Newsquawk Daily European Equity Opening News - 17th April 2023

17th April 2023

ASIA

APAC stocks traded mostly higher albeit with gains capped in the absence of any major macro catalysts from over the weekend and as participants brace for upcoming economic releases from China including GDP data. ASX 200 was positive as gains in tech and financials atoned for the losses in the commodity-related sectors. Nikkei 225 was indecisive around the 28,500 level with some of the biggest movers driven by their outlooks. Hang Seng and Shanghai Comp were underpinned after the PBoC vowed to make prudent monetary policy precise and forceful, as well as increase support to expand domestic demand and keep liquidity ample.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.63% at 4,390, FTSE 100 +0.36% at 7,871, DAX 40 +0.50% at 15,807, CAC 40 +0.52% at 7,519, FTSE MIB +0.89% at 27,872, IBEX 35 +0.57% at 9,362, SMI +0.76% at 11,344.

SECTORS: Financials 1.37%, Consumer Disc 1.15%, Industrials 0.55%, Healthcare 0.43%, IT 0.31%, Energy 0.28%, Materials 0.24%, Consumer Stpl 0.17%, Telecoms -0.15%, Utilities -1.49%

FTSE 100

Anglo American (AAL LN)/Glencore (GLEN LN) - Teck Resources (TECK) has reportedly been approached by Anglo American (AAL LN), Vale (VALE), and Freeport McMoRan (FCX), among others, to explore deals for its base metals business if Teck goes ahead with the split, according to Reuters sources. (Newswires)

AstraZeneca (AZN LN) - Imfinzi-based treatment before and after surgery reduced the risk of disease recurrence, progression events or death by 32% in resectable non-small cell lung cancer in the AEGEAN Phase III trial. (AstraZeneca)

Barclays (BARC LN) - Co. is to cut more than 100 investment banking jobs, according to Sky News. (Sky News)

BT (BT/A LN) - Co. held China-Taiwan “war games” last year in order to stress test the supply chain in the context of the fallout from a military clash, via FT citing sources. (FT)

GSK (GSK LN) - EAGLE-2 and EAGLE-3 phase III trials met primary endpoint of non-inferiority to nitrofurantoin; EAGLE-3 demonstrated statistical superiority. "Gepotidacin’s positive phase III data shows potential to be the first in a new class of oral antibiotics for uncomplicated urinary tract infections in over 20 years.", according to GSK. (GSK)

UK banks/businesses - BoE is considering urgent reform of the deposit guarantee scheme in the wake of the SVB collapse, according to FT. (FT)

OTHER UK COMPANIES

Ferguson (FERG LN) - Positive mention in Barron's for the largest plumbing and HVAC distributor in the US; the article said the stock was a buy amid speculation it could join the S&P 500 index. (Barron)

International Distributions Services (IDS LN) - UK Royal Mail and the Communication Workers Union reached a negotiators’ agreement in principle over pay and employment terms, according to a joint statement. (Newswires)

Marks & Spencer (MKS LN) - In 2020, John Lewis chairwoman Dame Sharon White reportedly asked advisers to explore potential M&A options with Marks & Spencer, according to The Times. (Times)

BROKER MOVES

National Grid (NG/ LN) reiterated with Overweight at JPMorgan Chase

DAX

Volkswagen (VOW3 GY) - Co. is to partner with Ford (F), Vale and Huayou to build an EV battery ecosystem in Indonesia. (Newswires)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - March passengers +45.4% Y/Y to 4.3mln; Q1 passengers +56% Y/Y to 11.4mln. (Newswires)

Traton (8TRA GY) - In Q1 2023, co. expects unit sales of around 84.6k vehicles and a sales revenue of around EUR 11.2bln. Order intake is expected to amount to around 68.5k units, "mainly as a result of continued restrictive order acceptance and a very large order book and despite continued strong market demand." Co. said "Supported by continued strong demand for commercial vehicles, improved production levels and strong product positioning, the TRATON GROUP has recorded a very strong development in the course of the first three months of 2023, which clearly exceeds market expectations... Based on the better-than-expected development in the first three months of the year, the company will review its outlook for financial year 2023 and intends to provide an update with the publication of its interim statement on May 2, 2023." (Yahoo Finance)

BROKER MOVES

CAC

LVMH (MC FP) - Former Louis Vuitton CEO Michael Burke has reportedly emerged as the leading candidate to become CEO and chairman of LVMH Fashion Group, according to sources cited by Bloomberg. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Banking Names - Global regulators set their sights on stricter banking rules and are considering a wider net to catch smaller US banks, according to FT. (FT)

Chip/Tech Names - Elon Musk plans an AI start-up to rival OpenAI, according to the FT, and has obtained Nvidia (NVDA) processors for the AI start-up. (FT) Separately, Nvidia’s (NVDA) most-advanced graphics cards are selling for more than USD 40k on eBay, as demand soars for chips needed to train and deploy AI software, according to CNBC. (CNBC)

Iberdrola (IBE SM) - Net electricity production in Q1 +6.3% Y/Y. (Newswires)

Gaming Names - Sega Sammy Holdings is nearing a deal to acquire Rovio Entertainment Oyj (ROVIO FH) for about USD 1bln, WSJ reports. A deal could be sealed early this week. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - Roche’s Tecentriq plus Avastin reduced the risk of cancer returning in people with certain types of adjuvant liver cancer in a Phase III study. (Roche)

UBS (UBSG SW)/ Credit Suisse (CSGN SW) - Fed approves UBS' acquisition of the US units of Credit Suisse. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Givaudan (GIVN SW) downgraded to Hold from Buy at Berenberg

SCANDINAVIA

Lundbeck (HLUNB DC) - Otsuka and Lundbeck issued a statement on the US FDA Advisory Committee Meeting on REXULTI for the treatment of agitation associated with Alzheimer’s Dementia (AAD). The committee voted 9-1 that Otsuka and Lundbeck provided sufficient data to allow the identification of a population in whom the benefits of treating AAD with REXULTI outweigh its risks. If approved, REXULTI would be the first FDA-approved treatment indicated for AAD in the US. (businesswire)

Norsk Hydro (NHY NO) - Announced employees at Hydro Karmøy and Hydro Ardal will commence strike action this Monday, while corporate employees in the accounting department at Sunndalsøra will also go on strike, according to Reuters. (Newswires)

BROKER MOVES

Fortum (FORTUM FH) downgraded to Neutral from Buy at Citi

Tele2 (TEL2B SS) downgraded to Hold from Buy at DNB Markets

US

CLOSES: SPX -0.21% at 4,137, NDX -0.23% at 13,079, DJIA -0.42% at 33,885, RUT -0.86% at 1,781.

SECTORS: Real Estate -1.68%, Utilities - 1.12%, Health -0.79%, Materials -0.68%, Consumer Staples -0.58%, Technology -0.51%, Industrials -0.12%, Consumer Discretionary +0.13%, Energy +0.19%, Communication Services +0.31%, Financials +1.05%.

17 Apr 2023 - 06:46- MetalsResearch Sheet- Source: Newsquawk