Newsquawk Daily European Equity Opening News - 17th July 2024

17th July 2024

ASIA

APAC stocks were mixed despite the positive handover from Wall St where the S&P 500 and DJIA extended to fresh record highs following better-than-expected Retail Sales data, as China trade frictions and tariff threats clouded over Asia-Pac sentiment. ASX 200 gained with notable strength in gold-related stocks after the precious metal rose to a fresh record level, while the mining sector is positive but with upside capped amid indecision in BHP despite posting better-than-expected quarterly iron ore output. Nikkei 225 gradually reversed its initial advances with trade restrained by a lack of drivers and a quiet calendar aside from the monthly Reuters Tankan survey which showed an improvement in large manufacturers’ sentiment. Hang Seng and Shanghai Comp. were lacklustre amid tariff fears and trade frictions after Trump suggested 60%-100% tariffs on China, while the Biden administration is to issue a proposed rule on Chinese connected vehicles in about a month and warned allies of stricter trade rules in the China chip crackdown.

EUROPEAN CLOSES

CLOSES: DAX: -0.35% at 18,525, FTSE 100: -0.22% at 8,165, CAC 40: -1.87% at 7,580, Euro Stoxx 50: -0.67% at 4,950, IBEX 35: -0.47% at 11,091, FTSE MIB: flat at 34,369, SMI: flat at 12,268, PSI: -0.53% at 6,776.

SECTORS: Healthcare -0.10%, Industrials 0.28%, Telecoms -0.15%, Financials -0.23%, Consumer Stpl -0.26%, Utilities -0.53%, Materials -0.55%, IT -0.75%, Consumer Disc -0.87%, Energy -1.02%

FTSE 100

BAE Systems (BA/ LN) - Selects Parsons Corporation for the modernisation project at Radford Army ammunition plant; under 2yr USD 15.4mln contract. (Newswires)

Glencore (GLEN LN) - Bunge (BG) offers to sell Glencore-backed Viterra's crush and refining plants in Hungary and Poland, in order to secure EU antitrust approval for the USD 34bln merger, according to Reuters citing sources. (Reuters)

HSBC (5 HK) - Confirms Noel Quinn will step down as Group Chief Executive effective September 2nd and CFO George Elhedery will be appointed as new Group Chief Executive. (Newswires)

Shell (SHEL LN) - Taking measures to contain and remove sheen in the St. Clair River near the outflow from Talfour Creek. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Adidas (ADS GY) - Q2 2024 (EUR): Revenue 5.82bln (exp. 5.56bln), Gross margin 50.8% (exp. 51.4%); increases FY guidance following better-than-expected Q2 results. Sees FY operating profit view 1.0bln (exp. 700mln). Assumes the sale of remaining Yeezy inventory during the remainder of the year to occur on average at cost. This would result in additional sales of around EUR 150mln and no further profit contribution during the remainder of the year. Continues to expect unfavourable currency effects to weigh significantly on Co. profitability this year. Excluding Yeezy sales in both years, currency-neutral revenues increased 16% during the quarter. These effects are negatively impacting both reported revenues and gross margin development in 2024. Expects currency-neutral revenues to increase at a high-single-digit rate in 2024. (Newswires) Holds a 2.8% weighting in the DAX 40. Shares +3.8% in pre-market trade; peer Nike (NKE) rose 1.6% in US trade in the prior session

Allianz (ALV GY) - Is reportedly considering making an offer to buy up to 51% of Singapore-based Income Insurance, according to Bloomberg. (Bloomberg)

Bayer (BAYN GY) - Darolutamide meets primary endpoint in Phase III ARANOTE trial in men with metastatic hormone-sensitive prostate cancer. Darolutamide plus ADT significantly increased rPFS compared to placebo plus ADT. The safety data were comparable between both treatment arms and reconfirmed the established tolerability profile of darolutamide in advanced prostate cancer. (Bayer) Shares +1.8% in pre-market trade.

Deutsche Bank (DBK GY) - CEO says it is to boost Asia revenue to 'well north of 15%' and it is ready to expand investments in Asia after successfully restructuring itself and stabilising earnings. Is also raising investments in Vietnam and other smaller economies in the region. (Newswires)

Daimler Truck Holding (DTG GY) - Q2 2024 (EUR): Adj. EBIT 1.168bln (exp. 1.259bln), EBIT 1.076bln; FY guidance is currently under review. (Newswires)

OTHER GERMAN COMPANIES

Hypoport (HYQ GY) - Significant increase in business volume in H1. Volume of mortgage finance transactions on Europace +22% Y/Y. (Newswires) Shares +2.7% in pre-market trade.

