Newsquawk Daily European Equity Opening News - 13th December 2023

13th December 2023

ASIA

Asia-Pac stocks traded mixed with participants cautious heading into the FOMC announcement. ASX 200 (+0.3%) was led by strength in healthcare after Sigma shares surged by over 70% shortly after the return from a trading halt and the recent announcement of a merger with Chemist Warehouse, while the energy sector lagged after yesterday’s continued slide in oil prices. Nikkei 225 (+0.4%) was underpinned by an encouraging Tankan survey which mostly beat expectations and showed sentiment amongst Japan’s large manufacturers and non-manufacturers was at the highest since March 2020 and November 1991, respectively. Conversely, the KOSPI (-0.8%) was pressured following an uptick in the Unemployment Rate, while the Hang Seng (-1.2%) and Shanghai Comp. (-0.8%) also declined despite the detailing of China’s policy focus for next year and support pledges, as the statement from the Central Economic Work Conference refrained from any major stimulus announcements.

EUROPEAN CLOSES

CLOSES: DAX -0.02% at 16,791.74, FTSE 100 -0.03% at 7,542.77, CAC 40 -0.11% at 7,543.55, Euro Stoxx 50 -0.10% at 4,535.75, IBEX 35 -0.78% at 10,118.70, FTSE MIB -0.28% at 30,342.15, SMI +0.15% at 11,146.70.

SECTORS: IT 0.48%, Industrials 0.12%, Consumer Stpl -0.18%, Healthcare -0.24%, Financials -0.25%, Materials -0.28%, Utilities -0.31%, Consumer Disc -0.35%, Telecoms -0.58%, Energy -1.28%

FTSE 100

Antofagasta (ANTO LN) - Co. and workers at the Centinela mine extend talks to allow workers to vote on a new contract offer, according to the union. (Newswires)

Anglo American (AAL LN) – Co’s production forecasts had reportedly previously been overestimating technology’s role in boosting output and the new revised forecasts are regarded as more realistic, via FT citing sources. (FT) Follows CEO Wanblad announcing another production guidance cut last Friday.

BAE Systems (BAE LN) - BAE's US arm secured a USD 8.8bln, 10-year contract to manage Tennessee's Holston Army Ammunition Plant, aiming to bolster weapons production. BAE defeated bids from General Dynamics (GD) and Day & Zimmerman, according to sources cited by the WSJ. (WSJ)

Clearing/Settlement – The UK Government task force is reportedly having difficulties agreeing on a date to cut the time for the finalisation of the securities deal from a two-day settlement to next-day, via FT citing sources. (FT)

International Distributions Services (IDS LN) - Co. is weighing a bid of up to EUR 500mln for Packeta, a Czech parcels business. The Czech business operates across several Eastern European countries and in Germany, with the latest round of bids due to be tabled by Friday, according to The Times. (The Times)

OTHER UK COMPANIES

Metro Bank (MTRO LN) – Co. has reportedly shelved work on convincing the BoE to allow it to use its own internal calculations to model for risk, via FT citing sources. (FT)

BROKER MOVES

Anglo American (AAL LN) downgraded to Hold from Buy at HSBC

Shell (SHEL LN) downgraded to Neutral from Outperform at BNP Paribas

WPP (WPP LN) downgraded to Neutral from Overweight at JP Morgan

DAX

BMW (BMW GY) - North American Executive expects EV sales to grow as a percentage of US sales in 2024 and 2025. (Newswires)

Volkswagen (VOW3 GY) - Volkswagen-backed PowerCo. SE reaches significant milestones in the St. Thomas gigafactory project. (Newswires)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - Reports November passengers 4.6mln, +12.2% Y/Y. (Newswires)

BROKER MOVES

BASF (BASF GY) upgraded to Buy from Sell at UBS

Mercedes-Benz (MBG GY) downgraded to Underperform from Neutral at BNP Paribas

Porsche (P911 GY) upgraded to Buy from Hold at HSBC

Volkswagen (VOW3 GY) upgraded to Neutral from Underperform at BNP Paribas

CAC

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - Eutelsat OneWeb signs a multi-million dollar exclusive distribution agreement with Rawafed Libya to deliver connectivity services across Libya. (Newswires)

Sodexo (SW FP) - Appoints Sophie Bellon as CEO and Chairwoman; effective immediately. (Newswires)

BROKER MOVES

Arkema (AKE FP) upgraded to Buy from Neutral at UBS

LVMH (MC FP) downgraded to Neutral from Outperform at JP Morgan

TotalEnergies (TTE FP) upgraded to Outperform from Neutral at BNP Paribas

PAN EUROPE

Flughafen (FLU AV) – Reports November Passenger Traffic 2.7mln, +14% Y/Y. (Newswires)

Inditex (ITX SM) - 9M (EUR): Net 4.10bln (exp. 4.06bln), EBIT 5.19bln (exp. 5.13bln), Revenue 25.6bln (exp. 25.7bln). Raises FY23 margin to approx. +75bps (prev. guidance "stable +/-50bps"). (Newswires)

BROKER MOVES

Akzo Nobel (AKZA NA) downgraded to Neutral from Buy at UBS

Ferrari (RACE IM) downgraded to Hold from Buy at HSBC

Repsol (REP SM) downgraded to Neutral from Outperform at BNP Paribas

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Siegfried (SFZN SW) initiated with Buy at SocGen

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.46% at 4,643, NDX +0.82% at 16,354, DJIA +0.48% at 36,577, RUT -0.13% at 1,881.

SECTORS: Technology +0.83%, Financials +0.72%, Materials +0.57%, Health +0.47%, Industrials +0.46%, Consumer Discretionary +0.4%, Consumer Staples +0.31%, Communication Services +0.2%, Real Estate -0.05%, Utilities -0.41%, Energy -1.36%.

Tesla (TSLA) - Model 3 RWD and Long Range models will no longer be eligible for USD 7,500 US IRS federal EV tax credit from January 1st. (Newswires)

Walgreens (WBA) - Revives discussions on GBP 7bln Boots exit; Boots talks at early stage; deal to come next year at earliest, according to Bloomberg sources. (Bloomberg)

13 Dec 2023 - 06:52- Research Sheet- Source: Newsquawk