Newsquawk Daily European Equity Opening News

13th May 2024

ASIA

APAC stocks were mostly cautious after mixed inflation and soft financing data from China over the weekend, although Chinese markets found some solace from China's plans to issue ultra-long treasury bonds. ASX 200 was led lower by underperformance in the energy sector and amid a tepid NAB Business survey. Nikkei 225 lacked firm direction with price action choppy amid a slew of earnings releases. Hang Seng & Shanghai Comp were initially pressured after mixed inflation data and disappointing financing data which showed a rare contraction in Aggregate Financing, while expectations of increased US tariffs on Chinese EVs also provided early headwinds. However, the Hong Kong benchmark then recovered and climbed above the 19,000 level amid tech strength, while the mainland pared the majority of its losses as the attention turned to China's plans to issue ultra-long treasury bonds on May 17th.

Chinese inflation - Chinese CPI MM (Apr) 0.1% vs. Exp. -0.1% (Prev. -1.0%); CPI YY (Apr) 0.3% vs. Exp. 0.2% (Prev. 0.1%); PPI YY (Apr) -2.5% vs. Exp. -2.3% (Prev. -2.8%)

Subaru (7270 JT) - FY23/24 (JPY) net rose 92% Y/Y to 385.1bln, sees FY24/25 net to decline 22.1% Y/Y to 300.0bln, Co. is to buyback up to 3.1% of shares for JPY 60bln and retire all shares to be bought back with the date to be decided later. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.44% at 18,762, FTSE 100 +0.61% 8,432, CAC 40 +0.38% at 8,219, Euro Stoxx 50 +0.58% at 5,083, IBEX 35 +0.50% at 11,105, FTSE MIB +0.89% at 34,646, SMI +1.21% at 11,742.

SECTORS: Utilities 1.47%, Financials 1.10%, Energy 1.06%, IT 0.97%, Materials 0.91%, Industrials 0.86%, Healthcare 0.77%, Consumer Stpl 0.70%, Consumer Disc 0.33%, Telecoms 0.25%

FTSE 100

Entain (ENT LN) - Henry Birch is among the top contenders of becoming the CEO of the Co., via Sky News. (Sky News)

Nuclear Power - South Korea's KEPCO is in early discussions to build a UK nuclear plant, via the FT. (FT)

Vodafone (VOD LN) - UK CMA has decided the Vodafone-Three deal reference period be extended until CK Hutchinson (0001 HK) complies with various requirements. (Newswires)

OTHER UK COMPANIES

Shein IPO - Co. is stepping up its preparations for an IPO in London amid hurdles of a US listing, according to Reuters citing sources. Co. aims to update the Chinese securities regulator and file with the LSE as soon as this month. (Reuters)

BROKER MOVES

DAX

Fresenius Medical Care (FME GY) - Co. sees up to 2% dialysis growth by the end of the year, on track to achieving pre-pandemic levels of growth at 2-3%. (Newswires)

Salzgitter (SZG GY) - Q1 (EUR): Pretax profit 17.2mln (exp. 22mln), EBIT 126.4mln (exp. 47mln). Outlook 2024: Sales of around 10.5bln, EBITDA between 550-625mln. Steel-related activities described as feeling lacklustre in the German economy. (Newswires)

OTHER GERMAN COMPANIES

Boeing (BA) / Deutsche Lufthansa (LHA GY) - Deutsche Lufthansa CEO told Switzerland's Neue Zuercher Zeitung newspaper that Boeing's aircraft delivery delays were "extremely annoying" and has cost Lufthansa lots of money, but thinks that Boeing should be able to resolve its problems. (Newswires)

K+S (SDF GY) - Q1 (EUR): EBITDA 200mln (exp. 165mln), Revenue 988mln (exp. 904mln). Confirms FY24 outlook. (Newswires)

Norsk Hydro (NHY GY) - CEO said accelerating growth and value creation and sustainability to change the game for aluminium. Current weaker conditions does not change the Co's longer-term outlook. Towards 2030 demand for low-carbon aluminium is expected to increase faster than overall demand growth. (Newswires)

BROKER MOVES

CAC

Sanofi (SAN FP) - Adds over EUR 1bln for biomanufacturing to EUR 2.5bln already committed in major projects in France to support health sovereignty. (Newswires)

OTHER FRENCH COMPANIES

Covivio (COV FP) - Success of option of dividend payment with shares chosen by 77.5% of share capital. (Newswires)

BROKER MOVES

PAN EUROPE

Caixabank (CBK SM) - Concluded its program for repurchase of treasury shares; max investment of EUR 500mln provided under buy-back programme has been reached. (Newswires)

Tenaris (TEN IM) - Co. to commence a USD 300mln third tranche of its USD 1.2bln share buyback programme. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

EQT (EQT SS) - Offers SEK 60/shr in cash for OX2 (OX2 SS). OX2 independent bid committee unanimously recommends shareholders to accept the offer from EQT. (Newswires) OX2 last closed at SEK 41.84/shr

Volvo Car AB (VOLVB SS) - Co. has completed the distribution of 62.7% of its Polestar shareholding to its shareholder and commences the conversion period of SDRS into Polestar class A ADS. (Newswires)

BROKER MOVES

US

CLOSES: S&P 500 +0.2%, Nasdaq 100 +0.3%, Dow Jones +0.3%, Russell 2000 -0.6%.

SECTORS: Cons Discretionary -0.61%, Cons Staples +0.64%, Energy -0.55%, Financials +0.46%, Healthcare +0.22%, Industrials +0.08%, Materials +0.13%, Real Estate -0.4%, Technology +0.48%, Communications -0.15%, Utilities -0.16%.

Apple (AAPL) - Plans to announce that it will bring generative AI to iPhones, NYT reports. (NYT)

Regeneron (REGN) - Regeneron's Dupixent (dupilumab) sBLA Accepted for FDA Priority Review for Treatment of Adolescents with Chronic Rhinosinusitis with Nasal Polyposis (CRSwNP). (Regeneron) Also of note for Sanofi (SAN FP)

13 May 2024 - 06:50- EquitiesResearch Sheet- Source: Newsquawk