Newsquawk Daily European Equity Opening News - 13th August 2024

13th August 2024

ASIA

APAC stocks followed suit to the mixed lead from the US ahead of key data and as markets continue to brace for Iran's retaliation. ASX 200 traded indecisively after mixed data releases and as gains in financials, real estate and the commodity-related sectors were counterbalanced by losses in tech, telecoms and defensives. Nikkei 225 surged on return from the long weekend and reclaimed the 36,000 status after returning to last week's pre-turmoil levels. Hang Seng and Shanghai Comp. were indecisive with the former supported in energy stocks after yesterday's oil rally, while the mainland index oscillated between gains and losses in a tight range owing to the lack of fresh macro drivers.

BHP (BHP AT) - Co. Escondida copper mine workers union accused Co. of anti-union practices for making an offer outside the mediation process. (Newswires) BHP has offered miners USD 28,900 bonus to avoid a strike at the world’s largest copper mine. (Newswires)

Chinese Stocks - MSCI continues to trim Chinese stocks from its indexes, according to Bloomberg, "setting the stage for a further drop in the nation’s share of a key emerging-market benchmark"; to drop 60 stocks from MSCI China Index this month. (Bloomberg)

Industrial Memory Demand - DigiTimes reports that industrial memory demand is picking up, writing that Q3 has seen a steady increase thanks to rising DRAM contract prices and end-market inventory correction coming to an end; the publication cites industry sources. (DigiTimes)

SK Hynix (000660 KS) - SK Hynix is expected to expedite the development of its high-bandwidth memory manufacturing and R&D fab in Indiana, with government incentives under the US CHIPS and Science Act, according to market sources cited by DigiTimes. (DigiTimes)

EUROPEAN CLOSES

CLOSES: DAX: -0.06% at 17,711, FTSE 100: +0.52% at 8,210, CAC 40: -0.26% at 7,251, Euro Stoxx 50: -0.10% at 4,671, AEX: +0.26% at 886, IBEX 35: +0.07% at 10,646, FTSE MIB: +0.46% at 31,928, SMI: +0.23% at 11,893, PSI: +0.09% at 6,556.

SECTORS: Energy 0.98%, Telecoms 0.58%, Utilities 0.49%, Financials 0.30%, IT 0.13%, Industrials 0.00%, Consumer Disc -0.09%, Materials -0.21%, Consumer Stpl -0.38%, Healthcare -0.85%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Brenntag (BNR GY) – Q2 (EUR): Sales 4.17bln (exp. 4.19bln, prev. 4.25bln Y/Y), Op. EBITDA 1.02bln (prev. 1.02bln Y/Y). The company also expects a slightly lower than initially anticipated sequential improvement in volumes in the second half of 2024. Expects FY Op. EBITA to be between 1.1-1.2bln (prev. guided 1.23-1.43bln). Does not expect a positive gross profit per unit development in H2 24 anymore. (Newswires)

Henkel (HEN3 GY) – H1 (EUR): Revenue 5.5bln (exp. 5.39bln). FCF 772mln (prev. 749mln Y/Y). Mid- to long-term financial ambition already to be reached mid-term. (Newswires)

OTHER GERMAN COMPANIES

Bilfinger (GBF GY) – Q2 (EUR): Revenue 1.3bln, +16% Y/Y, EBITDA 99mln, +46% Y/Y. Confirms FY24 outlook. (Newswires)

Fraport (FRA GY) – July 2024: Passenger volume at 6mln passengers, -12.7% vs 2019. Growth of around 0.5% in July M/M. (Newswires)

HelloFresh (HFG GY) – Q2 (EUR): Revenue 1.95bln (exp. 1.96bln), Adj. EBITDA 146.4mln (exp. 123mln). Confirmed FY24 outlook. (Newswires)

Tag Immobilien AG (TEG GY) – H1 (EUR): Rental Income 88.1mln (prev. 89.1mln Y/Y), Sales in Poland 34.1mln (prev. 23.2mln Y/Y). Annual guidance confirmed. (Newswires)

thyssenkrupp nucera (NCH2 GY) – Q3 (EUR): Net Income 5.8mln (exp. -1.2mln). Growth momentum significantly slowed in Q3 amid market uncertainty caused by unresolved regulatory issues and slow pace of funding commitments. (Newswires)

BROKER MOVES

Hannover Re (HNR1 GY) upgraded to Buy from Hold at Berenberg

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Chemical Names – Carlyle (CG) is reportedly looking into a EUR 3bln sale of Nobian, via FT citing sources; discussions with investment banks have been held with a potential sale process to start in 2025. (FT) Nobian is part of a unit which was acquired by Carlyle from Akzo Nobel (AKZA NA) in 2018

Prysmian (PRY IT) – Awarded more than USD 96mln by jury in trade secrets lawsuit against Sterlite. (Newswires)

Volkswagen (VOW3 GY) - Co. has delayed the launch of trinity EV model, according to Handelsblatt; VW's trinity production now set to begin in 2032 (prev. 2026). (Handelsblatt)

BROKER MOVES

SMI

Sika (SIKA SW) – Expands its mortar production in Indonesia. (Newswires)

OTHER SWISS COMPANIES

Galderma (GALD SW) - Galderma received US FDA approval for Nemluvio (nemolizumab) for adult patients living with Prurigo Nodularis. (Galderma)

Tecan (TECN SW) – H1 (CHF): Adj. EBITDA 67.9mln (prev. 101.2mln Y/Y). Reiterated its mid-term outlook. Revises its FY24 outlook: now expects an adjusted EBITDA margin, excluding acquisition- and integration-related costs, of 18-20% of sales (previously at least around 20% of sales). FY outlook revised to reflect persistent weak demand and slower market recovery. (Tecan)

BROKER MOVES

SCANDINAVIA

Hexagon (HEXAB SS) – Received significant order for RNG fuel systems from fleet in North America for around USD 18.7mln. (Newswires)

Pandora (PNDORA DC) - Q2 2024 (DKK): EBIT 1.338bln (exp. 1.298bln), Sales 6.77bln (exp. 6.66bln), EBIT margin 19.8% (exp. 19.5%). Now sees FY24 organic revenue growth between 9-12% (prev. +8-12%). (Newswires)

BROKER MOVES

Stora Enso (STERV FH) downgraded to Neutral from Overweight at JP Morgan

US

CLOSES: SPX flat at 5,344, NDX +0.16% at 18,542, DJIA -0.36% at 39,357, RUT -0.91% at 2,062

SECTORS: Real Estate -0.6%, Communication Services -0.6%, Industrials -0.5%, Consumer Staples -0.5%, Financials -0.5%, Materials -0.4%, Consumer Discretionary -0.4%, Health -0.4%, Utilities +0.2%, Energy +0.5%, Technology +0.9%.

Chip Names - Hong Kong chip fab raises US research security concerns, according to a report cited by Nikkei. "A Chinese scientist who worked on developing photonic technology for the US military is now leading a third-generation semiconductor chip production venture in Hong Kong, raising concerns about US research security, according to a defence policy group in Washington." (Nikkei)

Johnson & Johnson (JNJ) - Co. gets plaintiff backing for USD 6.5bln baby power accord, Bloomberg reported. (Bloomberg)

13 Aug 2024 - 06:52- MetalsResearch Sheet- Source: Newsquawk