Newsquawk Daily European Equity Opening News - 28th November 2023

28th November 2023

ASIA

Asia-Pac stocks traded mixed heading closer to month-end amid the lower yield environment and after the lacklustre performance of US counterparts. ASX 200 (+0.4%) was higher with early outperformance on softer yields and following a break above the 7,000 level although the index finished off intraday highs following a surprise contraction in Retail Sales data. Nikkei 225 (-0.1%) failed to hold on to its opening gains and was pressured as a firmer currency paved the way for profit-taking. Hang Seng (-1.0%) and Shanghai Comp. (-0.2%) were lower despite recent support pledges by the PBoC as a report also suggested that China’s property lifeline exposes banks to large losses and job reductions.

Toyota (7203 JT) - Group of companies are planning to sell around 10% in Denso (6902 JT) by year-end in share sale worth around JPY 700bln with Toyota accounting for almost half of the sale. (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.39% at 4,355.15, SMI -0.54% at 10,821.06, FTSE 100 -0.37% at 7,460.70, FTSE MIB -0.31% at 29,342.29, DAX -0.39% at 15,966.37, CAC 40 -0.37% at 7,265.49, PSI +0.50% at 6,366.50, IBEX 35 -0.03% at 9,936.10.

SECTORS: Utilities 0.51%, Telecoms 0.33%, Consumer Stpl -0.13%, IT -0.17%, Industrials -0.23%, Financials -0.44%, Consumer Disc -0.47%, Materials -0.51%, Energy -0.58%, Healthcare -0.81%

FTSE 100

Barclays (BARC LN) - Explores plan to drop thousands of investment banking clients as part of a strategic overhaul aimed at boosting profits and cutting costs, according to the FT. (FT)

Barclays (BARC LN) / Lloyds (LLOY LN) - The market value of the holding The Daily Telegraph's parent company has been cut from GBP 47.8mln to 20mln after it unearthed a tax liability. A fund backed by Abu Dhabi would need to plug the tax hole if it negotiates a takeover with the Barclay family. (Newswires)

Hikma (HIK LN) - Receives US FDA ANDA supplement 6 approval for Deferiprone. (Newswires)

UK Retail - UK BRC Shop Price Index YY (Nov) 4.3% (Prev. 5.2%). (BRC)

OTHER UK COMPANIES

BROKER MOVES

B&M (BME LN) upgraded to Buy from Neutral at Citi

Frasers (FRAS LN) initiated with Overweight at Barclays

Lloyds (LLOY LN) upgraded to Overweight from Equal Weight at Morgan Stanley

M&G (MNG LN) initiated with Buy at Goldman Sachs

Man Group (EMG LN) downgraded to Equal Weight from Overweight at Morgan Stanley

Smith & Nephew (SN/ LN) upgraded to Equal Weight from Underweight at Barclays

DAX

OTHER GERMAN COMPANIES

Adler (ADJ GY) - 9M (EUR): FFO -7mln (+68mln Y/Y), Rental Income 160mln (prev. 187mln Y/Y). (Newswires)

BROKER MOVES

Continental (CON GY) upgraded to Buy from Hold at Berenberg

DWS Group (DWS GY) upgraded to Overweight from Equal Weight at Morgan Stanley

Infineon (IFX GY) upgraded to Buy from Hold at Jefferies

Merck (MRK GY) downgraded to Hold from Buy at DZ Bank

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

Euronext (ENX FP) upgraded to Overweight from Equal Weight at Morgan Stanley

PAN EUROPE

Argenx (ARGX BB) - Reports topline results from ADVANCE-SC study of VYVGART Hytrulo in primary immune thrombocytopenia. Study did not meet primary or secondary endpoints. (Newswires)

Eni (ENI IM) - Co. wins USD 600mln case against Uniper (UN01 GY), as a result of an arbitration court ruling over an LNG support contract that expired in 2022, via Reuters citing sources. (Newswires)

BROKER MOVES

ABN AMRO (ABN NA) downgraded to Hold from Buy at Deutsche Bank

BBVA (BBVA SM) upgraded to Overweight from Neutral at JP Morgan

Merlin Properties (MRL SM) upgraded to Buy from Neutral at Goldman Sachs

SMI

Novartis (NOVN SW) - Guides mid-term Revenue +5% CAGR. Mid-term sales guidance upgrade to 5% CAGR (2022-27), with core operating income margin of +40% by 2027, driven by continued strong momentum of key growth drivers. (Newswires)

Sika (SIKA SW) - Acquires 30% stake in Finnish start-up Co. specialising in innovative concrete floors, Concria Oyj. No terms disclosed. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Julius Baer (BAER SW) downgraded to Underweight from Equal Weight at Morgan Stanley

Nordnet (SAVE SW) downgraded to Underweight from Equal Weight at Morgan Stanley

SCANDINAVIA

BROKER MOVES

EQT (EQT SS) upgraded to Overweight from Equal Weight at Morgan Stanley

US

Amazon (AMZN) - Says it is focused on addressing EU concerns over the iRobot (IRBT) deal; EU regulators warned that Amazon's (AMZN) USD 1.4bln acquisition of iRobot (IRBT) may restrict competition in the market. (Newswires)

Tesla (TSLA) - Raises price for one type of Model Y in China. (Newswires)

28 Nov 2023 - 06:51- Research Sheet- Source: Newsquawk