Newsquawk Daily European Equity Opening News

18th July 2023

ASIA

Asia-Pac stocks were mostly lower after the region failed to sustain the momentum from Wall St where tech and small caps outperformed after NY Fed Manufacturing data softened the blow from recent Chinese data. ASX 200 (-0.3%) was subdued as participants digested the RBA Minutes from the July 4th meeting which noted that the Board agreed some further tightening may be required and will reconsider at the August meeting, while it also noted the economy had slowed considerably and that consumer spending is seen weak in Q2. Nikkei 225 (+0.2%) initially advanced on return from the long weekend but then suffered a reality check and momentarily faded all of its gains amid weakness in its peers. Hang Seng (-2.2%) and Shanghai Comp. (-0.4%) were lower with property stocks leading the declines in Hong Kong after the long-delayed results from the world’s most indebted developer Evergrande which suffered a net loss of CNY 476bln and CNY 105.9bln for 2021 and 2022, respectively. The US-China relationship also remained in focus with amicable comments in talks between US Climate Envoy Kerry and China’s top diplomat Wang Yi, although this was somewhat negated by reports the US aims to propose China investment limits by the end of next month and that President Biden is weighing new curbs on chips and semiconductor-making devices.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 -0.98% at 4,356, FTSE 100 -0.38% at 7,406, DAX 40 -0.23% at 16,068, CAC 40 -1.12% at 7,291, FTSE MIB -0.19% at 28,608, IBEX 35 0.00% at 9,438, SMI -1.21% at 10,975.

Sectors: Healthcare 0.17%, Financials 0.10%, Industrials -0.23%, Telecoms -0.32%, Consumer Stpl -0.52%, Energy -0.60%, Utilities -0.61%, Materials -1.24%, IT -1.71%, Consumer Disc -2.27%.

FTSE 100

Tobacco Names - UK PM Sunak has reportedly signalled in private a crackdown on youth vaping, amid increasing pressure for a ban on devices which are disposable. Measures expected next year, PM taking an interest in the package. (Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Atoss Software (AOF GY) - H1 (EUR): Revenue 73mln (prev. 54mln), EBIT Margin 33% (exp. >27%). Medium-term guidance is unchanged; lifts FY guidance. (Newswires) +3% in pre-market trade

BROKER MOVES

Rational (RAA GY) initiated with Buy at SocGen +2% in pre-market trade

CAC

OTHER FRENCH COMPANIES

Casino (CO FP) - Received on 15th July a revised offer from EP Global Commerce, Fimalac and Attestor to strengthen equity capital. 3F Holding has decided not to submit a revised offer. Aim to reach a deal in principle by end-July, formal opening of talks with the above Fimalac/Kretinsky consortium re. the EUR 1.2bln capital injection.. Suspended shares will resume on July 18th at market open. (Newswires)

BROKER MOVES

PAN EUROPE

Chip Names - US aims to propose China investment limits by end-August with limits likely to not take effect until 2024, while US outbound investment curbs are focused on AI, chips and quantum computing, according to Bloomberg citing sources familiar with the Biden administration's plans. Separately, US President Biden is weighing new curbs on chips and semiconductor-making devices, while Intel (INTC), Nvidia (NVDA) and Qualcomm (QCOM) CEOs are seeking to ease new restrictions, according to Bloomberg. Elsewhere, the US State Department said Secretary of State Blinken saw the meeting with chip CEOs as an opportunity to share his perspective on the industry and supply chains after his recent trip to China.

UCB (UCB BB) - Announces EU regulatory filing for Bimekizumab, for the treatment of moderate to severe hidradenitis suppurativa. Supported by two Phase 3 studies. (Newswires)

BROKER MOVES

Santander (SAN SM) initiated with Equalweight at Barclays

SMI

Novartis (NOVN SW) - Q2 (USD): Revenue 13.5bln (exp. 13.25bln), core EPS 1.83 (exp. 1.69). Sandoz: Net Sales 2.4bln, +5%; intend to list Sandoz on the Six Swiss exchange with an ADR in the US. FY23 guidance lifted based on strong H1 momentum. Initiating up to a USD 15bln buyback, to conclude by end-2025. (Novartis)

OTHER SWISS COMPANIES

DKSH (DKSH SW) - H1 (CHF): Revenue 5.6bln (exp. 5.63bln), EBIT 158mln (prev. 153mln), Net 106mln (prev. 105mln). Further M&A consolidation potential. Core EBIT growth expected in 2023. (Newswires)

BROKER MOVES

SCANDINAVIA

Aker (AKER NO) - H1 (NOK): PBT -6.37bln (prev. 14.35bln); negative renewables performance does not alter the strategic direction. Q2 NAV of 57.2bln (prev. 59.7bln). (Newswires)

Schibsted (SCH NO) - Q2 (NOK): Revenue 4.04bln (exp. 3.9bln), EBITDA 670mln (prev. 556mln), strong top-line growth in mobility, real estate and re-commerce verticals. (Newswires)

SEB (SEBA SS) - Q2 (SEK): Net Income 9.77bln (exp. 8.5bln), Net Fee & Commimssion Income 5.64bln (exp. 5.34bln), NII 11.88bln (exp. 11.59bln). Net expected credit losses close to 0, despite an increase in portfolio model overlays. Strong Q2, driven by corporate business. (Newswires)

Swedbank (SWEDA SS) - Q2 (SEK): Net Income 9.1bln (exp. 8.1bln), NII 12.7bln (exp. 12.4bln), CET1 18.6% (exp. 18.5%), Net Commission Income 3.8bln (exp. 3.7bln). The domestic mortgage market is cautious, though house prices increased slightly. Reorganisation to strengthen the corporate business. (Newswires)

Tele2 (TELE2B SS) - Q2 (SEK): Revenue 7.2bln (exp. 7.1bln), adj. EBITDA 2.5bln (exp. 2.52bln), adj. capex 0.89bln (exp. 0.81bln). Expect long-term capex to sales to be in the range of 10-14%, upper level for 2023-2024 and a decline to the lower bound in 2025-2026. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.39% at 4,523, NDX +0.95% at 15,713, DJIA +0.22% at 34,585, RUT +1.04% at 1,951.

SECTORS: Technology +1.33%, Financials +1%, Industrials +0.42%, Cons Disc +0.32%, Materials +0.08%, Energy -0.12%, Cons Stpl -0.3%, Health -0.43%, Communication Svs -0.65%, Real Estate -0.83%, Utilities -1.18%.

18 Jul 2023 - 06:55- Research Sheet- Source: Newsquawk