Newsquawk Daily European Equity Opening News - 30th August 2023

30th August 2023

ASIA

APAC stocks are trading positively across the board following the JOLTS-induced gains seen on Wall Street which ultimately led to more dovish Fed market pricing. ASX 200 sees its upside driven by the Industrial sector and closely followed by its gold sector, with a further boost seen from the softer-than-expected Aussie CPI data. Nikkei 225 sees its machinery sector leading the gains, although the index’s upside is hampered by the recent gains in the JPY. Hang Seng and Shanghai Comp both opened with gains as the region conformed to the global risk appetite, with the Shanghai Comp on a more cautious footing after US Commerce Secretary Raimondo suggested US firms complain that China is “un-investable”.

Chip Names - China exploring ways to make its own AI memory chips despite US sanctions, SCMP sources say; China’s top DRAM maker, ChangXin Memory Technologies, is the country’s best hope for specialist chips, but it may take up to four years to deliver products. (Newswires)

Toyota (7203 JT) - Parent-only July global sales +7.8% Y/Y; US sales +8.1% Y/Y; China sales -15.4% Y/Y. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.88% at 15,931, FTSE 100 +1.72% at 7,465, CAC 40 +0.67% at 7,373, Euro Stoxx 50 +0.81% at 4,327, IBEX 35 +0.96% at 9,581, FTSE MIB +1.21% at 28,890, SMI +0.67% at 11,107.

SECTORS: Materials 1.34%, Consumer Disc 1.25%, Utilities 1.25%, IT 1.23%, Telecoms 1.09%, Industrials 1.04%, Financials 1.00%, Energy 0.79%, Healthcare 0.55%, Consumer Stpl 0.49%

FTSE 100

Flight Names – UK CAA is in discussions with the gov’t regarding the scope of an inquiry into the air traffic system failure on Bank Holiday Monday, via FT citing sources. (FT)

Housing Names - The number of home sales this year is forecast to be the lowest since 2012, with Zoopla expecting a 21% drop in transactions YY, according to The Times. (The Times)

Prudential (PRU LN) - H1 (USD): Adj. Op 1.46bln (prev. 1.66bln YY), APE Sales 3.03bln, +42% YY. First interim dividend of 6.26c/shr. Expects growing new business profit at 15-20% compound annual growth between 2022-2027. Expect to invest 1bln in enhancing core capabilities across three strategies. (Newswires)

OTHER UK COMPANIES

Marks & Spencer (MKS LN) – Co. is on track to re-enter the FTSE 100 as its share price has increased markedly this year. (Guardian)

BROKER MOVES

Sage (SGE LN) upgraded to Buy from Add at Numis

DAX

Lufthansa (LHA GY) - Reportedly exploring sale of its aviation insurance broker and insurer business, according to Bloomberg. (Bloomberg)

RWE (RWE GY) - Wins Louisiana offshore wind lease in Gulf of Mexico. (RWE)

OTHER GERMAN COMPANIES

Aroundtown (AT1 GY) - H1 (EUR): Adj. EBITDA 498mln (prev. 511mln YY), Revenue 815mln (prev. 790mln YY), FFO 175mln. (Newswires)

Encavis (ECV GY) - Acquires its first battery project to optimise the marketing of electricity from German wind and solar perks. (Newswires)

BROKER MOVES

CAC

Vinci (DG FP) - Reports July airport traffic +21.3%, autoroutes 0% YY. (Newswires)

OTHER FRENCH COMPANIES

Renault (RNO FP) - CARUSO partners up with the Co. to further improve the fleet management industry. (Newswires)

BROKER MOVES

PAN EUROPE

Ageas (AGS BB) - H1 (EUR): 531mln (prev. 631mln YY), Gross inflows 9.26bln (prev. 9.01bln YY). Interim dividend of 1.5/shr will be paid out, consistent with last year. (Newswires)

ASR Nederland (ASRNL NA) - H1 (EUR): Net 346mln (prev. -1.51bln YY), Op 460mln (prev. 454mln YY). Interim dividend over 2023 increased to 1.08 (prev. 0.98). Next step in ASR and Aegon (AGN SM) is a legal merger of two entities which is scheduled for 1 October 2023 and intends to update market this year. (Newswires)

Brunello Cucinelli (BC IM) - H1 (EUR): Net 61.7mln (prev. 46.6mln YY), EBITDA 154.8mln (prev. 120mln YY), 544mln (prev. 415mln YY). (Newswires)

BROKER MOVES

Acciona (ANA SM) upgraded to Neutral from Sell at Citi

Anheuser-Busch (ABI BB) reiterated with Overweight at JP Morgan

Andritz (ANDR AV) upgraded to Buy from Hold at Kepler Cheuvreux

Brunello Cucinelli (BC IT) upgraded to Hold from Reduce at Kepler Cheuvreux

Heineken (HEIA NA) downgraded to Underperform from Sector Perform at RBC

SMI

OTHER SWISS COMPANIES

Allreal (ALLN SW) - H1 (CHF): Net 66.7mln (prev. 81.8mln YY), Operating EBIT 95.1mln (prev. 100.7mln YY), Rental Income 108.5mln (prev. 106.8mln YY). (Newswires)

BROKER MOVES

SCANDINAVIA

Orsted (ORSTED DC) - Announced anticipated impairments of USD 730mln on its US portfolio, continues to progress projects; comes as there is an increased risk in its suppliers ability to meet their commitments. Impairment is not expect to alter provided EBITDA guidance for the FY. (Newswires)

BROKER MOVES

Carlsberg (CARLB DC) reiterated with Underweight at JP Morgan

US

CLOSES: SPX +1.45% at 4,497, NDX +2.15% at 15,376, DJIA +0.85% at 34,852, RUT +1.42% at 1,895.

SECTORS: Communication Services +2.46%, Consumer Discretionary +2.36%, Technology +2.11%, Materials +1.68%, Real Estate +1.15%, Financials +0.89%, Health +0.83%, Industrials +0.78%, Consumer Staples +0.41%, Energy +0.30%, Utilities +0.28%.

Ambarella (AMBA) - Q2 2024 (USD): Adj. EPS -0.15 (exp. -0.20), Revenue 62.1mln (exp. 62mln). Q3 revenue view 50mln +/- 4% (exp. 67.6mln). (Newswires) Shares seen -16.4% after hours

HP Inc (HPQ) - Q2 2023 (USD): Adj. EPS 0.86 (exp. 0.86), Revenue 13.20bln (exp. 13.37bln). Q4 GUIDANCE: Adj. EPS view 0.85-0.97 (exp. 0.94). FY GUIDANCE: Adj. EPS view 3.23-3.35 (prev. 3.30-3.50, exp. 3.34). FCF 3bln (prev. 3-3.5bln, exp. 3.43bln). (Newswires) Shares seen -1.9% after hours

Goldman Sachs (GS) - Bought UK and US companies using Chinese state funds, according to FT. (FT)

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