Newsquawk Daily European Equity Opening News - 21st October 2024

ASIA

APAC stocks began the week mixed mostly positive although gains were capped by the lack of fresh macro catalysts from over the weekend and after China lowered its benchmark Loan Prime Rates as widely expected. ASX 200 was led by outperformance in the mining, resources and materials sectors. Nikkei 225 edged mild gains on a reclaim of the 39,000 level although the upside was limited by currency strength. Hang Seng and Shanghai Comp were mixed with the Hong Kong benchmark subdued and weakness in tech and casino stocks, while the mainland index edged higher after the PBoC announced a 25bps cut to China's benchmark LPRs.

EUROPEAN CLOSES

CLOSES: DAX: +0.38% at 19,658, FTSE 100: -0.32% at 8,358, CAC 40: +0.39% at 7,613, Euro Stoxx 50: +0.77% at 4,985, AEX: +0.53% at 903, IBEX 35: +0.17% at 11,925, FTSE MIB: +0.47% at 35,204, SMI: +0.24% at 12,334, PSI: -0.62% at 6,674.

SECTORS: IT 2.38%, Consumer Disc 0.82%, Materials 0.72%, Financials 0.38%, Industrials -0.08%, Utilities -0.13%, Consumer Stpl -0.30%, Telecoms -0.34%, Healthcare -0.36%, Energy -0.53%

FTSE 100

BAE Systems (BAE LN)/Rolls-Royce (RR/ LN) - Cos have reportedly been asked to agree more flexible terms with Reaction Engines, which reportedly requires millions in funding support within a number of days, via Sky News citing sources. In the context that talks between Reaction Engines and the UEA development fund have reportedly begun to falter. (Sky News)

Shell (SHEL LN) - A spokesperson said there was an oil leak from a pipeline on Oct 20 at Shell Energy and Chemicals Park Singapore (236k bpd capacity). (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Barratt Redrow (BTRW LN) upgraded to Overweight from Equal Weight at Morgan Stanley

Man Group (MNG LN) upgraded to Equalweight from Underweight at Barclays

DAX

Bayer (BAYN GY) - Long-term efficacy and safety profile of Eylea 8 mg with extended dosing intervals in diabetic macular edema confirmed at three years. (Bayer)

Hannover Re (HNR1 GY) - Expects further improvements in prices as well as terms and conditions in Germany after losses caused by severe weather events. Demand for cyber covers remains strong. E+S expects that motor insurance will likely remain in deficit. Thorsten Steinmann to become CEO of E+S Ruck on Jan 1, 2025. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Infineon (IFX GY) downgraded to Equal Weight from Overweight at Morgan Stanley; cites challenges to growth in FY25 due to headwinds in the auto market. 

Munich Re (MUV2 GY) downgraded to Hold from Buy at Jefferies

CAC

Sanofi (SAN FP) - Sanofi said the French State is to take a 2% stake in Opella, and business valued at around EUR 16bln. Co. has entered into exclusive talks for sale of 50% of consumer health business to CD&R. Earlier reports (before being confirmed by Sanofi) Sanofi has reached an agreement to sell a controlling stake in Opella to CD&R for around EUR 15bln, according to Reuters citing French Government sources. Other sources: Set to sign consumer health deal with CD&R this weekend and Sanofi board scheduled to meet soon to discuss deal, according to Bloomberg sources; could announce deal as soon as this week. Additionally, French state takes a stake in Opella to smooth a EUR 15.5bln US deal, according to FT. (Reuters / Bloomberg / FT / Newswires)

Thales (HO FP) - Boeing (BA) said it has agreed to sell a small surveillance unit and digital receiver tech to Thales. (Newswires)

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - Announced successful launch of 20 OneWeb satellites. (Newswires)

Forvia (FRVIA FP) - Q3 (EUR): Sales 6.36bln (exp. 6.38bln). Outlook on China: "Confirms that we should resume outperforming that automotive production in the country by at least 300 bps." (Newswires)

Icade (ICAD FP) - 2024 group NCCF exp. towards the top end of guidance. Backlog as of Sept 30 2024, stood at EUR 1.67bln, -9.3% vs end-2023. (Newswires)

BROKER MOVES

Kering (KER FP) downgraded to Neutral from Buy at Citi

PAN EUROPE

BBVA (BBVA SM) - Co's top shareholder, GQC Partners, has sold its entire stake in BBVA after its decision to chase a hostile takeover of Banco Sabadell (SAB SM), according to the FT. (FT)

China-exposed stocks - Chinese Loan Prime Rate 5Y (Oct) 3.60% vs. Exp. 3.60-3.65% (Prev. 3.85%); Loan Prime Rate 1Y (Oct) 3.10% vs. Exp. 3.10-3.15% (Prev. 3.35%) PBoC Governor Pan said last Friday that the LPR were expected to be cut by 20bps-25bps this month. (Newswires)

Stellantis (STLAM IM / STLAP FP) - Plans to shutter and sell its large vehicle proving ground testing facility in Arizona amid cost-cutting efforts, via CNBC. (CNBC)

BROKER MOVES

Bankinter (BKT SM) downgraded to Underweight from Equalweight at Barclays

Caixabank (CABK SM) downgraded to Equalweight from Overweight at Barclays

SMI

Roche (ROG SW) - Receives FDA approval for the first companion diagnostic to identify patients with gastric and gastroesophageal junction cancer eligible for targeted treatment with vloy. (Newswires)

UBS (UBSG SW) - UBS is selling 50% of its holding in Swisscard to its JV partner American Express (AXP). (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

DNB (DNB NO) - Co. to buy Carnegie Holding for about SEK 12bln. Expected to close H1'25. Transaction exp. to reduce DNB's CET 1 ratio by approx. 120bps. Transaction is exp. to be accretive to DNB and generate a return on invested capital in excess of 15% on a fully integrated basis. (Newswires)

Maersk (MAERSKB DC) - Due to the ongoing political situation, Co. has stopped all booking acceptance to/from Haiti, effective immediately. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.40% at 5,865, NDX +0.66% at 20,324, DJIA +0.09% at 43,276, RUT -0.21% at 2,276

SECTORS: Energy -0.35%, Financials +0.02%, Consumer Staples +0.18%, Industrials +0.26%, Consumer Discretionary +0.45%, Materials +0.47%, Health +0.48%, Technology +0.48%, Utilities +0.56%, Real Estate +0.73%, Communication Services +0.92%.

21 Oct 2024 - 06:55- Exclusive- Source: Newsquawk