Newsquawk Daily European Equity Opening News

30th May 2023

ASIA

Asia-Pac stocks traded mixed with price action mostly rangebound following the holiday closures in the US and the UK where cash markets have yet to react to the tentative debt ceiling agreement. ASX 200 (-0.1%) was lacklustre amid losses in real estate and financials, while disappointing Building Approvals data added to the glum mood. Nikkei 225 (-0.3%) was choppy but remained above the 31,000 level after BoJ Governor Ueda reiterated a dovish message, while KOSPI (+0.9%) outperformed as it plays catch up on return from the extended weekend. Hang Seng (-0.7%) and Shanghai Comp. (-0.7%) were pressured as the Hang Seng China Enterprises Index entered bear market territory which added to the jitters from the already cautious mood heading into tomorrow’s PMI data.

EUROPEAN CLOSES

BOURSES: Euro Stoxx 50 +1.18% at 4,320, FTSE 100 +0.74% at 7,627, DAX 40 -0.2% at 15,952, CAC 40 -0.2% at 7,303, FTSE MIB -0.4% at 26,617, IBEX 35 -0.1% at 9,180, SMI +0.96% at 11,433.

SECTORS:

FTSE 100

Rolls-Royce (RR/ LN) - Co. says it has made no decisions on workforce changes. Follows the Sunday Times reporting that the Co. is looking to cut circa. 3k non-manufacturing employees. (Newswires/Times)

St James Place (STJ LN) - Co. has reportedly began the search for a replacement for CEO Croft, sources add that there is no rush. (Sky News)

Whitbread (WTB LN) - Co. is reportedly exploring options for the pub/restaurant arm, according to sources which add that talks are prelim. and only a small component of the unit is under consideration. (Telegraph)

WPP (WPP LN) - Co. and Nvidia partner to build AI-enabled content engine for digital advertising. (Newswires)

OTHER UK COMPANIES

Superdry (SDRY LN) - Co. is reportedly in discussions to outsource the operation of its e-commerce unit to Shopify. (Times)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Talanx (TLX GY) - Acquires companies from Liberty Mutual Insurance Inc. The purchase price is expected to be approximately EUR 1.38bln. (LMG)

BROKER MOVES

Puma (PUM GY) upgraded to Buy from Add at Baader Helvea

Siltronic (WAF GY) upgraded to Buy from Hold at Jefferies

CAC

Airbus (AIR FP) - Boeing is in talks to sell over 150 737 Max jets to a new carrier owned by Saudi Arabia’s sovereign wealth fund, Riyadh Air, Bloomberg reported. Airbus may also secure a portion of the order. Separately, Cathay Pacific is set to order Boeing 777-8F freighters worth USD 2bln, choosing Boeing over Airbus A350 for the partial renewal of its cargo fleet, Reuters reports.. (Newswires)

Valneva (VLA FP) - Filing of a regulatory application with Health Canada for marketing approval of the Company’s single-shot chikungunya vaccine candidate, VLA1553, in persons aged 18 years and above. If accepted, Health Canada will provide additional information on the potential approval timeline. (Valneva)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Eni (ENI IM) - Co. and RINA sign partnership to accelerate the energy transition and decarbonisation of maritime transport. (Rina)

Stellantis (STLAM IM/STLAP FP) - Discussions to prevent Co. from moving its EV plant out of Canada are reportedly at an impasse, as the Canadian Gov'ts latest offer is short of what Co. wants, according to sources; which add the offer is above USD 1bln but would not be enough due to the US IRA. (The Star)

UCB (UCB BB) - To present commitment in advancing CARE in immune-mediated inflammatory diseases with 23 abstracts. (UCB)

BROKER MOVES

EDP (EDP PL) maintained with Overweight at JPMorgan

Prysmian (PRY IM) maintained with Overweight at JPMorgan

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

SBB (SBB SS) - Swedish property firm SBB, facing a debt crisis, is contemplating a breakup, Bloomberg reports. The strategic review may lead to selling the company, segments, or assets, excluding new shares. (Newswires)

BROKER MOVES

Ericsson (ERICB SS) initiated with Buy at Nordea

Volvo (VOLVB SS) initiated with Buy at Nordea

US

CLOSES: SPX +1.3% at 4,205, NDX +2.58% at 14,298, DJIA +1.00% at 33,093, RUT +1.05% at 1,773.

SECTORS: Technology +2.68%, Consumer Discretionary +2.38%, Communication Services +1.71%, Real Estate +1.17%, Industrials +0.77%, Financials +0.74%, Materials +0.42%, Consumer Staples +0.35%, Utilities -0.1%, Health -0.17%, Energy -0.37%.

Nvidia (NVDA) - Unveiled more AI products. Announced custom AI model foundry service NVIDIA Avatar Cloud Engine for Games. Nvidia GH200 Grace Hopper Superchip enters full production. Announced a new class of large-memory AI supercomputer, the NVIDIA DGX supercomputer powered by NVIDIA GH200 Grace Hopper Superchips and the NVIDIA NVLink Switch System, created to enable the development of generative AI language applications. Unveiled NVIDIA MGX server specification. It also launched accelerated ethernet platform for hyperscale Generative AI. Separately, it receives a cautious mention in Barron’s; said Nvidia might become the world’s first trillion-dollar chip stock, but it’s not worth chasing after its recent surge. Elsewhere, Nvidia and SoftBank are collaborating on a platform for generative AI and 5G/6G applications based on the NVIDIA GH200 Grace Hopper Superchip. Separately, WPP and Nvidia partner to build AI-enabled content engine for digital advertising.

30 May 2023 - 06:50- Research Sheet- Source: Newsquawk