Newsquawk Daily European Equity Opening News - 15th May 2023

15th May 2023

ASIA

APAC stocks traded mixed following the subdued performance last Friday on Wall St where risk sentiment was hampered by a disappointing University of Michigan Survey and US debt ceiling concerns, while participants in the region brace for this week’s key economic releases including the latest Chinese activity data due tomorrow. ASX 200 was rangebound amid losses in the top-weighted financial sector and weakness in tech although the downside in the index was cushioned by resilience in mining stocks and several M&A-related headlines. Nikkei 225 outperformed with many of the biggest gainers in the index driven by earnings results. Hang Seng and Shanghai Comp. were mixed with Hong Kong choppy and the mainland pressured after reports that G7 Leaders will discuss shared principles on China’s economic coercion and with the US to look at how outbound investment assessment can complement export controls to prevent the transfer of sensitive technologies to China.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.19% at 4,317, FTSE 100 +0.31% at 7,754, DAX 40 +0.50% at 15,913, CAC 40 +0.45% at 7,414, FTSE MIB +0.92% at 27,347, IBEX 35 +0.56% at 9,234, SMI +0.41% at 11,570.

SECTORS: Energy 1.32%, Utilities 0.94%, Industrials 0.77%, Healthcare 0.71%, Financials 0.57%, IT 0.44%, Materials 0.24%, Consumer Disc 0.01%, Telecoms -0.04%, Consumer Stpl -0.08%

FTSE 100

Banking Names - UK regulators are reportedly looking into ways to reduce the burden on banks when new international capital rules are implemented in 2025, according to sources; PRA is still after a robust rollout but is seeking a middle ground with a transition period. (Telegraph)

Homebuilders - UK Housing Secretary Gove has written to the authorities of nine councils and the Peak District National Park after they repeatedly fell short of targets for coming to decisions on planning applications. (Telegraph)

Rolls-Royce (RR/ LN) - CEO said they will not divest any core units in its strategy review. CEO reiterated that the Co. is underperforming against peers. (WSJ)

OTHER UK COMPANIES

BROKER MOVES

Anglo American (AAL LN) reiterated with Overweight at JPMorgan Chase

Flutter Entertainment (FLRT LN) upgraded to Buy from Neutral at Citi

DAX

Siemens Energy (ENR GY) - Q2 2023 (EUR): Revenue 8.03bln (exp. 7.50bln). Net -189mln (exp. +160mln). Orders +56% Y/Y. Co. has cut its FY23 net guidance and sees its profit margin at the lower end of prior guidance. Co. raises its revenue and FCF guidance. (Newswires)

OTHER GERMAN COMPANIES

Lufthansa (LHA GY) - CFO has cautioned against a quick turnaround for ITA Airways. (Newswires)

BROKER MOVES

Adidas (ADS GY) reiterated with Overweight at JPMorgan Chase

Merck (MRK GY) reiterated with Overweight at JPMorgan Chase

Thyssenkrupp (TKA GY) reiterated with Underweight at Barclays

CAC

AXA (CS FP) - 2023 (EUR): Underlying Earnings 7.3bln (prev. 6.1bln Y/Y). Gross Written Premiums 31.8bln (prev. 31.2bln). Property & Casualty (+6%), with growth in Commercial lines (+7%) from continued favourable price effects as well as higher volumes. (AXA IR)

SocGen (GLE FP) - departing chief Oudea said in an FT interview that European banks are "fundamentally" safer than in the US, shielding them, while the turbulence in the US could continue. (FT)

OTHER FRENCH COMPANIES

BROKER MOVES

Valeo (FR FP) upgraded to Buy from Hold at Kepler Cheuvreux

PAN EUROPE

Ferrari (RACE IM) - CEO says it would be “arrogant” to dictate what customers can purchase, saying they will continue building vehicles with combustion engines into the late 2030s. (BBC)

Italian firms - Italy is to reportedly overhaul plan for EUR 200bln in EU Covid recovery funds, according to FT. (Newswires)

BROKER MOVES

Poste Italiane (POST IM) downgraded to Hold from Buy at HSBC

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Richemont (CFR SW) reiterated with Overweight at JPMorgan Chase

SCANDINAVIA

BROKER MOVES

Carlsberg (CARLB DC) upgraded to Buy from Neutral at Citi

Genmab (GMAB DC) reiterated with Overweight at JPMorgan Chase

Royal Unibrew (RBREW DC) upgraded to Neutral from Sell at Citi

UPM (UPM FH) reiterated with Overweight at JPMorgan Chase

US

CLOSES: SPX -0.16% at 4,124, NDX -0.37% at 13,340, DJIA -0.03% at 33,300, RUT -0.22% at 1,740.

SECTORS: Consumer Discretionary -0.89%, Financials -0.41%, Technology -0.22%, Health -0.18%, Industrials +0.01%, Energy +0.12%, Real Estate +0.15%, Materials +0.17%, Communication Services +0.19%, Consumer Staples +0.36%, Utilities +0.44%.

Amazon (AMZN) - Co. is focusing on AI to speed up deliveries "by minimizing the distance between its products and customers", according to a top executive cited by CNBC. (CNBC)

US Banks - FBN's Gasparino tweeted "Still appears to be little appetite at SEC to ban short selling of regional bank stocks despite a push by JPMorgan (JPM) Chief Dimon, though regulatory sources tell FBN that SEC might demand greater disclosures short sales more". (Twitter)

15 May 2023 - 06:46- Research Sheet- Source: Newsquawk