Newsquawk Daily European Equity Opening News - 21st June 2024

21st June 2024

ASIA

APAC stocks were mostly rangebound with sentiment subdued after the lacklustre handover from Wall St where tech underperformed and risk appetite was sapped as participants reflected on higher yields and soft data releases ahead of quad-witching. ASX 200 was rangebound with upside restricted after weak Australian flash PMI data including a steeper contraction in manufacturing. Nikkei 225 traded indecisively after softer-than-expected National CPI data and weakening PMIs. Hang Seng and Shanghai Comp. were pressured with underperformance in Hong Kong as the local benchmark dipped beneath 18,000 amid losses in property and tech, while the mainland conformed to the glum mood amid ongoing trade-related headwinds with Canada also preparing a tariffs plan on Chinese electric vehicles.

Chinese Cos - Japan imposes sanctions against China-based companies in connection to the Ukraine war. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.95% at 18,239, CAC 40: +1.34% at 7,671, PSI: +1.67% at 6,651, FTSE 100: +0.82% at 8,272, IBEX 35: +0.94% at 11, 161, FTSE MIB: +1.37% at 33,675, SMI: +0.54% at 12,124, Euro Stoxx 50: +1.3% at 4,949.

SECTORS: IT 2.02%, Utilities 1.19%, Materials 1.04%, Financials 0.95%, Energy 0.91%, Industrials 0.90%, Consumer Disc 0.86%, Telecoms 0.71%, Healthcare 0.69%, Consumer Stpl 0.28%

FTSE 100

BAE Systems (BA/ LN), RTX (RTX) - Data Link Solutions, a JV between BAE Systems and RTX-owned Collins Aerospace, secured a USD 999mln contract for the production, retrofitting, development, and sustainment of MIDS Joint Tactical Radio Systems terminals. (Newswires)

GSK (GSK LN) - Exec said the Co. is "unequivocally, 100% committed" to retaining its UK listing, according to The Times. (The Times)

UK Consumer Confidence - UK GfK Consumer Confidence (Jun) -14.0 vs. Exp. -16.0 (Prev. -17.0); the highest level since November 2021. "While June's reading of -14 is the third month in a row that confidence has increased, the headline score remains negative owing to the difficulties so many have experienced as the unrelenting cost-of-living crisis batters household budgets."

OTHER UK COMPANIES

BROKER MOVES

Severn Trent (SVT LN) upgraded to Neutral from Underweight at JP Morgan

Wizz Air (WIZZ LN) downgraded to Underweight from Equal Weight at Barclays

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Boeing (BA) is nearing a deal to buy Spirit AeroSystems (SPR) with the latter and Airbus making progress on asset carve-out to unblock the deal for Boeing to buy Spirit, according to sources cited by Reuters. (Reuters)

LVMH (MC FP) - Co. completes acquisition of restaurant "Chez L'ami Louis". (Newswires)

Schneider Electric (SU FP) - Co. and Aveva partner with in-core systems to improve the EV battery production process. (Newswires)

Sanofi (SAN FP) - Advances leadership in hemophilia with new data for ALTUVIIIO and fitusiran. New Drug Application for fitusiran accepted for review by the US Food and Drug Administration, with a PDUFA date of March 28, 2025. Interim results from the long-term XTEND-ed phase 3 study demonstrate once-weekly ALTUVIIIO continues to provide highly effective bleed protection. (Sanofi)

OTHER FRENCH COMPANIES

Atos (ATO FP) - Agreement has been reached on an additional tranche of facilities of EUR 350mln. (Newswires)

Alstom (ALO FP) - Booked a new services order in AMECA region of around EUR 400mln. (Newswires)

Bouygues (EN FP) - Moody's ratings affirmed Co's A3 Rating; outlook stable. (Newswires)

BROKER MOVES

PAN EUROPE

Payment Names - China is reportedly urging Visa (V) and Mastercard (MA) to reduce bank card transaction fees for foreign visitors to facilitate payments, Bloomberg reports. Negotiations led by the Payment & Clearing Association of China aim to lower merchant fees from 2-3% to 1.5%, though details are subject to ongoing discussions and potential adjustments. (Newswires)

Ryanair (RYA ID) downgraded to Equal Weight from Overweight at Barclays

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.25% at 5,473, NDX -0.79% at 19,752, DJIA +0.77% at 39,135, RUT -0.39% at 2,017.

SECTORS: Technology -1.6%, Real Estate -0.25%, Consumer Staples -0.2%, Materials flat, Industrials flat, Health +0.37%, Consumer Discretionary +0.45%, Communication Services +0.5%, Financials +0.56%, Utilities +0.89%, Energy +1.86%.

Arm Holdings (ARM) / SoftBank (9984 JT) - SoftBank's founder Masayoshi Son aims to develop 'super' AI, with Arm chips central to this vision. Son's ambitions, far exceeding last year's plans, include creating AI thousands of times smarter than humans. This marks his boldest statement since SoftBank began recovering from poor startup investments.

Chevron (CVX), Hess (HES), Exxon Mobil (XOM) - A contract arbitration panel that could block or green-light Chevron's USD 53bln purchase of Hess remains incomplete three months after the case was filed, stalling a decision on whether Exxon Mobil has a right of first refusal over Hess' Guyana operations, Reuters reports. The third and final arbitrator has not been appointed, the source said. A delay could mean no decision this year as Hess has forecast. (Reuters)

Boyd Gaming (BYD) - Has made an acquisition approach to Penn Entertainment (PENN), according to Reuters citing sources. (Reuters)

Visa (V) / Mastercard (MA) - China is said to ask Visa (V) and Mastercard (MA) to cut transaction fees, via Bloomberg. China is urging Visa and Mastercard to reduce bank card transaction fees for foreign visitors to facilitate payments, Bloomberg reports. Negotiations led by the Payment & Clearing Association of China aim to lower merchant fees from 2-3% to 1.5%, though details are subject to ongoing discussions and potential adjustments. (Bloomberg)

21 Jun 2024 - 06:46- Data- Source: Newsquawk