Newsquawk Daily European Equity Opening News - 25th September 2024

ASIA

APAC stocks were mostly positive as Chinese markets continued to rally following the stimulus boost. ASX 200 was rangebound with strength in mining and materials offsetting the underperformance in financials and tech, while the latest monthly CPI data from Australia matched estimates and slowed to a 3-year low although core inflation remained above the 2%-3% target. Nikkei 225 swung between gains and losses and traded both sides of the 38,000 level with little fresh catalysts, while Services PPI data was firmer than expected but slowed from the prior month's revised print. Hang Seng and Shanghai Comp rallied amid ongoing optimism following the stimulus announcements, while the PBoC also conducted an MLF operation with the rate cut by 30bps to 2.00% which it had flagged during Tuesday's press briefing.

EUROPEAN CLOSES

CLOSES: DAX: +0.75% at 18,988, FTSE 100: +0.28% at 8,283, CAC 40: +1.28% at 7,604, Euro Stoxx 50: +1.09% at 4,939, AEX: +0.41% at 907, IBEX 35: +0.33% at 11,837, FTSE MIB: +0.60% at 33,881, SMI: +0.51% at 12,027, PSI: +0.40% at 6,764

SECTORS: Consumer Disc 1.93%, Materials 1.91%, Consumer Stpl 0.86%, IT 0.67%, Industrials 0.49%, Financials 0.46%, Telecoms 0.33%, Energy 0.22%, Healthcare 0.22%, Utilities 0.13%

FTSE 100

AstraZeneca (AZN LN) / Amgen (AMGN) - Amgen said its experimental drug Rocatinlimab met all key secondary goals in a late-stage study. Co.'s drug Uplizna met the main foal in Myasthenia Gravis late-stage study. Amgen shares -2% after-hours after mixed data results; Also of note for AstraZeneca which produces a competing drug.

Flutter (FLTR LN) – Moody’s rating affirms Co’s BA1 ratings following announcing acquisition of Snaitech; outlook stable. (Newswires)

LSE Group (LSEG LN) - Co. has hired JPMorgan to find a buyer for the 5% stake in Euroclear, according to Sky News sources; could fetch roughly GBP 500mln and is now non-core to LSEG. (Newswires)

Shell (SHEL LN) - Co. seeks to supply Asia LNG market via Canada and Mexico with the Co. increasing its footprint in Canada and Mexico as it looks to export LNG to Asia, according to Nikkei. Construction of Shell's LNG facility in Kitimat, British Columbia, Canada, is 95% complete. Shell plans to increase LNG sales volume by about 20% to 30% by 2030. Shell's LNG facility in Kitimat, British Columbia, Canada, is ready to start shipping cargoes by mid-2025. (Nikkei) Separately, Co. is monitoring tropical storm Helene for potential impacts to its assets and operations in the Gulf of Mexico, with a shift in the forecast track of the storm, they are beginning the process of restoring production at their Stones platform. (Newswires)

OTHER UK COMPANIES

Wizz Air (WIZZ LN) - Co. proposes a 300% bonus for its CEO Varadi due to his handling of continued geopolitical challenges and engine issues, according to Bloomberg. (Bloomberg)

BROKER MOVES

DAX

Commerzbank (CBK GY) - Co. named Bettina Orlopp as the new CEO and is to succeed Knof; Michael Kotzbauer was appointed deputy CFO. (Newswires)

SAP SE (SAP GY) - The DoJ is investigating SAP SE, Carahsoft Technology, and others for potential price-fixing on government contracts, Bloomberg reports. The probe has been active since 2022 and looks to examine whether SAP conspired to overcharge US agencies, including the military, for software services over a decade. (Bloomberg) Shares -4.5% in pre-market trade / SAP holds a 12.86% weighting in the DAX 40

Volkswagen (VOW3 GY) - Co. and unions have commenced talks over wide-ranging cost cuts, although tensions on both sides are said to be at the highest they have been in years. Negotiations are regarding Volkswagen's plans to potentially close factories in Germany. (Bloomberg)

OTHER GERMAN COMPANIES

Pfizer (PFE) / BionTech (22UA GY) – Received Health Canada approval of Omicron Kp.2 variant adapted Covid-19 vaccine. (Newswires)

BROKER MOVES

CAC

Bouygues (EN FP) – The American Bureau of Shipping approved the Oostar floating wind foundation concept from Bouygues Travaux Publics. (Newswires)

Danone (BN FP) - Lifeway Foods (LWAY) confirmed the receipt of an unsolicited proposal from Danone for USD 25/shr (vs USD 26.57 close on Tuesday) and the board is to review and evaluate the offer. (Newswires)

Engie (ENGI FP) - BoD proposes Catherine MacGregegor’s reappointment as CEO. (Newswires)

Sanofi (SAN FP) - Co. reportedly to get binding bids from CD&R and PAI for a consumer arm that could be valued at EUR 15bln or more, according to Bloomberg. (Newswires)

TotalEnergies (TTE FP) – Co. and JGC were awarded a feed contract by Exxon (XOM) for the Rovuma LNG project in Mozambique. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Air France (AF FP) upgraded to Overweight from Underweight at JP Morgan

PAN EUROPE

Banca Generali (BGN IM) – Received additional commitments to accept a takeover bid on Intermonte about 17% of Intermonte shares. (Newswires)

Exor (EXO NA) – Net debt was EUR 4.7bln (prev. 4bln Y/Y). Strong cash flow generation with EUR 1.5bln dividends received. (Newswires)

NN Group (NN NA) – To sell its Turkish business; exp. to close in Q1’25. (Newswires)

Stellantis (STLAM IM/STLAP FP) – China’s Leapmotor (9863 HK) is set to open orders in Europe for city and SUV vehicles. Stellantis holds a 51% stake in Leapmotor. In other news, Co. is laying off nearly 200 people at its Ram 1500 plant, according to Automotive News. (Newswires / Automotive News)

UCB (UCB BB) - UCB presents new 4-year data for BIMZELX (bimekizumab) in moderate to severe plaque psoriasis at EADV 2024. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Baloise (BALN SW) initiated with Underweight at JP Morgan 

Helvetia (HELN SW) placed on JP Morgan’s Positive Catalyst watchlist; initiated with Overweight

Swiss Life (SLHN SW) reinstated with Neutral at JP Morgan

SCANDINAVIA

Bavarian Nordic (BAVA DC) – Awarded USD 63mln from the US Government for the production and supply of additional Smallpox/Mpox Vaccines. (Newswires)

Valmet (VALMT FH) – Co. to supply a complete pulp mill with full-scope automation and flow control solutions to Arauco in Brazil; order value over EUR 1bln and to be included in Q4’24. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.25% at 5,733, NDX +0.47% at 19,945, DJIA +0.2% at 42,208, RUT +0.17% at 2,224

SECTORS: Financials -0.92%, Utilities -0.76%, Consumer Staples -0.38%, Energy -0.29%, Health -0.22%, Real Estate -0.07%, Communication Services +0.40%, Industrials +0.70%, Consumer Discretionary +0.76%, Technology +0.79%, Materials +1.35%.

NVIDIA (NVDA) - CEO Jensen Huang has concluded his sale of six million shares for USD 713mln; "He's Done - for Now.", according to Barron's. (Barron's)

25 Sep 2024 - 06:51- Data- Source: Newsquawk