Newsquawk Daily European Equity Opening News

16th June 2023

ASIA

Asia-Pac stocks traded higher following the gains on Wall St where the major indices were lifted alongside a weaker dollar and softer yields as participants digested a hawkish ECB and the rise in US jobless claims. ASX 200 (+1.1%) was positive with the gains led by early strength in energy and utilities after AGL Energy flagged a jump in FY24 underlying profit and with some households facing electricity tariff increases of up to 51% for the winter season. Nikkei 225 (+0.2%) initially declined amid cautiousness heading into the BoJ policy decision but then recovered after the BoJ maintained its ultra-easy policy settings. Hang Seng (+0.8%) and Shanghai Comp. (+0.4%) were underpinned amid anticipation of further support measures with Beijing planning major steps to revive the economy including potentially spending billions of dollars on infrastructure and easing rules for the property sector. However, gains were contained in the mainland amid lingering frictions with the EU to ban Huawei and ZTE equipment from internal Commission networks and ahead of US Secretary of State Blinken’s visit to China whereby expectations have been tempered beforehand with the US side not expecting any breakthrough in relations but hopes the trip will reduce the risk of miscalculation with China.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 -0.25% at 4,365, FTSE 100 +0.34% at 7,628, DAX 40 -0.13% at 16,290, CAC 40 -0.51% at 7,290, FTSE MIB -0.28% at 27,731, IBEX 35 -0.02% at 9,430, SMI +0.22% at 11,302.

Sectors: Telecoms 0.55%, Consumer Stpl 0.54%, Healthcare 0.44%, Energy 0.29%, Utilities -0.09%, Materials -0.28%, Industrials -0.29%, Consumer Disc -0.29%, Financials -0.57%, IT -0.83%.

FTSE 100

ITV (ITV LN) - Co. is reportedly exploring a deal to buy All3Media from Warner Bros (WBD) and Liberty Global (LBTYA) to combine with ITV Studios; Warner could sell the entire stake to ITV in a potential sale while Liberty may retain a stake, according to Reuters sources. (Reuters)

Vodafone (VOD LN) - Co. says it has come to an agreement with unions re. 1k job reductions which are required within the Italian market. (Newswires)

Whitbread (WTB LN) - Co. is restricting the auction of its pub-restaurants to established operators in order to avoid a drawn-out disposal, via Bloomberg. Sale is estimated at GBP 600mln. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Rheinmetall (RHM GY) - CEO expects to reach an ammunition deal worth billions of Euros with the German government in the coming weeks, according to a Reuters interview. (Reuters) +1.6% in pre-market trade

BROKER MOVES

MorphoSys (MOR GY) upgraded to Overweight from Underweight at JPMorgan. +3% in pre-market trade

CAC

Vinci (DG FP) - May autoroutes +3.8% YY, Airports +23.8% vs 2019's level. (Newswires)

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - To dispose of its European retail broadband distribution activities. (Newswires)

Eurazeo (RF FP) - Provides unitranche financing for Keensight Capital's acquisition of Inke. (Newswires)

Innate Pharma (IPH FP) - Interim efficacy results from the TELLOMAK Phase 2 study in advanced Mycosis Fungoides (MF) according to updated lymph node classification confirms clinical activity and favourable safety profile of lacutamab, an anti-KIR3DL2 antibody. (Innate Pharma)

BROKER MOVES

PAN EUROPE

Insurance Names - EU regulators are reportedly looking into the failure of Eurovita for insight into the wider sectors vulnerability, via Reuters citing sources. (Reuters)

MediaForEurope (MFEB IM) - Reportedly placed a bid to purchase the rights to screen Serie A's Saturday night football games for the 2024/25 season, via Reuters citing sources. (Reuters)

Pirelli (PIRC IM) - CEO said he is "very confident" that the Italian Gov't will utilise its golden power to curb the level of Chinese influence over the Co., via Reuters citing sources. Decision on using the golden power is expected next week. (Reuters)

Solvay (SOLB BB) - Solvay announces the target capital structures of the independent publicly traded companies, SpecialtyCo and EssentialCo, that will result from its planned separation into two industry leaders; each is poised and resourced to create superior and sustainable value for their stakeholders. (Solvay)

BROKER MOVES

SMI

Roche (ROG SW) - FDA approves Columvi, the first and only bispecific antibody with a fixed-duration treatment for those with relapsed or refractory diffuse large b-cell lymphoma. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Handelsbanken (SHBA SS) upgraded to Overweight from Equalweight at Barclays

SEB (SEB SS) upgraded to Equalweight from Underweight at Barclays

US

Adobe Inc (ADBE) Q2 2023 (USD): Adj. EPS 3.91 (exp. 3.79), Revenue 4.82bln (exp. 4.77bln). Sees Q3 adjusted EPS USD 3.95-4.00 (exp. 3.89). Sees Q3 rev. USD 4.83bln-4.87bln (exp. 4.86bln). Raised FY adjust EPS guidance to USD 15.65-15.75 from 15.30-15.60 (exp. 15.50). +2.2% in after-hours trade

CLOSES: SPX +1.22% at 4,425, NDX +1.20% at 15,185, DJIA +1.26% at 34,408, RUT +0.81% at 1,889.

SECTORS: Health +1.55%, Communication Services +1.54%, Industrials +1.51%, Technology +1.28%, Financials +1.26%, Utilities +1.06%, Energy +1.04%, Consumer Staples +0.93%, Materials +0.85%, Consumer Discretionary +0.68%, Real Estate +0.34%.

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