Newsquawk Daily European Equity Opening News - 2nd March 2022

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

APAC stocks traded mostly negative following the weak handover from Wall St where all major indices declined and bonds surged as the ongoing geopolitical turmoil surrounding Ukraine spurred a flight to safety and firm rally in oil prices. ASX 200 gained with the index led higher by the energy sector after Brent crude reclaimed the USD 110/bbl level. Nikkei 225 was pressured as exporters suffered the ill-effects of recent outperformance in the domestic currency and with automakers subdued after several reported a decline in US auto sales for last month. Hang Seng and Shanghai Comp. were subdued following a substantial liquidity drain by the PBoC but with losses cushioned by strength in China’s oil majors and with Baidu shares rallying after it beat on earnings.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -4.0% at 3,765, FTSE 100 -1.7% at 7,330, DAX 40 -3.9% at 13,904, CAC 40 -3.9% at 6,396, FTSE MIB -4.1% at 24,363, IBEX 35 -3.4% at 8,188, SMI -1.0% at 11,862.

SECTORS: Basic Materials 1.11%, Healthcare 0.46%, Energy -0.40%, Telecoms -1.68%, Technology -2.78%, Industrials -3.07%, Consumer Goods -3.14%, Utilities -4.40%, Consumer Services -4.45%, Financial Services -4.57%

FTSE 100

Evraz (EVZ LN), Polymetal (POLY LN), easyJet (EZJ LN) & Endeavour Mining (EDV LN) - Evraz and Polymetal could be removed from the FTSE 100 in the next reshuffle, alterations will be confirmed after Wednesday’s close; while Endeavour Mining could be added and easyJet is no longer expected to be readmitted. (City AM)

Glencore (GLEN LN) - Co. is reviewing all activities, including stakes in EN+ and Rosneft; has no operational footprint in Russia. (Newswires)

OTHER UK COMPANIES

Capita (CPI LN), Cineworld (CINE LN) & Shin Nippon (BGS LN) - Co’s could be removed from the FTSE 250 at the next reshuffle, alterations will be confirmed after Wednesday’s close. (Times)

BROKER MOVES

BT (BT/A LN) downgraded to Neutral from Outperform at Credit Suisse

Flutter Entertainment (FLRT LN) reiterated with Overweight at JPMorgan Chase

Royal Mail (RMG LN) downgraded to Sell from Hold at Liberum Capital

Sage Group (SGE LN) upgraded to Buy from Hold at Shore Capital

Travis Perkins (TPK LN) upgraded to Buy from Add at Peel Hunt

DAX

BMW (BMW GY) - Halted vehicle exports to Russia due to the war. (Newswires)

OTHER GERMAN COMPANIES

Sixt (SIX2 GY) - Guides FY21 pre-tax at the upper end of the prior range and proposes a FY21 dividend of EUR 3.70/shr (exp. EUR 2.21/shr). (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Biomeriux (BIM FP) - FY21 (EUR): Revenue 3.38bln (prev. 3.12bln Y/Y). EBIT 801mln (prev. 613mln). Net 601mln (prev. 404mln). (Newswires)

Europcar Mobility (EUCAR FP) - FY21 (EUR): Revenue 2.27bln (prev. 1.76bln Y/Y). EBITDA 283.6mln (prev. 171.9mln). (Newswires)

BROKER MOVES

Atos (ATO FP) downgraded to Hold from Buy at HSBC

Schneider Electric (SU FP) upgraded to Buy from Hold at HSBC

PAN EUROPE

Banca Monte Dei Paschi (BMPS IM) - Italy is to reportedly offer Axa (CS FP) and Anima (ANIM IM) chances to invest in Monte Dei Paschi's capital increase. (Newswires)

Banking Names - Russian Bank Sberbank decided to leave the European market. (Tass)

Eni (ENI IM) - Plans to sell its stake in the Blue Stream gas pipeline linking Russia to Turkey which it currently co-owns with Gazprom. (Newswires)

Russian companies - Stoxx to axe 61 Russian companies from its indices, according to FT. (FT)

Stellantis (STLA IM/FP) - Jeep is to reportedly offer its first electric SUV next year, according to reports. (Newswires)

BROKER MOVES

Erste Bank (EBS AT) reiterated with Overweight at JPMorgan Chase

NN Group (NN NA) upgraded to Buy from Hold at HSBC

Siemens Gamesa (SGRE SM) downgraded to Reduce from Hold at HSBC

SMI

Credit Suisse (CSGN SW) – Co. has sent letters to investors requesting that they destroy/erase confidential documentation which relates to the securitisation of loans against “jets, yachts, real estate and/or financial assets”, according to individuals from firms which received such letters; some of the loans were made to oligarchs who have since been sanctioned. (FT)

OTHER SWISS COMPANIES

Kuehne & Nagel (KNIN SW) - FY21 (CHF): Net revenue 32.80bln (exp. 30.39bln). EBITDA 3.68bln (exp. 3.42bln). (Newswires)

BROKER MOVES

ABB (ABB SW) downgraded to Hold from Buy at HSBC

SCANDINAVIA

Genmab (GMAB DC) - US FDA granted orphan drug designation for epcoritamab. (Newswires)

Ericsson (ERICB SS) - US DOJ informed Ericsson that the disclosure made by the company prior to the Deferred Prosecution Agreement (DPA) about its internal investigation into conduct in Iraq in the period 2011 until 2019 was insufficient. Furthermore, it determined that the company breached the DPA by failing to make subsequent disclosure related to the investigation post-DPA. (Ericsson)

BROKER MOVES

Novo Nordisk (NOVOB DC) upgraded to Buy from Neutral at Citigroup

Vestas Wind Systems (VWS DC) downgraded to Reduce from Hold at HSBC

US

CLOSES: S&P 500 -1.6% at 4,304, Nasdaq 100 -1.6% at 14,005, Dow Jones -1.8% at 33,293, Russell 2000 -1.7% at 2,008.

SECTORS: Financials -3.7%, Materials -2.3%, Technology -1.9%, Industrials -1.5%, Consumer Discretionary -1.4%, Communication Services -1.2%, Utilities -0.8%, Consumer Staples -0.6%, Health -0.6%, Real Estate -0.2%, Energy +1.0%.

FTSE Russell schedule for 34th annual reconstitution of Russell US indexes suite is set to occur end-June, while rebalancing process is designed to capture market shifts from the prior year. Schedule includes 27th June for equity markets opening with the newly reconstituted Russell US indexes. (Newswires)

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field.


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

02 Mar 2022 - 06:52- MetalsResearch Sheet- Source: Newsquawk