Newsquawk Daily European Equity Opening News - 31st May 2024

31st May 2024

ASIA

APAC stocks traded mostly in the green and shrugged off the weak lead from the US but with gains capped amid a deluge of data releases at month-end including disappointing official Chinese PMIs. ASX 200 traded higher with outperformance seen in gold mining stocks and the defensive sectors. Nikkei 225 advanced with the index ultimately unfazed by the mixed data mixed data from Japan including mostly in-line Tokyo CPI, a surprise contraction in Industrial Production and better-than-expected Retail Sales. Hang Seng and Shanghai Comp conformed to the positive tone albeit with gains capped in the mainland after disappointing Chinese PMI data in which Manufacturing PMI unexpectedly slipped into contraction territory.

EUROPEAN CLOSES

CLOSES: DAX: +0.22% at 18,514.08, FTSE 100: +0.59% at 8,231.05, CAC 40: + 0.55% at 7,978.51, Euro Stoxx 50: +0.42% at 4,984.25, IBEX 35: +1.73% at 11,338.20, FTSE MIB: +0.87% at 34,447.57, AEX: -0.03% at 905.58, SMI: +0.79% at 11,883.20.

SECTORS: Telecoms 1.52%, Consumer Stpl 1.46%, Consumer Disc 0.98%, Financials 0.96%, Materials 0.73%, Utilities 0.73%, Healthcare 0.63%, Industrials 0.45%, Energy -0.50%, IT -1.42%

FTSE 100

Anglo American (AAL LN) - UK politicians have urged Anglo American to rethink its plans to cut spending on the Woodsmith mine in Yorkshire, according to The Times. Conservative candidate Weeden-Sanz has called on the Co. to “pause and properly consider the catastrophic impact”, where roughly 2k jobs are at stake. (The Times) Separately, CEO said the Co. is starting a formal process to sell its coal assets and explore options for its nickel operations. (Newswires)

BAE Systems (BA/ LN) - Co. selected to build an Ocean Colour Instrument for NOAA's Geoxo constellation. (Newswires)

IDS (IDS LN) - Czech billionaire Kretinsky has said he is prepared to invest up to GBP 400mln into Royal Mail to transform the business into a dropbox/delivery locker network, which could threaten tens of thousands of jobs at the Co., according to The Times. (The Times)

Rio Tinto (RIO LN) - Entered into an agreement to acquire Sumitomo Chemical Company's 20.64% in New Zealand aluminium smelters for an undisclosed price, while on NZAS will be 100% owned by Rio Tinto on completion of the transaction

UK Firms - UK Lloyds Business Barometer (Apr) 50 (Prev. 42). (Newswires)

OTHER UK COMPANIES

Balfour Beatty (BBY LN) - Balfour Beatty US hired Ryan Ouyang as Vice President. (Newswires)

BROKER MOVES

Anglo American (AAL LN) resumed with Buy at Citi

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

L'Oreal (OR FP) - Ulta Beauty Inc (ULTA) shares rose 5.6% after hours as the Co. beat on top and bottom lines. (Newswires)

Renault (RNO FP) - Co. and Geely (0175 HK) announced the creation of "Horse Powertrain Limited", which is expected to reach around EUR 15bln in annual revenues. JV is 33% owned by Geely and 50% owned by Renault. (Newswires)

Sanofi (SAN FP) - Update on FDA priority review of Dupixent for the treatment of COPD patients with type 2 inflammation. The FDA did not raise any concerns regarding the approvability of Dupixent for this indication. The FDA had requested additional efficacy analyses on the efficacy of Dupixent in the BOREAS and NOTUS pivotal trials. Sanofi and Regeneron (REGN) are confident that the additional analyses strongly support the approval of Dupixent in COPD with evidence of type 2 inflammation. Separate press release: Dupixent recommended for EU approval by the CHMP to treat patients with COPD. Recommendation for adults with uncontrolled COPD with raised blood eosinophils based on data from two landmark Phase 3 trials demonstrating Dupixent significantly reduced exacerbations and improved lung function. If approved, Dupixent would be the first-ever targeted therapy for COPD in the EU and the first new treatment approach for this disease in more than a decade (Sanofi) Also of note for US-listed Regeneron (REGN)

Teleperformance (TEP FP) – Co. partnered with Kori.AI to transform customer engagement through advanced AI solutions. (Newswires)

Vinci (DG FP) – Won a contract to extend a drinking water production plant for EUR 94mln. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Apparel Stocks- Gap Inc (GPS) shares surged 23.5% after hours as the Co. beat on top and bottom lines alongside gross margin, and raised FY guidance.