BROKER MOVES

CAC

French stocks - President Macron accepted the French Government's resignation; the current government is to stay on in caretaker capacity until a new cabinet is formed, via Presidential Office; renamed Attal as caretaker PM. (Newswires)

Pernod Ricard (RI FP) - To sell its portfolio of strategic international wins to Australian wine Holdco Limited; close exp. H2'25. (Newswires)

Vinci (DG FP) - June Traffic: Passenger traffic +8.2% (prev. +7.5% Y/Y). Almost 81mln passengers through airports in Vinci airports network. (Newswires)

OTHER FRENCH COMPANIES

ADP (ADP FP) - June Traffic: 33.3mln passengers, +7.8% Y/Y. (Newswires)

BROKER MOVES

PAN EUROPE

ASML (ASML NA) - Q2 (EUR): Revenue 6.24bln (exp. 6.03bln), Net Income 1.58bln (exp. 1.44bln), Bookings 5.57bln (exp. 4.41bln), EPS 4.01 (exp. 3.68). Interim dividend of 1.52/shr to be paid on August 7th. New lithography systems sold 89 (prev. 66). FY24 guidance maintained; see 2024 as a transition year with continued investments in both capacity ramp and technology. Q3 Outlook: Revenue 6.7-7.3bln (exp. 7.66bln). Gross Margin 50-51%. CEO: Expect industry recovery to continue in H2. Overall semiconductor inventory levels continue to improve. Also see further improvement in litho tool utilization levels at both Logic and Memory customers. Currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments. (ASML) *AEX: 16.3% (largest). Euro Stoxx 50: 8.8% (largest). STOXX 600: 3.1% (second largest). STOXX Europe 600 Technology: 30.19% (largest)*

Chip names - US warns allies of stricter trade rules in China chip crackdown with the US mulling whether to impose the Foreign Direct Product Rule, according to Bloomberg. US restriction would hit technology from Tokyo Electron (8035 JT) and ASML (ASML NA). (Bloomberg)

Mining names - BHP (BHP AT) Q4 iron ore WAIO production rose 6% Y/Y to 76.8mln tons (exp. 75.4mln tons), nickel output 23.0k tons, copper output 504.9k tons and metallurgical coal output 4.9mln tons. Sees FY25 iron ore WAIO production 282mln-294mln tons. Sees FY25 copper output 1,845-2,045k tons. (Newswires) BHP shares were choppy overnight but just about kept afloat

BROKER MOVES

SMI

Roche (ROG SW) - Announced positive topline results from two arms of an ongoing multi-part Phase I clinical trial for CT-996, an investigational, once-daily, oral small molecule GLP-1 receptor agonist being developed for the treatment of both type 2 diabetes and obesity. The data showed that treatment with CT-996 in participants with obesity and without type 2 diabetes resulted in a clinically meaningful placebo-adjusted mean weight loss of -6.1% within four weeks (businesswire)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker (AKER NO) - Q2 (NOK): PBT 1.86bln (prev. -5.78bln Y/Y). Despite the presence of challenging market factors that require careful navigation, overall, long-term outlook remains positive for these important global megatrends. (Newswires)

Handelsbanken (SHBA SS) - Q2 (SEK): NII 11.74bln (exp. 11.35bln), Net Profit 6.7bln (exp. 6.2bln). (Newswires)

Maersk (MAERSKB DC) - Said the Red Sea disruptions have extended beyond far-east Europe routes to the entire ocean network; Asian exports are more impacted than Asian imports by the ongoing situation in the Red Sea. (Newswires)

Tele2 (TEL2B SS) - Q2 (SEK): EBITDAAL 2.58bln (exp. 2.59bln), Op. Profit 1.42bln (exp. 1.38bln). FY24 guidance and mid-term outlook unchanged. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.64% at 5,667, NDX flat at 20,399, DJI +1.85% at 40,954, RUT +3.5% at 2,264.

SECTORS: Communication Services -0.64%, Technology -0.38%, Energy +0.35%, Utilities +0.77%, Consumer Staples +0.95%, Real Estate +1.03%, Financials +1.22%, Health +1.45%, Consumer Discretionary +1.51%, Materials +1.96%, Industrials +2.54%.

Spirit Airlines (SAVE) - Sees total rev. for Q2 at around USD 1.28bln (exp. 1.33bln). (Newswires)

17 Jul 2024 - 06:57- Research Sheet- Source: Newsquawk