Newsquawk Daily European Equity Opening News - 22nd August 2023
22nd August 2023
ASIA
Asia-Pac stocks traded mixed following a similar performance stateside where tech rallied but the gains in the broader market were capped amid further upside in global yields. ASX 200 (Flat) was rangebound as the attention was on a slew of earnings releases including a considerable drop in profits for mining giant BHP. Nikkei 225 (+0.8%) was underpinned as tech names in the Asia-Pac region took inspiration from US peers and with SoftBank among the notable performers after its Arm unit filed for a US IPO. Hang Seng (+0.1%) and Shanghai Comp. (-0.2%) were indecisive as participants digested the latest support efforts from Premier Li and the State Council, as well as the PBoC’s net liquidity drain.
BHP (BHP AT) - FY23 (USD): Profit after tax attributable 12.9bln (prev. 30.9bln Y/Y), underlying profit attributable 13.4bln (prev. 21.3bln Y/Y), rev. 53.8bln (prev. 65.1bln Y/Y). Co. said demand for commodities in the developed world slowed substantially due to the impact of anti-inflationary policies. BHP's external operating environment in FY23 was volatile. March quarter saw a better-than-expected recovery in a range of sectors important for commodity demand, raising hopes of a strong year overall. Traditional copper demand in the medium and longer term is expected to remain solid and decarbonisation megatrend is expected to bolster demand. China's demand for iron ore in the medium term is expected to be lower than it is today. Co. sees broadly balanced iron ore market on average across 2023 calendar year and now sees a small surplus or balanced copper market, and the view for the longer-term remains that China's economic growth rate will moderate as working age population falls. CEO says China's economy is mixed and housing starts are uncertain but other sectors are pretty strong, expects China economy growth momentum to pick up from late this year. (Newswires)
Softbank's (9984 JT) - Arm Holdings files for IPO, applied to list on the Nasdaq under "ARM". (Newswires)
EUROPEAN CLOSES
CLOSES: DAX +0.19% at 15,603, FTSE 100 -0.06% at 7,258, CAC 40 +0.47% at 7,198, Euro Stoxx 50 +0.29% at 4,225, IBEX 35 -0.05% at 9,263, FTSE MIB +0.81% at 27,987, SMI +0.17% at 10,857.
SECTORS: Energy 0.69%, Consumer Disc 0.43%, Healthcare 0.38%, IT 0.38%, Industrials -0.08%, Consumer Stpl -0.08%, Financials -0.18%, Materials -0.19%, Utilities -0.28%, Telecoms -0.33%
FTSE 100
Entain (ENT LN) - Announces a tender offer by Entain Holdings Ltd to acquire STS Holding, a sports betting operator in Poland. (Newswires)
Mining Names - BHP (BHP AT) shares fell 1.1% in Australian trade following earnings. In terms of commentary, BHP said demand for commodities in the developed world slowed substantially due to the impact of anti-inflationary policies. BHP noted China's demand for iron ore in the medium term is expected to be lower than it is today, but sees a broadly balanced iron ore market on average across 2023 calendar year and now sees a small surplus or balanced copper market. BHP said its view for longer-term remains that China's economic growth rate will moderate as working age population falls.
Shell (SHEL LN) - Shell Nigeria says it is investigating a possible leak on the trans-Niger oil pipeline. The 180k BPD pipeline is one of two conduits to export Bonny Light crude, according to Reuters. (Newswires)
OTHER UK COMPANIES
BROKER MOVES
Hays (HAS LN) upgraded to Outperform from Neutral at BNP Paribas
DAX
OTHER GERMAN COMPANIES
Nordex (NDX1 GY) - Awarded a contract for delivery and commission of 49 N155/5.X turbines or "forty mile" wind farm in Alberta, Canada. (Newswires)
BROKER MOVES
CAC
OTHER FRENCH COMPANIES
Energy Names - EDF Energy warned that the Co. will probably reduce nuclear output over the coming weekend due to a heat wave, according to Bloomberg. (Newswires)
BROKER MOVES
PAN EUROPE
Leonardo (LDO IM) - CEO is under investigation for having provided an environmental authorization to Solvay SA (SOLB BB) during his time as minister, according to sources cited by Bloomberg. (Bloomberg)
BROKER MOVES
Randstad Holdings (RAND NA) upgraded to Outperform from Neutral at BNP Paribas
SMI
OTHER SWISS COMPANIES
BROKER MOVES
Adecco (ADEN SW) upgraded to Outperform from Underperform at BNP Paribas
SCANDINAVIA
Equinor (EQNR NO) - Co. is reportedly considering selling USD 1bln of energy assets in Azerbaijan, according to Bloomberg sources. (Newswires)
SBB (SBBB SS) - Fitch downgrades SBB IDR to 'B-' and unsecured debt to 'B+'. The downgrade to Junk reflects deteriorating liquidity, in addition to unfavourable real estate and capital market conditions. (Newswires)
BROKER MOVES
US
CLOSES: SPX +0.69% at 4,400, NDX +1.65% at 14937, DJIA -0.11% at 34,464, RUT -0.18% at 1,856
SECTORS: Technology +2.26%, Consumer Discretionary +1.15%, Communication Services +0.8%, Health +0.09%, Materials +0.02%, Financials -0.09%, Industrials -0.14%, Utilities -0.6%, Energy -0.62%, Consumer Staples -0.64%, Real Estate -0.88%.
Kenvue (KVUE) - Is to replace Advance Auto Parts (AAP) in the S&P 500 prior to the open on August 25th. (Newswires)
US Banks - S&P joins Moody's in cutting US banks amid tough environment with Keycorp (KEY) and Comerica (CMA) among the five banks cut by S&P, according to Bloomberg. Many depositors have “shifted their funds into higher-interest-bearing accounts, increasing banks’ funding costs,” S&P said. (Bloomberg)
Zoom Video Communications Inc (ZM) - Q2 2023 (USD): Adj. EPS 1.34 (exp. 1.05), Revenue 1.14bln (exp. 1.11bln). Sees Q3. adj. EPS USD 1.07-1.09 (exp. 1.03). Sees Q3 revenue USD 1.12bln (exp. 1.12bln). Raises FY Adj. EPS forecast to USD 4.63-4.67 from 4.25-4.31 (exp. 4.32). Raises FY revenue forecast to 4.49bln-4.50bln from 4.47bln-4.49bln (exp. 4.48bln). (Newswires)
22 Aug 2023 - 06:48- EquitiesResearch Sheet- Source: Newsquawk
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