Newsquawk Daily European Equity Opening News - 22nd March 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0300EDT recapping all of the overnight equity news.

From 0700GMT/0300EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0315EDT.

There will be an additional audio rundown at 0750GMT/0350EDT recapping any company news which has hit the wires since 0715GMT/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

APAC stocks were mostly positive with the region shrugging off the higher yields and oil advances. ASX 200 was led higher by strength in the commodity-related sectors including energy after further gains in oil. Nikkei 225 gained as exporters benefitted from a weaker currency and amid stimulus speculation. Hang Seng and Shanghai Comp. traded higher with outperformance among the blue-chip tech stocks including Alibaba after it boosted its share buyback to USD 25bln from USD 15bln and with oil majors underpinned.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.53% at 3,882; FTSE 100 +0.51% at 7,442; DAX -0.60% at 14,327; CAC 40 -0.57% at 6,582; IBEX 35 -0.34% at 8,389; FTSE MIB +0.30% at 24,295; SMI -0.11% at 12,172

SECTORS: Basic Materials 4.18%, Energy 3.03%, Healthcare 0.24%, Financial Services 0.09%, Telecoms -0.20%, Industrials -0.35%, Utilities -0.39%, Consumer Services -0.69%, Technology -0.76%, Consumer Goods -0.99%

FTSE 100

Rolls Royce (RR/LN)/EDF (EDF FP) - UK ministers are said to be aiming to speed up a shift towards nuclear power, and wants the resource to account for 25% of UK's energy mix by 2050. Telegraph sources are concerned that environmental pushback may slow down plans. (Telegraph)

Shell (SHEL LN) - Co. is reportedly reconsidering its decision to withdraw investment from the Cambo oil field, according to the BBC; sources say that though the official position has not altered, they do acknowledge the economic, political and regulatory environment has changed since the initial decision occurred. (BBC) For reference, crude was circa USD 70/bbl when Shell withdrew

OTHER UK COMPANIES

BROKER MOVES

ITV (ITV LN) downgraded to Neutral from Outperform at Exane BNP

Ryanair (RYA LN) upgraded to Outperform from Market Perform at Bernstein

DAX

Adidas (ADS GY) - Nike (NKE) shares rose 5.3% after-market following beats on top and bottom lines and above-forecast margins. Refer to the US section for a full breakdown.

Deutsche Bank (DBK GY) - Archegos Capital Management reportedly built a near-2% stake in Deutsche Bank via derivatives and sold it in 2020 before its collapse last year, according to FT sources. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

BNP (BNP FP) - Co. is to cease financing in Russia. (Newswires)

VINCI (DG FP) - VINCI Concessions and its partners sign a contract extending the Athens Corinth—Patras motorway concession with the Greek authorities. The financing of the project, which represents an investment of EUR 331mln. (Vinci)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Snam (SRG IM) - CEO is said to be planning to depart in April, according to reports. (Newswires)

BROKER MOVES

Enel (ENEL IM) upgraded to Outperform from Neutral at Exane BNP

Moncler (MONC IM) upgraded to Neutral from Sell at Goldman Sachs

SMI

OTHER SWISS COMPANIES

Partners Group (PGHN SW) - FY21 (CHF): EBIT 1.65bln (prev. 875mln). Co. proposes a 20% increase to its dividend. Co. reaffirms its outlook. (Newswires)

BROKER MOVES

SCANDINAVIA

Nokian (TYRES FH) - Co. is no longer investing in production in Russia but is to maintain its car tyre factory in the region. (Newswires)

BROKER MOVES

Kone (KNEBV FH) upgraded to Hold from Sell at SEB ENSKILDA

US

CLOSES: SPX -0.04% at 4,461, NDX -0.31% at 14,376, DJIA -0.58% at 34,553, R2K -0.94% at 2,065.

SECTORS: ENERGY +3.79%, MATERIALS +0.85%, UTILITIES +0.68%, INDUSTRIALS +0.17%, CONS STPL +0.12%, HEALTH -0.12%, FINANCIALS -0.13%, TECHNOLOGY -0.18%, REAL ESTATE -0.52%, COMMUNICATION SVS -0.66%, CONS DISC -0.76%.

Nike Inc (NKE) - Q3 2022 (USD): EPS 0.87 (exp. 0.71), Revenue 10.87bln (exp. 10.59bln). North America revenue USD 3.88bln (exp. 3.84bln). EMEA revenue USD 2.78bln (exp. 2.74bln). Greater China revenue USD 2.16bln (exp. 2.09bln). Asia Pacific & Latin America revenue USD 1.46bln (exp. 1.36bln). Global Brands revenue USD 41mln (exp. 6.4mln). Converse revenue USD 567mln (exp. 600.9mln). Footwear revenue USD 6.7bln (exp. 6.7bln). Apparel revenue USD 3.23bln (exp. 3.05bln). Gross margin 46.6% (exp. 46.5%). (Businesswire) Shares rose 5.3% after market

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field. [No longer pursuing investments in Russia (Mar 7)]


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

22 Mar 2022 - 06:51- MetalsResearch Sheet- Source: Newsquawk