Newsquawk Daily European Equity Opening News - 16th April 2024

16th April 2024

ASIA

APAC stocks were lower across the board with global risk appetite sapped by geopolitical concerns related to a potential 'imminent' response by Israel against Iran, while markets also digested mixed key releases from China. ASX 200 retreated with selling across all sectors and consumer discretionary front-running the declines. Nikkei 225 was among the worst hit and fell beneath the 38,500 level with the index shedding over 800 points. Hang Seng and Shanghai Comp. conformed to the downbeat mood despite better-than-expected Chinese GDP for Q1 which was negated by disappointing Industrial Production and Retail Sales data, while property sector woes persisted after home prices further deteriorated and with developer Times China (1233 HK) facing a winding-up petition filed by Hang Seng Bank.

EUROPEAN CLOSES

CLOSES: DAX: +0.41% at 17,937.62, FTSE 100: -0.36% at 7,949.00, CAC 40: +0.43% at 8,028.84, Euro Stoxx 50: +0.58% at 4,972.05, IBEX 35: +0.01% at 10,660.20, FTSE MIB: +0.52% at 33,890.48, SMI: +0.16% at 11,374.10

SECTORS: Consumer Disc 0.90%, Industrials 0.74%, Financials 0.37%, IT 0.30%, Healthcare 0.14%, Materials -0.18%, Consumer Stpl -0.34%, Telecoms -0.50%, Utilities -0.81%, Energy -1.63%

FTSE 100

Rio Tinto (RIO LN) – A Native American group has asked the US court to appeal an earlier ruling that provided Rio Tinto land for a copper mine in Arizona, via Reuters. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

AstraZeneca (AZN LN) upgraded to Hold from Sell at Deutsche Bank

Admiral (ADM LN) upgraded to Outperform from Sector Perform at RBC

Phoenix (PHNX LN) downgraded to Underweight from Overweight at Barclays

DAX

Deutsche Bank (DBK GY) - Hired 7 members for its US Rates Team over recent weeks, including 2 Managing Directors. Co. hired Goldbaum as Head of US Non-Linear Rates Trading and appointed Fisher for US Rates Sales, according to a statement. (Newswires)

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) – Starts with order intake of 2.1GW in Q1’24. (Newswires)

ProSiebenSat.1 Media SE (PSM GY) - Q1 24 (EUR): Adj. Net 8mln (exp. 6mln), Revenue 867mln (exp. 829mln). FY Revenue view 3.95bln (exp. 3.95bln). (Newswires)

BROKER MOVES

CAC

BNP Paribas (BNP FP) - China’s CSRC has approved the Co’s securities business in Shanghai. (Newswires)

OTHER FRENCH COMPANIES

Alstom (ALO FP) - Siemens (SIE GY), Fortress, and Wabtec (WAB) are considering a EUR 600mln deal for Alstom's US signal unit, according to Bloomberg. (Newswires)

BROKER MOVES

PAN EUROPE

argenx (ARGX BB) - Announced presentation of Phase 3 trial of vyygart in patients with OPP. (Newswires)

China-exposed stocks (Luxury/Autos/Tech) - Chinese GDP Q/Q SA (Q1) 1.6% vs. Exp. 1.4% (Prev. 1.0%), Y/Y 5.3% vs. Exp. 4.6% (Prev. 5.2%). Industrial Output Y/Y (Mar) 4.5% vs. Exp. 6.0% (Prev. 7.0%). Retail Sales Y/Y (Mar) 3.1% vs. Exp. 4.6% (Prev. 5.5%). (Newswires)

Defence Names - EU leaders are set to revive their capital markets union plan in search for defence funding, according to FT. (FT) Separately, Lockheed-Martin (LMT) won a US missile defence contract worth USD 17bln, according to Reuters sources. (Reuters)

Basic Resources Sector - Europe is to restart magnesium mining for the first time in over a decade to reduce reliance on China, according to FT. More than 90% of Europe's magnesium, a key material for aluminium alloys, is currently imported from China. (FT)

Eni (ENI IM) – Co. aims to sell minority stake in biofuel and bio-fuel units that could fetch around EUR 1.3bln. (Newswires)

MediaForEurope (MEFA IM) / ProSiebenSat.1 Media SE (PSM GY) – MFE has held talks with various banks, readying itself for a potential bid for German peer ProSiebenSat.1 for a deal worth around EUR 4.3bln, according to Reuters. (Reuters)

