Newsquawk Daily European Equity Opening News - 12th July 2024

12th July 2024

ASIA

APAC stocks took their cues from the mixed performance stateside where softer-than-expected CPI data boosted Fed rate cut bets and spurred a stock rotation out of large-cap tech into small-cap cyclicals. ASX 200 gained amid lower yields with gold miners, real estate, and consumer stocks leading the advances. Nikkei 225 underperformed after recently sliding back from record highs and amid speculated FX intervention. Hang Seng and Shanghai Comp. diverged as the former rallied back above the 18,000 level with strength seen in property and tech, while the mainland was lacklustre after mixed Chinese trade data in which Exports topped forecasts but Imports surprisingly contracted.

EUROPEAN CLOSES

CLOSES: DAX: +0.72% at 18,540, FTSE 100: +0.36% at 8,223, CAC 40: +0.71% at 7,627, Euro Stoxx 50: +0.39% at 4,978, IBEX 35: +0.89% at 11,170, FTSE MIB: flat at 34,318, SMI: +0.92% at 12,263, PSI: +0.89% at 6,802.

SECTORS: Utilities 1.63%, Consumer Disc 1.04%, Industrials 0.74%, Materials 0.67%, Healthcare 0.55%, Financials 0.49%, Consumer Stpl 0.45%, Telecoms 0.31%, IT -0.46%, Energy -0.51%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

IAG (IAG LN) downgraded to Hold from Buy at HSBC

DAX

Rheinmetall (RHM GY) - CEO tells newspaper Faz that sales growth post-2024 will be significantly above 20% and expects an order backlog of EUR 60-70bln at year-end. (Faz)

OTHER GERMAN COMPANIES

Lufthansa (LHA GY) - Reportedly plans to cut administrative costs by 20% and marketing spending by 10%, it also plans a hiring freeze in admin functions and plans to postpone or cut back certain other projects, according to Bloomberg. (Bloomberg)

BROKER MOVES

CAC

Pernod Ricard (RI FP) - Establishing a new brand in the USA, North American Distillers. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Air France (AF FP) downgraded to Hold from Buy at HSBC

PAN EUROPE

Aedifica (AED BB) - Completion of 8 projects from Aedifica's investment programme in Q2'24; total investment EUR 61mln. (Newswires)

Brunello Cucinelli (BCU IM) - H1 (EUR): revenue +14.7% Y/Y at 620.7mln, Q2 revenue 312mln. Sees an increase in turnover of about 10% in 2025, and expects turnover to double by 2030. (Newswires)

Stellantis' (STLAM IM/STLAP FP) - Fiat Grande Panda EV is to sell for less than EUR 25k. (Newswires)

BROKER MOVES

Enel (ENEL IM) upgraded to Buy from Hold at Jefferies

Ryanair (RYA ID) downgraded to Hold from Buy at HSBC

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Axfood (AXFO SS) - Q2 (SEK): Revenue 21.04bln (exp. 21.27bln), EBIT 836mln (exp. 964.9mln). Strengthened market positions but a weak quarter in Dagab. Earnings were negatively impacted by costs associated with operational disruptions and the restructuring of logistics. (Newswires)

Ericsson (ERICB SS) - Q2 (SEK): Revenue 59.9bln (exp. 58.3bln, prev. 64.4bln Y/Y), EBITA margin 4.1% (prev. 0.8%), EBITA 2.4bln (exp. 1.60bln). Expects market conditions to remain challenging this year. Sales will benefit in H2, from contract deliveries in North America. Restructuring charges for 2024 exp. to be in the range of 3-4bln. Dell'Oro (market research firm) estimates that the global RAN equipment market will decline by -5 to -8% in 2024. (Newswires)

Skanska (SKAB SS) - Rehabilitates rail tunnels in USA for USD 637mln. (Newswires)

Storebrand (STB NO) - Q2 (NOK): Profit 2.24bln (exp. 2.1bln), Adj. EPS 4.59 (exp. 3.86). (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.88% at 5,585, NDX -2.24% at 20,211, DJI flat at 39,754, RUT +3.57% at 2,125.

SECTORS: Technology -2.74%, Communication Services -2.56%, Consumer Discretionary -1.47%, Consumer Staples -0.35%, Health +0.72%, Financials +0.85%, Energy +1.05%, Industrials +1.26%, Materials +1.42%, Utilities +1.83%, Real Estate +2.66%.

Boeing (BA) - Warned customers in recent weeks of further delays on 737 MAX amid crisis, according to Bloomberg. (Bloomberg)

Tesla (TSLA) - Reportedly plans to delay its robotaxi unveiling to October from August, according to Bloomberg, TSLA wants more prototypes before the event. (Bloomberg) Shares fell 8.4% in the prior session.

US Earnings: Q2 bank earnings will begin on Friday, with the likes of JPM, WFC, and C reporting. AI-darling Nvidia will report earnings on August 21st, and is arguably the most eagerly awaited report later in the season. On the upcoming earnings, Goldman Sachs highlights the current consensus is for +9% Y/Y EPS growth in Q2, although GS expects the magnitude of EPS beats are likely to diminish. A detailed preview can be found in the Week Ahead in the Research Suite

12 Jul 2024 - 06:55- EquitiesData- Source: Newsquawk