Newsquawk Daily European Equity Opening News - 23rd July 2023

23rd July 2023

ASIA

Asia-Pac stocks were mostly positive but with gains capped and US equity futures began the week with a non-committal tone ahead of upcoming key risk events including the FOMC, ECB and BoJ monetary policy meetings, as well as several big tech earnings results. ASX 200 (Flat) was rangebound as outperformance in the energy sector was offset by losses in mining names and with sentiment also clouded after Australian flash PMIs all printed in contraction territory. Nikkei 225 (+1.2%) was buoyed after reports on Friday that the BoJ is leaning towards keeping its yield curve control policy unchanged at the upcoming meeting and sees little need to act on YCC for now, while the KOSPI (+0.4%) shrugged off early jitters from North Korea’s latest missile firing over the weekend. Hang Seng (-1.5%) and Shanghai Comp. (+0.1%) were mixed with Hong Kong pressured by weakness in the property sector and tech, while the mainland was indecisive as the NDRC’s notice to promote high-quality development of private investment counterbalanced the reduced hopes for aggressive stimulus from China’s politburo meeting where the top officials will review the economic performance for H1.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +0.20% at 4,391, FTSE 100 +0.23% at 7,663, DAX 40 -0.17% at 16,177, CAC 40 +0.65% at 7,432, FTSE MIB +0.14% at 28,855, IBEX 35 +0.55% at 9,571, SMI +0.05% at 11,207

Sectors: Energy 1.09%, Utilities 0.88%, Consumer Stpl 0.86%, Consumer Disc 0.76%, Healthcare 0.34%, Industrials 0.28%, Financials 0.26%, Telecoms -0.22%, Materials -0.49%, IT -0.54%

FTSE 100

OTHER UK COMPANIES

Metro Bank (MTRO LN) - Has insisted it is politically neutral after being accused of closing the Reform UK party's account because of its support of Brexit, according to the FT. (FT)

BROKER MOVES

International Distributions Services (IDS LN) upgraded to Hold from Sell at Peel Hunt

DAX

Adidas (ADS GY) - Said to receive more than EUR 508mln in orders for Yeezy shoes by June 2nd, exceeding the Co's most optimistic forecasts, according to the FT citing people familiar with the matter. (FT)

OTHER GERMAN COMPANIES

Hella (HLE GY) - H1 (EUR): Sales 4bln (prev. 3.4bln). Operating Income 245mln (prev. 139mln), Operating Margin +2ppts Y/Y to 6.1%. Co. affirms its FY23 revenue guidance. (Newswires)

Software AG (SOW GY) - Q2 (EUR): Revenue 248.4mln (exp. 226.9mln YY), Adj. EBITDA 54.3mln (prev. 49.4mln). FCF -21.7mln, EBIT 31.9mln, Net Income 28.4mln, adj. EPS 0.38. Co. affirms its EBITDA margin guidance between 16-18%. (Newswires)

BROKER MOVES

Adidas (ADS GY) reiterated with Overweight at JPMorgan Chase

CAC

Airbus (AIR FP) - Extends partnership with Astrocast to further enhance satellite IOT technology. (Newswires)

OTHER FRENCH COMPANIES

Icade (ICAD FP) - H1 (EUR): Revenue 697mln, +1% Y/Y, Net Current Cash Flow 111.2mln, +0.4%, Net Debt 2.9bln (prev. 6.6bln). FY23 dividends are expected to be more than 10% higher than FY22. (Newswires)

Ipsen (IPN FP) - Announces a simplification of the concert of its principal shareholders representing 56.62% of the share capital and 72.36% of voting rights, effective from December 19 2023. (Newswires)

BROKER MOVES

PAN EUROPE

Philips (PHIA NA) - Q2 (EUR): adj. EBITDA 453mln (prev. 216mln YY), Revenue 4.47bln (prev. 4.18bln YY), adj. FCF 135mln, Operating Income 221mln (exp. 149mln), adj. EBITA margin 10.6% (exp. 9.1%). Raises FY23 outlook, now expects adj. EBITDA margin upper end of the high single-digit range. Simplification of the operating model and restructuring plans on track. (Newswires)

Ryanair (RYA ID) - Q1 (EUR): Net 663mln (exp. 650mln), Revenue 3.65bln (exp. 3.56bln), Average fares +42% QQ. H1 demand is robust, and European short-haul capacity remains constrained this summer and will be for the next four years. FY24 fuel requirements almost hedge at 85% at approx USD 89/bbl. Had expected originally expected 51 Boeing aircraft deliveries on/before 30 April, last was delayed into July. Expect FY24 traffic to grow 9% to 183.5mln (prev. 185mln), due to delivery delays. Remains cautiously optimistic that FY24 will be modestly ahead of last year. (Newswires)

BROKER MOVES

SMI

Julius Baer (BAER SW) - H1 (CHF): Adj. Net 541mln (prev. 476.3mln Y/Y). Operating income 2.03bln (prev. 1.87bln). Adj. pretax 644.3mln (exp. 637.3mln). Net new money 7.1bln (exp. 6.2bln). Adj. Pretax margin 30bps (prev. 24bps). CEO said H1 saw client and market sentiment impacted by uncertainties. (Newswires)

Roche (ROG SW) - Enters partnership with Alnylam to co-develop and co-commercialise RNAi therapeutic zilebersian to treat hypertension in patients with high cardiovascular risk. To pay Alnylam upfront USD 310mln. (Newswires)

OTHER SWISS COMPANIES

Gam Holding (GAM LN) - Liontrust (LIO LN) has extended the main offer period by three days to 28 July 2023, waiving offer conditions relating to the exit of Gam's third-party fund management services business. Newgame's recent interest and the speculative nature of their proposals is risking the future of the Co. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

Chevron (CVX) - Q2 adj. EPS USD 3.08 (exp. 2.99), Q2 earnings of USD 6bln, adj. earnings USD 5.8bln. Says PDC Energy (PDCE) acquisition to close in August 2023. Chevron's production levels in the Permian Basin soared to a record high, producing 772k BOEPD in the Permian Basin. CEO Mike Wirth had his mandatory retirement age waived, and he will continue as Chairman and CEO past the usual retirement age of 65 due to a "turbulent time" in the markets; appoints Eimear Bonner as new CFO. (Newswires)

CLOSES: SPX +0.03% at 4,536, NDX -0.26% at 15,425, DJIA +0.01% at 35,228, RUT -0.35% at 1,960.

SECTORS: Technology -0.31%, Financials -0.34%, Industrials -0.46%, Communication Services -0.50%, Materials -0.01%, Consumer Discretionary +0.04%, Consumer Staples +0.34%, Real Estate +0.44%, Energy +0.82%, Utilities +1.50%, Health +1.01%.

24 Jul 2023 - 06:55- EquitiesResearch Sheet- Source: Newsquawk