Newsquawk Daily European Equity Opening News - 3rd April 2023

3rd April 2023

ASIA

Asia-Pac equity markets were mostly positive amid strength in the energy sector after oil prices were boosted by a surprise voluntary output cut by OPEC+ members although gains in the broader market were capped heading into this week’s key events and as participants digested a slew of data releases including disappointing Chinese Caixin Manufacturing PMI and a mixed BoJ Tankan Survey. ASX 200 (+0.6%) was underpinned by the energy-related gains and with money market pricing leaning heavily towards a pause at tomorrow’s RBA meeting. Nikkei 225 (+0.6%) notched modest gains following the mixed Tankan survey in which the large manufacturers’ sentiment index deteriorated for the 5th consecutive quarter and fell to its lowest since December 2020 but the large non-manufacturers sentiment index printed its highest in more than 3 years. Hang Seng (-0.3%) and Shanghai Comp. (+0.6%) were mixed with price action cautious after Chinese Caixin Manufacturing PMI showed flat activity in March and following a substantial liquidity drain by the PBoC.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.69% at 4,315, FTSE 100 +0.15% at 7,631, DAX 40 +0.69% at 15,628, CAC 40 +0.81% at 7,322, FTSE MIB +0.34% at 27,113, IBEX 35 +0.28% at 9,232, SMI +0.58% at 11,095.

SECTORS: Consumer Disc 1.25%, Consumer Stpl 0.88%, Industrials 0.82%, Telecoms 0.80%, Materials 0.73%, Healthcare 0.65%, Utilities 0.62%, IT 0.51%, Financials 0.22%, Energy -0.06%

FTSE 100

M&G (MNG LN) - Co. alongside two other shareholders will vote against a PE takeover of Hyve (HYVE LN), cautioning that the offer is a significant undervaluation. (FT)

Tesco (TSCO LN) - Chairman Allen said the evidence he has seen suggests Co. is increasing prices slower than competitors are. Chairman wouldn’t comment on expected FY figures due in a few weeks. (BBC)

OTHER UK COMPANIES

Capita (CPI LN) - IT issues continued over the weekend and speculation of a cyberattack. The National Cyber Security Centre was notified, The Times confirms. (Times) Co. in a statement said, on Friday March 31st, Co. experienced a cyber incident largely impacting access to internal Microsoft Office 365 applications; there is no evidence of compromised data. (Newswires)

Cineworld (CINE LN) - Intends to raise USD 2.26bln; fundraising will take place via a senior secured debt credit facility of USD 1.46bln and issuance of new stock for an aggregate USD 800mln. “Proceeds of the capital raising will be used to meet costs and expenses relating to the restructuring, and also to pay fees, other expenses and provide working capital to reorganized debtors.”. (Cineworld)

BROKER MOVES

DAX

Siemens AG (SIE GY) - Sees impairment reversal of EUR 1.59bln at end of Q2. (Newswires)

OTHER GERMAN COMPANIES

ThyssenKrupp (TKA GY) - Co. is said to be reviving plans to sell its submarine and maritime systems arm, with bidding expected to commence after Easter, according to FT sources. FT suggests the move is likely to meet friction from politicians and the government. (FT)

BROKER MOVES

Siemens (SIE GY) reiterated with Overweight at JPMorgan Chase

Siltronic (WAF GY) upgraded to Neutral from Underperform at Exane BNP

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Air Names - Ryanair (RYA ID) CEO O'Leary says airfares are poised to rise 15% amid rising demand. (Times)

Energy Names - Crude futures surged at the reopening of trading following the surprise announcement by OPEC+ members of voluntary oil output cuts.

Transport Names - Deutsche Bahn has reportedly signalled it is to spin off or sell passenger transport Co. Arriva by the end of 2024. (Times)

BROKER MOVES

SMI

Credit Suisse (CSGN SW)/UBS (UBSG SW) - Switzerland’s Attorney General is to investigate whether the Credit Suisse takeover by UBS broke Swiss criminal law and is looking into potential breaches by government officials, regulators and bank executives, according to The Guardian. Credit Suisse expands its sustainability offering for corporate clients through a new partnership with Act Cleantech Agentur Schweiz, while it was separately reported that UBS shortlisted four consultants for the Credit Suisse integration and UBS will cut its workforce by between 20%-30% after completing the takeover. (Newswires/Guardian)

Julius Baer (BAER SW) - CEO says the Swiss government and regulators need to communicate more effectively with investors, cautioning that the nation’s status as banker to the super-rich can not be jeopardised. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

Sonova Holdings (SOON SW) reiterated with Overweight at JPMorgan Chase

SCANDINAVIA

Equinor (EQNR NO) - UK regulators are expected to announce approval for the Rosebank oilfield during April, Energy Secretary Shapps will then have to decide on signing the project off or not. (FT)

BROKER MOVES

US

CLOSES: SPX +1.44% at 4,109, NDX +1.68% at 13,181, DJIA +1.26% at 33,274, RUT +1.93% at 1,802.

SECTORS: Consumer Discretionary +2.62%, Real Estate +2.18%, Communication Services +2.08%, Materials +1.57%, Technology +1.47%, Industrials +1.31%, Financials +1.15%, Health +1.12%, Consumer Staples +0.83%, Utilities +0.76%, Energy +0.63%.

McDonald's (MCD) - Temporarily shuts US offices as it prepares layoff notices, according to WSJ. (WSJ)

Tesla (TSLA) - Q4 deliveries 422,875 (vs. Refinitiv exp. 430,008, Bloomberg exp. 421,164, FactSet exp. 432,000). Production 440.8k (prev. 440k Q/Q). (Newswires/CNBC)

03 Apr 2023 - 06:45- EquitiesData- Source: Newsquawk