Newsquawk Daily European Equity Opening News - 18th April 2023

18th April 2023

ASIA

Asia-Pac stocks traded mostly subdued and failed to benefit from the slew of data from China including stronger GDP growth with the mood tentative across global markets ahead of upcoming earnings releases stateside. ASX 200 (-0.4%) was dragged lower by underperformance in energy and consumer stocks, while the RBA Minutes reaffirmed the potential for future rate increases as the central bank noted it is important to be clear that policy may be tightened again to curb inflation in a timely manner and that inflation is still too high. Nikkei 225 (+0.5%) was kept afloat following reports that the BoJ is mulling CPI projections for FY25 of between 1.6%-1.9% which would remain below the central bank’s 2% price goal and support the case for a delayed or slower exit from easy policy. Hang Seng (-0.8%) and Shanghai Comp. (Flat) were contained as participants reflected on the somewhat varied data releases from China in which GDP for Q1 Q/Q matched estimates at 2.2% and Y/Y growth topped forecasts at 4.5% (exp. 4.0%), while Industrial Production and Fixed Asset Investments printed below expectations, but Retail Sales surged by a double-digit percentage.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.53% at 4,367, FTSE 100 +0.10% at 7,879, DAX 40 -0.11% at 15,789, CAC 40 -0.28% at 7,498, FTSE MIB -0.62% at 27,700, IBEX 35 +0.17% at 9,378, SMI -0.28% at 11,311.

SECTORS: Materials 0.83%, Industrials 0.81%, Consumer Stpl 0.79%, Telecoms 0.73%, Healthcare 0.45%, Utilities 0.29%, Energy 0.10%, Consumer Disc -0.60%, Financials -1.57%, IT -1.77%

FTSE 100

AstraZeneca (AZN LN) - GRAIL and AstraZeneca presented new data from a study assessing the feasibility of a pan-hematologic malignancy classifier based on GRAIL's methylation platform as a potential tumor-agnostic, plasma-based cell free DNA minimal residual disease test. The study showed that GRAIL's methylation technology had a cancer detection rate of 92% in patients with relapsed or refractory disease across six hematological malignancies. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

HSBC (HSBA LN) downgraded to Neutral from Overweight at JPMorgan

Hargreaves Lansdown (HL/ LN) maintained with Overweight at Barclays

National Grid (NG/ LN) maintained with Overweight at JPMorgan

Man Group (EMG LN) maintained with Outperform at Credit Suisse

Rentokil (RTO LN) maintained with Buy at Deutsche Bank

Just Eat (JET LN) maintained with Buy at Deutsche Bank

DAX

BMW (BMW GY) - Chairman expects a slight growth in China sales for BMW this year, and said they will export Minis made by the Great Wall Motor (2333 HK) JV. Separately, Co. unveils two EV models at the Shanghai Auto show. (Newswires)

OTHER GERMAN COMPANIES

MTU Aero Engines (MTX GY) - Prelim. Q1 2023 (EUR): Revenue 1.54bln (exp. 1.41bln). Adj. earnings 211mln (exp. 172mln). FCF 93mln (exp. 97mln). Co. maintains guidance. (MTU Aero Engines) Shares seen +1.3%

BROKER MOVES

Deutsche Telekom (DTE GY) maintained with Buy at Deutsche Bank

CAC

OTHER FRENCH COMPANIES

ADP (ADP FP) - March 2023 group traffic +23% Y/Y, to 24.2mln passengers. (Newswires)

BROKER MOVES

LVMH (MC FP) maintained with Buy at Berenberg

Orange (ORA FP) upgraded to Overweight from Equal Weight at Barclays

Ubisoft (UBI FP) maintained with Equal Weight at Barclays

PAN EUROPE

Eni (ENI IM) - Co. has confirmed planned investments in biofuels in Italy and abroad and wants to be present in the main markets for biofuel, including the middle US and far-East. (Newswires)

BROKER MOVES

Buzzi Unicem (BZU IM) maintained with Equal Weight at Barclays

OMV (OMV AV) downgraded to Underweight from Equal Weight at Morgan Stanley

Repsol (REP SM) downgraded to Equal Weight from Overweight at Morgan Stanley

SMI

UBS (UBSG SW) - UBS announced modifications to its USD 6bln share buyback program amid its acquisition of Credit Suisse (CSGN SW). Instead of cancelling the repurchased shares as initially intended, UBS plans to allocate some of the shares for the takeover. UBS said its Board of Directors has decided not to implement a capital increase, in the interest of shareholders. Instead, the already-issued own shares of UBS shall be used to complete the merger. (Newswires)

OTHER SWISS COMPANIES

Flughafen Zuerich (FHZN SW) - March 2023 passengers +58% Y/Y, at 86% of 2019 levels. Number of flight movements +27% Y/Y. (Newswires)

BROKER MOVES

SCANDINAVIA

DNO (DNO NO) - Q1 2022 (USD): Kurdistan volume sales 22.7k BOEPD (prev. 26.7k BOEPD Y/Y). North Sea volume sales 15.9k BOEPD (prev. 10.7k BOEPD). Following the shutdown of the Co's production in Kurdistan as announced on 29th March, "the Company now projects full-year 2023 production for the Tawke license to be below the previously communicated projection of 100,000 barrels of oil per day." (DNO)

Ericsson (ERICB SS) - Q1 2022 (SEK): Net sales 62.6bln (prev. 86bln). EPS 0.45 (exp. 0.58). EBIT 3bln (exp. 2.615bln). Adj. EBIT 4.0bln (exp. 3.28bln). Co. sees Q2 adj. EBITA margin at mid-single-digit level. Following the strong cash flow in Q4, the first quarter cash flow was negative - Q1 cash flow was seasonally impacted by pay-out of accrued employee-related expenses. " In Q2, we expect operators to remain cautious with capex investments and continue to adjust inventories." Co. announced its CFO will step down at the end of Q1 2024 - a recruitment process will be initiated. (Newswires/Ericsson)

BROKER MOVES

H&M (HMB SS) maintained with Overweight at Barclays

Carlsberg (CARLB DC) maintained with Overweight at Barclays

Danske Bank (DANSKE DC) maintained with Buy at Deutsche Bank

Telenor (TEL NO) upgraded to Equal Weight from Underweight at Barclays

US

CLOSES: SPX +0.33% at 4,151, NDX +0.06% at 13,087, DJIA +0.30% at 33,987, RUT +1.22% at 1,802.

SECTORS: Real Estate +2.23%, Financials +1.13%, Industrials +0.79%, Consumer Discretionary +0.68%, Consumer Staples +0.59%, Materials +0.58%, Utilities +0.57%, Technology +0.39%, Health -0.1%, Energy -1.27%, Communication Services -1.27%.

18 Apr 2023 - 06:44- Research Sheet- Source: Newswires