Newsquawk Daily European Equity Opening News - 2nd June 2023

2nd June 2023

ASIA

APAC stocks traded higher as the region took impetus from Wall St where the S&P 500 and Nasdaq climbed to 9-month highs amid debt ceiling optimism, falling labour costs and dovish Fed commentary. ASX 200 was positive with the index led higher by the mining sector and after the Australian Fair Work Commission raised the minimum wage by 5.75%, although gains were capped by weakness in financials and after recent upward revisions to banks’ forecasts on the RBA’s peak rate. Nikkei 225 was underpinned amid comments from BoJ Governor Ueda who stuck to the dovish script, with SoftBank among the biggest gainers following a buy rating from Jefferies and as the Co. benefits from the recent AI tech bid in the build-up to the ARM IPO. Hang Seng and Shanghai Comp. conformed to the broad upbeat mood with Hong Kong significantly outperforming amid a rally in property and tech.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.94% at 4,257, FTSE 100 +0.59% at 7,490, DAX 40 +1.21% at 15,853, CAC 40 +0.55% at 7,137, FTSE MIB +2.01% at 26,575, IBEX 35 +1.30% at 9,167, SMI +0.71% at 11,297.

SECTORS: Energy 1.66%, Financials 1.27%, Industrials 1.21%, Materials 1.11%, IT 0.89%, Telecoms 0.48%, Consumer Disc 0.28%, Consumer Stpl 0.28%, Utilities -0.01%, Healthcare -0.06%

FTSE 100

Rio Tinto (RIO LN) - Co. is to invest just under USD 400mln in a Western Australian desalination plant. (Newswires)

OTHER UK COMPANIES

Dechra Pharmaceuticals (DPH LN) - EQT Partners is reportedly close to an agreement to purchase Dechra Pharmaceuticals, according to Bloomberg sources. In mid-April, a price of GBP 4.6bln was discussed, although the firms are likely to settle on a slightly lower price, according to sources. (Newswires)

BROKER MOVES

DAX

BMW (BMW GY) - Saudi Arabia is planning to expand its lithium processing with a second facility to supply BMW. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Alstom (ALO FP) - Co. has been selected to deliver rail vehicles in Pennsylvania in a deal worth around EUR 670mln. (Newswires)

Bollore (BOL FP) - Bollore's cash tender offer on its own shares closed short of target, according to Bloomberg. (Newswires)

BROKER MOVES

Remy Cointreau (RCO FP) reiterated with Underweight at JPMorgan Chase

PAN EUROPE

Auto Names - Senior officials in Brussels suggest the UK should join a pan-European trade agreement to limit damage to the auto industry from post-Brexit tariffs, according to the FT. (FT)

European Financial Sector - EU regulators flagged evidence of "widespread greenwashing" across the financial sector, with banks, asset managers, and insurers exaggerating their climate credentials, according to the FT. (FT)

Tech/Chip Names - Broadcom Inc (AVGO) and Dell (DELL) shares fell after-market following underwhelming guidance.

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.99% at 4,221, NDX +1.31% at 14,441, DJIA +0.47% at 33,061, RUT +1.05% at 1,767.

SECTORS: Technology +1.33%, Industrials +1.26%, Materials +1.24%, Energy +1.23%, Consumer Discretionary +1.22%, Communication Services +1.15%, Financials +1.09%, Health +0.67%, Real Estate +0.03%, Consumer Staples -0.09%, Utilities -0.78%.

Bank of America (BAC) - CEO Moynihan said US consumer spending is slowing; restaurant spending down to 3% Y/Y from 17% and spending up only 3% this month, down from 9% growth. "You're seeing signs of a slowdown coming.". (Newswires)

Broadcom Inc (AVGO) - Q2 2023 (USD): Adj. EPS 10.32 (exp. 10.08), Revenue 8.73bln (exp. 8.71bln). Semiconductor solutions revenue USD 6.81bln (exp. 6.72bln). infrastructure software revenue USD 1.93bln (exp. 1.92bln). Sees Q3 revenue USD 8.85bln (exp. 8.76bln). (PR Newswire)*Shares fell 1.8% after market. *

Dell (DELL) - Q1 2023 (USD): Adj. EPS 1.31 (exp. 0.85), Revenue 20.9bln (exp. 20.1bln). Guides Q2 revenue between USD 20.2-21.2bln (exp. 21bln). Co. sees a 2% sales impact from FX. (Newswires) *Shares fell 2.9% after market. *

Microsoft (MSFT) - Co. inks deal for AI computing power with Nvidia-backed CoreWeave (NVDA) that could be worth billions, according to CNBC. (CNBC) Separately, Microsoft execs are actively looking at ways to close the USD 69bln acquisition of Activision Blizzard (ATVI) despite a UK veto on the deal, according to MLex. (MLex)

02 Jun 2023 - 06:38- Fixed IncomeResearch Sheet- Source: Newsquawk