Newsquawk Daily European Equity Opening News - 30th March 2023

30th March 2023

ASIA

Asia-Pac equities traded mixed with the region only partially sustaining the momentum from the US where the Nasdaq 100 entered a bull market after the recent bond selling slowed and as fears continued to subside. ASX 200 (+1.0%) was higher with strength in tech, mining and financials leading the broad optimism across sectors and amid an adjustment in rate expectations with NAB lowering its peak rate forecast to 3.85% from 4.10%. Nikkei 225 (-0.9%) was pressured heading closer to fiscal year-end amid mild upside in Japanese yields and with notable weakness across large transportation/logistics companies. Hang Seng (-0.8%) and Shanghai Comp. (-0.2%) were indecisive and ultimately faltered despite another substantial liquidity effort by the PBoC with participants digesting a slew of earnings releases and as US-China frictions lingered.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.51% at 4,231, FTSE 100 +1.07% at 7,564, DAX 40 +1.23% at 15,328, CAC 40 +1.39% at 7,186, FTSE MIB +1.56% at 26,739, IBEX 35 +1.41% at 9,070, SMI +1.19% at 10,967.

SECTORS: IT 2.66%, Financials 1.88%, Industrials 1.26%, Telecoms 1.20%, Materials 1.18%, Consumer Disc 1.18%, Utilities 1.12%, Consumer Stpl 1.05%, Energy 0.73%, Healthcare 0.62%

FTSE 100

Ex-divs - InterContinental Hotels Group (IHG LN), Smith & Nephew (SN/ LN), Mondi (MNDI LN), abrdn (ABDN LN), Taylor Wimpey (TW/ LN), Aviva (AV/ LN), Phoenix Group Holdings (PHNX LN) will trade without entitlement to their latest dividend payouts. (dividenddata)

Rio Tinto (RIO LN)/ Glencore (GLEN LN)/ Anglo American (AAL LN) - Australian parliament approved emissions caps on big polluters. "Australia will now force coal mines, smelters and oil refineries to cut their emissions each year after parliament passes breakthrough climate laws targeting the nation's worst polluters." (AFP)

OTHER UK COMPANIES

BROKER MOVES

Anglo American (AAL LN) upgraded to Equal Weight from Underweight at Morgan Stanley

Next (NXT LN) downgraded to Hold from Buy at SocGen

DAX

OTHER GERMAN COMPANIES

1&1 Drillisch (DRI GY) - FY 2022 (EUR): Revenue 3.96bln (prev. 3.91bln). EBITDA 693mln (prev. 672mln). EPS 2.08 (prev. 2.10). (Newswires)

Schaeffler (SHA GY) - Moody's upgraded the group's senior unsecured rating to Baa3 from Ba1 and the rating on its debt issuance program to Baa3 from Ba1. The outlook on all ratings has been changed to stable from positive. (Moody's)

United Internet (UTDI GY) - Final FY 2022 (EUR): Revenue 5.92bln (prev. 5.65bln Y/Y). EPS 2.00 (prev. 2.11). Adj. EBIT +0.3% Y/Y. Dividend per share 0.50 (prev. 0.50). For FY23, the Co. expects sales to increase to approx. EUR 6.2bln and says EBITDA will likely be on par with the previous year. Capital expenditures (excluding possible M&A transactions) are expected to increase to around EUR 800mln (prev. 681mln). (Newswires/United Internet IR)

BROKER MOVES

Leg Immobilien (LEG GY) reiterated with Overweight at JPMorgan Chase

Salzgitter (SZG GY) reiterated with Underweight at JPMorgan Chase

Telefonica Deutschland (O2D GY) downgraded to Underperform from Neutral at Exane BNP

Vonovia (VNA GY) reiterated with Overweight at JPMorgan Chase

CAC

TotalEnergies (TTE FP) - France releases over 10mln bbls of oil stocks amid ongoing national strikes, according to Bloomberg. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Auto Names - US Treasury battery guidance is to be released this week to result in fewer vehicles eligible for full or partial EV tax credits, according to a US official. (Newswires)

Energy/Renewable Names - EU has reached a provisional deal on more ambitious renewable energy goals for 2023, according to the Swedish EU Presidency. (Newswires)

Poste Italiane (PST IM) - Q4 2022 (EUR): Revenue 3.14bln (exp. 3.01bln). EBIT 237mln (exp. 281mln). Net profit 86mln (prev. 405mln Y/Y. Mail, Parcel & Distribution revenues are expected to remain stable in 2023. (Newswires/Poste Italiane IR)

BROKER MOVES

KPN (KPN NA) downgraded to Neutral from Outperform at Exane BNP

Proximus (PROX BB) upgraded to Neutral from Underperform at Exane BNP

Telefonica (TEF SM) upgraded to Outperform from Underperform at Exane BNP

Voestalpine (VOE AV) reiterated with Underweight at JPMorgan Chase

SMI

Credit Suisse (CSGN SW) - Board announces withdrawal of proposals for the 2023 AGM, further informing on its proposal regarding the appropriation of retained earnings and ordinary distribution of a dividend. (Newswires)

UBS (UBS SW) - The change of CEO is said to be the favoured option for Swiss officials; regulators encouraged the move to rehire Ermotti, according to Bloomberg. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Ericsson (ERICB SS) - The chairman, CEO, and multiple board members of Ericsson AB may face financial accountability for the scandal regarding alleged cash-for access program in Iraq which could've helped fund the ISIS terror group. (Newswires)

Vestas Wind Systems (VWS DC) - Vestas secures 1.3 GW order with Casa dos Ventos in Brazil, the largest onshore order to date for Vestas. Delivery is estimated to begin in the third quarter of 2024 and the commissioning is expected to begin in the first quarter of 2025. (Vestas) No deal size was mentioned in the press release.

BROKER MOVES

Boliden (BOL SS) downgraded to Underweight from Equal Weight at Morgan Stanley

SSAB (SSABB SS) upgraded to Neutral from Underweight at JPMorgan Chase

Tele2 (TEL2B SS) upgraded to Outperform from Neutral at Exane BNP

Tele2 (TEL2B SS) downgraded to Sell from Hold at Handelsbanken

US

CLOSES: SPX +1.42% at 4,027, NDX +1.87% at 12,846, DJIA +1.00% at 32,717, RUT +1.08% at 1,771.

SECTORS: Real Estate +2.32%, Technology +2.1%, Consumer Discretionary +1.91%, Energy +1.92%, Financials +1.49%, Utilities +1.45%, Industrials +1.42%, Materials +1.39%, Communication Services +1.19%, Consumer Staples +0.54%, Health +0.24%.

30 Mar 2023 - 06:47- EquitiesResearch Sheet- Source: Newsquawk