Newsquawk Daily European Equity Opening News - 14th December 2023

14th December 2023

ASIA

Asia-Pac stocks were mostly higher with sentiment underpinned in reaction to the FOMC which kept rates unchanged but provided a dovish tweak to the statement guidance and cut its 2024 median dot by more than expected to imply three rate cuts in 2024, while Fed Chair Powell also followed up with a dovish tone at the presser. ASX 200 (+1.7%) was lifted with gains led by the rate-sensitive sectors after a fall in yields and with participants also digesting the latest jobs data which showed a much larger-than-expected increase in headline employment change. Nikkei 225 (-0.7%) was initially boosted but then failed again to sustain the 33,000 level and wiped out all its gains amid losses in the banking sector and headwinds from a stronger currency. Hang Seng (+1.1%) and Shanghai Comp. (Flat) were both lifted at the open with the former underpinned after the HKMA kept rates unchanged in lockstep with the Fed, while the gains in the mainland were limited after the latest loans and aggregate financing data missed estimates.

EUROPEAN CLOSES

CLOSES: DAX -0.15% at 16,766.05, FTSE 100 +0.08% at 7,548.44, CAC 40 -0.16% at 7,531.22, Euro Stoxx 50 -0.14% at 4,530.35, IBEX 35 -0.22% at 10,096.10, FTSE MIB -0.15% at 30,295.69, SMI +0.38% at 11,193.80.

SECTORS: Healthcare 0.90%, Utilities 0.68%, Materials 0.34%, IT 0.13%, Consumer Disc -0.21%, Energy -0.22%, Industrials -0.25%, Financials -0.27%, Consumer Stpl -0.42%, Telecoms -1.33%

FTSE 100

BP (BP/ LN) - Wins oil auction for the concession of the Tupinamba area in Brazil's Santos basin. (Newswires)

Ex-Dividends - Associated British Foods (ABF LN), Burberry (BRBY LN), and Smith (SMDS LN) will trade without entitlement to their latest dividend payout. (Newswires)

Rolls-Royce (RR/ LN) - S&P raises rating one notch to BB+ from BB; outlook positive. (Newswires)

Housing Names - UK RICS Housing Survey (Nov) -43.0 vs. Exp. -57.0 (Prev. -63.0, Rev. -61). (RICS)

Tobacco Names – UCL research shows that the rate of decline in smoking within England has slowed to 0.3% between April 2020 and August 2022, vs 5.2% pre-COVID. Researcher suggests it is likely that more young people are taking up smoking. (BBC)

OTHER UK COMPANIES

BROKER MOVES

Berkeley (BKG LN) downgraded to Hold from Add at Peel Hunt

Barratt Developments (BDEV LN) downgraded to Neutral from Buy at Citi

Compass Group (CPG LN) upgraded to Overweight from Neutral at JP Morgan

Severn Trent (SVT LN) downgraded to Underweight from Neutral at JP Morgan

THG (THG LN) resumed with Buy at Citi

DAX

BMW (BMW GY) - Receives test license for L3 self-driving vehicles on high speed roads in Shanghai. (Newswires)

OTHER GERMAN COMPANIES

Deutz (DEZ GY) – Co. and Rolls-Royce’s Power Systems Business Unit reach general agreement on the takeover of engine platforms. (Newswires) Shares seen +5.4% in pre-market trade

Evotec (EVT GY) – Enters partnership with Charite to expand molecular patient database in autoimmune diseases. (Newswires)

Metro AG (B4B GY) FY 2023 (EUR): Sales 30.6bln (exp. 30.6bln), Adj. EBITDA 1.17bln (exp. 1.18bln), Net income 439mln (exp. 475mln), EPS 1.21 (exp. 1.30). Sales grew 5.6%.Proposes dividend of 0.55/shr. FY23/24 sales growth view of between 3-7%. FY23/24 adj. EBITDA seen between -100 to -50mln. (Newswires)

