Newsquawk Daily European Equity Opening News - 12th May 2023

12th May 2023

ASIA

APAC stocks were mostly lower amid a busy slate of earnings releases and after the subdued performance stateside where regional bank fears resurfaced and initial jobless claims disappointed. ASX 200 was lacklustre with the index constrained by weakness in the energy and mining-related sectors after the recent pressure in underlying commodity prices. Nikkei 225 outperformed and rose to its highest since November 2021 with price action largely driven by earnings results including various blue-chip stocks. Hang Seng and Shanghai Comp. were indecisive as talks between US National Security Adviser Sullivan and China's top diplomat Wang Yi provided some encouragement towards a potential Biden-Xi call, although participants also digested weaker-than-expected Chinese loans and financing data.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.07% at 4,309, FTSE 100 -0.14% at 7,730, DAX 40 -0.39% at 15,834, CAC 40 +0.28% at 7,381, FTSE MIB -0.61% at 27,098, IBEX 35 +0.16% at 9,182, SMI +0.58% at 11,513.

SECTORS: Consumer Disc 0.81%, Consumer Stpl 0.46%, Healthcare 0.43%, Financials -0.10%, Industrials -0.24%, Telecoms -0.31%, Utilities -0.32%, IT -0.72%, Materials -0.79%, Energy -1.58%

Toyota (7203 JT) - Co. said customer information affecting 2.15mln users in Japan leaked due to a setting error on the cloud environment. (Newswires)

FTSE 100

Gold Miners - Anglogold (AU) is reportedly planning a UK domicile and a US primary listing on the NYSE, according to Bloomberg. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Barclays (BARC LN) upgraded to Outperform from Sector Perform at RBC

Diageo (DGE LN) downgraded to Hold from Buy at Jefferies

Pearson (PSON LN) upgraded to Overweight from Equal Weight at Morgan Stanley

DAX

Allianz (ALV GY) - Q1 2023 (EUR): Net Income 2.16bln (exp. 2.33bln). EPS 5.43 (exp. 5.73). Co. has announced a new share buyback of up to EUR 1.5bln. Co. has confirmed its 2023 guidance. (Newswires) Co. holds a 7.5% weighting in the DAX 40.

OTHER GERMAN COMPANIES

Fraport (FRA GY) - March passengers +21.5% Y/Y to 4.8mln. (Newswires)

BROKER MOVES

CAC

JC Decaux (DEC FP) - Q1 2023 (EUR): Total Adj. Revenue 721.3mln (exp. 845mln). "In China, we are seeing encouraging signs of recovery with domestic mobility now back to normal leading us to a strong year-on-year double-digit revenue growth in Q2." (JC Decaux IR)

SocGen (GLE FP) - Q1 2023 (EUR): Revenue 6.67bln (exp. 6.829bln). Adj. net 1.51bln (prev. 1.54bln Y/Y). FIC Sales and Trading Revenue +16% Y/Y to EUR 890mln. Co. reduces its FY23 cost of risk guidance to "under 30bps" from "30-35bps". CET1 ratio 13.4% (prev. 16.5% Q/Q). (Newswires)

OTHER FRENCH COMPANIES

Scor (SCR FP) - Q1 Update (EUR): Net Income 311mln (exp. 167mln). New strategic plan to be presented at the 25th May AGM. (Newswires)

BROKER MOVES

PAN EUROPE

Austrian Post (POST AV) - Q1 2023 (EUR): Revenue 664.7mln (exp. 627mln). EBITDA 95.1mln (exp. 91mln). EPS 0.4600 (exp. 0.4050). Net Income 32mln (exp. 27mln). (Newswires)

Ferrovial (FER SM) - Q1 2023 (EUR): EBITDA 189mln (exp. 200mln), Revenue 1.8bln (exp. 1.7bln). (Ferrovial IR)

Pirelli (PIRC IM) - Q1 2023 (EUR): Adj. EBIT 248.1mln (exp. 236mln), Revenue 1.70bln (exp. 1.65bln), Net profit 115mln (exp. 109mln); confirms 2023 guidance. (Newswires)

Melia Hotels (MEL SM) - Q1 2023 (EUR): Revenue 396mln (prev. 271mln Y/Y). EBITDA 77.9mln (prev. 22.7mln). Co. is seen opening around 30 hotels in 2023. (Newswires)

BROKER MOVES

SMI

Richemont (CFR SW) - FY (EUR): Sales 19.95bln (exp. 19.64bln), Operating Profit 5.03bln (exp. 4.99bln). Launch of a new buyback to hedge awards under the long-term incentive plan, to buyback up to 1mln A shares which represents 1.7% of capital. Richemont expects further strong demand ahead. (Newswires)

UBS (UBSG SW) - Co. has prioritised integrating Credit Suisse’s (CSGN SW) investment bank and an acceleration of cost reductions, via FT citing sources; decisions on the Swiss unit are expected within months. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Coloplast (COLOB DC) downgraded to Underweight from Neutral at JPMorgan Chase

US

CLOSES: SPX -0.17% at 4,130, NDX +0.31% at 13,389, DJIA -0.66% at 33,309, RUT -0.84% at 1,744.

SECTORS: Energy -1.24%, Utilities -1.14%, Real Estate -1.02%, Materials -0.99%, Industrials -0.65%, Technology -0.45%, Health -0.34%, Financials -0.2%, Consumer Staples +0.31%, Consumer Discretionary +0.55%, Communication Services +1.65%.

Tesla (TSLA) -Elon Musk (TSLA) says he is excited to announce he has a new CEO for Twitter, he will transition to exec chair and CTO. (Twitter) Separately, Tesla raised the US prices for its Model S, X, and Y electric vehicles on Thursday, according to its website. Co. raised the prices for all variants of its Model S and X vehicles by USD 1,000, while prices of all Model Y variants were increased by USD 250. There were no changes to the prices of its Model 3 vehicle. (Yahoo Finance)

12 May 2023 - 06:47- EquitiesEconomic Commentary- Source: Newsquawk