Newsquawk Daily European Equity Opening News - 13th July 2023

13th July 2023

ASIA

Asia-Pac stocks traded higher as the region reacted to the softer-than-expected US inflation data which underpinned the global risk appetite and unwound money market pricing for a Fed hike beyond July, while weaker-than-expected Chinese trade data failed to dampen the spirit. ASX 200 (+1.6%) was firmer with all sectors lifted by the broad constructive mood and as yields in Australia continued to decline. Nikkei 225 (+1.4%) reclaimed the 32,000 level at the open after the US CPI data provided a rising tide for stocks, while the KOSPI (+0.8%) was also lifted following the lack of surprises from the BoK which maintained its rates at 3.50% as expected. Hang Seng (+2.6%) and Shanghai Comp. (+0.9%) were positive with outperformance in the Hong Kong benchmark due to tech strength after Chinese Premier Li met with several HK-listed tech giants, endorsed the platform economy and pledged more support for the sector, while gains in the mainland were somewhat capped alongside the latest Chinese trade data which missed forecasts.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +1.72% at 4,360, FTSE 100 +1.83% at 7,416, DAX 40 +1.47% at 16,023, CAC 40 +1.57% at 7,333, FTSE MIB +1.75% at 28,552, IBEX 35 +1.31% at 9,453, SMI +0.53% at 11,020.

Sectors: IT 2.49%, Materials 2.36%, Consumer Disc 1.86%, Industrials 1.82%, Financials 1.59%, Telecoms 1.33%, Energy 1.10%, Utilities 1.07%, Consumer Stpl 0.46%, Healthcare 0.43%

FTSE 100

Entain (ENT LN) - Receives antitrust approval for the acquisition of STS Holding. (Newswires)

Ex- Dividend - British American Tobacco (BATS LN) and Halma (HLMA LN). (DividendData)

HSBC (HSBA LN) - HSBC is expanding its green finance and bond teams in China to meet rising demand. Chairman Mark Tucker met with regulatory officials in Beijing to support the bank's growth plans, including tapping into China's USD 3.9tln fund market. (Newswires)

OTHER UK COMPANIES

Balfour Beatty (BBY LN) - Balfour Beatty has been awarded a USD 320mln contract to build a new state prison in Georgia. The facility will support 3,000 inmates and provide various services. (Newswires)

BROKER MOVES

Computacenter (CCC LN) downgraded to Neutral from Buy at Citi

Softcat (SCT LN) upgraded to Buy from Neutral at Citi

Schroders (SDR LN) upgraded to Overweight from Equal weight at Barclays

DAX

BASF (BAS GY) - Q2 (EUR): EBIT 1bln (Prev. 2.3bln YY), Revenue EUR 17.3bln (Exp. 19.3bln). Cuts FY23 Revenue 73-76bln (Prev. 84-87bln), EBIT 4-4.4bln (Prev. 4.8-5.4bln) driven by lower prices and volumes. (Newswires) -5.0% in pre-market trade following the guidance cut

OTHER GERMAN COMPANIES

Fraport (FRA GY) – June passengers 5.6mln, +11.3% YY. (Newswires)

Nordex (NDX GY) – Achieves an order intake of 1.6GW in Q2 2023. (Newswires)

Suedzucker (SZU GY) - Affirms FY Revenue EUR 10.4-10.9bln. Guides Q2 EBITDA EUR 230mln, Op Net 153mln. (Newswires)

BROKER MOVES

CAC

Carrefour (CA FP) - Announced an acquisition of Cora and Match banners at EUR 1.05bln valuation. (Newswires)

TotalEnergies (TTE FP) - NextDecade has given the go-ahead for Phase 1 of its Rio Grande LNG project in Texas. The USD 18.4bln project, financed by various partners, will construct three liquefaction trains with a total capacity of 17.6mln tons per annum. TotalEnergies is one of the Phase 1 investors in the Rio Grande LNG project, and aims to secure a portion of the cash flows generated during the operation of the liquefaction trains. (NextDecade)

BROKER MOVES

Amundi (AMUN FP) downgraded to Equal weight from Overweight at Barclays

Valeo (FR FP) upgraded to Buy from Hold at Stifel Nicolaus

PAN EUROPE

Cofinimmo (COFIT BB) – Invests in nursing and care home in Ireland through a contribution in kind. (Newswires)

Enel (ENEL IM) - To sell PV generation portfolio in Chile to Sonnedix for EUR 550mln. (Newswires)

Flughafen Wien (FLU AV) – Reports June passengers 3.66mln, +19.4% YY. (Newswires)

BROKER MOVES

Telefonica (TEF SM) reiterated with Underweight at JP Morgan Chase

SMI

Barry Callebaut (BARN SW) – 9-month: Sales volume -2.7%, challenging market environment. (Newswires)

Roche (ROG SW) – Positive Phase III results for Ocrevus twice a year 10-miinute subcutaneous injection in patients with MS. (Roche)

Julius Baer (BAER SW) – Said to be in talks with suitors over sale of Kairos. (Newswires)

OTHER SWISS COMPANIES

Swatch (UHR SW) – H1 (CHF): Revenue 4.02bln (exp. 3.85bln), Net Income 498mln (exp. 395mln), EBIT 686mln (exp. 568mln). Sees excellent growth opportunities in H2 in local FX for all regions/price segments. (Newswires)

BROKER MOVES

SCANDINAVIA

Aker BP (AKRBP NO) – Q2 (USD): Revenue 3.29bln (exp. 3.229bln), EBITDA 3.00bln (exp. 2.85bln), EBIT 2.25bln (exp. 2.37bln), Net Income 397mln (exp. 547mln), EPS 0.63 (exp. 0.825). (Newswires)

BROKER MOVES

Nel (NEL NO) upgraded to Neutral from Underweight at JP Morgan Chase

Orsted (ORSTED DC) upgraded to Neutral from Underperform at Credit Suisse

Rockwool (ROCKB DC) initiated with Neutral at UBS

Tele2 (Tele2B NO) downgraded to Neutral from Overweight at JP Morgan Chase

US

CLOSES: SPX +0.74% at 4,472, NDX +1.24% at 15,307, DJIA +0.25% at 34,347, RUT +1.05% at 1,933.

SECTORS: Communication Services +1.51%, Utilities +1.47%, Materials +1.29%, Technology +1.25%, Consumer Discretionary +0.96%, Energy +0.9%, Financials +0.63%, Real Estate +0.44%, Consumer Staples +0.24%, Industrials -0.2%, Health -0.28%.

Meta (META) - Is to release a commercial AI model in an effort to catch rivals, according to FT. (FT)

13 Jul 2023 - 06:51- Research Sheet- Source: Newsquawk