BBVA (BBVA SM) – To propose a share capital increase of up to EUR 551.9mln; share capital increase by issuing and putting into circulation of up to EUR 1.13bln ordinary shares. Share capital increase for purposes of covering consideration of voluntary tender offer for acquisition of 100% of Banco De Sabadell (SAB SM) launched by BBVA. (Newswires)

Bper (BPE IM) - To evaluate about 600 additional requests for an early exist of its industrial plan after it reached its main targets. (Newswires)

Caixabank (CABK SM) – Agreed to carry out the reduction of share capital by cancelling all treasury shares bought under buy-back programme started in March 2024. Share capital is reduced by EUR 104.6mln. (Newswires)

China-exposed Stocks - Chinese NBS Manufacturing PMI (May) 49.5 vs. Exp. 50.4 (Prev. 50.4), Non-Manufacturing PMI (May) 51.1 vs. Exp. 51.5 (Prev. 51.2), Composite PMI (May) 51.0 (Prev. 51.7). (Newswires)

Italgas (IG IM) – Sees 2024 technical investments of around EUR 900mln. Sees 2024 Adj. Revenue around 1.8bln, Adj. EBITDA 1.32-1.35bln. Expects recovery in adj. revenues for the remainder of 2024 with the final result in line with 2023. (Newswires)

UCB (UCB BB) - UCB announced positive CHMP opinion for two 320MG device presentations of Bimzelx. (Newswires)

BROKER MOVES

SMI

Novartis (NOVN SW) - Novartis phase III data confirm sustained efficacy and long-term safety of oral remibrutinib in chronic spontaneous urticaria. Data reaffirm the first-in-class potential of remibrutinib for the more than 50% of patients with CSU uncontrolled by H1-antihistamines who continue to live with painful and debilitating symptoms. (Novartis)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.60% at 5,235, NDX -1.06% at 18,539, DJI -0.86% at 38,111, RUT +1.00% at 2,056.

SECTORS: Utilities +1.41%, Real Estate +1.51%, Materials +0.83%, Industrials +0.7%, Financials +0.61%, Consumer Staples +0.26%, Energy +0.24%, Consumer Discretionary +0.18%, Health +0.07%, Communication Services -1.06%, Technology -2.45%.

BofA (BAC) - CEO sees trading revenue up in single digit percentage in Q2 vs a year ago. (Newswires)

Costco Wholesale Corp (COST) - Q1 2024 (USD): EPS 3.78 (exp. 3.70), Revenue 57.4bln (exp. 58.07bln). Adj. comp sales 6.5% (exp. 6.3%), E-Commerce comp sales 20.7%. (Newswires) Shares fell 1.6% after-hours.

Gap Inc (GPS) - Q1 2024 (USD): EPS 0.41 (exp. 0.14), Revenue 3.4bln (exp. 3.29bln). Raises FY sales guidance on Old Navy strength. SSS +3% (exp. 0.91%). Gross margin 41.2% (exp. 38.5%). Inventory -15% (exp. -14.8%). Operating margin 6.1% (exp. 2%). Total location count 3571 (exp.3554). (Newswires) Shares rose 23.5% after-hours.

NVIDIA (NVDA) - US is reportedly reining in AI chip sales to the Middle East by Nvidia (NVDA) and AMD (AMD), according to Bloomberg. (Newswires)

Ulta Beauty Inc (ULTA) Q1 2024 (USD): EPS 6.47 (exp. 6.24), Revenue 2.73bln (exp. 2.72bln). (Newswires) Shares rose 5.6% after-hours.

31 May 2024 - 06:50- Data- Source: Newsquawk