Newsquawk Daily European Equity Opening News - 17th June 2024

17th June 2024

ASIA

APAC stocks were mostly negative as markets reflected on the latest soft Chinese data releases. ASX 200 was rangebound as weakness in tech and mining-related sectors offset the gains in defensives and financials, with trade contained ahead of tomorrow's RBA announcement and after Australia and China signed MOUs on the economy, trade and education. Nikkei 225 underperformed and dipped below 38,000 in the fallout of last week's BoJ meeting and press conference, while Machinery Orders for April were better than expected with surprise Y/Y growth of 0.7% (exp. -0.1%) and the M/M figure showed a narrower than feared decline at -2.9% (exp. -3.1%) although printed its first contraction in 3 months. Hang Seng and Shanghai Comp. were mixed as the Hang Seng attempts to buck the trend amid tech strength and with the mainland pressured after soft data releases from China including the miss on loans and financing data, while Industrial Production and Retail Sales were mixed and House Prices showed a further deterioration with the steepest M/M drop in nearly a decade.

EUROPEAN CLOSES

CLOSES: DAX: -1.34% at 18,021, CAC 40: -2.66% at 7,503, PSI: -0.42% at 6,538, FTSE 100: -0.21% at 8,147, IBEX 35: -0.67% at 10, 992, FTSE MIB: -2.81% at 33,665, SMI: -0.44% at 12,043, Euro Stoxx 50: -1.96% at 4,839.

SECTORS: Healthcare 0.53%, Consumer Stpl 0.04%, Telecoms -0.44%, Energy -0.71%, Utilities -1.03%, Financials -1.10%, Materials -1.38%, IT -1.69%, Consumer Disc -1.86%, Industrials -2.11%

FTSE 100

AstraZeneca (AZN LN) - ECHO Phase III trial showed CALQUENCE with bendamustine and rituximab significantly improved progression-free survival and showed a favourable trend in overall survival in untreated mantle cell lymphoma. The CALQUENCE regimen reduced disease progression or death risk by 27%. In other news, the FDA approves durvalumab with chemotherapy for mismatch repair deficient primary advanced or recurrent endometrial cancer. (Newswires)

Rio Tinto (RIO LN) - Serbia is set to give Rio Tinto permission to develop Europe's largest lithium mine, according to the FT. This would help boost Europe's electric vehicle industry. (FT)

Shell (SHEL LN) - Unifor members reject the mediator's recommendations, setting up a strike vote at Shell. (Newswires)

UK Rightmove - UK Rightmove House Price Index YY (Jun) 0.6% (Prev. 0.6%); House Price Index MM (Jun) 0.0% (Prev. 0.8%). "However, some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end", says Bannister at Rightmove. (Rightmove)

OTHER UK COMPANIES

BROKER MOVES

DAX

Adidas (ADS GY) - Co. is investigating bribery allegations in China after complaints that accused senior staff of embezzling "millions of euros", according to the FT citing sources. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Boeing (BA) tells suppliers it is delaying key 737 production target by 3 months, according to Reuters citing sources. (Reuters)

OTHER FRENCH COMPANIES

Alstom (ALO FP) - Co. signs a EUR 430mln contract for 10 Aventra trains with associated maintenance for the Elizabeth Line in London. (Newswires)

Casino (CO FP) - Completes reverse share split; adjustments to warrants exercise party and allocation right sunder free share allocation plans. (Newswires)

Thales (HO FP) - Co. is quadrupling its ammunition production capacity at its Le Ferta Saint Aubin site to meet the needs of the French Army. Elsewhere, Co. partners with CEA for trusted generative AI for defence and security. (Newswires)

BROKER MOVES

PAN EUROPE

Amadeus (AMS SM) - Sees 2023-26 Revenue 9-12.5% CAGR. EBITDA is a broadly stable margin. 2023-2026 shareholder remuneration 40-50% ordinary dividend payout ratio policy. (Newswires)

European stocks - Citi global equity strategy: Downgrades Europe to Neutral from Overweight. (Newswires)

ING (INGA NA) - Targets shift to retail banking from 50-55% of RWA by 2027. Targets 25% increase in customers with long-term savings and investment plan products by the end of 2030. Targets Total Income CAGR 2024-27 +4-5%. Total Fee Income EUR 5bln. Targets CET1 Ratio by 2025 around 12.5%. M&A is considered if it accelerates strategy execution and fits stringent criteria. (Newswires)

Sabadell (SAB SM) - Pauses completion of payments business sale to Nexi (NEXI IM) after BBVA (BBVA SM) bid, according to Reuters citing sources. (Reuters)

BROKER MOVES

SMI

Roche (ROG SW) - Roche announced statistically significant and clinically meaningful results from its Phase III STARGLO study of Columvi (glofitamab) in combination with gemcitabine and oxaliplatin; study met its primary endpoint of overall survival. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - CEO of the Co. to voluntarily testify before the Senate Committee, which will focus on the high prices that the Co. charges for Ozempic and Wegovy. The hearing will be held in early September. (Newswires)

Essity (ESSITYB SS) - New financial targets. New target is annual organic sales growth of more than 3% (prev. +5%). (Newswires)

BROKER MOVES

US

CLOSES: SPX flat at 5,432, NDX +0.42% at 19,660, DJIA -0.15% at 38,589, RUT -1.61% at 2,006.

SECTORS: Industrials -1.03%, Materials -0.94%, Energy -0.81%, Consumer Discretionary -0.66%, Financials -0.29%, Utilities -0.26%, Real Estate -0.16%, Consumer Staples flat, Health flat, Technology +0.51%, Communication Services +0.56%.

Apple (AAPL) and Meta (META) - Set to face EU charges under new EU tech rules, according to Reuters citing sources. EU cybersecurity scheme should not discriminate against big tech, according to European groups. (Reuters)

S&P 500 - Goldman Sachs raises S&P 500 2024 year-end target to 5600 from 5200

17 Jun 2024 - 06:49- EquitiesData- Source: Newsquawk