Newsquawk Daily European Equity Opening News - 21st May 2024

21st May 2024

ASIA

APAC stocks were subdued following the somewhat indecisive performance on Wall St where price action was choppy amid a lack of catalysts and as participants await this week's key risk events. ASX 200 was lower as losses in materials and mining stocks offset the tech outperformance. Nikkei 225 was lifted at the open owing to recent currency weakness but then steadily gave back all of its initial gains alongside the downbeat risk appetite across most of its regional peers. Hang Seng and Shanghai Comp declined with underperformance in Hong Kong amid tech losses and with Li Auto shares down nearly 20% on weak earnings, while the mainland also conformed to the risk-averse mood albeit with downside limited by quiet newsflow.

Alibaba (9988 HK) - Cloud will cut service prices for Tongyi Qianwei effective March 21st. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.36% at 18,773.75, FTSE 100: +0.04% at 8,423.44, CAC 40: +0.35% at 8,195.97, Euro Stoxx 50: +0.21% at 5,074.85, IBEX 35: +0.08% at 11,336.69, FTSE MIB: -1.62% at 34,826.00.

SECTORS: IT 1.12%, Industrials 0.86%, Materials 0.29%, Telecoms 0.29%, Energy 0.03%, Healthcare -0.06%, Financials -0.06%, Consumer Stpl -0.15%, Utilities -0.30%, Consumer Disc -0.34%

FTSE 100

Anglo American (AAL LN) - Shareholder Legal & General (LGEN LN) supports the break-up plan announced by the Co. last week. (Newswires)

DS Smith (SMDS LN) - Suzano (SUZB3 BR) has reportedly been in talks with its advisors about increasing its bid for International Paper (IP), according to Reuters citing people familiar with the matter. (Reuters) On Tuesday 7th May: Brazil's Suzano approached International Paper with an acquisition offer of USD 42/shr or USD 15bln, via Reuters citing sources. Note, DS Smith in mid-April agreed to a GBP 5.8bln takeover by International Paper.

GSK (GSK LN) - Co. has been sued by an independent Connecticut lab, which accused the Co. of defrauding the US government by concealing risks in Zantac; the lab is seeking civil fines of up to USD 11k per violation. (Newswires)

Rio Tinto (RIO LN) - Issued a force majeure on Australia alumina shipments. (Newswires)

Reckitt (RKT LN) - Activist Investor Eminence Capital has been building a stake in the Co. since March; Reckitt had come under considerable pressure amid baby formula-related verdicts, via the FT. (FT)

UK Housing - The Labour Party said it will aim to reveal new town sites within the first year in power; and will tell a housing conference that Labour strongly supports private developers who create high-quality and affordable housing, according to The Guardian. (The Guardian)

OTHER UK COMPANIES

BROKER MOVES

Wise (WISE LN) upgraded to Overweight from Equal Weight at Barclays

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Sanofi (SAN FP) - Co. and OpenAI announce first-in-class AI collaboration. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

European firms - EU's von der Leyen suggested making access to EU subsidies conditional on economic reforms as a potential method to improve the bloc's competitiveness, according to FT. (FT)

European Chips - European Chip Research labs led by imec to get USD 2.7bln under Chips Act, via Reuters. "The investment will allow us to double volumes and learning speed, accelerating our innovation pace, strengthening the European chip ecosystem, and driving economic growth in Europe,” said imec CEO Luc Van den Hove in a statement. (Reuters)

Generali (G IM) - Q1 (EUR): Op. Profit 1.89bln (exp. 1.87bln), Adj. Net Profit 1.12bln (exp. 979mln), GWP 26.39bln (exp. 23.02bln). To start the buyback plan; buyback on up to 11.3mln shares worth no more than EUR 300mln. CFO said Co. remains "fully on track to meet all targets" of lifetime partner 24, driving growth's strategy. (Newswires)

Autos Names - Italy will provide EUR 13,750 in subsidies for low-income earners to help them buy new fully-electric vehicles costing up to EUR 35k. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - FDA grants Breakthrough Therapy Designation to Roche’s inavolisib for advanced hormone receptor-positive, HER2-negative breast cancer with a PIK3CA mutation. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

Sonova (SOON SW) downgraded to Hold from Buy at Jefferies

SCANDINAVIA

Volvo (VOLVB SS) - Volvo Autonomous Solutions unveiled Volvo's first-ever production-ready autonomous truck at an act expo in Las Vegas. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.09% at 5,308, NDX +0.69% at 18,674, DJIA -0.50% at 39,807, RUT +0.32% at 2,102.

SECTORS: Technology +1.32%, Communication Services +0.34%, Industrials +0.17%, Materials +0.15%, Utilities -0.21%, Health -0.3%, Energy -0.64%, Real Estate -0.68%, Consumer Staples -0.68%, Consumer Discretionary -0.72%, Financials -1.21%.

JPMorgan (JPM) - CEO Dimon says they're not going to buy back a lot of stock at these prices. Says they have some future organic growth opportunities. Says the succession timetable is not five years anymore. Says banks should be allowed to merge. (Newswires)

21 May 2024 - 06:52- EquitiesResearch Sheet- Source: Newsquawk