MorphoSys (MOR GY) - Launches cash capital increase by way of accelerated book-building process. Confirms placing new shares from cash capital with gross proceeds of approx. EUR 102.7mln. Expected to price equity offering at EUR 30/shr. (Newswires) Shares seen -14.3% in pre-market trade

BROKER MOVES

CAC

Credit Agricole (ACA FP) - Plans to halt all financing of new fossil fuel extraction projects. (Newswires)

Dassault Aviation (AM FP) - To use Dassault Systems sovereign cloud-based data science and collaboration capabilities on the 3DEXPERIENCE platform to optimise its military fleet availability for the French Ministry of Armed Forces. (Newswires)

OTHER FRENCH COMPANIES

Vivendi (VIV FP) - Will study a project to split its activities into several entities; has endured high conglomerate discount, reducing its valuation and therefore limiting the ability to grow subsidiaries. Canal+, Havas and Lagardere are currently experiencing strong growth on an international level indicated by numerous investment opportunities. The three Cos would be split into separate entities, which would be listed on the stock market. (Newswires)

BROKER MOVES

Credit Agricole (ACA FP) upgraded to Buy from Hold at SocGen

Publicis (PUB FP) downgraded to Neutral from Buy at Citi

PAN EUROPE

Brunello Cuccinelli (BC IM) - Raises FY23 Revenue guidance to +22-23% (prev. 20-22%). (Newswires)

Tempest Fighter – The UK, Italy and Japan have signed an international treaty to construct the next-generation stealth fighter jet. (Sky News) Tempest consortium involves BAE Systems (BAE LN), Rolls-Royce (RR/ LN), Leonardo (LDO IM) and MBDA which is owned by BAE, Leonardo and Airbus (AIR FP).

BROKER MOVES

Ahold Delhaize (AD NA) downgraded to Neutral from Outperform at BNP Paribas

Ageas (AGS BB) downgraded to Hold from Buy at HSBC

Universal Music Group (UMG NA) upgraded to Buy from Neutral at Citi

UniCredit (UCG IM) downgraded to Neutral from Outperform at Oddo

Wolters Kluwer (WKL NA) downgraded to Sell from Neutral at Citi

SMI

UBS (UBSG SW) - Stepped up efforts to recover hundreds of millions in cash bonuses Credit Suisse paid to retain dealmakers before the collapse, according to Bloomberg; In other news, Credit Suisse is said to disband its onshore wealth unit in China. (Bloomberg)

Zurich Insurance (ZURN SW) - Appoints Claudia Cordioli as CFO, effective immediately. (Newswires)

OTHER SWISS COMPANIES

Gam Holding (GAM SW) – Strategy Update. FY23 Guidance (CHF): Net -105mln to -110mln, PBT -45mln to -50mln. To launch a buyback of up to 3mln registered shares, running until January 17th. Intends to propose at least two diverse candidates for election at AGM. (Newswires)

Galencia (GALE SW) - Establishes JV with Planzer, financials not disclosed. (Newswires)

BROKER MOVES

ams OSRAM (AMS SW) upgraded to Buy from Hold at Jefferies

SCANDINAVIA

Telenor (TEL NO) - To divest its Pakistan unit for NOK 5.3bln. (Newswires)

BROKER MOVES

FLSmidth (FLS DC) downgraded to Hold from Buy at Carnegie Securities

Orsted (ORSTED DC) downgraded to Hold from Buy at DNB Markets

US

CLOSES: SPX +1.37% at 4,707, NDX +1.27% at 16,562, DJIA +1.40% at 37,090, RUT +3.52% at 1,947.

SECTORS: Utilities +3.72%, Real Estate +3.58%, Health +1.83%, Consumer Staples +1.82%, Financials +1.61%, Consumer Discretionary +1.35%, Energy +1.27%, Materials +1.2%, Industrials +1.14%, Technology +0.89%, Communication Services +0.65%.

14 Dec 2023 - 06:50- Fixed IncomeResearch Sheet- Source: Newsquawk