Raiffeisen Bank (RBI AV) - Co. recently posted numerous advertisements for Russian-based jobs which portray the Co. as looking to grow in the country, in contradiction to its pledge to exit the region. (FT)

Ryanair (RYA ID) - Italy's antitrust body announces precautionary proceedings against Co. and said it suspended Ryanair actions that block or limit the sale of flights by travel agencies. (Newswires)

Solvay (SOLB BB) – Reiterated FY23 reporting (EUR): EBITDA 1.15bln (exp. 940mln), Net Sales 4.9bln. (Newswires)

Terna (TRN IM) – Signed an amendment and restatement agreement aimed at increasing to EUR 2.255bln total amount of ESG-linked revolving credit facility. (Newswires)

BROKER MOVES

ArcelorMittal (MT NA) downgraded to Hold from Buy at Deutsche Bank

ASML (ASML NA) initiated with Outperform at Evercore

Voestalpine (VOES AV) downgraded to Underweight from Neutral at JP Morgan

SMI

Novartis (NOVN SW) - New Novartis Fabhalta (iptacopan) data show clinically meaningful and statistically significant proteinuria reduction of 38.3% versus placebo for patients with IgA nephropathy (IgAN). (Novartis)

Sika (SIKA SW) – Q1 Sales CHF 2.648bln, +13.8%. Confirms outlook for FY24. (Newswires)

UBS (UBSG SW) – Co. publishes updated time series with restated segment financial information reflecting previous changes; will not have impact on results. Elsewhere, Swiss Finance Minister said they estimate that UBS will require about USD 15-25bln in additional capital are realistic. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Logitech (LOGN SW) downgraded to Sell from Hold at Deutsche Bank

SGS (SGS SW) upgraded to Overweight from Neutral at JP Morgan

SCANDINAVIA

Ericsson (ERICB SS) - Q1 (SEK): Net Sales 53.325bln (exp. 54.140bln). Adj. EBIT 4.305bln (exp. 2.807bln). Adj. gross margin 42.7% (exp. 40.2%). Network gross margin 44.3% (prev. 40.6% Y/Y). Sees sales stabilising in H2 2024. Co. said the decrease in EBITA is a result of continued cautious investment levels across multiple geographies, leading to lower sales and lower gross income. OUTLOOK: Co. expects "a further decline in the RAN market, at least through the end of this year, as customers remain cautious with their investments and the pace of investment in India continues to normalize." Co. said, "If current trends persist, we expect our sales to stabilize during the second half of the year, benefiting from recent contract wins and the normalization of customer inventory levels in North America." Co. guides margins to improve in H2. Says there will be more lay-offs and we do not have a figure yet. (Ericsson)

Forvia (FRVIA FH) – Makes further progress in the execution of its second EUR 1bln asset disposal program. Is to contribute to reduce financial expense and accelerate deleveraging. (Newswires)

SEB (SEBA SS) – Private placement of EUR 150mln with 12yr maturity. (Newswires)

BROKER MOVES

Kesko (KESKOB FH) upgraded to Accumulate to Reduce at Inderes

SSAB (SSAB SS) downgraded to Neutral from Overweight at JP Morgan

SSAB (SSAB SS) downgraded to Hold from Buy at Carnegie Securities

US

CLOSES: SPX -1.2% AT 5,062, NDX -1.65% AT 17,707, DJI -0.65% AT 37,735, RUT -1.37% AT 1,976.

SECTORS: Technology -1.99%, Real Estate -1.77%, Consumer Discretionary -1.62%, Communication Services -1.62%, Energy -0.91%, Utilities -0.91%, Industrials -0.73%, Financials -0.51%, Materials -0.49%, Consumer Staples -0.45%, Health -0.19%.

Microsoft (MSFT) - Co. plans to unveil USD 1.5bln investment in G42, according to NYT. (NYT)

Tesla (TSLA) - Co. also let go Senior Manager of Cathode Materials & Manufacturing Anthony Thurston, while several people involved in the Tesla Texas Gigafactory project were also let go including Director of Infrastructure Amir Mirshah, according to Electrek. (Electrek) Separately, Tesla job cuts to reach closer to 20% in some divisions, according to Bloomberg. (Bloomberg)

16 Apr 2024 - 06:52- Research Sheet- Source: Newsquawk