Newsquawk Daily European Equity Opening News - 26th March 2024

26th March 2024

ASIA

APAC stocks were choppy after a similarly subdued handover from Wall St owing to early tech headwinds and ahead of month-end. ASX 200 declined as tech losses clouded over the outperformance in the energy sector, while weaker Consumer Confidence added to the glum mood. Nikkei 225 swung between gains and losses amid an indecisive currency and inconclusive Services PPI data. Hang Seng and Shanghai Comp. saw two-way price action with earnings releases in focus, while the mainland failed to sustain early optimism from the PBoC's more forceful liquidity operation.

BYD (1211 HK) - Co. is to launch Yuan Up compact electric SUV developed based on its EV architecture e-platform 3.0 today. (Newswires)

Chinese Stocks - China is seen to deliver more RRR cuts with economists forecasting two more RRR reductions this year to boost stimulus, according to Bloomberg. (Bloomberg)

EUROPEAN CLOSES

CLOSES: DAX: +0.34% at 18,268, FTSE 100: -0.17% at 7,918, CAC 40: 0.00% at 8,152, Euro Stoxx 50: +0.26% at 5,044, IBEX 35: +0.08% at 10,952, FTSE MIB: +0.86% at 34,639, SMI: -0.13% at 11,637.

SECTORS: Energy 0.98%, Utilities 0.30%, Consumer Disc 0.22%, Financials 0.19%, IT 0.17%, Telecoms 0.02%, Materials -0.02%, Healthcare -0.02%, Consumer Stpl -0.04%, Industrials -0.61%

FTSE 100

AstraZeneca (AZN LN) - The CEO said they expect to launch about 100 new medicines and indications in China in the next five years. (Newswires)

British American Tobacco (BATS LN) - CEO Marroco has said the UK ban on disposable vapes will not be effective, and increasing the legal smoking age would have “non-intended consequences. (BBC)

Unilever (ULVR LN) - Advances major decarbonisation project at four factories. Selected by the US DoE for award negotiations of up to USD 20.9mln of support. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

K+S (KWS GY) - Co. sells corn business and licenses for KWS breeding material in South America. Transaction will have a significant positive impact on key financial indicators on the Co and volume amounts to mid-three-digit mln EUR amount. (Newswires) Shares +5.9% in pre-market trade.

Nordex (NDX1 GY) – Nordex obtains order for 336MW in South Africa. Order is in acluster of three wind farms with 112.1 MW each. (Newswires)

Wacker Neuson (WAC GY) - FY23 (EUR): Revenue 2.54bln (exp. 2.65bln), EBIT 273.2mln. FY24: Revenue 2.40-2.60bln, EBIT Margin 8-9%. (Newswires)

BROKER MOVES

Porsche (P911 GY) upgraded to Buy from Hold at Berenberg

CAC

Credit Agricole (ACA FP) - Co. said it will not fund the Papua New Guinea LNG project. (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - FY23 (EUR): Revenue 10.69bln (exp. 10.86bln), Op. margin 467mln (prev. 356mln Y/Y). Co. will not propose a dividend and says it has entered conciliation to reach a refinancing deal. FY24 outlook not provided given "uncertainties". Co. also withdraws the previously communicated 2026 outlook. (Newswires)

Technip Energies (TE FP) - Co. and Lanzatech selected by US DoE to receive USD 200mln investment for a decarbonised ethylene facility. (Newswires)

BROKER MOVES

BNP Paribas (BNP FP) upgraded to Buy from Neutral at Goldman Sachs

LVMH (MC FP) upgraded to Overweight from Equal Weight at Barclays

PAN EUROPE

BAE Systems (BA/ LN)/Leonardo (LDO IM) - Japan has approved a revision to its export controls which will allow the sale of the joint UK/Italy/Japan fighter jet to other nations. (FT) Japan is involved via Mitsubishi Heavy (7011 JT)

Caixabank (CABK SM) - Reduces stake in Telefonica (TEF SM) to 2.510% (prev. 3.510%) by delivering 1% to the counterparty. The transaction is expected to have no meaningful impact on P/L. (Newswires)

BROKER MOVES

Bawag (BG AV) initiated with Overweight at Morgan Stanley

Bankinter (BKT SM) initiated with Equal Weight at Barclays

BBVA (BBVA SM) downgraded to Equal Weight from Overweight at Barclays

Enel (ENEL IM) upgraded to Overweight from Equal Weight at Morgan Stanley

Santander (SAN SM) upgraded to Overweight from Equal Weight at Barclays

Stellantis (STLAM IM/STLAP FP) downgraded to Hold from Buy at Berenberg

SMI

OTHER SWISS COMPANIES

Baloise (BALN SW) - FY23 (CHF): EBIT 344.4mln (353mln), Net Income 239.6mln (exp. 258mln), Dividend/shr 7.70 (exp. 7.65). Co. says it is well on track to achieve the cash target of CHF 2bln. Elsewhere, the board of directors encourages shareholders to vote and recommends that zCapital's proposal be rejected. (Newswires)

BROKER MOVES

SCANDINAVIA

Skanska (SKAB SS) – Signs contract amendment to build a school in USA for USD 211mln. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.31% at 5,218, NDX -0.34% at 18,227, DJIA -0.14% at 39,313, RUT +0.10% at 2,074.

SECTORS: Industrials -0.68%, Technology -0.52%, Real Estate -0.42%, Communication Services -0.35%, Financials -0.29%, Consumer Staples -0.27%, Consumer Discretionary -0.21%, Health -0.16%, Materials +0.03%, Utilities +0.46%, Energy +0.92%.

Dell Technologies (DELL) - Co. said despite near-term challenges, expect the demand environment to improve in fiscal 2025 enabling net revenue growth for the full fiscal year. Expect input costs to rise in fiscal 2025, principally driven by anticipated inflation for component costs as the year progresses. Anticipate the pricing environment to be more competitive in fiscal 2025, which it began to observe during H2 of fiscal 2024. Forecasts continued reduction of other businesses’ net revenue in 2025 as a result of a change in commercial relationship with VMware. Expect CSG net revenue growth for the full fiscal year, driven in part by the anticipated PC refresh cycle in the latter part of fiscal 2025. Plan to mitigate the impact of dynamics of input cost trends through continued disciplined cost management. Actions taken in fiscal 2024 resulted in a reduction in the overall headcount.

Tesla (TSLA) - Co. is to test driver-assist technology with customers before all sales, according to an internal memo

26 Mar 2024 - 06:52- Research Sheet- Source: Newsquawk