Newsquawk Daily European Equity Opening News

25th May 2023

ASIA

Asian stocks traded mostly lower with the region cautious following the losses on Wall St owing to debt ceiling fears and after the FOMC Minutes showed officials were split on support for more hikes, although US index futures were boosted after hours as NVIDIA shares surged around 25% post-earnings which puts it closer to the trillion-dollar market cap club. ASX 200 (-1.1%) weakened as the commodity-related sectors led the broad declines across nearly all industries and with sentiment also dampened as households are set to pay hundreds of dollars more each year after the energy regulator approved an increase of up to 25% in electricity bills. Nikkei 225 (+0.3%) was kept afloat but with the upside capped in the absence of any major positive drivers or tier-1 data releases. KOSPI (-0.5%) was subdued after the BoK rate decision in which the central bank kept rates unchanged as expected, although 6 out of the 7 board members saw the need to keep the door open for one more rate hike. Hang Seng (-2.1%) and Shanghai Comp. (-0.7%) were pressured with underperformance in Hong Kong after the benchmark index slipped beneath the 19,000 level, while the mainland was lacklustre amid recent US-China frictions.

EUROPEAN CLOSES

BOURSES: Euro Stoxx 50 -1.81% at 4,263, FTSE 100 -1.75% at 7,627, DAX 40 -1.92% at 15,842, CAC 40 -1.70% at 7,253, FTSE MIB -2.39% at 26,254, IBEX 35 -1.12% at 9,163, SMI -0.80% at 11,393.

SECTORS: Energy -0.69%, Consumer Stpl -1.07%, Utilities -1.23%, Healthcare -1.34%, Telecoms -1.45%, Materials -1.83%, Industrials -2.03%, Consumer Disc -2.15%, IT -2.32%, Financials -2.52%.

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Darktrace (DARK LN) initiated with buy at Liberum Capital

DAX

OTHER GERMAN COMPANIES

Adler Group (ADJ GY) - Q1 (EUR): Rental EBITDA 33mln (prev. 49mln), Net Rental Income 53mln; strong operational performance and has secured financial support via the Q1 restructuring plan. FY guidance confirmed. (Newswires)

Bechtle (BC8 GY) - Polish Climate Minister Moskwa says Co. will be a contractor in the nuclear project. (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Dassault Aviation (AM FP) - Board has decided to reduce share capital by the cancellation of shares representing 0.67% of share capital, effective as of May 24th. (Newswires)

BROKER MOVES

PAN EUROPE

Chip Names - Nvidia earnings, name up 24.6% in after-hours trade and supporting the NQ given its 5.5% weighting.

Energy Names - Russian Deputy PM Novak says do not see new steps at the June 4th OPEC+ meeting and sees Brent crude above USD 80/bbl by year-end. (Newswires)

Generali (G IM) - Q1 (EUR): adj. Net 1.23bln (exp. 1.04bln), Operating Profit 1.82bln, +22%. On track to meet targets for 2024 strategic plan. (Newswires)

PKN Orlen (PKN PW) - Q1 (PLN): Net 9.01bln (prev. 2.77bln), Revenue 110.3bln (prev. 45.5bln), EBITDA 15.5bln (prev. 4.9bln).

BROKER MOVES

CaixaBank (CABK SM) upgraded to Buy from Hold at Jefferies

SMI

Novartis (NOVN SW) - Sandoz's marketing authorisation application for proposed biosimilar denosumab has been accepted by the EMA. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker BP (AKERBP NO) - Oil discovery near Yggdrasil, resulted in a significant oil discovery. Prelim. estimate are for a GRV of 40-90mln BOE. (Newswires)

Ericsson (ERICB SS) - US District Court has dismissed a securities claim against the Co. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.73% at 4,115, NDX -0.50% at 13,604, DJIA -0.77% at 32,800, RUT -1.16% at 1,767

SECTORS: Real Estate -2.21%, Financials -1.31%, Industrials -1.27%, Materials -1.13%, Health Care -0.66%, Consumer Staples -0.65%, Utilities -0.63%, Technology -0.62%, Communication -0.6%, Consumer Discretionary -0.23%, Energy +0.52%.

Nvidia (NVDA) Q1 23 (USD): Adj. EPS 1.09 (exp. 0.92), revenue 7.19bln (exp. 6.52bln). Q2 23 revenue view 11bln (+/- 2%) (exp. 7.18bln). CFO said that the data centre revenue rise in the quarter is led by growing demand for generative AI and large language models using GPUs. +24.6% after-market

25 May 2023 - 06:45- - Source: Newsquawk