Newsquawk Daily European Equity Opening News - 19th May 2023

19th May 2023

ASIA

APAC stocks were mostly higher following the tech-led gains on Wall St where the Nasdaq outperformed and the S&P 500 printed a 9-month high on debt ceiling optimism and firm data, although Chinese markets lagged amid disappointment from Alibaba’s revenue miss. ASX 200 was lifted with the tech sector front-running the gains as it took inspiration from its US counterpart and with the top-weighted financial industry trailing closely behind. Nikkei 225 surged at the open to print its highest since August 1990 although pared some of the gains after losing steam on its approach to the 31,000 level and as participants digested the latest CPI figures which were mostly in line with expectations but showed a faster pace of acceleration. Hang Seng and Shanghai Comp. were mixed with the Hong Kong benchmark pressured as tech giants suffered following Alibaba’s earnings which beat on the bottom line but missed on revenue, while frictions lingered after the US and Taiwan reached an initial agreement on a '21st Century' trade pact and with China concerned about recent signs of negative China-related developments at the G7.

EUROPEAN CLOSES

CLOSES: S: Euro Stoxx 50 +1.20% at 4,367, FTSE 100 +0.25% at 7,742, DAX 40 +1.33% at 16,163, CAC 40 +0.64% at 7,446, FTSE MIB +0.14% at 27,235, IBEX 35 +0.02% at 9,213, SMI -0.71% at 11,437.

SECTORS: IT 3.18%, Industrials 0.75%, Financials 0.70%, Consumer Disc 0.38%, Energy 0.27%, Materials 0.26%, Healthcare 0.14%, Consumer Stpl -0.07%, Telecoms -0.16%, Utilities -1.93%

FTSE 100

Diageo (DGE LN)/M&S (MKS LN) – Members of the Cos pension schemes have been informed that their personal data could have been stolen during the cyber attack on Capita (CPI LN). (FT)

Entain (ENT LN) - Co. is reportedly nearing a deal to buy a sports pricing and analytics firm for roughly USD 200mln, according to Business Insider citing sources. (Business Insider)

OTHER UK COMPANIES

BROKER MOVES

Boohoo.com (BOO LN) upgraded to Buy from Hold at Panmure Gordon

Marks & Spencer (MKS LN) upgraded to Buy from Add at Peel Hunt

St. James' Place (STJ LN) upgraded to Outperform from Sector Perform at RBC

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

1&1 Drillisch (DRI GY) upgraded to Buy from Hold at Deutsche Bank

Telefonica Deutschland (O2D GY) downgraded to Hold from Buy at Deutsche Bank

CAC

OTHER FRENCH COMPANIES

Amundi (AMUN FP) - CIO says he thinks “too much risk” is being priced into Chinese credit/high-quality Cos and that markets in the US are too optimistic as a recession looms. Adding, in allocations a clear shift has been made from west to east. (FT)

BROKER MOVES

Ubisoft (UBI FP) downgraded to Sell from Buy at UBS

PAN EUROPE

Chip Names - UK Government is to offer Cos as much as GBP 1bln over the next decade, as part of plans to increase the nation's resilience in the sector. (FT)

Fincantieri (FCT IM) - Co's Marinette Marine unit has won a US Navy contract worth over USD 500mln. (Newswires)

BROKER MOVES

Prosus (PRX NA) reiterated with Overweight at JPMorgan Chase

SMI

OTHER SWISS COMPANIES

Dufry (DUFN SW) - Co. said at the end of the initial tender period on the combination between Dufry and Autogrill, and based on preliminary results of the offer, Dufry expects to issue approximately 22.13mln new shares; the first day of trading is expected to be May 25, 2023. (Dufry)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Boliden (BOL SS) downgraded to Hold from Buy at Berenberg

US

CLOSES: SPX +0.94% at 4,198, NDX +1.81% at 13,834, DJI +0.34% at 33,535, RUT +0.58% at 1,784.

SECTORS: Technology +2.06%, Communication Services +1.79%, Consumer Discretionary +1.54%, Financials +0.7%, Industrials +0.67%, Materials +0.55%, Energy +0.49%, Health -0.24%, Utilities -0.36%, Consumer Staples -0.44%, Real Estate -0.68%.

19 May 2023 - 06:44- Research Sheet- Source: Newswires