Newsquawk Daily European Equity Opening News - 13th March 2023

13th March 2023

ASIA

Asia-Pac stocks traded mixed with financials hit amid the fallout from the SVB collapse and subsequent failure of Signature Bank, although US equity futures were supported following efforts to stabilise the financial system with bank deposits guaranteed and the Fed announced to make additional funding available to eligible depository institutions to assure that banks have the ability to meet the needs of their depositors. ASX 200 (-0.5%) was lower with weakness seen across most industries including the top-weighted financials sector although closed off its lows owing to the resilience in commodity-related stocks and with money market rates pricing in over 75% probability of a pause at next month’s meeting. Nikkei 225 (-1.1%) suffered losses and retreated back beneath the 28,000 level with financial stocks dominating the list of worst performers. Hang Seng (+1.9%) and Shanghai Comp. (+0.7%) were positive with Hong Kong boosted by strength in the tech industry after Chinese President Xi advocated strengthening science and technology at the closing remarks of the NPC and with Bilibili boosted following the inclusion of its Z shares to the Stock Connect, while the mainland was also kept afloat after China reported stronger-than-expected loans/financing data and surprisingly retained PBoC Governor Yi Gang at the head of the central bank.

EUROPEAN CLOSES

CLOSES: EUROPEAN CLOSES: EURO STOXX 50 -1.32 at 4,230, FTSE 100 -1.67% at 7,748, DAX 40 -1.31% at 15,428, CAC 40 -1.30% at 7,221, FTSE MIB -1.55% at 27,282, IBEX 35 -1.47% at 9,285, SMI -1.68% at 10,765

SECTORS: Utilities -0.07%, Consumer Stpl -0.28%, Telecoms -0.57%, Healthcare -0.68%, Energy -0.74%, Consumer Disc -0.96%, Materials -1.22%, IT -1.49%, Industrials -2.03%, Financials -3.09%

FTSE 100

BP (BP/ LN)/Shell (SHEL LN) - Borders to Coast and UK Universities pension schemes are to vote against the renewal of top officials at the Cos AGMs unless pledges to tackle carbon emissions are improved, via FT citing sources. (FT)

HSBC (HSBC LN) - Silicon Valley Bank's UK subsidiary has been sold to HSBC. "Depositors will be fully protected." Will be announced by BoE and the Treasury imminently, via Sky News' Conway. (Sky News)

Tesco (TSCO LN) - Co. has reportedly told suppliers that they will have to pay a “fulfilment fee” when the Co. sells their items online, via BBC citing an email which adds suppliers could be penalised if they do not adhere to this. (BBC)

UK Energy Providers - Under reforms to be announced in the Budget on Wednesday, customers who use prepayment meters will no longer be charged more for their gas and electricity than those who pay by direct debit. (Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Lufthansa (LHA GY) - German airline passengers are poised to face severe disruptions on Monday amid planned strike action. (Newswires)

Deutsche Post (DPW GY) - Co. has secured a wage deal with the Verdi union, covering 160k workers and will span over 24 months, according to a statement. (Newswires)

SAP (SAP GY) - Co. has agreed to sell all of its 423mln shares of Qualtrics International (XM). SAP’s stake will be acquired for approximately USD 7.7bln. (SAP)

OTHER GERMAN COMPANIES

Bauer (B5A GY) - CEO has resigned from the position, effective March 15th. Responsibilities will be shared between two board members including the CFO. (Newswires)

BROKER MOVES

K+S (SDF GY) initiated with Buy at Jefferies

CAC

Sanofi (SAN FP) - Sanofi has agreed to acquire Provention Bio (PRVB) for USD 25.00/shr (vs. Friday's USD 6.70 close) in cash, representing an equity value of approximately USD 2.9bln and a premium of some 273%. (Newswires/Sanofi)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Banking Sector - US authorities including the Fed announced actions to increase confidence in the banking system after the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY) - Click here for a Newsquawk recap.

Chipmakers - US President Biden poised to further tighten US chipmaking exports to China, according to Bloomberg. (Newswires)

Fincantieri (FCT IM) - CEO says a pivot from oil to wind farms could more than double its offshore businesses revenue in five years. (FT)

OMV (OMV AT) - Czech firm Agrofert is reportedly poised to win unconditional EU antitrust approval for its purchase of OMV's Borealis' nitrogen business unit, according to Reuters sources. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Stellantis is reportedly in talks to bring new EV production to Spain, according to Spanish press. (Cinco Dias)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - On Friday announced that FINMA has concluded its review and does not see any reason to open regulatory proceedings after the Chairman's recent interviews on outflows. (Newswires)

Novartis (NOVN SW) - Co. has launched a new share buyback programme of up to CHF 10bln to purchase up to 10% of shares over the next three years. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Yara International (YAR NO) initiated with Underperform at Jefferies

US

CLOSES: SPX -1.45% at 3,861, NDX -1.38% at 11,830, DJIA -1.07% at 31,910, RUT -2.95% at 1,773.

SECTORS: Real Estate -3.25%, Materials -2.15%, Industrials -1.82%, Financials -1.76%, Technology -1.74%, Utilities -1.6%, Communication Services -1.43%, Energy -1.42%, Consumer Discretionary -0.98%, Health Care -0.74%, Consumer Staples -0.46%.

13 Mar 2023 - 06:49- Research Sheet- Source: Newsquawk