Newsquawk Daily European Equity Opening News - 16th August 2023

16th August 2023

ASIA

Asian stocks were pressured following the declines on Wall St amid the broad risk-off mood, which was triggered by global macro headwinds, in particular, the recent slew of weak data from China. ASX 200 (-1.5%) was lower with the declines led by the large industries, while participants also digested earnings releases and a softer leading index. Nikkei 225 (-1.2%) extended on losses and dipped beneath the 32,000 level as all major bourses suffered from the falling tide across stocks. Hang Seng (-0.9%) and Shanghai Comp. (-0.6%) remained pressured amid China growth concerns as recent poor data releases prompted several banks to cut their growth forecasts for the world’s second-largest economy including JPMorgan which now anticipates 4.8% GDP growth for China this year, while the latest House Price data also showed a contraction Y/Y to add to the ongoing developer woes.

EUROPEAN CLOSES

CLOSES: DAX -0.86% at 15,767, FTSE 100 -1.57% at 7,390, CAC 40 -1.10% at 7,268, Euro Stoxx 50 -0.99% at 4,287, IBEX 35 -0.87% at 9,348, SMI -1.12% at 10,986.

SECTORS: Healthcare -0.64%, Energy -0.70%, Telecoms -0.73%, IT -0.81%, Consumer Disc -0.84%, Industrials -1.04%, Consumer Stpl -1.08%, Financials -1.22%, Utilities -1.22%, Materials -1.23%

FTSE 100

UK Inflation / Travel - The Government has said rail fares in England are to rise below the rate of inflation next year, to help people with rising cost of living, according to Sky News. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

Segro (SGRO LN) downgraded to Underweight from Equal Weight at Barclays

DAX

OTHER GERMAN COMPANIES

Thyssenkrupp (TKA GY) - The Co. and a private Spanish defence manufacturing giant are seeking to win a USD 4.8bln order to build submarines in India, according to Bloomberg. (Newswires)

BROKER MOVES

Bayer (BAYN GY) downgraded to Hold from Buy at Berenberg

Telefonica Deutschland (O2O GY) downgraded to Neutral from Overweight at JPMorgan

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Italian Banks - Italy's Deputy PM has called for a watered-down version of government's bank windfall tax, whereby the levy will only apply on the incomes of larger lenders that are overseen by the ECB, according to FT citing Italian press. (FT)

BROKER MOVES

Telefonica (TEF SM) reiterated with Underweight at JPMorgan Chase

SMI

Alcon (ALC SW) - Q3 (USD): EPS 0.69 (exp. 0.62), Revenue 2.4bln (exp. 2.34bln). Raises FY23 EPS guidance 2.7-2.8 (prev. 2.55-2.65), Net Sales 9.3-9.5bln (prev. 9.2-9.4bln). (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Lundbeck (LUN DC) - Q2 (DKK): EPS 1.11 (prev. 0.80 YY), adj. EBITDA 1.49bln (prev. 1.00bln YY), Revenue 4.94bln (prev. 4.48bln YY). Raises FY23 EBITDA 5.2-5.6bln (prev. 5.1-5.6bln). (Newswires)

Novo Nordisk (NOVNB DC) - Chinese drugmakers develop a copycat version of Novo Nordisk's weight-loss drug, which could potentially offer a cheaper alternative, according to the FT. (FT)

Netcompany (NETC DC) - Q2 (DKK): Adj. EBITDA 195mln (prev. 189mln YY), Revenue 1.49bln (exp. 1.46bln). (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.16% at 4,437, NDX -1.10% at 15,037, DJIA -1.02% at 34,946, RUT -1.29% at 1,895.

SECTORS: Energy -2.44%, Financials -1.8%, Utilities -1.69%, Materials -1.65%, Consumer Discretionary -1.37%, Industrials -1.27%, Real Estate -1.07%, Consumer Staples -1.02%, Communication Services -1.01%, Technology -0.91%, Health -0.36%.

Apple (AAPL) - Supplier Foxconn (2354 TT) begins iPhone 15 production in India. (Newswires)

Intel (INTC) - Is said to expect to call of the Tower Semiconductor (TSEM) deal with the transaction not anticipated to receive China approval, according to Bloomberg. (Bloomberg)

Tesla (TSLA) - Cuts prices for Model S and X in China. (Newswires)

16 Aug 2023 - 06:50- Research Sheet- Source: Newsquawk