Newsquawk Daily European Equity Opening News - 22nd April 2024

22nd April 2024

ASIA

APAC stocks were mostly positive following the lack of any major geopolitical escalations over the weekend. ASX 200 was underpinned amid gains in nearly all sectors and with the advances initially led by outperformance mining stocks as copper prices approached closer to the USD 10,000/ton level and with firm gains in South32 following its quarterly output update. Nikkei 225 gained but is well off intraday highs after the index briefly wiped out all its earlier spoils before recovering again with price action choppy after last Friday's comments from BoJ Governor Ueda who suggested a hike is very likely if underlying inflation increases. Hang Seng and Shanghai Comp. were mixed in which the latter outperformed with strength in biopharma, tech and consumer stocks front-running the gains in the index. Conversely, the mainland lagged amid US-China frictions after the US House passed a bill that could lead to a total TikTok ban, while China's benchmark Loan Prime Rates were maintained at their current levels, as expected.

EUROPEAN CLOSES

CLOSES: DAX: -0.53% at 17,626.90, FTSE 100: +0.24% at 7,809.68, CAC 40: -0.01% at 7,946.84, Euro Stoxx 50: -0.39% at 4,883.25, IBEX 35: -0.33% at 10,611.90, FTSE MIB: +0.12% at 33,460.81, SMI: +0.43% at 11,122.20.

SECTORS: Consumer Stpl 1.41%, Utilities 0.62%, Telecoms 0.53%, Healthcare 0.50%, Financials -0.11%, Materials -0.13%, Energy -0.17%, Consumer Disc -0.32%, Industrials -0.92%, IT -1.90%

FTSE 100

BP (BP/ LN) - Norway's sovereign wealth fund, said it would vote in favour of the reappointment of BP's current chair to the Cos BoD. (Newswires)

UK Housing - UK Rightmove House Price Index YY (Apr) 1.7% (Prev. 0.8%); Rightmove House Price Index MM (Apr) 1.1% (Prev. 1.5%). "While affordability is still very tight, property and mortgage market conditions remain stable, buyer choice is good, and many sellers will recognize that it is the right time to negotiate on price to agree a deal. The boost in activity suggests that many home movers are already springing into action to make their move." (Rightmove) Separately, UK Chancellor Hunt is reportedly considering lowering stamp duty in his final autumn statement before the general election, according to The Times; the threshold at which homebuyers pay stamp duty from GBP 250k to GBP 300k. (Times)

OTHER UK COMPANIES

Deliveroo (ROO LN) / Just Eat Takeaway (JET LN) - Grocery delivery app Getir is said to be preparing to announce this week that it is withdrawing from the three remaining European markets in which it operates – the UK, Germany and the Netherlands, according to sources. (Sky News)

IDS (IDS LN) - Czech billionaire Kretinsky said he is "very serious" about his bid for Royal Mail after his initial GBP 3.1bln bid was rejected. He is expected to make another bid for the Co. before the May 15th deadline. (The Telegraph)

BROKER MOVES

B&M European (BME LN) upgraded to Hold from Underperform at Jefferies

HSBC (HSBA LN) upgraded to Market Perform from Underperform at Keefe Bruyette

Marks & Spencer (MKS LN) upgraded to Buy from Hold at Jefferies

Next (NXT LN) upgraded to Buy from Hold at Jefferies

Standard Chartered (STAN LN) downgraded to Underperform from Market Perform at Keefe Bruyette

Sainsbury (SBRY LN) upgraded to Buy from Hold at Jefferies

DAX

Volkswagen (VOW3 GY) - UAW said Co. workers have voted to unionise Tennessee plant, after "Yes" votes crossed its critical threshold. (Newswires)

OTHER GERMAN COMPANIES

Knorr-Bremse (KBX GY) - Signed an agreement to acquire Alstom's (ALO FP) North America rail signalling tech business for EUR 630mln. (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BNP Paribas (BNP FP) - Co. is to hire up to 30 new employees for a new Chinese securities unit, via Bloomberg. (Bloomberg)

Ipsen (IPN FP) - Ipsen and Skyhawk Therapeutics announced RNA-targeting research collaboration in rare neurological diseases. (Ipsen)

BROKER MOVES

Eurofins Scientific (ERF FP) upgraded to Buy from Hold at HSBC

PAN EUROPE

Auto Names - Tesla has the cut its prices again in several major markets - including the US, China and Germany, ahead of earnings tomorrow after the bell. (BBC/Newswires)

Leonardo (LDO IM) - Nigeria plans to acquire 25 fighter jets from the Co. (Newswires)

Telecom Italia (TIT IM) - KKR's proposed bid for the Cos fixed-line access network will be decided by EU antitrust regulators by May 30th, via Reuters citing a European Commission filing. (Reuters)

UCB (UCB BB) - European Commission approval for Bimzelx for moderate severe hidradentis suppurtiva. (Newswires)

BROKER MOVES

Telefonica (TEF SM) upgraded to Neutral from Underweight at JP Morgan

SMI

UBS (UBSG SW) - Layoffs under tha bank's cost-cutting plans will take place in five waves, starting in June, via SonntagsZeitung. Roughly 50-60% of former Credit Suisse workers will be made redundant over the five rounds, with 25-30% to be laid off in June. (SonntagsZeitung)

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Sandoz confirmed European Commission approval of Pyzchiva (ustekinumab), further strengthening immunology offering. (Sandoz)

BROKER MOVES

Sandoz (SZD SW) upgraded to Buy from Neutral at UBS

SCANDINAVIA

BROKER MOVES

Elisa (ELISA FH) upgraded to Accumulate from Reduce at Inderes

Kongsberg Gruppen (KOG NO) downgraded to Hold from Buy at DNB Markets

US

CLOSES: SPX -0.88% at 4,967, NDX -2.05% at 17,037, DJIA +0.56% at 37,986, RUT +0.24% at 1,947.

SECTORS: Technology -3.08%, Communication Services -2.03%, Consumer Discretionary -1.19%, Industrials -0.19%, Materials -0.11%, Health +0.31%, Real Estate +0.40%, Consumer Staples +0.94%, Energy +1.12%, Financials +1.34%, Utilities +1.47%.

Goldman Sachs (GS) - Is considering applying for a banking licence in Australia, according to AFR. (AFR)

Nike (NKE) announces job cuts in Oregon; to cut 740 jobs from the Oregon headquarters by June 28th including prior round of cuts. (Newswires)

PepsiCo (PEP) - Put 36 Tesla (TSLA) semis on the road to haul chips and soda and had planned to have 100 in use by 2023; PEP says TSLA semi plans can shift when technology and the need to establish infrastructure is involved. (Newswires)

Tesla (TSLA) - Tesla cut prices across its entire line up in China, with prices for the locally-produced Model 3 and Model Y have been cut by around 4%-6% and imported Model S and Model X have been cut by as much as 22%, while Tesla also cut prices in US, Germany, Europe, Middle East and Africa. Tesla has also cut the price of FSD to USD 8k from USD 12k. Furthermore, CEO Musk has postponed his planned trip to India, citing “very heavy” obligations at Tesla. (Newswires/BBC/CNN) Note, TSLA earnings are due on Tuesday after the Wall Street close.

22 Apr 2024 - 06:50- Research Sheet- Source: Newsquawk