Newsquawk Daily European Equity Opening News - 19th May 2022

19th May 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0300EDT recapping all of the overnight equity news.

From 0700BST/0300EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0315EDT.

There will be an additional audio rundown at 0750BST/0350EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

APAC stocks were pressured on spillover selling after the worst day on Wall St in almost two years. ASX 200 was led lower by consumer staples following the retailer woes stateside and mixed Australian jobs data. Nikkei 225 suffered firm losses amid reports the ruling coalition is considering increasing the corporate tax rate and after several data releases in which Machinery Orders topped estimates but Exports missed as China-bound exports declined by the fastest pace since March 2020. Hang Seng and Shanghai Comp initially weakened with the Hong Kong benchmark dragged lower by heavy losses in tech after Tencent’s profit declined by more than 50% and with the mainland pressured as Beijing conducts a fresh round of mass COVID testing, although the mainland bourse recovered most of its losses after Shanghai announced a further gradual easing of restrictions.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -1.36% at 3,690; FTSE 100 -1.07% at 7,438; DAX -1.26% at 14,007; CAC 40 -1.20% at 6,352; IBEX 35 +0.01% at 8,476; FTSE MIB -0.89% at 24,085; SMI -1.35% at 11,572.

SECTORS: Utilities 0.67%, Energy 0.28%, Healthcare -0.71%, Financials -0.72%, Industrials -1.19%, Telecoms -1.24%, Materials -1.32%, Consumer Stpl. -1.86%, Consumer Disc. -1.94%, IT -2.62%

FTSE 100

UK Oil & Gas – UK PM Johnson’s advisers are reportedly resisting a windfall tax on energy companies as it would be seen as an attack on the sector, according to sources. Treasury officials believe that the levy is “politically unavoidable”. (Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

EDF (EDF FP) - Co. estimated that outages at its nuclear power plants would have a negative impact of around EUR 18.5bln on the group's core earnings this year, a greater impact than previously estimated. Co. lowers output estimate for 2022 to 280-300Twh (prev. 295-315Twh). Co. said that it did not see a need for further reactor outages for checks and repairs beyond the ones already scheduled. (Nasdaq)

OTHER FRENCH COMPANIES

Vallourec (VK FP) - Q1 2022 (EUR): Revenue 916mln (prev. 702mln Y/Y). EBITDA 45mln (prev. 80mln). Net -35mln (prev. -93mln). Co. upgrades FY EBITDA guidance. (Newswires)

Valneva (VLA FP) - EMA has accepted filing of marketing authorization application (MMA) for Valneva’s inactivated COVID-19 Vaccine Candidate VLA2001. "Acceptance of the MAA means VLA2001 is advancing from the rolling review process and beginning the formal review process by the EMA’s Committee for Human Medicinal Products (CHMP). If the CHMP accepts Valneva’s conditional marketing authorization application, the Company confirms it would expect to receive a positive CHMP opinion in June 2022." (Valneva)

BROKER MOVES

Elior (ELIOR FP) reiterated with Underweight at JPMorgan Chase

SocGen (GLE FP) reiterated with Overweight at JPMorgan Chase

PAN EUROPE

Telefonica (TEF SM) - Co. is said to be readying for the sale of its 9% stake in Prisa - the owner of "El País". The report suggests several offers were sent to Telefonica, adding that the stake comes with high political value, amid the close relationship between the government and the publishing group. (El Confidential)

Unibail-Rodamco-Westfield (URW NA) - Co. is to roll out Westfield brand to three new flagship destinations - Madrid, Stockholm, and Warsaw. (Globenewswire)

BROKER MOVES

ABN AMRO (ABN NA) upgraded to Neutral from Underperform at Exane BNP

Intesa Sanpaolo (ISP IM) reiterated with Overweight at JPMorgan Chase

Solvay (SOLB BB) downgraded to Underperform from Hold at Jefferies

UCB (UCB BB) downgraded to Equal Weight from Overweight at Morgan Stanley

SMI

Julius Baer (BAER SW) - Co. said Assets Under Management (AUM) have been impacted by market downfall and client deleveraging, alongside corporate divestments. Co. has initiated a wind-down of its subsidiary in Russia. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Fortum (FUM1V FH) upgraded to Overweight from Neutral at JPMorgan Chase

Kone (KNEBV FH) upgraded to Buy from Neutral at UBS

US

CLOSES: SPX -4.03% at 3,924, NDX -5.06% at 11,928, DJIA -3.57% at 31,490, RUT -3.53% at 1,775.

SECTORS: Consumer Discretionary -6.6%, Consumer Staples -6.38%, Technology -4.74%, Industrials -3.75%, Communication Services -3.41%, Materials -3.17%, Real Estate -2.95%, Financials -2.8%, Energy -2.75%, Health -2.6%, Utilities -1.03%.

19 May 2022 - 06:45- EquitiesResearch Sheet- Source: Newsquawk