Newsquawk Daily European Equity Opening News - 25th August 2023

25th August 2023

ASIA

Asia-Pac stocks traded lower following the weak handover from global counterparts after the Nvidia-related euphoria wore off and with markets bracing for Fed Chair Powell's speech at Jackson Hole. ASX 200 (-0.9%) was pressured by heavy losses in tech and the commodity sectors, while consumer stocks showed some resilience after stronger earnings from Wesfarmers. Nikkei 225 (-2.0%) slumped by as much as 2% after it gapped below the 32,000 level with tech stocks hit by the broad sector recoil. Hang Seng (-1.1%) and Shanghai Comp. (-0.5%) declined with NetEase and Meituan among the worst performers in Hong Kong as the widespread tech selling clouded over their earnings results, while losses in the mainland were limited following a firm liquidity injection by the PBoC and after the securities regulator met with financial industry firms and urged longer-term funds to help steady the stock market.

EUROPEAN CLOSES

CLOSES: DAX -0.68% at 15,621, FTSE 100 +0.18% at 7,334, CAC 40 -0.44% at 7,214, Euro Stoxx 50 -0.81% at 4,233, IBEX 35 +0.10% at 9,325, FTSE MIB -0.57% at 28,072, SMI 0.00% at 10,974.

SECTORS: Consumer Stpl 0.31%, Utilities 0.30%, Energy 0.25%, Financials 0.11%, Industrials -0.48%, Materials -0.55%, Telecoms -0.58%, Healthcare -0.63%, Consumer Disc -0.81%, IT -2.60%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Aston Martin (AML LN) upgraded to Buy from Hold at Jefferies

CRH (CRH LN) reiterated with Overweight at JP Morgan

Coca-Cola HBC (CCH LN) upgraded to Hold from Sell at SocGen

DAX

Mercedes-Benz (MBG GY) - Reportedly considering EV charging stations in Japan, according to TBS. (TBS)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ASM International (ASM NA) - Pennsylvania Convention Authority Renews ASM Global Management contract becoming first venue in world's leader's "Premier Package" convention centre expansion. (Newswires)

Clothes Retailers - Gap Inc (GPS) share rose 1.5% following mixed results and despite reporting declining sales across all brands and warning of "uncertain consumers"

BROKER MOVES

SMI

Watches of Switzerland (WOSG SW) - Rolex are to buy Bucherer, which may have retail implications on Watches of Switzerland, says head of Swiss equities at Kepler Cheuvreux, according to Bloomberg. (Bloomberg)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

TopDanmark (TOP DC) upgraded to Buy from Hold at Danske Bank

US

CLOSES: SPX -1.35% at 4,376, NDX -2.19% at 14,816, DJIA -1.08% at 34,099, RUT -1.27% at 1,846.

SECTORS: Technology -2.15%, Communication Services -2.04%, Consumer Discretionary -2.01%, Industrials -1.22%, Health -0.78%, Consumer Staples -0.77%, Energy -0.73%, Utilities -0.63%, Materials -0.43%, Real Estate -0.42%, Financials -0.25%.

Amazon (AMZN) - Is in talks with Disney (DIS) about ESPN streaming partnership, while ESPN is considering charging between USD 20 and USD 35 per month for the new streaming service, according to The Information. (The Information)

Gap Inc (GPS) - Q2 2023 (USD): Adj. EPS 0.34 (exp. -0.47) may not compare, Revenue 3.55bln (exp. 3.58bln). Total comp. sales -6% (exp. -4.5%). (Newswires) Shares rose 1.5% after market.

Marvell Technology Inc (MRVL) - Q2 2023 (USD): Adj. EPS 0.33 (exp. 0.32), Revenue 1.34bln (exp. 1.33bln); comp. sales +8% (exp. +6.56%)Q3 adj. EPS view 0.35-0.45 (exp. 0.40). COMMENTARY: Forecasting sequential revenue growth to accelerate in Q3. This growth is being driven primarily by AI and cloud infrastructure. Demand from AI applications continues to strengthen, driving our overall revenue outlook from AI for this FY even higher than previously outlined. Our strategy to focus on data infrastructure across a diverse set of end markets is serving us well despite the backdrop of a softening macroenvironment. (Newswires)

25 Aug 2023 - 06:53- Research Sheet- Source: Newsquawk