Newsquawk Daily European Equity Opening News - 17th January 2025

ASIA

APAC stocks were mixed in mostly rangebound trade after the uninspiring handover from Wall St and despite encouraging Chinese GDP and activity data. ASX 200 traded indecisively as weakness in the top-weighted financials sector and telecoms clouded over the marginal gains in most sectors, while the index also failed to benefit from the mostly better-than-expected data in Australia's largest trading partner. Nikkei 225 continued to underperform amid recent currency strength and the potential for a BoJ rate hike next week. Hang Seng and Shanghai Comp were choppy with only mild support seen after GDP, Industrial Production & Retail Sales beat expectations with China's economy growing 5.4% Y/Y (exp. 5.0%) in Q4 and by 5.0% (exp. 4.9%) for 2024. Nonetheless, the data only briefly supported Chinese stocks which were ultimately rangebound after the mixed commentary from the stats bureau which noted the impact of external environment changes is deepening, domestic demand is not sufficient, and economic operations still face many difficulties and challenges but also stated that positive factors will outweigh negative factors for China's economy in 2025. In addition, US-China trade frictions continued to linger after the USTR found China shipbuilding to be actionable under Section 301.

EUROPEAN CLOSES

CLOSES: DAX: +0.29% at 20,634, FTSE 100: +1.09% at 8,392, CAC 40: +2.14% at 7,635, Euro Stoxx 50: +1.44% at 5,105, AEX: +1.53% at 908, IBEX 35: -0.49% at 11,841, FTSE MIB: +0.48% at 35,820, SMI: +1.34% at 11,942, PSI: +0.55% at 6,494.

SECTORS: Consumer Disc 3.34%, IT 2.10%, Consumer Stpl 0.88%, Telecoms 0.88%, Energy 0.78%, Industrials 0.75%, Healthcare 0.75%, Financials 0.60%, Utilities 0.52%, Materials 0.40%

FTSE 100

AstraZeneca (AZN LN) - FDA approves acalabrutinib with bendamustine and rituximab for previously untreated mantle cell lymphoma. FDA also granted traditional approval to acalabrutinib as a single agent for adults with previously treated MCL. (FDA)

Rio Tinto (RIO LN), Glencore (GLEN LN) - In October 2024, Rio Tinto and Glencore held early-stage talks on a potential merger, which would create the largest mining company rivalling BHP. FT suggests that the discussions ended without progress, with concerns over Glencore's coal assets and limited synergy benefits for Rio. (FT)

Smiths (SMIN LN) - US Activist Investor Engine Capital is asking the co. to explore the break-up of its various products/services; called for either a strategic review or to sell the group entirely, via the FT. (FT)

Schroders (SDR LN) - Reportedly to cut 3% of its workforce as it aims to revive growth, via Bloomberg. (Bloomberg)

UK Banking/Housing Names - UK Financial Regulators are reportedly looking into providing banks and other lenders with greater flexibility, in order to facilitate "responsible risk-taking" from borrowers. (Times)

OTHER UK COMPANIES

BROKER MOVES

Flutter Entertainment (FLTR LN) initiated with a Buy at Stifel; sees upside to FY26 & FY27 supported by the addressable market and bottoming headwinds.

Wise (WISE LN) downgraded to Add from Buy at Peel Hunt

DAX

Qiagen (QIA GY) - Announced details for the completion of synthetic share repurchase of up to approx. USD 300mln. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

SAP (SAP GY) upgraded to Buy from Hold at TD Cowen

CAC

Vinci (DG FP) - Airport passenger traffic +8% Y/Y in December. (Newswires)

OTHER FRENCH COMPANIES

Argan (ARG FP) - FY24 Rental Income 198.3mln, +8% Y/Y. (Newswires)

Engie (ENGI FP) - All operational and financial targets are unchanged. Outlook for confirmation after adjustment of scope of global business units. (Newswires)

BROKER MOVES

PAN EUROPE

China-exposed stocks - Chinese GDP YY (Q4) 5.4% vs. Exp. 5.0% (Prev. 4.6%); GDP QQ SA (Q4) 1.6% vs. Exp. 1.6% (Prev. 0.9%); Retail Sales YY (Dec) 3.7% vs. Exp. 3.5% (Prev. 3.0%)

Generali (G IM)/Natixis (KN FP) - Cos are reportedly close to announcing an agreement to form an asset management JV, via FT citing sources; JV would be 50-50. (FT)

InPost (INPST NA) - UK Government says InPost is to invest a further GBP 600mln in the UK by 2029. (Newswires)

Shipping - US Trade Representative finds China shipbuilding to be actionable under Section 301, says China's dominance of maritime, logistics and shipbuilding sectors is actionable under Section 301 statute but does not make specific recommendations. (Newswires)

Saipem (SPM IM) - Sold 10% interest in KCA Deutag; proceeds from disposal approx. USD 89.5mln. (Newswires)

Weight-loss names - US FDA Chief says current regulations not enough to protect Americans from risks of compounded GLP-1 drugs. (Newswires)

BROKER MOVES

SMI

UBS (UBSG SW) - Gets fresh US pensions license fixing paper work error; US Dept. of Labor grants UBS the waiver until June 2029, with UBS telling DoL that without the waiver many clients would have left the bank, via Reuters citing filings. (Reuters)

OTHER SWISS COMPANIES

Avolta (AVOL SW) - To launch share buyback of up to CHF 200mln; to start before end of Jan 2025. (Newswires)

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Hopes to double the size of contract drug manufacturer Catalent over five years, a senior partner said. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.03% at 5,947, NDX -0.69% at 21,091, DJIA -0.16% at 43,153, RUT +0.12% at 2,266.

SECTORS: Utilities +2.57%, Real Estate +2.23%, Industrials +1.19%, Materials +0.80%, Energy +0.62%, Financials +0.59%, Consumer Staples +0.56%, Health +0.43%, Consumer Discretionary -0.91%, Communication Services -0.96%, Technology -1.31%.

Amazon (AMZN) - Cuts jobs in its fashion and fitness group, affecting roughly 200 people, via Business Insider. (Business Insider)

ICL Group (ICL) - ICL signed a JV with Shenzhen Dynanonic to produce lithium iron phosphate for the European market. The EUR 285mln investment will fund a new facility at ICL's Sallent, Spain, site, with ICL holding 80% ownership. (Newswires)

Steel - Canada's counter-tariff plan is reportedly said to target US aluminium and steel, according to Bloomberg sources. (Bloomberg)

17 Jan 2025 - 06:39- Research Sheet- Source: Newsquawk