Newsquawk Daily European Equity Opening News - 23rd June 2023

23rd June 2023

ASIA

Asia-Pac stocks failed to sustain an early positive bias and faltered following the mixed performance stateside where the S&P 500 and Nasdaq snapped their losing streaks although most sectors finished in the red after a busy day of central bank activity including several rate hikes. ASX 200 (-1.4%) was lower with the declines led by underperformance in energy after the recent slump in oil prices and with the mood not helped by an inverted yield curve and after Australia’s flash manufacturing PMI remained in contraction territory. Nikkei 225 (-1.8%) gave back its early gains and then some, as participants digested mixed inflation data from Japan which showed a slowdown in headline and core CPI although the latter and core-core readings were still firmer-than-expected, while Japan’s manufacturing PMI also slipped beneath the 50 benchmark level. Hang Seng (-1.9%) was pressured on return from the Dragon Boat Festival with the index dragged lower by heavy losses in healthcare, tech and property amid headwinds from rising global yields and as Stock Connect trade remained shut due to the holiday in the mainland.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.42% at 4,304, FTSE 100 -0.76% at 7,502, DAX 40 -0.22% at 15,988, CAC 40 -0.79% at 7,203, FTSE MIB -0.72% at 27,410, IBEX 35 -0.76% at 9,346, SMI +0.09% at 11,183.

SECTORS: IT 0.23%, Consumer Stpl 0.05%, Healthcare -0.16%, Consumer Disc -0.21%, Telecoms -0.28%, Materials -0.40%, Industrials -0.47%, Utilities -0.65%, Financials -1.22%, Energy -1.57%

FTSE 100

Rio Tinto (RIO LN) - Production from the Western Range mine is expected to commence in 2025 with annual capacity of 25mln tonnes of iron ore. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Barratt Developments (BDEV LN), Bellway (BWY LN), Berkeley Group (BKG LN), Crest Nicholson (CRST LN), Persimmon (PSN LN), Redrow (RDW LN), Taylor Wimpey (TW/ LN) downgraded to Hold from Buy at HSBC

DAX

Siemens Energy (ENR GY) - Co. withdraws profit guidance due to Siemens Gamesa; board initiated extended technical review of Siemens Gamesa's installed fleet and product designs; costs likely to be over EUR 1bln - not including mitigations. Co. continues to experience ramp up challenges in offshore. CEO said quality problems mark a significant setback. CEO adds this setback is more severe than I thought possible. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Covestro (1COV GY) upgraded to Buy from Hold at Stifel Nicolaus

Evotec (EVT GY) upgraded to Overweight from Equal Weight at Morgan Stanley - Shares seen +2.3%

Talanx Group (TLX GY) downgraded to Hold from Buy at Berenberg

CAC

Capgemini (CAP FP) - Is to boost its cloud and digital end to end transformation offerings in Japan with acquisition of BTC. Transaction is subject to customary conditions precedents, including foreign investment regulatory filing and is expected to close in coming months. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Accor (AC FP) upgraded to Buy from Hold at Kepler Cheuvreux

PAN EUROPE

Telecom Italia (TIT IM) - Grants KKR period of exclusivity on non-binding offer for Netco, seeking bid by 30 September. (Newswires)

BROKER MOVES

Amadeus (AMS SM) reiterated with Overweight at JP Morgan Chase

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Nestle (NESN SW) upgraded to Market Perform from Underperform at TD Cowen

SCANDINAVIA

BROKER MOVES

Norwegian Air (NAS NO) initiated with Overweight at Barclays

US

CLOSES: SPX +0.37% at 4,381, NDX +1.18% at 15,042, DJIA -0.01% at 33,946, RUT -0.80% at 1,848.

SECTORS: Consumer Discretionary +1.53%, Communication Services +1.15%, Technology +0.92%, Health +0.65%, Consumer Staples +0.51%, Materials -0.29%, Industrials -0.71%, Financials -0.74%, Utilities -0.76%, Energy -1.3%, Real Estate -1.44%.

3M (MMM) - Co. confirmed resolution of PFA drinking water claims as is to pay a settlement amount of USD 10.3bln over 13 years with the Co. expecting to report the pre-tax charge for Q2. (Newswires)

Amazon (AMZN) - AWS announced a Generative AI Innovation center, investing USD 100mln that connects AWS machine learnings and AI experts with customers and partners. (Newswires)

Ford (F) - Co. prepares a new round of layoffs for US salaried workers with job cuts expected to affect employees on Ford's gas-engine side of the business, as well as its EV and software division, according to WSJ. (WSJ)

23 Jun 2023 - 06:40- Research Sheet- Source: Newsquawk