Newsquawk Daily European Equity Opening News - 24th August 2023

24th August 2023

ASIA

Asia-Pac stocks traded higher as the region took impetus from the gains on Wall St. where the Nasdaq led the advances across the major indices as yields declined in the aftermath of weak PMI data and with futures also boosted by strong Nvidia earnings. ASX 200 (+0.5%) was positive amid the continued influx of earnings and as strength in tech and financials atoned for the underperformance in the defensive sectors. Nikkei 225 (+0.6%) was firmer after it recently reclaimed the 32,000 level and with semiconductor names in Asia riding the Nvidia wave. KOSPI (+1.1%) was boosted with the index unfazed by North Korea’s latest failed ‘satellite’ launch, while the BoK provided no surprises and maintained its base rate at 3.50%, as unanimously expected. Hang Seng (+1.7%) and Shanghai Comp. (+0.5%) conformed to the upbeat mood in which the Hong Kong benchmark climbed back above 18,000 amid tech strength, although gains in the mainland were limited after the PBoC’s liquidity drain and as participants await more big bank earnings.

Qantas (QAN AT) - FY23 (AUD) underlying pre-tax 2.47bln (exp. 2.46bln, prev. -1.86bln Y/Y), rev. 19.8bln (prev. 9.1bln Y/Y), Co. announces AUD 500mln share buyback. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.15% at 15,728, FTSE 100 +0.68% at 7,321, CAC 40 +0.08% at 7,247, Euro Stoxx 50 +0.15% at 4,267, IBEX 35 +0.02% at 9,316, FTSE MIB +0.24% at 28,234, SMI +0.93% at 10,977.

SECTORS: Utilities 1.14%, Healthcare 1.04%, Telecoms 0.94%, IT 0.77%, Consumer Stpl 0.52%, Materials 0.43%, Industrials 0.37%, Financials 0.14%, Consumer Disc 0.02%, Energy -1.37%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Allianz (ALV GY) - China securities regulator says they approve Allianz Global Investors to set up a fund management company. (Newswires)

OTHER GERMAN COMPANIES

Draegerwerk (DRW3 GY) - Unit Draeger recalls carina sub-acute care ventilators for contaminants in airpath. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Boeing (BA) shares fell 2.8% after the Co. found a problem with its 737 MAX involving supplier Spirit AeroSystems, Reuters reported. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Air Liquide (AI FP) upgraded to Buy from Hold at Berenberg

Hermes (RMS FP) initiated with Hold at DZ Bank

PAN EUROPE

Chip Names - NVIDIA Corp (NVDA) Q2 2023 (USD): Adj. EPS 2.70 (exp. 2.09), Revenue 13.51bln (exp. 11.22bln). Co. approved a further 25bln in share buybacks, without expiration. Shares rose 6.6% in after-market trade, as did various other industry peers including; AMD, MRVL, AVGO, and MSFT

Orlen (PKN PW) - Q2 (PLN): Net Profit 4.59bln (prev. 4.23bln), Revenue 74.62bln (prev. 80.13bln), EBITDA 8.24bln (prev. 9.04bln). (Newswires)

BROKER MOVES

SMI

Gam (GAM SW) - Enters into constructive and productive discussions with Newgame, expects Liontrust (LIO LN) to declare its offer unsuccessful on Aug 29th. (Newswires)

UBS (UBSG SW) - Credit Suisse decided not to carry out IPO as planned for Q4'23, for the 1A Immo PK Real Estate Fund. Decision due to renewed fall in trading volumes on the market for listed Swiss Real Estate Funds compared with the previous year. (Newswires) Separately, Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS) and UBS (UBSG SW) agreed to pay nearly USD 500mln to settle a long-running lawsuit by pension funds that they violated antitrust laws by blocking efforts to modernise stock lending, according to FT. (FT)

OTHER SWISS COMPANIES

Swiss Prime Site (SPSN SW) - H1 (CHF): Rental Income 218.9mln, +3.4% YY. (Newswires)

BROKER MOVES

SCANDINAVIA

Abello (ALKB DC) - Q2 (DKK): EBIT 97mln (prev. 49mln YY), Revenue 1.14bln (prev. 1.05bln YY). (Newswires)

Elekta (EKTAB SS) - Q1 (SEK): EBIT 412mln (exp. 185mln), Revenue 3.82bln (exp. 3.8bln). (Newswires)

Salmar (SALM NO) - Q2 (NOK): EBIT 1.75bln (exp. 1.85bln), Revenue 5.90bln (exp. 5.98bln). (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.10% at 4,436, NDX +1.60% at 15,148, DJIA +0.54% at 34,472, RUT +1.04% at 1,870.

SECTORS: Technology +1.92%, Communication Services +1.9%, Real Estate +1.46%, Industrials +0.99%, Financials +0.93%, Consumer Discretionary +0.83%, Consumer Staples +0.63%, Utilities +0.45%, Health +0.29%, Materials +0.18%, Energy -0.3%.

Boeing (BA), Spirit Aerosystems (SPR) - Boeing found a problem with its 737 MAX involving supplier Spirit AeroSystems, Reuters reports. Holes were improperly drilled in the plane's back section. This will delay deliveries and might affect Boeing's target of 400 plane deliveries this year, Reuters said. (Reuters) Boeing was lower by 2.8% in afterhours trade, while Spirit was down by 6.2%.

NVIDIA Corp (NVDA) - Q2 2023 (USD): Adj. EPS 2.70 (exp. 2.09), Revenue 13.51bln (exp. 11.22bln); approved further 25bln in share buybacks, without expiration. REVENUE BREAKDOWN: Data centre 10.32bln (exp. 7.98bln). Gaming 2.49bln (exp. 2.38bln). Professional Visualization 379mln (exp. 318.7mln). Automotive 253mln (exp. 309.4mln). KEY METRICS: Adj. gross margin 71.2% (exp. 70.1%). Adj. operating income 7.78bln (exp. 5.89bln). GUIDANCE: Q3 revenue view 16bln (exp. 12.1bln). COMMENTARY: '"New computing era has begun." Says cloud provider GPU demand is accelerating and it expects supply to increase each quarter through next year. China demand was in the historical range of data centre demand at 20%-25%. Visibility into demand extends into next year. Demand is tremendous. (Newswires) Shares rose 6.6% in after-market trade, as did various other industry peers including; AMD, MRVL, AVGO, and MSFT

24 Aug 2023 - 06:48- Research Sheet- Source: Newsquawk