Newsquawk Daily European Equity Opening News

14th June 2023

ASIA

Asia-Pac stocks traded somewhat mixed with the region mostly tentative ahead of the FOMC policy announcement. ASX 200 (+0.3%) was led by strength in the commodity-related sectors after oil and copper prices rose on the back of China’s support pledges and the PBoC’s cuts to short-term funding rates. Nikkei 225 (+1.5%) extended its advances as automakers and other exporters benefitted from recent currency moves and amid broad consensus for the BoJ to maintain its ultra-easy policy later this week. Hang Seng (Flat) and Shanghai Comp. (+0.2%) were kept afloat after the PBoC cut rates for its Standing Lending Facility by 10bps and the NDRC issued a notice on lowering costs this year with VAT to be exempted and reduced for small businesses until year-end. China was also said to be weighing broad stimulus with property support and rate cuts, although the gains in Chinese stocks were limited following softer-than-expected loans and financing data.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +0.72% at 4,347, FTSE 100 +0.32% at 7,594, DAX 40 +0.83% at 16,230, CAC 40 +0.56% at 7,290, FTSE MIB +0.57% at 27,566, IBEX 35 -0.11% at 9,333, SMI +0.26% at 11,330.

Sectors: Materials 1.65%, IT 1.46%, Energy 1.40%, Industrials 1.29%, Consumer Disc 1.07%, Financials 0.59%, Consumer Stpl 0.25%, Healthcare -0.22%, Telecoms -0.44%, Utilities -0.46%

FTSE 100

Entain (ENT LN) - Tender offer for the purchase of STS Holdings (STH PW) for GBP 750mln, to place GBP 600mln of ordinary shares to fund this. (Newswires)

Glencore (GLEN LN) - Argentina competition bureau is yet to receive Bunge-Viterra deal notification, via Reuters citing sources. Piece adds the Argentinian bureau has objected to many deals, in each scenario a bespoke solution was obtained. (Reuters)

Housing/Banking Names - Downing Street has ordered banks to protect struggling homeowners from increasing mortgage costs as markets speculate over the possibility of the Bank Rate rising to as high as 6%. (Telegraph)

ITV (ITV LN) - CEO McCall will appear before a Parliamentary Committee today to discuss the Schofield scandal. (Sky News)

OTHER UK COMPANIES

Cineworld (CINE LN) - Co. is reportedly preparing AlixPartners to act as administrator to the holding company, with an announcement by the end of next week, via Sky News citing sources. (Sky News)

BROKER MOVES

DAX

Allianz (ALV GY) - Croatian government reportedly pressured Co. and threatened regulatory action after AZ, majority owned by Allianz, stepped away from a deal to buy Sberbank's 42.5% stake in Fortenova, via FT citing sources. (FT)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - May passenger volume 5.1M, +12.2% YY. (Newswires)

ThyssenKrupp (TKA GY) - Progress has reportedly been made in discussions between the German Government and EU Commission on subsidies for the Co's green steel unit, via Reuters. (Reuters)

Wacker Nueson (WAC GY) - By 2030 sees FY Revenue of EUR 4bln (FY22 Exp. 2.52bln), EBIT margin seen lifting from 9% to over 11% in the coming years. (Newswires) +3% in pre-market trade

BROKER MOVES

Porsche SE (PAH3 GY) initiated with Buy at Berenberg +1.6% in pre-market trade

CAC

Safran (SAF FP) - CEO Andries warned that an "unprecedented crisis of supply" will extend into 2024 for the aerospace industry. (FT)

OTHER FRENCH COMPANIES

Atos (ATO FP) - ISS recommends shareholders vote for all resolutions initially proposed by the board and against the activist shareholders three draft resolutions. (Newswires)

Ipsen (IPN FP) - U.S. FDA approves Bylvay® for patients living with cholestatic pruritus due to Alagille syndrome. (Ipsen)

BROKER MOVES

PAN EUROPE

Stellantis (STLAM IM/STALP FP) - Evaluating Tesla's (TSLA) charging standard, looks forward to future discussions. (Newswires)

Telecom Names - EU is funding Huawei to conduct cutting-edge research on next-generation communication systems despite several governments within the bloc banning Huawei from their telecoms networks, according to FT. (FT)

BROKER MOVES

SMI

Barry Callebaut (BARN SW) - Co. and Unilever (ULVR LN) extend their strategic supply agreement. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Boliden (BOL SS) - Expects a Q2 impact from the production stop and lower grades following the Ronnskar fire, impact is expected to be SEK 85mln/week. (Newswires)

BROKER MOVES

Nordea (NDA SS) downgraded to Neutral from Overweight at JPMorgan

Swedbank (SWEDA SS) downgraded to Neutral from Overweight at JPMorgan

US

CLOSES: SPX +0.69% at 4,369, NDX +0.79% at 14,900, DJIA +0.43% at 34,212, RUT +1.23% at 1,896.

SECTORS: Materials +2.33%, Industrials +1.16%, Consumer Discretionary +1%, Technology +0.71%, Real Estate +0.62%, Financials +0.62%, Health +0.53%, Energy +0.47%, Consumer Staples +0.42%, Communication Services +0.27%, Utilities -0.06%.

Amazon (AMZN) cloud computing unit is considering AMD's (AMD) new AI chips, via Reuters citing sources.

US judge grants FTC request temporarily blocking Microsoft (MSFT) from closing the deal to buy Activision (ATVI).

14 Jun 2023 - 06:45- Research Sheet- Source: Newsquawk