Newsquawk Daily European Equity Opening News - 1st July 2024

1st July 2024

ASIA

APAC stocks began the new quarter somewhat varied as participants digested key data releases and markets braced for a busy week ahead culminating in the latest NFP report on Friday. ASX 200 was led lower by underperformance in tech amid headwinds from firmer yields although the index was off worst levels owing to resilience in mining stocks. Nikkei 225 gained at the open amid initial currency weakness although some of the gains were then faded as participants digested a mixed BoJ Tankan survey. Shanghai Comp. swung between gains and losses with price action choppy in early trade after mixed PMI data from China which showed official Manufacturing PMI remained in contraction territory and Non-Manufacturing PMI missed estimates, but Chinese Caixin Manufacturing PMI topped forecasts to print its highest in three years. Meanwhile, Hong Kong markets were shut for a holiday which also meant the absence of Stock Connect flows.

Xiaomi (1810 HK) - Delivered over 10k SU7 EVs in June and will also top 10k deliveries in July. (Newswires)

SK Hynix (000660 KS) - SK Hynix plans to invest USD 75bln on chips through 2028, Bloomberg reports. About 80% of that figure will be spent on HBM chips. The report adds that the plan underscores the overhaul of South Korea’s number two business group.

EUROPEAN CLOSES

CLOSES: DAX: +0.13% at 18,234, CAC 40: -0.68% at 7,479, PSI: -0.65% at 6,480, FTSE 100: -0.19% at 8,164, IBEX 35: flat at 10,944, FTSE MIB: flat at 33,154, SMI: -0.15% at 11,986, Euro Stoxx 50: -0.20% at 4,893.

SECTORS: IT 0.68%, Energy 0.49%, Healthcare -0.02%, Financials -0.13%, Telecoms -0.30%, Industrials -0.35%, Consumer Disc -0.41%, Materials -0.55%, Utilities -0.62%, Consumer Stpl -0.97%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

French Stocks - France’s far-right won the first round of the French parliamentary election, according to estimates. IFOP's initial estimate showed the far-right National Rally is seen leading after the first round with 34.2% of the popular vote, while the left-wing New Popular Front is seen with 29.1% of votes and President Macron’s centrist bloc is seen with 21.5% of votes. Furthermore, IFOP noted that National Rally is expected to win 240-270 seats (vs. 289 seats needed for a majority) in the second round of voting on July 7th and Macron’s centrists are to win 60-90 seats, while Elabe's initial estimates project 260-310 seats for the National Rally, 115-145 seats for New Popular Front and 90-120 seats for Macron’s centrist block, according to Reuters. (Newswires)

Airbus (AIR FP) - Boeing agreed to acquire Spirit AeroSystems in a USD 4.7bln deal, ending months of talks over a deal the jet maker hopes will help ease a spiralling safety crisis, Reuters reports. Boeing will pay USD 37.25/shr in an all-stock deal. An official announcement is likely early on Monday, the report added. The deal will bring Spirit back under Boeing’s wing after two decades apart, after Boeing spun off the parts builder in 2005, but remained its biggest customer. Spirit clinched a deal with Boeing after it reached a separate agreement with Airbus, with the European group taking over parts of the aerospace supplier’s work on some of its key aircraft programmes, FT reported. (FT/Newswires)

China-exposed stocks - Chinese Manufacturing PMI (Jun) 49.5 vs Exp. 49.5 (Prev. 49.5). Chinese Non-Manufacturing PMI (Jun) 50.5 vs Exp. 51.0 (Prev. 51.1). Chinese Composite PMI (Jun) 50.5 (Prev. 51.0). Chinese Caixin Manufacturing PMI Final (Jun) 51.8 vs. Exp. 51.2 (Prev. 51.7).

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Chipmakers - The EU reportedly warned on Friday that its chipmakers could lose market share in China. (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) - Nestle is targeting stable growth in sales volumes from Q2 throughout the remainder of the year as cost inflation eases, its CEO told Schweiz am Wochenende. CEO said we can expect a stable, positive contribution to growth from volume and product mix.

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.41% at 5,461, NDX -0.54% at 19,683, DJI flat at 39,124, RUT +0.46% at 2,048.

SECTORS: Communication Services -1.63%, Consumer Discretionary -1.36%, Utilities -1.08%, Technology -0.43%, Consumer Staples -0.46%, Materials flat, Health flat, Industrials flat, Financials +0.38%, Energy +0.42%, Real Estate +0.62%.

Bank Capital Return - US banking giants Friday announced plans to increase dividend payouts after passing the Fed's annual stress tests. Bank of America (BAC) is to lift its quarterly dividend +8% to USD 0.26/shr; Citigroup (C) boosts quarterly dividend +5.7% to 0.56/shr, and said it would continue to assess share repurchases on a quarterly basis; Morgan Stanley (MS) lifted its dividend +8.8% to 0.925/shr and announced a USD 20bln repurchase plan; JPMorgan (JPM) raised its quarterly dividend +8.7% to USD 1.25/shr and announced a USD 30bln share buyback. Elsewhere, Wells Fargo (WFC) is to lift its Q3 dividend +14% to USD 0.4/shr, BNY (BK) will lift its quarterly dividend +12% to USD 0.47/shr, PNC Financial (PNC) will hike its quarterly payout +3% to USD 1.60/shr, while Citizens Financial (CFG) boosted its share repurchase authorisation by USD 656mln to USD 1.25bln. (Newswires)

BlackRock (BLK) - Co. is to acquire leading private markets data provider Preqin for GBP 2.55bln. (Newswires)

Ford Motor (F) - Ford plans to launch a USD 30k all-electric vehicle that will be profitable in about two and a half years, the CEO said at the Aspen Ideas Festival. CEO emphasised the need for Americans to favour small cars over larger ones, despite Ford's profits mainly coming from trucks, and he highlighted the importance of making profitable EVs within the next five years due to the global expansion of Chinese automakers, CNBC reports.

GameStop (GME) - Roaring Kitty has been sued for securities fraud in the US District Court Eastern District of New York over his role in promoting GameStop. (Newswires)

Walgreens Boots (WBA) - The CEO of WBA's UK unit Boots is leaving in November after Walgreens halted plans for a GBP 5bln sale or stock market listing. Sebastian James, who has led Boots since 2018, is moving to a new role in the healthcare industry, Sky News reports. The report adds that WBA has twice decided against selling or floating the British pharmacy chain in the last two years. (Newswires)

01 Jul 2024 - 06:46- Research Sheet- Source: Newsquawk