Newsquawk Daily European Equity Opening News - 31st March 2023

31st March 2023

ASIA

Asia-Pac stocks were mostly firmer at quarter-end as they took impetus from the tech-led gains on Wall Street and with participants digesting a slew of data including better-than-expected Chinese PMIs. ASX 200 (+0.8%) was higher with gains led by the mining and resources sectors following the strong data from Australia’s largest trading partner although upside was capped ahead of next week’s RBA meeting with a recent Reuters poll showing near-even expectations between a hike and a pause. Nikkei 225 (+1.1%) gained heading into the end of the fiscal year and climbed back above the 28,000 level after encouraging Industrial Production and Retail Sales data but was off highs with chipmakers later pressured after Japan announced to impose new restrictions of chip-making gear. Hang Seng (+1.0%) and Shanghai Comp. (+0.2%) were positive after the strong Chinese PMI data in which Manufacturing PMI topped forecasts and Non-Manufacturing PMI rose to its highest since 2011, with the outperformance in Hong Kong led by tech as JD.com plans to spin off and separately list its industrials and property units. However, the gains in the mainland were limited amid a deluge of earnings releases including mixed results from China’s mega-banks and with the nation’s largest property developer Country Garden posting its first annual loss since its listing in 2007.

Japan is to impose new restrictions of chip-making gear, according to Bloomberg and Reuters. Japan said it will impose restrictions on 23 types of chip-making equipment from July. Japanese officials said the scope of restrictions went further than the US measures imposed in 2022. Chip-equipment exporters would need licenses for all regions. The measures will affect a broader range of companies than previously expected, according to FT. Japan's restrictions are part of a three-way agreement with the US and the Netherlands. (Newswires/FT)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.28% at 4,285, FTSE 100 +0.74% at 7,620, DAX 40 +1.26% at 15,522, CAC 40 +1.06% at 7,263, FTSE MIB +1.05% at 27,021, IBEX 35 +1.50% at 9,207, SMI +0.63% at 11,032.

SECTORS: IT 2.62%, Utilities 1.47%, Consumer Disc 1.37%, Financials 1.27%, Industrials 1.24%, Materials 0.71%, Energy 0.69%, Healthcare 0.46%, Telecoms 0.27%, Consumer Stpl -0.25%

FTSE 100

HSBC (HSBA LN) – CEO Quinn and other senior managers reportedly intervened in 2014 to provide Mar City, a housebuilder his daughter worked for, a GBP 40mln credit facility; HSBC is accused of using the loan to take control of and drive Mar City into insolvency. (Telegraph)

Flight Names – Heathrow Airport has announced that it was unable to come to a deal with the Unite union, as such strike action will take place for 10 days over Easter affecting Terminal 5 security guards. (BBC)

Rio Tinto (RIO LN) - Co. and First Quantum Minerals are to partner on advancing the La Granja copper project in Peru. (Newswires)

Shell (SHEL LN) - Co. splits up its Global Renewable Power unit in a new CEO's shake-up, according to Bloomberg. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Beazley Group (BEZ LN) upgraded to Buy from Sell at UBS

IAG (IAG LN) upgraded to Buy from Hold at Deutsche Bank

Standard Chartered (STAN LN) upgraded to Neutral from Underperform at Credit Suisse

DAX

BMW (BMW GY) – CFO said the Co. sees strong Q1 EV sales and there is no reason to doubt the ability to reach the 8-10% margin target. (Newswires)

OTHER GERMAN COMPANIES

Klöckner & Co (KCO GY) - Co. expects first quarter shipments and sales to increase considerably Q/Q, but sees 2023 sales below the prior year's level due to overall price levels, via the March investor presentation. (Newswires)

Siltronic (WAF GY) - Claudia Schmitt will become the new CFO of Siltronic AG effective July 1, 2023. (Siltronic)

BROKER MOVES

Deutsche Lufthansa (LHA GY) upgraded to Buy from Hold at Deutsche Bank

Nordex (NDX1 GY) - Final FY 2022 (EUR): Revenue 5.70bln (prev. 5.44bln). EBITDA -244mln (prev. -230mln Y/Y). Co. has affirmed medium-term EBITDA target. Co. sees a stronger H2 2023. (Newswires)

CAC

Sanofi (SAN FP) - Co. is reportedly mulling spinning off its Indian consumer healthcare unit into a listed entity via a demerger, according to the Economic Times citing sources. (ET)

OTHER FRENCH COMPANIES

BROKER MOVES

Air France-KLM (AF FP) upgraded to Buy from Neutral at Deutsche Bank

PAN EUROPE

ArcelorMittal (MT NA) - Co's AMNS Luxembourg Holding S.A. signed a USD 5bln loan agreement with consortium of Japanese banks. (ArcelorMittal)

Cellnex Telecom (CLNX SM) - Co. is closing to tapping advisers to help tackle demand from activist investor TCI which has urged the Co. to reshuffle its board, according to Reuters sources. (Newswires)

Chip Names - Japan is to impose new restrictions on chip-making gear, according to Bloomberg and Reuters. Japan said it will impose restrictions on 23 types of chip-making equipment from July. Japanese officials said the scope of restrictions went further than the US measures imposed in 2022. Chip-equipment exporters would need licenses for all regions. The measures will affect a broader range of companies than previously expected, according to FT. Japan's restrictions are part of a three-way agreement with the US and the Netherlands. (Newswires/FT)

Iberdrola (IBE SM) - Italy's household electricity prices on the regulated market are to fall 55.3% in Q2, according to the regulator. (Newswires)

BROKER MOVES

Bankinter (BKT SM) downgraded to Underperform from Outperform at Keefe Bruyette

Caixabank (CABK SM) downgraded to Market Perform from Outperform at Keefe Bruyette

European stocks ex-UK cut to Neutral at Citi; US stocks raised to Overweight from Underweight at Citi

SMI

ABB (ABBN SW) – Co. has launched the previously announced USD 1bln share buyback. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

DSV (DSV DC) downgraded to Neutral from Overweight at JPMorgan Chase

H&M (HMB SS) upgraded to Buy from Hold at Danske Bank

H&M (HMB SS) reiterated with Underweight at JPMorgan Chase

Thule (THULE SS) upgraded to Buy from Hold at SEB

US

CLOSES: SPX +0.57% at 4,051, NDX +0.91% at 12,963, DJIA +0.43% at 32,859, RUT -0.18% at 1,768.

SECTORS: Real Estate +1.22%, Technology +1.14%, Consumer Discretionary +0.9%, Materials +0.64%, Health Care +0.55%, Utilities +0.4%, Energy +0.35%, Consumer Staples +0.34%, Communication +0.32%, Industrials +0.23%, Financials -0.29%.

Tesla (TSLA) - Co. reportedly recently discussed factory plans with White House officials and is pursuing building an EV battery plant in Texas with China's CATL, according to Bloomberg. (Newswires)

31 Mar 2023 - 06:45- Data- Source: Newsquawk