Newsquawk Daily European Equity Opening News - 22nd July 2021

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asia-Pac stocks traded higher following the extended rebound across global counterparts including the continued cyclical outperformance stateside where the mood was also helped by several blue-chip earnings. ASX 200 (+0.9%) was led higher by strength in the commodity-related sectors as energy spearheaded the advances after oil prices gained by around 4.5% on Wednesday and with mining names also lifted by quarterly production updates which propelled Orocobre and Iluka Resources to the top performers list. The latest data releases also provided some slight encouragement including stable NAB Quarterly Business Confidence which benefitted from an upward revision to the prior and the preliminary trade data showed that Exports and Imports rose 8% M/M. Hang Seng (+1.8%) and Shanghai Comp. (+0.3%) were positive as reports that US Deputy Secretary of State Sherman is to visit China for talks between 25th-26th July, spurred some hopes for a potential de-escalation in tensions, although other commentary remained hawkish including from US Secretary of Defense Austin who vowed to counter 'unfounded' China claims in the South China Sea. Nonetheless, Hong Kong led the gains in the region as the broad strength permeated across various industries including property, energy, tech and financials, while Evergrande found some relief after resolving the dispute with Guangfa Bank, although the advances for the mainland were capped after the recent flooding catastrophe and with China’s trade-weighted currency rose to a fresh 5-year high. KOSPI (+1.1%) was also underpinned by the broad constructive mood in the region with some earnings releases helping divert attention away from another record daily increase in infections, and Japanese markets are closed for the rest of the week due to Marine Day and Sports Day holidays.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.77% at 4,026; FTSE 100 +1.76% at 7,002; DAX +1.35% at 15,421; CAC 40 +1.86% at 6,465; IBEX 35 +2.67% at 8,581; FTSE MIB +2.27% at 24,656; SMI +0.67% at 12,026.

SECTORS: Energy 3.32%, Financials 2.71%, Consumer Disc 2.30%, Telecoms 1.87%, Materials 1.81%, Industrials 1.77%, IT 1.66%, Utilities 1.48%, Consumer Stpl 0.52%, Healthcare 0.51%

FTSE 100

AstraZeneca (AZN LN) - The AstraZeneca/Pfizer (PFE) vaccines are highly effective against symptomatic disease from the Delta variant of the coronavirus following two doses, according to a study published in the New England Journal of Medicine. (NEJM)

BHP (BHP LN) – Tesla (TSLA) has agreed to purchase the nickel for its batteries from BHP, no details on the size of this deal. (FT)

FTSE 100 ex-divs – Persimmon (PSN LN) will trade without entitlement to its latest dividend. (Newswires)

Rio Tinto (RIO LN) - Co. reportedly served with 72-hour strike notice by Canada's largest private sector union Unifor. (Newswires)

Royal Mail (RMG LN) – Co. is reportedly commencing a review of its ‘whole product suite and offering’ which will take six-months and look at demand for tracked, signed-for and special deliveries as part of cost cutting measures, alongside Saturday deliveries. (Telegraph)

UK Supermarkets - UK supermarket supply chains are "starting to fail" as a result of the "pingemic" which has forced thousands of workers into self-isolation, according to food industry leaders. (Telegraph)

OTHER UK COMPANIES

Hiscox (HSX LN) - Bronek Masojada will be succeeded by Aki Hussain as CEO effective 1st January 2022. (Newswires)

BROKER MOVES

ANTOFAGASTA (ANTO LN) UPGRADED TO HOLD FROM SELL AT DEUTSCHE BANK

FLUTTER ENTERTAINMENT (FLTR LN) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM

ROYAL MAIL (RMG LN) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BERNSTEIN

SHELL (RDSA LN) DOWNGRADED TO HOLD FROM BUY AT HSBC

DAX

Delivery Hero (DHER GY) - South Korea has extended the deadline for the divestment of Delivery Hero's Korean subsidiary. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

ALLIANZ (ALV GY) UPGRADED TO BUY FROM HOLD AT JEFFERIES

CAC

Publicis (PUB FP)- H1 revenue EUR 4.93bln vs prev. EUR 2.3bln. Co. raises its FY21 operating margin to 17% vs prev. 16.5% and FCF guidance to EUR 1.2-1.3bln vs prev. EUR 1.2bln. Organic revenue +9.7% YY. (Newswires)

OTHER FRENCH COMPANIES

Getlink (GET FP) - Q2 revenue EUR 326mln vs exp. EUR 325mln. EBITDA -19% YY. Co. refrains from providing guidance. (Newswires)

BROKER MOVES

STMICROELECTRONICS (STM FP) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS

PAN EUROPE

Chip Names - Texas Instruments Inc (TXN) reported Q2 EPS USD 2.05 vs exp. 1.83, revenue USD 4.58bln vs exp. 4.35bln. (Newswires) Shares fell 4.7% after market

BROKER MOVES

ASML (ASML NA) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

SMI

ABB (ABBN SW) - Q2 net USD 752mln vs exp. USD 651mln. Revenue USD 7.4bln vs prev. USD 6.2bln. Operating EBITDA margin 15% vs exp. 14.4%. Co. sees FY comparable revenue growth of just under +10% vs prev. view of -5% or more. Co. expects to announce an agreement for a divestment in Q3. (Newswires)

Givaudan (GIVN SW) - H1 net CHF 481mln vs prev. CHF 413mln. EBITDA CHF 809mln vs prev. CHF 734mln. Revenue CHF 3.37bln vs prev. CHF 3.22bln. Operating margin 18.2% vs prev. 16.5%. (Newswires)

Roche (ROG SW) - H1 sales CHF 30.71bln vs exp. CHF 29.65bln. Core EPS 10.56 vs exp. 10.18. Co. confirms its 2021 outlook. Pharmaceuticals Division sales decline 3%; sales grow 4% in the second quarter, following a first-quarter decrease of 9%; newly launched medicines (+30%) compensate for the continued impact from biosimilarsDiagnostics Division sales grow 51% due to high demand for COVID-19 tests and strong momentum in routine testingIFRS net income increases by 2%, while core earnings per share up 6%. (Newswires/Roche) Co. holds around an 18% weighting in the SMI

Sika (SIKA SW) - H1 net CHF 494.7mln vs prev. CHF 275.6mln. EBIT CHF 685.9mln vs prev. CHF 410mln. Revenue CHF 4.45bln vs prev CHF 3.61bln. (Newswires)

OTHER SWISS COMPANIES

Sulzer (SUN SW) - H1 revenue CHF 1.72bln vs prev. CHF 1.6bln. EBIT CHF 128.7mln vs prev. CHF 36mln. (Newswires)

BROKER MOVES

ROCHE (ROG SW) INITIATED WITH OUTPERFORM AT COWEN

SCANDINAVIA

BROKER MOVES

KONE (KNEBV FH) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

US

CLOSES: SPX +0.83% at 4,359, NDX +0.78% at 14,842, DJIA +0.83% at 34,798, RUT +1.71% at 2,232.

SECTORS: ENERGY +3.53%, FINANCIALS +1.71%, MATERIALS +1.09%, INDUSTRIALS +1%, TECHNOLOGY +0.98%, CONSUMER DISCRETIONARY +0.81%, COMMUNICATION SERVICES +0.73%, HEALTH +0.21%, CONSUMER STAPLES -0.14%, REAL ESTATE -0.35%, UTILITIES -1.1%.

22 Jul 2021 - 06:48- Research Sheet- Source: Newsquawk