Newsquawk Daily European Equity Opening News - 27th March 2024

27th March 2024

ASIA

APAC stocks traded mixed after the subdued handover from Wall St heading into quarter-end and Easter. ASX 200 was underpinned by strength in the top-weighted financials and consumer-related sectors, while data also provided a tailwind after an improved leading index and softer-than-expected monthly CPI. Nikkei 225 outperformed as the yen fell to a 33-year low amid dovish-leaning BoJ comments. Hang Seng and Shanghai Comp. declined amid a slew of earnings and weakness in tech with Alibaba pressured after it withdrew its Cainiao IPO application, while the mainland failed to benefit from the PBoC's firm liquidity operation and improved Industrial Profits.

SK Hynix (000660 KS) - CEO expects HBM chips to account for a double-digit percentage of DRAM sales this year vs a single-digit percentage in 2023. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.76% at 18,399, FTSE 100: +0.17% at 7,931, CAC 40: +0.41% at 8,185, Euro Stoxx 50: +0.42% at 5,065, IBEX 35: +0.36% at 10,992, FTSE MIB: +0.14% at 34,688, SMI: +0.37% at 11,680.

SECTORS: Financials 0.62%, Industrials 0.44%, Consumer Stpl 0.43%, Telecoms 0.35%, Consumer Disc 0.13%, Healthcare 0.05%, Utilities -0.10%, IT -0.11%, Materials -0.16%, Energy -0.46%

FTSE 100

HSBC (HSBA LN) - Co. is setting up a USD 1bln ASEAN growth fund to invest and grow digital platform businesses in southeast Asia, according to Reuters. (Newswires)

NatWest (NWG LN) - Co. is reportedly slashing its executive team in a bid to "remove unnecessary complexity" as it prepares for mass share sale, according to the FT. (FT)

OTHER UK COMPANIES

DS Smith (SMDS LN) - Co. confirmed it is in discussions with International Paper (IP) regarding a GBP 5.7bln proposal to acquire DS Smith. DS Smith shareholders would receive 0.1285 shares in IP for each share they own in DS Smith. Co. is also continuing talks with Mondo (MNDI LN) over a possible all-share offer too. (Newswires)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Aroundtown (AT1 GY) – FY23 (EUR): Adj. EBITDA 1bln (exp. 910mln), EPS -1.82, Net Profit -2.4bln. Due to current macro-economic environment Co. will not pay dividends. (Newswires)

Nordex (NDX1 GY) - Receives 98MW order from Sweden. (Newswires)

Rational (RAA GY) - FY23 (EUR): Revenue 1.12bln (exp. 1.12bln), EBIT 277mln (exp. 273mln), EBIT margin 24.6%. Dividend 13.50/shr (exp. 13.65/shr). FY24: Continuation of a long-term growth trend with stable earning power; outlook is optimistic. Expect growth in sales volumes and sales revenues in the mid to high single-digit % range compared to the prior year. (Newswires)

Sixt (SIX2 GY) – Expects revenue to increase significantly in 2024 compared to the prior year and EBT of EUR 400mln-520mln. (Newswires)

Telefonica Deutschland (O2D GY) - The management board and supervisory board jointly recommend acceptance of the public delisting acquisition offer, against a cash consideration of EUR 2.35/shr. The acceptance period commenced on 20th March 2024 and expires on 18 April 2024. (Newswires)

BROKER MOVES

BMW (BMW GY) downgraded to Hold from Buy at Jefferies

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

argenx (ARGX BB) - Advances clinical development of Efgartimod in primary Sjogren's disease. Plans to continue the development of the drug to Phase 3 in adults. (Newswires)

JDE Peet's (JDE NA) - Completes transactions to manufacture, market and sell Caribou-branded consumer and food service coffee productions. (Newswires)

LPP (LPP PW) - FY23 (PLN) - Net Profit 1.61bln (prelim. 1.61bln), Revenue 17.41bln (prelim. 17.41bln), EBIT 2.28bln (prelim. 2.28bln). (Newswires)

Monte Dei Paschi (BMPS IM) - Italy's Treasury says it sold 12.5% of Monte Dei Paschi at EUR 4.15/shr to raise EUR 650mln with its stake cut to 26.73% from 39.23%. (Newswires)

Universal Music Group (UMG NA) - Co. and Hybe announce a collaboration, providing them exclusive distribution rights across Hybe for 10 years. (Newswires)

BROKER MOVES

Adyen (ADYEN NA) upgraded to Overweight from Equal Weight at Morgan Stanley

SMI

ABB (ABBN SW) - Announces that Executive member Tarak Mehta is to leave. (Newswires)

Roche (ROG SW) - Receives US FDA approval for the first molecular test to screen Malaria in blood donors; first FDA-approved test to screen US blood donors for Malaria. The test will be available end of Q2'24 and approval in CE-marked countries is anticipated later in the year. (Newswires)

UBS Group AG (UBSN SW) - Co. and Apollo conclude investment management and transition services agreements as the final step in the carve-out of former Credit Suisse securitized products business Atlas SP. Apollo will purchase USD 8bln of senior secured financing facilities from UBS. (Newswires)

OTHER SWISS COMPANIES

Accelleron (ACCN SW) - FY23 (USD): Revenue 914.9mln (exp. 893.4mln), EBITA 223.1mln (exp. 230mln). (Newswires)

DKSH (DKSH SW) - Shareholders approved all motions with a clear majority. (Newswires)

SIG (SIGN SW) - Moody's affirms Sig's B1 rating and changes outlook to Negative from Stable. (Newswires)

BROKER MOVES

SCANDINAVIA

Skanska (SKAB SS) - Conducts civil engineering works in Sweden for about SEK 300mln. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.28% at 5,203, NDX -0.36% at 18,210, DJIA -0.08% at 39,282, RUT -0.19% at 2,070.

SECTORS: Utilities -1.14%, Energy -0.76%, Technology -0.76%, Real Estate -0.45%, Industrials -0.36%, Communication Services

GameStop Corp (GME) - Q4 2023 (USD): Adj. EPS 0.22 (exp. 0.30), Revenue 1.79bln (exp. 2.05bln). Recently undertaken cost reduction measures to improve efficiency, including initiatives to reduce headcount. (Newswires) Shares fell 15% after-market.

General Motors (GM) - CFO said EV demand is much slower than what the industry forecast. (Newswires)

Johnson & Johnson (JNJ) - Co. is considering a deal for Shockwave Medical (SWAV), according to WSJ. WSJ notes "A deal could be finalized in the coming weeks, assuming talks don’t fall apart, according to people familiar with the matter. It is also possible another suitor could emerge." (WSJ)

27 Mar 2024 - 06:48- EnergyExclusive- Source: Newsquawk