Newsquawk Daily European Equity Opening News - 17th May 2024

17th May 2024

ASIA

APAC stocks were mostly subdued following the mild losses on Wall St where the major indices pulled back after printing fresh record levels, while participants also digested mixed activity data from China. ASX 200 was pressured as losses across most industries overshadowed the gains in the mining and materials. Nikkei 225 declined but was off worst levels amid a weaker currency and after the BoJ refrained from further cutting its bond purchases. Hang Seng and Shanghai Comp were indecisive with early outperformance in Hong Kong owing to tech strength before briefly wiping out all of its gains, while the mainland was constrained as the focus centred on a slew of data including a further deterioration in Home prices which saw the steepest monthly drop in 9 years, while activity data was mixed as Industrial Production topped forecasts but Retail Sales disappointed.

Chinese Data - Chinese Industrial Output YY (Apr) 6.7% vs. Exp. 5.5% (Prev. 4.5%); Retail Sales YY (Apr) 2.3% vs. Exp. 3.8% (Prev. 3.1%)

EUROPEAN CLOSES

CLOSES: DAX: -0.76% at 18,725.71, FTSE 100: -0.08% at 8,438.65, CAC 40: -0.63% at 8,188.49, Euro Stoxx 50: -0.54% at 5,073.55, IBEX 35: -0.56% at 11,299.30, FTSE MIB: +0.12% at 35,410.13, SMI: +0.40% at 11,946.83

SECTORS: Telecoms 0.40%, Financials 0.28%, IT 0.18%, Utilities 0.11%, Consumer Stpl 0.01%, Healthcare -0.15%, Materials -0.16%, Consumer Disc -0.25%, Industrials -1.13%, Energy -1.29%

FTSE 100

GSK (GSK LN) - Announces intention to sell c. 385mln shares in Haleon (HLN LN); price of 324p/shr raising gross proceeds of approx. GBP 1.24bln, entirely exiting its position. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Bayer (BAYN GY) - Elinzanetant significantly reduces the frequency and severity of moderate to severe hot flashes associated with menopause. Successfully met all four primary endpoints in both studies demonstrating statistically significant reductions in the frequency and severity of moderate to severe VMS from baseline to weeks 4 and 12 compared to placebo. (Bayer)

Siemens Energy (ENR GY) - CEO said the last thing they want to do is advocate de-risking from China. Expects onshore turnaround in the current decade. Looked at exiting onshore wind, but it would be more of an expensive option. (Newswires)

OTHER GERMAN COMPANIES

Lufthansa's (LHA GY) - ITA stake buy faces EU veto unless substantial remedies are offered, according to Reuters sources. (Reuters)

BROKER MOVES

Lanxess (LXS GY) downgraded to Underperform from Hold at Jefferies

CAC

Engie (ENGI FP) - Q1 (EUR): Revenue 22bln (exp. 27.9bln, prev. 29.2bln Y/Y), EBITDA 5.4bln (exp. 5.08bln, prev. 5.4bln Y/Y). Confirms FY24 guidance. Results due to losses at EV box and failure to find a buyer, Co. is examining all options to disengage. (Newswires)

Vinci (DG FP) - April airport traffic +6.3%; autoroutes traffic -1.5% Y/Y. (Newswires)

OTHER FRENCH COMPANIES

Aeroports de Paris (ADP FP) - April Traffic: 28.4mln, +8.2% Y/Y). (Newswires)

Alstom (ALO FP) - Alstom signs a contract for a light rail system in Northern Israel; a project valued at more than EUR 1bln. (Newswires)

Eiffage (FGR FP) - Eifage Energie Systemes and Entech create a JV dedicated to the construction of major storage projects. (Newswires)

Scor (SCR FP) - Net Income 196mln (exp. 225mln), Solvency Ratio 215% (exp. 216%), Combined Ratio 87.1% (exp. 85.6%). (Newswires)

BROKER MOVES

PAN EUROPE

Colonial (COL SM) - Following the deal with Criteria (announced in market hours), confirms guidance: EPS 2024 guidance confirmed post-transaction EUR 30-32/shr. Short-term material impact of ERPA LTV by more than 450bps; the mid-term level is expected to be sustained over time. (Newswires)

Prosus (PRX NA) - Fabricio Blosia appointed as CEO; strategic goals remain unchanged. (Newswires)

BROKER MOVES

OMV (OMV AV) upgraded downgrade to Hold from Buy at Berenberg

SMI

Richemont (CFR SW) - FY (CHF): Sales 20.61bln (exp. 20.64bln), Op. Profit 4.79bln (exp. 4.85bln). Increases proposed dividend of CHF 2.75/ "A" share (exp. 3.22/shr) / 10 "B" shares. Sales growth across all regions and business areas. Sales at constant FX +8% (exp. 7.73%). Experienced softening sales in Q4 in APAC against challenging comps., more than offset by higher growth in other regions. Nicolas Bos to re-established role of CEO of Co. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.21% at 5,297, NDX -0.21% at 18,557, DJIA -0.10% at 39,869, RUT -0.63% at 2,096.

SECTORS: Consumer Staples +1.48%, Communication Services -0.02%, Financials -0.02%, Health -0.10%, Real Estate -0.15%, Technology -0.34%, Utilities -0.36%, Energy -0.42%, Industrials -0.65%, Materials -0.73%, Consumer Discretionary -0.75%.

Tesla (TSLA) - Raises the price of Model 3 Performance in the US by USD 1k to USD 54,990. (Newswires)

17 May 2024 - 06:56- EquitiesData- Source: Newsquawk