Newsquawk Daily European Equity Opening News - 21st July 2023

21st July 2023

ASIA

Asia-Pac stocks were mixed as further support efforts from China partially offset the negative handover from Wall St where the Nasdaq 100 suffered its second-worst day of the year on tech earnings disappointment and amid a rising yield environment. ASX 200 (-0.2%) was subdued amid weakness in tech, financials and the mining-related sectors, albeit with downside limited amid the lack of catalysts from Australia. Nikkei 225 (-0.1%) slumped at the open but then moved well off its lows amid recent currency swings and as participants digested somewhat ambiguous CPI data which printed mostly in line with expectations but showed a slight acceleration for the headline and core inflation. Hang Seng (+0.8%) and Shanghai Comp. (Flat) kept afloat with sentiment helped by further supportive efforts from China in which the NDRC released policies to boost electronics products consumption and measures to promote automobile consumption.

Eisai (4523 JT) - Co. is to start a clinical trial of a new Alzheimer's drug in 2024. (Nikkei)

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +0.25% at 4,373, FTSE 100 +0.76% at 7,646, DAX 40 +0.59% at 16,204, CAC 40 +0.79% at 7,384, FTSE MIB +0.36% at 28,815, IBEX 35 +0.72% at 9,519, SMI +0.72% at 11,199.

Sectors: Healthcare 1.79%, Energy 1.31%, Materials 1.06%, Utilities 0.84%, Financials 0.81%, Telecoms 0.76%, Industrials 0.55%, Consumer Stpl -0.25%, Consumer Disc -0.27%, IT -2.76%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Hargreaves Lansdown (HL/ LN) upgraded to Buy from Underperform at Jefferies

DAX

SAP (SAP GY) - Q2 2023 (EUR): Adj. EPS 1.07 (exp. 1.16), Revenue 7.55bln (exp. 7.66bln). Cloud Subscriptions/Support Revenue 3.32bln (exp. 3.4bln). Cloud/Software Revenue 6.51bln (exp. 6.56bn). Software Licenses/Support Revenue 3.19bln (exp. 3.16bln). Adj. EBIT 2.06bln (exp. 1.93bln). FY23 GUIDANCE: Cloud revenue view 14.0-14.2bln (exp. 14.02bln, prev. 14.0-14.4bln). Cloud and software revenue view 27.0-27.4bln (exp. 27.14bln, prev. 26.9-27.4bln). Lifts non-IFRS operating profit view 8.65-8.95bln (exp. 7.31bln, prev. 8.6-8.9bln). COMMENTS: CEO, of cloud outlook, says they have seen fewer public sector customers in Q2 and also due to the geopolitical situation, but demand remains strong for H2. (SAP IR/Newswires) NOTE: SAP holds the heaviest weighting in the DAX 40 with 9.4%. It also holds a 3.6% weighting in the Euro Stoxx 50 and 1.1% in the Stoxx 600. Shares seen -4.7% in pre-market trade

OTHER GERMAN COMPANIES

Sartorius (SRT GY) - H1 2023 (EUR): EBITDA 517mln, Net Profit 202mln (prev. 334mln), Sales Revenue -15.3%. Expects orders to gradually pick up in H2. Maintains high profitability despite the expected temporary declines in H1'23. FY23 revenue and profitability are confirmed, but uncertainties remain high. (Newswires)

BROKER MOVES

Sixt (SIX2 GY) upgraded to Buy from Hold at DZ Bank

CAC

Dassault Aviation (AM FP) - H1 2023 (EUR): Adj. Net 405mln (exp. 352mln), Adj. Revenue 2.3bln (exp. 2.35bln). Notes supply chain has deteriorated. Affirms FY23 Revenue "decrease" YY. (Newswires)

OTHER FRENCH COMPANIES

Eiffage (FGR FP) - H1 2023 (EUR): APRR unit Revenue 1.45bln (prev. 1.35bln YY). (Newswires)

Covivo (COV FP) - H1 2023 (EUR): Revenue 321mln (prev. 305mln), +5% YY, Raises FY23 EPRA 420mln (prev. 410mln). (Newswires)

Ubisoft Entertainment (UBI FP) - Q1 (EUR): Revenue 289mln (prev. 318mln YY). Affirms FY23/24 Op 400mln. Guides initial FY23 Revenue "strong growth". (Newswires)

BROKER MOVES

Eiffage (FGR FP) reiterated with Overweight at JP Morgan Chase

PAN EUROPE

Recordati (REC IM) - Announces deal with Glaxo of Avodart and Combodart in Europe. (Newswires)

BROKER MOVES

Buzzi Unicem (BZU IM) upgraded to Neutral from Underweight at JP Morgan Chase

SMI

Lonza (LONN SW) - Delivers 5.6% sales growth, with underlying growth at around 10% and 30% core EBITDA margin. Mid-to-high single-digit sales growth and 28-29% core EBITDA margin. Mid-term sales guidance confirmed with updated margin range at 31-33%. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Danske Bank (DANSKE DC) - H1 2023 (DKK): Net 10.2bln (prev. 4.5bln Y/Y). NII. 25.6bln (prev. 19.1bln). Co. raises its FY23 net to between 18.5-20.5bln. H1 ROE 12.4% (prev. 5.2% Y/Y). (Newswires)

Evolution (EVO SS) - Q2 2023 (EUR): Revenue 444.1mln (exp. 447.5mln), Net Income 264.1mln, EBITDA 311.7mln (exp. 310.8mln), Q2 EPS 1.24 (exp. 1.20). (Newswires)

Norsk Hydro (NHY NO) - Q2 2023 (NOK): Adj. EBITDA 7.1bln (exp. 6.97bln). Results are down on lower aluminium and alumina sales prices and demand is slowing in the short-term. During Q2, European and NA demand for extrusions decreased significantly compared to last year. High-interest rates are continuing to put pressure on demand. (Bloomberg/Newswires)

SBB (SBBB SS) - Said unit will issue USD 228mln in preferred shares to an investment fund managed by Morgan Stanley. (Newswires)

BROKER MOVES

Aker (AKSO NO) upgraded to Buy from Hold at Berenberg

US

CLOSES: SPX -0.68% at 4,534, NDX -2.28% at 15,466, DJIA +0.47% at 35,225, RUT -0.89% at 1,967.

SECTORS: Consumer Discretionary -3.4%, Communication Services -2.49%, Technology -2.04%, Real Estate -0.4%, Materials +0.24%, Industrials +0.41%, Financials +0.69%, Energy +1.29%, Health +1.65%, Utilities +1.85%.

Apple (AAPL) - Is reportedly facing challenges assembling its two upcoming new iPhone models, the iPhone 15 Pro and Pro Max, which could lead to a shortage of units at launch in September, according to The Information citing sources. (Newswires)

Microsoft (MSFT) / Activision (ATVI) - FTC to pause Microsoft (MSFT)/Activision (ATVI) merger trial, allowing settlement talks, according to Bloomberg. (Bloomberg)

21 Jul 2023 - 06:52- EquitiesData- Source: Newsquawk