Newsquawk Daily European Equity Opening News - 15th October 2024

ASIA

APAC stocks traded mixed as most major indices followed suit to the gains stateside where a tech rally led the S&P 500 and Dow to fresh all-time highs, although Chinese markets lagged following weak trade data. ASX 200 climbed to a record high with advances led by the top-weighted financial sector and miners. Nikkei 225 outperformed and gapped back above the 40,000 level on return from the long weekend. Hang Seng and Shanghai Comp were pressured after weak trade data and stimulus disappointment, while trade frictions also lingered with the US mulling capping NVIDIA and AMD AI chip sales to some countries.

EUROPEAN CLOSES

CLOSES: DAX: +0.66% at 19,501, FTSE 100: +0.47% at 8,293, CAC 40: +0.32% at 7,602, Euro Stoxx 50: +0.72% at 5,040, AEX: +0.73% at 923, IBEX 35: +1.12% at 11,851, FTSE MIB: +1.09% at 34,681, SMI: +0.90% at 12,264, PSI: -0.58% at 6,717.

SECTORS: IT 1.93%, Utilities 1.20%, Industrials 0.79%, Telecoms 0.68%, Healthcare 0.64%, Financials 0.59%, Consumer Stpl 0.05%, Materials 0.04%, Energy 0.02%, Consumer Disc -0.22%

FTSE 100

Smith & Nephew (SN/ LN) - Co. rejects "in the strongest possible terms", reports that it used aggressive accounting techniques to bolster its profit margins, according to City AM. (City AM)

OTHER UK COMPANIES

Flutter (FLTR LN) - Chief has warned US states not to impose a punitive rate of tax on gambling companies, noting that it will push customers to unlicensed operators, via the FT. (FT)

BROKER MOVES

NatWest (NWG LN) upgraded to Buy from Underperform at Jefferies

Vistry (VTY LN) resumed with Buy at Peel Hunt

DAX

Allianz (ALV GY) - Has taken note of the Ministerial statement from Singapore; says is convinced that partnering with Income Insurance will benefit Singapore's customers and society. (Newswires)

Deutsche Bank (DBK GY) - GS is selling about 16mln shares of Deutsche Bank for an undisclosed shareholder; price range EUR 16.01 to the market, according to Reuters citing a bookrunner. (Reuters) Shares -1.4% in pre-market trade

OTHER GERMAN COMPANIES

BROKER MOVES

Delivery Hero (DHER GY) downgraded to Neutral from Buy at Citi

Tag Immobilien (TEG GY) downgraded to Hold from Buy at HSBC Shares -1.5% in pre-market trade

Zalando (ZAL GY) downgraded to Add from Buy at Baader Helvea

CAC

Saint Gobain (SGO FP) - Reached a binding agreement to acquire Kilwaughter; exp. to begin operations in H2'26. (Newswires)

Thales (HO FP) - Thales Alenia Space and ESA signed contract amendment to extend and optimise the espirit module, worth EUR 146mln. (Newswires)

Vinci (DG FP) - Awarded a railway upgrade contract in Australia for EUR 432mln. (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - Appointed Philippe Salle as Chairman of the Board of Directors, effecting Oct 14. (Newswires)

BioMerieux (BIM FP) - BioMerieux receives CE-Marking for VIDAS vitamin B12 test. (BioMerieux)

Ipsen (IPN FP) - Received its second Shingo prize for operational excellence. (Newswires)

BROKER MOVES

PAN EUROPE

argenx (ARGX BB) - argenx highlights data showing patient impact across multiple immunology programs at the 2024 american association of neuromuscular & electrodiagnostic medicine annual meeting and myasthenia gravis foundation of America scientific sessions. (argenx)

BBVA (BBVA SM) & Sabadell (SAB SM) - Sabadell's Chairman highlighted concerns over BBVA's acquisition, noting it could increase oligopolistic power, negatively impacting SMEs. While consolidation can strengthen banks, it does not always create shareholder value, he warned. The Sabadell Chair also supports the eventual formation of a European banking union, but stressed the need for competition authorities to assess the deal. (Newswires)

Defence names - The FT writes that defence companies are looking to scale their ammunition production to boost their output. (FT)

Energy Names - Phillips 66 announced the sale of its 49% stake in Coop Mineraloel AG to its Swiss JV partner for CHF 1.06bln. The deal includes CHF 1bln from the sale price, and a CHF 60mln dividend for 2024. CEO said the move supports its USD 3bln divestiture goal. The transaction, pending Swiss Competition Commission approval, is expected to close in Q1 2025, and will fund Phillips 66’s strategic initiatives, including shareholder returns. (Newswires)

InPost (INPST NA) - Taken full control over Menzies' Express and Newstrade logistics operations. Has acquired the remaining 70% of Menzies Distribution for GBP 60.4mln. (Newswires)

Stellantis (STLAP FP/ STLAM IM) - Co. brought its global portfolio to Paris Motor Show 2024 with the "full menu" of "stylish, high-tech electrified vehicle debuts". (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Sulzer (SUN SW) - Says 2024 increased guidance confirmed; 9m order intake +9.2% Y/Y. (Newswires)

BROKER MOVES

SCANDINAVIA

Ericsson (ERICB SS) Q3 (SEK) - Sales 61.79bln (exp. 61.6bln), adj. EBIT 7.3bln (exp. 5.7bln), Net Income 3.88bln (exp. 4.31bln), EPS 1.14 (exp. 1.32). CEO: On Q3 says "We see increasing customer momentum around programmable networks that deliver differentiated performance, and expect further traction, supported by the JV we have announced with 12 of the world’s largest telecom operators". "We see signs that the overall market is stabilizing with North America, as an early adopter market, returning to growth". "...expect our Networks sales to stabilize year-on-year during Q4, driven by continued good growth in North America. However, we anticipate further near-term sales pressure in Enterprise as we focus on profitable segments. We launched a new private 5G enterprise product portfolio in Q3 to support performance improvement, which remains a key priority.” (Newswires)

Mowi (MOWI NO) - Q3 (EUR): EBIT 173mln (exp. 175.1mln). (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.77% at 5,860, NDX +0.82% at 20,439, DJIA +0.47% at 40,065, RUT +0.64% at 2,249

SECTORS: Energy -0.08%, Consumer Discretionary +0.25%, Consumer Staples +0.42%, Health +0.51%, Materials +0

Coty (COTY) - Reiterated FY25 adjusted EBITDA outlook for 9-11% Y/Y growth, supporting stronger EBITDA margin expansion. Says: Tight order and inventory management by retailers resulted in Coty's sell-in tracking well below sell-out in a number of markets in Q1. Co. continues to be relatively less impacted by the China market. Co. is re-accelerating its cost reduction efforts across all parts of the P&L. Co. targets to deliver savings well above the initial FY25 target of about USD 75mln. Beauty growth remains resilient in many parts of the world, while US market growth slowed in the second half of Q1. (Newswires)

Chip Names - US weighs capping NVIDIA (NVDA) and AMD (AMD) AI chip sales to some countries, according to Bloomberg. (Bloomberg)

Taiwan Semiconductor Manufacturing Company (TSM) - TSMC is set to hold an investor meeting on October 17th to discuss its business outlook and market projections, along with updates on its capital expenditure strategy for the year, DigiTimes reports. Key client orders will be a focal point during the discussions, reflecting the company's response to industry demand and supply chain dynamics. (DigiTimes)

15 Oct 2024 - 06:57- Research Sheet- Source: Newsquawk