Newsquawk Daily European Equity Opening News - 20th August 2024

20th August 2024

ASIA

APAC stocks traded mixed and only partially took impetus from the tech-led gains stateside amid a lack of major macro drivers. ASX 200 edged mild gains with stock news in Australia dominated by earnings releases, while the RBA Minutes noted it is possible the cash rate would have to stay steady for an extended period and members agreed a rate cut in the short term was unlikely. Nikkei 225 outperformed and reclaimed the 38,000 level despite the absence of notable catalysts. Hang Seng and Shanghai Comp. declined amid lingering economic concerns, while China also maintained its Loan Prime Rates which was widely expected after last month's bout of cuts to key funding rates.

Chinese Tech - China is unleashing billions of dollars of lending to technology start-ups and other small companies using their intellectual property as collateral as Beijing seeks to revive demand for loans and stimulate a lagging economy, according to FT. (FT)

EUROPEAN CLOSES

CLOSES: DAX: +0.58% at 18,428, FTSE 100: +0.55% at 8,357, CAC 40: +0.70% at 7,502, Euro Stoxx 50: +0.65% at 4,872, AEX: +0.35% at 909, IBEX 35: +1.40% at 11,103, FTSE MIB: +0.68% at 33,266, SMI: +0.79% at 12,285, PSI: +1.02% at 6,724.

SECTORS: Consumer Disc 1.42%, Materials 1.03%, Energy 0.75%, Utilities 0.72%, Financials 0.70%, Industrials 0.60%, Telecoms 0.57%, Consumer Stpl 0.20%, Healthcare 0.19%, IT 0.09%

FTSE 100

Anglo American (AAL LN) – Initial bids for the Co’s Australian metallurgical coal mines are due on September 9, via Reuters citing sources. (Reuters)

Rio Tinto (RIO LN) – Hundreds of people gathered in the Serbian town of Valjevo on Monday to protest against Rio Tinto’s lithium project, amid fears that it could pollute the land, via Reuters. (Reuters)

Standard Chartered (STAN LN) – Appointed Sofia Hammoucha as Global Head of Trade & Working Capital. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Voltalia (VLTSA FP) – Production curtailment imposed by Brazilian grid operator; curtailments to have a strong impact on 2024 EBITDA if it were to be extended over the coming months. Estimates 2024 EBITDA could be cut by around EUR 40mln. (Newswires)

BROKER MOVES

PAN EUROPE

Flughafen Wien (FLU AV) - H1 Passenger Volume +10.1% Y/Y. Slightly improved passenger guidance for FY24, of more than 39mln passengers. (Newswires)

Stellantis (STLAM IM/STLAP FP) - UAW said some local units representing workers at Stellantis are preparing to file grievances and could launch a nationwide strike over Co's failure to keep product commitments, according to Reuters. (Reuters)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

PSP Swiss Property (PSPN SW) – H1 (CHF): Net Profit 146.3mln (prev. 76.9mln Y/Y), Rental Income 176.2mln (prev. 163.3mln Y/Y). Confirmed guidance. (Newswires)

BROKER MOVES

SCANDINAVIA

Coloplast (COLOB DC) - Q3 (DKK): Revenue 6.88bln (exp. 6.80bln), Adj. EBIT 1.87bln (exp. 1.89bln), Net Income 1.27bln (exp. 1.35bln). FY24 guidance unchanged. (Newswires)

Equinor (EQNR NO) - Indian state-run oil companies, including IOCL, HPCL, and BPCL, are negotiating long-term LPG contracts with Norway's Equinor to diversify supply sources amid concerns over potential disruptions from West Asian suppliers due to escalating tensions in the Israel-Iran conflict, Indian press Mint reported. India's main LPG suppliers currently include the UAE, Qatar, Saudi Arabia, and Kuwait. (Newswires)

Skanska (SKAB SS) - Signed contract for data center in US for SEK 1.6bln. (Newswires)

Salmar (SALM NO) – Q2 (NOK): Op. EBIT 1.39bln (exp. 1.57bln), Revenue 5.83bln (exp. 5.83bln). (Newswires)

BROKER MOVES

Genmab (GMAB DC) downgraded to Neutral from Overweight at JP Morgan

US

CLOSES: SPX +0.97% at 5,608, NDX +1.32% at 19,766, DJIA +0.58% at 40,897, RUT +1.2% at 1.19% at 2,168

SECTORS: Consumer Staples +0.32%, Energy +0.42%, Materials +0.50%, Industrials +0.59%, Utilities +0.59%, Financials +0.61%, Health +0.63%, Real Estate +0.64%, Consumer Discretionary +1.14%, Communication Services +1.44%, Technology +1.44%.

Bank of America (BAC), Berkshire Hathaway (BRK.B) - Berkshire sold around 13.97mln Bank of America common shares over three transactions in the past several days, with prices ranging from USD 39.2719 to 39.6454/shr (vs Monday close of 39.67); the sales totalled around USD 550.7mln combined. (Newswires)

Palo Alto Networks (PANW) - Shares rose 2% after hours following top- and bottom-line beats and constructive profit guidance. Q4 adj. EPS 1.51 (exp. 1.41), Q4 revenue USD 2.19bln (exp. 2.16bln). Q4 Product Revenue USD 480.5mln (exp. 493.6mln), Subscription and Support Revenue USD 1.71bln (exp. 1.67bln), Deferred Revenue USD 5.54bln (exp. 5.64bln), and R&D expenses USD 494.8mln (exp. 473mln). Exec said the Co. saw an acceleration in H2 driven by demand for platformisation; platformisation momentum is broadening and strengthened as it closed out Q4. The board authorised an additional USD 500mln in share repurchases. CEO said PANW is replacing billings with remaining performance obligations and ARR since they are better measures of success and industry standards. Sees Q1 adj. EPS between 1.47-1.49 (exp. 1.43), and sees Q1 revenue between USD 2.10bln-2.13bln (exp. 2.11bln). For the FY, see FY25 adj. EPS between 6.18-6.31 (exp. 6.22), and sees FY25 revenue between USD 9.10bln-9.15bln (exp. 9.11bln).

US Stocks - US VP Harris proposes raising the corporate tax rate to 28%, NBC News reports. (NBC)

US Steel (X) - Republican candidate Trump says if elected he will stop Nippon Steel (5401 JT) from buying US Steel (X) and will eliminate EPA's "power plant rule". (Newswires)

20 Aug 2024 - 06:45- Research Sheet- Source: Newsquawk