Newsquawk Daily European Equity Opening News - 22nd May 2023

22nd May 2023

ASIA

APAC stocks were mostly positive but with price action rangebound amid cautiousness as the debt limit deadline draws closer and following last week’s more balanced comments from Fed Chair Powell. ASX 200 was subdued amid weakness in financials although losses were cushioned amid the improving trade environment between Australia and its largest trading partner as evidenced by an 89% rise in coal exports to China. Nikkei 225 was indecisive as the momentum from its recent rally to 33-year highs initially waned and with the mood also clouded by the surprise contraction in Machinery Orders, although the index later caught a second wind and broke above the 31,000 level. Hang Seng and Shanghai Comp. traded higher albeit with the mainland choppy after mixed commentary from the G7 and frictions related to China’s ban on Micron from key infrastructure, while the PBoC provided no surprises and kept its benchmark lending rates unchanged with the 1-year and 5-year LPRs kept at 3.65% and 4.30%, respectively.

EUROPEAN CLOSES

CLOSES: : Euro Stoxx 50 +0.64% at 4,395, FTSE 100 +0.19% at 7,756, DAX 40 +0.69% at 16,275, CAC 40 +0.61% at 7,491, FTSE MIB +1.05% at 27,520, IBEX 35 +0.42% at 9,251, SMI +1.03% at 11,555.

SECTORS: Industrials 0.98%, Financials 0.91%, IT 0.84%, Materials 0.71%, Utilities 0.71%, Healthcare 0.64%, Energy 0.40%, Consumer Stpl 0.40%, Telecoms 0.18%, Consumer Disc -0.04%

FTSE 100

Rio Tinto - US Forest Service told a federal court it is not sure when it could approve a land swap allowing Rio Tinto to develop the Resolution Copper mine in Arizona, according to Reuters. (Newswires)

UK Home Builders - UK Rightmove House Prices YY (May) 1.5% (Prev. 1.7%), MM (May) 1.8% (Prev. 0.2%). Separately, the number of new homes sold before they are built is falling in a sign of waning demand, according to The Times citing analysis by real estate agency Hamptons. (Newswires/Times)

Rolls-Royce (RR/ LN) - CEO Erginbilgic said the Co's core division has been "grossly mismanaged", and added the business had a lot of potential. (FT)

Sainsbury's (SBRY LN)/UK Retailers - Sainsbury's is said to be planning the release of a new online marketplace for high street fashion brands. (Times)

OTHER UK COMPANIES

Restaurant Group (RTN LN) – TMR Capital is calling for an overhaul of the Co., follows it taking a stake in May. Proposing the Co. sells off all businesses except for Wagamama with the intention of expanding it and taking it private. (Telegraph/Times)

BROKER MOVES

Man Group (EMR LN) upgraded to Neutral from Underperform at Exane BNP

DAX

Adidas (ADS GY) - Co. said it will start selling some of the remaining inventory of Adidas Yeezy products, with an initial release at the end of May 2023; products will be existing designs that were initiated in 2022 for sale in 2023. (Newswires)

Henkel (HEN3 GY) - CEO said the Co. is mulling large acquisitions. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Sartorius (SRT GY) downgraded to Equal Weight from Overweight at Morgan Stanley

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Chip Names - China’s cyberspace regulator said its review found that US semiconductor producer Micron Technology’s (MU) products have serious network security problems causing risks to China’s information infrastructure and announced that operators of critical information infrastructure in China should stop purchasing Micron Technology’s products. (Newswires)

Ryanair (RYA ID) - FY23 (EUR): adj. Net 1.43bln (exp. 1.398bln), Revenue 10.8bln (exp. 10.72bln); sees enormous growth opportunities over the coming years. "game-changer" order book fully hedged at EUR 1.24, lowers cost vs many competitors engage in expensive leasing. Cautiously optimistic of a YY profit increase in FY24, guidance remains heavily dependent upon avoiding adverse effects. Forward bookings and air fares currently into the summer are strong, peak fares are trending ahead of last year. CFO said there are no signs yet of inflation hitting demand, with travel seen as a key item by customers for summer. CFO said they are not seeing major changes in travel trend, some customers are adding extra working day to their holiday which opens new market. Strong balance sheet with small year-end net cash due to Boeing delivery delays; net cash of EUR 0.56bln (prev. debt 1.45bln). (Newswires) CEO said the Co. will steal market share from European competitors and is aiming to double passenger numbers to 300mln per annum. (CityAM)

Stellantis (STLAM IM/STLAP FP) - Canada's industry minister said progress is being made on the battery plant deal with Stellantis. (Newswires)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - Co. staff are reportedly preparing to sue Swiss financial regulator FINMA over lost AT1 bonuses, according to FT citing sources. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Doctors discover reduced cardiac risk following a year of Wegovy diet medication, according to a study cited by Bloomberg. Weekly injections led to an 18% decrease in heart disease risk. Serious side effects were experienced by up to 5% of Wegovy patients. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.15% at 4,191, NDX -0.23% at 13,803, DJIA -0.33% at 33,426, RUT -0.62% at 1,773.

SECTORS: Consumer Discretionary -0.84%, Communication Services -0.49%, Financials -0.45%, Industrials -0.27%, Utilities -0.17%, Real Estate -0.15%, Technology -0.11%, Consumer Staples +0.01%, Materials +0.26%, Health +0.46%, Energy +0.73%.

Micron (MU) - China’s cyberspace regulator said its review found that US semiconductor producer Micron Technology’s products have serious network security problems causing risks to China’s information infrastructure and announced that operators of critical information infrastructure in China should stop purchasing Micron Technology’s products. US Commerce Department said they firmly oppose China's restrictions on Micron (MU) which have no basis in fact and that China's action along with recent raids targeting other US firms is inconsistent with China's assertions that it is opening its markets. (Newswires)

Tesla (TSLA) - Co. is offering discounts of over USD 1,300 on some Model 3 cars in US inventory, according to the Tesla website. (Newswires)

22 May 2023 - 06:41- EquitiesResearch Sheet- Source: Newsquawk