Newsquawk Daily European Equity Opening News

14th June 2021

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asian equity markets began the week quiet amid holiday-thinned conditions with the absence of key markets in the region as Australia was closed in observance of the Queen’s Birthday and with mainland China, Hong Kong and Taiwan on an extended weekend for the Dragon Boat Festival. In addition, participants got to digest last week’s G7 meeting where leaders called out China on human rights and agreed to a new global infrastructure initiative dubbed the Build Back Better World to rival China’s Belt & Road initiative. Furthermore, this week’s busy slate of central bank updates, including the FOMC and BoJ further contributed to the tentative mood. US equity futures traded with incremental gains overnight, and the NQ reclaimed a 14k handle. Nikkei 225 (+0.6%) moved above the 29k level after it coat-tailed on the recent upside in USD/JPY, which has resulted in outperformance among Japan’s exporters and with firm gains also in Toshiba after it ousted four executives in the fallout from the recent probe findings regarding collusion with government officials against foreign investors. The KOSPI (Unch.) was flat with the largest automakers lacklustre despite a near 58% jump in South Korea’s auto exports last month led by Hyundai Motor and Kia Motors, with their shipments higher by 73.8% and 70.8%, respectively. However, Hyundai also announced to temporarily suspend output in its US plant for three weeks due to chip shortages and maintenance. Conversely, Celltrion shares outperformed after its Phase 3 trial showed its antibody COVID-19 treatment Rekirona was safe and effective whereby it slowed severe symptoms of COVID-19 in more than 70% of patients. India's NIFTY Index (-0.5%) underperformed on a pullback from record highs and with heavy pressure on Adani Group companies after the National Securities Depository froze three foreign accounts that have exposure to the group, which could be due to disclosure issues.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.73% AT 4,126; FTSE 100 +0.67% AT 7,136; DAX +0.76% AT 15,690; CAC 40 +0.83% AT 6,601; IBEX 35 +0.79% AT 9,206; FTSE MIB +0.32% AT 25,721; SMI +0.28% AT 11,843

SECTORS: Consumer Disc 1.16%, IT 1.08%, Materials 1.01%, Utilities 0.87%, Energy 0.80%, Healthcare 0.54%, Industrials 0.54%, Financials 0.42%, Telecoms 0.18%, Consumer Stpl 0.08%

FTSE 100

AstraZeneca (AZN LN) - Italian regulators have banned usage of the Co's vaccine for under-60s following the death of an 18 year old due to blood clotting after the first dose. (Times)

IAG (IAG LN) - Former CEO Walsh says that while it is unlikely that sections of the business could be sold or similar there are articles which highlight British Airways as a candidate to be spun off. (Telegraph)

Shell (RDSA LN) - Reportedly reviewing its holdings in the Permian Basin oilfield for a potential sale which could be worth in excess of USD 10bln, according to sources. However, sources caution there is no guarantee a deal will be struck. (Newswires)

UK Co's - UK employers' groups, such as the Federation of Small Businesses and UK Hospitality and British Chambers of Commerce, have suggested an extension to UK COVID restrictions will be devastating for firms and that they were poised to ask for further aid such as loan forbearance, generous furlough terms and an extension to an eviction ban and business rates holiday. (Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

Volkswagen (VOW3 GY)/ Traton (8TRA GY) - Volkswagen's Traton unit is exploring a potential capital raise, according to sources. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

BNP Paribas (BNP FP) - J. Garcia Carrion has commenced a dispute with the Co. alleging that its traders mis-sold lossmaking FX products between 2015 and 2020 totalling tens of billions of Euros in notional amounts. (FT)

Orange (ORA FP) - Clarifies that the inability for calls to the French emergency services to de made was due to a 'bug' not a hack; remarks in response to domestic regulators commencing an investigation into the issue. (Newswires)

OTHER FRENCH COMPANIES

Ubisoft (UBI FP) - Electronic Arts (EA) said that no player data was accessed in the hacking event; finds no reason to believe there is a risk to player privacy. (Newswires)

BROKER MOVES

PERNOD-RICARD (RI FP) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN

REMY COINTREAU (RCO FP) DOWNGRADED TO UNDERPERFORM FROM MARKET PERFORM AT BERNSTEIN

PAN EUROPE

Atlantia (ATL IM) - Co. has confirmed the divestment of the entirety of its Autostrade stake to a consortium. (Newswires)

Energy Names - Shell (RDSA LN), Total (FP FP), ENI (ENI IM), Exxon (XOM), Chevron (CVX) and ConocoPhilips (COP) are bidding to partner in the expansion of Qatar's LNG facilities, according to sources. (Newswires)

BROKER MOVES

CAMPARI (CPR IM) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN

FERRARI (RACE IM) DOWNGRADED TO SELL FROM BUY AT GOLDMAN SACHS

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.18% AT 4,246, NDX +0.27% AT 13,998, DJIA +0.04% AT 34,480, RUT +0.96% AT 2,334

SECTORS: FINANCIALS +0.61%, TECHNOLOGY +0.56%, CONSUMER DISCRETIONARY +0.48%, MATERIALS +0.34%, UTILITIES +0.28%, INDUSTRIALS +0.19%, CONSUMER STAPLES +0.1%, COMMUNICATION SERVICES +0.01%, ENERGY -0.35%, REAL ESTATE -0.59%, HEALTH -0.73%

14 Jun 2021 - 06:55- Research Sheet- Source: Newsquawk