Newsquawk Daily European Equity Opening News - 15th December 2023

15th December 2023

ASIA

Asia-Pac stocks traded mostly higher after the positive handover from Wall St where sentiment remained underpinned amid encouraging data and as yields continued to decline following the recent dovish Fed pivot, while the region also digested mixed Chinese activity data. ASX 200 (+0.9%) was led higher by the commodity-related sectors after gains in oil and metal prices which helped the index shrug off the latest flash PMIs from Australia which slightly improved but remained in contractionary territory. Nikkei 225 (+0.9%) was lifted at the open and briefly returned to above the psychological 33,000 level as it conformed to the global constructive mood. Hang Seng (+2.7%) and Shanghai Comp. (-0.2%) were varied with notable outperformance in the Hong Kong benchmark amid tech strength although the mainland lagged after mixed Chinese data in which Industrial Production topped estimates but Retail Sales disappointed despite showing double-digit percentage growth, while House Prices continued to decline and attention was also on the PBoC which maintained its 1-year MLF rate at 2.50% but delivered a record net injection through the facility.

EUROPEAN CLOSES

CLOSES: DAX -0.08% at 16,752.23, FTSE 100 +1.33% at 7,648.98, CAC 40 +0.59% at 7,575.85, Euro Stoxx 50 +0.20% at 4,539.05, IBEX 35 +0.75% at 10,171.70, FTSE MIB +0.21% at 30,359.06, SMI +0.14% at 11,204.30.

SECTORS: Materials 1.99%, Consumer Disc 1.82%, Industrials 1.30%, Utilities 1.10%, Energy 0.97%, IT 0.87%, Financials 0.15%, Consumer Stpl 0.06%, Telecoms -0.10%, Healthcare -0.23%

FTSE 100

IAG (IAG LN) - British Airways intends to use AI more extensively to help improve flight operations which have suffered several meltdowns in recent years, via the FT. (FT)

St James’s Place (STJ LN) - To raise GBP 1bln by 2030, as it plans to buy out businesses of retiring partners, according to the FT. (FT)

Shell (SHEL LN) - A disagreement between Shell and Venezuela's PDVSA over future LNG prices has gridlocked talks on a license for Shell and Trinidad's National Gas Company to operate a Venezuela gas field, according to Reuters citing sources. (Reuters)

UK Consumer Confidence - UK GfK Consumer Confidence* (Dec) -22.0 vs. Exp. -22.0 (Prev. -24.0). (GfK)

Unilever (ULVR LN) - In advanced talks to sell Elida Beauty to Yellow Wood Partners, expected to be sold for "less than" USD 1bln, according to Reuters sources. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

Inchcape (INCH LN) initiated with Outperform at BNP Paribas

DAX

Symrise (SY1 GY) - Adjusts FY23 organic sales +7% (prev. guidance 5-7%) to EUR 4.7bln, adj. EBITDA margin 19-19.5% (prev. guidance approx. 20%). Due to healthy demand, Co. confirms long-term targets. (Newswires)

Volkswagen (VOW3 GY) - Co's Cariad agrees to cut 20% of its development budget and its software arm is to offer voluntary buyouts starting in 2025. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Renault (RNO FP) - To buy back up to 200k shares over a period from December 15 up to and including December 19. (Newswires)

Sanofi (SAN FP) - EMA gives a positive opinion of Fexinidazole Winthrop as the first oral treatment of an acute form of sleeping sickness (rhodesiense) found in East and Southern Africa. (Sanofi)

Vinci (DG FP) - Reports November airport traffic, +16.1% Y/Y, Autoroutes -2% Y/Y. (Newswires)

Worldline (WLN FP) - Announces passing of President M. Bernard Bourigeaud, and announces M. Geroge Pauget as new interim President. (Newswires)

OTHER FRENCH COMPANIES

Getlink (GET FP) - Getlink is to enable the doubling of direct high-speed rail services from the UK over the next 10 years via the Channel Tunnel. (Newswires)

JC Decaux (DEC FP) - Co. and JOJ Media House signed an agreement to merge their OOH activities in Slovakia. (Newswires)

Spie (SPIE FP) - Announces intention to implement share buyback program. (Newswires)

BROKER MOVES

PAN EUROPE

EU Firms - The EU is to extend the trade truce with the US until after the presidential election, according to FT. (FT)

BROKER MOVES

Banco de Sabadell (SAB SM) downgraded to Equal Weight from Overweight at Barclays

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) - Reports November Revenue EUR 998mln, -3.5% Y/Y, SSS -4.3% Y/Y. (Newswires)

Skanska (SKAB SS) - Allocates an additional SEK 940mln, under the existing contract with HS2 Ltd towards work on phase one of the new high-speed railway in the UK. (Newswires)

BROKER MOVES

Nokia (NOKIA FH) downgraded to Sell from Buy at Citi

US

CLOSES: SPX +0.27% at 4,720, NDX -0.15% at 16,538, DJI +0.43% at 37,248, RUT +2.72% at 2,000.

SECTORS: Energy +2.94%, Real Estate +2.62%, Materials +1.68%, Industrials +1.23%, Consumer Discretionary +1.08%, Financials +0.93%, Communication Services -0.04%, Technology -0.34%, Health -0.55%, Utilities -1.28%, Consumer Staples -1.49%.

Global Payments (GPN) - Reportedly considering an acquisition of Shift4 Payments (FOUR), according to Bloomberg. (Bloomberg) Shares seen -0.6% after-hours

Wyndham Hotels & Resorts (WH) - A major US hotel owners association said its Wyndham Hotels & Resorts franchisee members are worried an acquisition by Choice Hotels (CHH) could hurt their business, according to Reuters. (Reuters)

15 Dec 2023 - 06:48- Research Sheet- Source: Newsquawk