Newsquawk Daily European Equity Opening News - 28th June 2024

28th June 2024

ASIA

APAC stocks were mostly higher heading to month-, quarter-, and half-year end following the positive bias stateside but with gains capped as participants digest a slew of data and await the Fed's preferred inflation gauge. ASX 200 was led higher by tech strength but with upside limited by weakness in miners and materials. Nikkei 225 benefitted from recent currency weakness, while there was also a slew of data releases including mostly firmer-than-expected Tokyo inflation and a return to growth in Industrial Production. Hang Seng and Shanghai Comp. were positive in tandem with the gains in regional peers with catalysts light although there were comments from President Xi who reaffirmed the China opening up message.

EUROPEAN CLOSES

CLOSES: DAX: +0.28% at 18,205, CAC 40: -1.03% at 7,531, PSI: -0.36% at 6,523, FTSE 100: -0.55% at 8,180, IBEX 35: -0.72% at 10,952, FTSE MIB: -1.06% at 33,187, SMI: flat at 12,018, Euro Stoxx 50: -0.27% at 4,903.

SECTORS: IT 0.72%, Energy 0.49%, Industrials -0.13%, Materials -0.18%, Telecoms -0.20%, Financials -0.22%, Healthcare -0.85%, Consumer Disc -1.06%, Utilities -1.35%, Consumer Stpl -1.48%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Atos (ATO FP) - Resignation of Mr David Layani and Ms Helen Lee Bouygues from the BoD. (Newswires)

BROKER MOVES

PAN EUROPE

Battery Names - Fluor's (FLR) Advanced Technologies & Life Sciences business secured an EPCM contract for Phase One of Swedish battery maker Northvolt's USD 4.8bln lithium-ion battery factory in Heide, Germany. Fluor will recognise its portion of the project in Q2 2024. (Newswires)

Grifols (GRF SM) - Says EUR 1.6bln net cash proceeds from sale of 20% equity stake in Shanghai RAAS are currently deposited in Cos. bank account; said proceeds will be fully allocated to reduce 2025 senior secured notes. (Newswires)

Generali (G IM) - Carlo Trabattoni appointed Chair of Generali Investments Luxemburg. (Newswires)

Sports Retailers - Nike (NKE): Q4 2024 (USD): EPS 0.99 (exp. 0.83), Revenue 12.61bln (exp. 12.84bln). Shares -12% after-hours; details in the US section; *Adidas (ADS GY) -3.2% pre-market; Puma (PUM GY) -4% pre-market*

Steel Names - Tata Steel (TATA) in the UK is to take steps to cease operations at its steel plant in Port Talbot by July 7th, earlier than planned, because of a strike by unite, workers have been told, according to Reuters

OMV (OMV AV) - Reinhard Florey reappointed as OMV CFO until June 30th, 2027. (Newswires)

Unipol (UNI IM) - Fabio Cerchiai has resigned as Vice President following his appointment at BPER Banca (BPE IM). (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Nokia (NOKIA FH), Infinera (INFN) - Nokia will acquire Infinera in a deal with an enterprise value of USD 2.3bln. The move comes as Nokia looks to expand its optical network business, especially in the North American market. The deal price of USD 6.65/shr represents a premium of 26.4% to Infinera's closing price of USD 5.26 on Thursday. Nokia will pay Infinera at least 70% in cash, and Infinera's shareholders can opt to receive up to 30% of the aggregate consideration in the form of Nokia's American Depositary Shares. (Newswires) Shares in optical vendor Infinera rose 18% afterhours

BROKER MOVES

US

CLOSES: SPX flat at 5,483, NDX +0.19% at 19,789, DJI flat at 39,164, RUT +1.0% at 2,038.

SECTORS: Consumer Staples -0.5%, Materials -0.32%, Financials -0.25%, Health -0.17%, Industrials flat, Technology flat, Utilities +0.14%, Energy +0.25%, Communication Services +0.77%, Consumer Discretionary +0.9%, Real Estate +0.93%.

Nike Inc (NKE) - Shares fell over 12% afterhours after it said quarterly sales will fall 10%, and it warned on China weakness, as it loses ground to other upstarts. Q4 EPS 0.99 (exp. 0.83), Q4 revenue USD 12.61bln (exp. 12.84bln); North America revenue USD 5.28bln (exp. 5.44bln), EMEA revenue USD 3.29bln (exp. 3.31bln), Greater China rev. USD 1.86bln (exp. 1.83bln), Asia Pacific & Latin America rev. USD 1.71bln (exp. 1.74bln), Footwear revenue -3.6% Y/Y to USD 8.24bln (exp. 8.64bln); Q4 gross margin 44.7% (exp. 45.3%); Q4 Inventory USD 7.52bln (exp. 7.99bln). Said Q4 challenges led to update its FY25 outlook. Sees Q1 revenue -10% (exp. 12.5bln), and sees Q1 gross margin expansion of 10-30bps. Execs said FY25 will be a transition year; FY25 revenue seen lower by mid-single digits (exp. 52.1bln) after H1 revenue will be down high-single digits. For FY25, expects gross margin expansion 10-30 basis points, and sees SG&A growth up slightly. Warned that China near term outlook has softened. (Newswires) Shares -12% after-hours

28 Jun 2024 - 06:48- EquitiesResearch Sheet- Source: Newsquawk