Newsquawk Daily European Equity Opening News - 31st August 2023
31st August 2023
ASIA
APAC stocks trade mixed following a marginally positive handover from Wall Street, which saw the equity bid continue to be underpinned by dovish US economic data. ASX 200 is flat on either side of 7,300 as the gains in the Telecoms and Financial sectors are offset by losses in Energy and Consumer Staples. Nikkei 225 also sees mild gains although the machinery sectors are in losses following the dire Japanese industrial output data, with a Japanese government official highlighting a decline in demand both domestically and abroad, with output falling in several areas including production machinery. Hang Seng and Shanghai Comp varied at the open, with the Hang Seng supported by its property sector which rose more than 2.5% at the open, whilst the Mainland is a bit more cautious following mixed PMI data.
Electronic Names - Japanese government official says the electronics device market in China is in a severe state; Domestic material industries are partially affected by China's real estate concerns. (Newswires)
Chip Names - Japanese government official says decrease in chip manufacturing machinery is due to weak demand abroad, the outlook appears to be severe; chip shortage is easing in autos, which is on a steady recovery. (Newswires)
EUROPEAN CLOSES
CLOSES: DAX -0.24% at 15,892, FTSE 100 +0.12% at 7,474, CAC 40 -0.12% at 7,364, Euro Stoxx 50 -0.26% at 4,315, IBEX 35 -0.31% at 9,551, FTSE MIB +0.09% at 28,917, SMI -0.06% at 11,100.
SECTORS: Energy 0.42%, Materials 0.16%, Telecoms 0.15%, Industrials 0.02%, Consumer Stpl -0.08%, Financials -0.09%, IT -0.11%, Healthcare -0.42%, Consumer Disc -0.50%, Utilities -1.84%
FTSE 100
Ex-Dividends - Glencore (GLEN LN), Croda (CRDA LN), Endeavour Mining (EDV LN), InterContinental Hotels Group (IHG LN), Antofagasta (ANTO LN) will trade without entitlement to its latest dividend payout. (Newswires)
FTSE Reshuffle - Dechra Pharma. (DPH LN), Diploma (DPLM LN), Hikma Pharma. (HIK LN) & Marks & Spencer (MKS LN) to join the FTSE 100. Abrdn (ABDN LN), Hiscox (HSX LN), Johnson Matthey (JMAT LN) & Persimmon (PSN LN) to depart.
Glencore (GLEN LN) - Dozens of the world’s largest asset managers have accused the Co’s trading house of misleading in previous prospectuses to mask corrupt activity. Claimant’s allege they suffered losses from such statements, claimants holdings in the Co. are in excess of GBP 3.7bln. Claimants include numerous sovereign wealth and pension funds. (FT)
OTHER UK COMPANIES
BROKER MOVES
DAX
SAP (SAP GY) - Salesforce reported Q2 2023 (USD): adj. EPS 2.12 (exp. 1.90), Revenue 8.60bln (exp. 8.52bln). Salesforce shares seen +5.6% after-hours
OTHER GERMAN COMPANIES
BROKER MOVES
Aixtron (AIXA GY) initiated with Overweight at Barclays
MTU Aero Engines (MTX GY) reiterated with Overweight at JP Morgan
CAC
Pernod Ricard (RI FP) - FY23 (EUR): Net 2.26bln (prev. 2.08bln YY), Revenue 12.1bln (prev. 10.7bln YY). Organic Revenue +10% YY. Recurring Operating Income 3.35bln (exp. 3.47bln). (Newswires)
OTHER FRENCH COMPANIES
Eiffage (FGR FP) - H1 (EUR): Net 392mln (prev. 354mln YY), Revenue 10.4bln (exp. 10.4bln). (Newswires)
BROKER MOVES
PAN EUROPE
BROKER MOVES
ASM International (ASMI NA) upgraded to Equal Weight from Underweight at Barclays
BE Semiconductor (BESI NA) upgraded to Equal Weight from Underweight at Barclays
SMI
UBS (UBSG SW) - Q2 (USD): Revenue 9.54bln (exp. 8.57bln); Net Profit 29bln (exp. 33.45bln), "2Q23 net profit of USD 29bln including USD 29bln of negative goodwill from CS acquisition". Credit Suisse's Swiss bank is to be fully integrated. Operating expense 8.486bln (prev. 6.295bln Y/Y). Diluted EPS 8.99 (prev. 0.61). UBS Global Wealth Management recorded highest second-quarter net new money in over a decade at USD 16bn, momentum continuing into 3Q23. Headcount at Credit Suisse shrunk to 33.9k from 36k at end-March, groupwide headcount 119k. UBS revised up the cost savings from the CS deal to over USD 10bln by end-2026 (prev. 8bln by 2027). (Newswires/UBS)
OTHER SWISS COMPANIES
Georg Fischer (GF SW) - Extends the offer period for the voluntary recommended public cash tender offer for Uponor to October 31st. (Newswires)
BROKER MOVES
SCANDINAVIA
Ambu (AMBU DC) - Q3 (DKK): EBIT 91mln (prev. 42mln YY), Revenue 1.20bln (prev. 1.13bln YY). Raises lower-end FY23 Organic Revenue growth 6-8% (prev. 5-8%). (Newswires)
Skanska (SKAB SS) - Awarded SEK 500mln order. (Newswires)
BROKER MOVES
Orsted (ORSTED DC) upgraded to Hold from Sell at DNB Markets
US
CLOSES: SPX +0.38% at 4,514, NDX +0.56% at 15,462, DJIA +0.11% at 34,890, RUT +0.40% at 1,903.
SECTORS: Technology +0.83%, Energy +0.52%, Industrials +0.44%, Communication Services +0.36%, Real Estate +0.35%, Consumer Discretionary +0.33%, Consumer Staples +0.18%, Materials +0.15%, Financials +0.12%, Health -0.02%, Utilities -0.43%.
Apple (AAPL) - Tests using 3D printers to make devices in major shift, according to Bloomberg. (Bloomberg)
AMD (AMD) - US reportedly restricts the export of some AMD (AMD) chips to Middle Eastern countries, according to Reuters sources. (Reuters)
Tesla (TSLA) - DoJ and SEC reportedly investigating Tesla (TSLA) over a secret glass house project, according to WSJ. (WSJ)
Nvidia (NVDA) - US President Biden reportedly blocks sale of Nvidia (NVDA) AI chips to Middle East over China fears, according to Telegraph. (Telegraph)
Salesforce Inc (CRM) - Q2 2023 (USD): Adj. EPS 2.12 (exp. 1.90), Revenue 8.60bln (exp. 8.52bln). Professional services and other revenue 597mln (exp. 618.9mln). Adj. operating margin 31.6% (exp. 28.2%). GUIDANCE: Q3 revenue view 8.7-8.72bln (exp. 8.66bln). FY revenue view 34.7-34.8bln (prev. 34.5-34.7bln). Q3 EPS view 2.05-2.06 (exp. 1.83). FY EPS view 8.04-8.06 (exp. 7.45). (Newswires) Shares seen +5.6% after-hours
31 Aug 2023 - 06:55- Research Sheet- Source: Newsquawk
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