)

Shell (SHEL LN) - Co. will invest in Phase 2 of the Surat Gas project in Australia. (Newswires)

Rio Tinto (RIO LN) - Rio, BHP (BHP AT) and Qantas (QAN AT) to invest USD 53mln in the Australian carbon credit fund. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Bellway (BWY LN) upgraded to Add from Hold at Peel Hunt

Hargreaves Lansdown (HL/ LN) upgraded to Neutral from Sell at Citi

DAX

OTHER GERMAN COMPANIES

Hypoport (HYQ GY) - Q2 (EUR): Revenue 110.6mln (prev. 85.3mln Y/Y), EBITDA 12.4mln (prev. 6.2mn). Confirmed FY24 guidance. (Newswires)

Thyssenkrupp (TKA GY) - Thyssenkrupp Steel Europe Chairman says business is challenged by catching up with investments, managing green transformation, and being separated from parent co. Thyssenkrupp. Production capacity is to be cut by around 2mln tonnes, and the HKM stake is to be sold. Fears of a steel division insolvency is without any basis. There is a funding gap of around EUR 1.3bln from Steel Management's point of view. (Newswires)

BROKER MOVES

Puma (PUM GY) upgraded to Buy from Add at Baader Helvea

CAC

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - Enters into exclusive negotiations for a carve-out and partial sale of its passive ground segment infrastructure assets. Contemplated transaction values the new entity at an EV of EUR 790mln; EQT (EQT SS) will own 80% of capital, and Eutelsat will hold 20%. (Newswires)

Esker (ALESK FP) - Bridgepoint Group Plc is exploring a bid for Paris-listed software provider Esker SA, with discussions ongoing, Bloomberg reports. Esker's shares have surged 35% over the past year, valuing the company at approximately EUR 1.2 billion. (Bloomberg)

BROKER MOVES

PAN EUROPE

Stellantis (STLAM IM / STLAP FP) - Issues statement in response to the end of production of RAM1500 classic at the Warren truck assembly plant; indefinite layoffs will start as early as 8th October affecting up to 2,450. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Received FDA approval for Enzeeu, further strengthing US biosimiliar position. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.47% at 5,344, NDX +0.54% at 18,513, DJIA +0.13% at 39,498, RUT -0.17% at 2,081.

SECTORS: Materials -0.1%, Industrials flat, Consumer Staples +0.2%, Utilities +0.3%, Energy +0.3%, Financials +0.4%, Consumer Discretionary +0.4%, Health +0.5%, Real Estate +0.5%, Technology +0.6%, Communication Services +1.0%.

Apple (AAPL) - Bloomberg's Apple-watcher said Apple’s iPhone 16 will keep sales stable until more innovative models are ready next year. Separately, SCMP reports that Foxconn has added 50,000 workers at its Zhengzhou plant over the past two weeks as it prepares for Apple’s iPhone 16 launch. Elsewhere, Bloomberg reports that Warren Buffett’s unexpected sale of a large portion of Apple shares could boost Apple’s influence in major stock indexes; Historically, Apple’s weighting was limited due to Berkshire Hathaway's long-term hold, but now index providers can fully reflect Apple’s market value. This shift may force passive funds to purchase up to USD 40bln in Apple stock during the next rebalancing, the report said. (Bloomberg)

12 Aug 2024 - 06:50- EquitiesExclusive- Source: Newsquawk