Newsquawk Daily European Equity Opening News - 3rd April 2024

3rd April 2024

ASIA

APAC stocks followed suit to losses in the US where treasuries bear-steepened and oil prices ramped up. ASX 200 was led lower by tech and real estate as the rate-sensitive sectors suffered from firmer yields. Nikkei 225 briefly dipped beneath 39,500 with index heavyweight Fast Retailing among the worst hit after lower Uniqlo same-store sales, while Japan also issued a tsunami warning after a powerful earthquake struck Taiwan. TAIEX was pressured after Taiwan's most powerful earthquake in 25 years which collapsed at least 26 buildings. Hang Seng and Shanghai Comp. conformed to the downbeat mood across the region amid tech weakness and mixed US-China headlines with the US asking South Korea to toughen controls on semiconductor technology exports to China. However, the losses in the mainland were cushioned after an improvement in Caixin Services PMI data and Biden-Xi phone talks.

Fast Retailing (9983 JT) - Co. March same-store Uniqlo sales in Japan fell 1.5% Y/Y although total sales including online rose 1% Y/Y. (Fashion United)

Samsung Engineering (028050 KS) - Won a USD 6bln conditional order from Saudi Aramco. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -1.09% at 18,291, FTSE 100: -0.23% at 7,935, CAC 40: -0.92% at 8,130, Euro Stoxx 50: -1.22% at 5,044, IBEX 35: -0.89% at 10,976, FTSE MIB: -1.17% at 34,343, SMI: -1.11% at 11,601.

SECTORS: Energy 3.15%, Materials -0.10%, Financials -0.33%, Utilities -0.60%, IT -0.88%, Consumer Stpl -1.14%, Industrials -1.28%, Telecoms -1.39%, Consumer Disc -1.48%, Healthcare -1.68%

FTSE 100

Shell (SHEL LN) - Taxpayers are set to cover hundreds of millions in costs for dismantling Shell's North Sea oil rigs, following an order to remove thousands of tonnes of toxic waste. (Telegraph)

OTHER UK COMPANIES

Renishaw (RSW LN) - Siemens (SIE GY) confirmed it does not intend to make an offer for Renishaw. (Newswires)

International Distributions Services (IDS LN) - Former Heathrow executive Emma Gilthorpe has been appointed as Royal Mail's new CEO from May 1st, succeeding Simon Thompson. Gilthorpe was in charge of Heathrow’s return to operations after the pandemic. (Times)

BROKER MOVES

Segro (SGRO LN) upgraded to Overweight from Underweight at Barclays

DAX

Mercedes Benz (MBG GY) - Factory workers at Mercedes Benz's Alabama plant are filing a petition to join UAW as soon as this week, according to sources. (Newswires)

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - UKA placed the next major order for 253 MW with the Nordex group. Within 3 months, UKA has already ordered 450MW for German wind projects from Nordex. (Newswires)

Thyssenkrupp (TKA GY) – Supervisory board are to discuss plans for a major overhaul on April 11; plans for a revamp which could cut capacity and lead to thousands of jobs reductions, via Reuters citing sources. (Reuters)

BROKER MOVES

Infineon (IFX GY) upgraded to Overweight from Equal Weight at Morgan Stanley

CAC

Kering (KER FP) - Appointed Armelle Poulou as CFO, effective immediately. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Soitec (SOI FP) downgraded to Equal Weight from Overweight at Morgan Stanley

PAN EUROPE

Andritz (ANDR AV) – Started up its second tissue production line in Vietnam, where capacity will reach up to 72k tons per year. (Newswires)

Banco BPM (BAMI IM) – Moody’s affirmed BAA1 long-term deposit and BAA2 long-term issuer ratings; outlook stable. (Newswires)

China-exposed EV Names - Xiaomi (1810 HK) begun deliveries of sine SU7 vehicles and more than 100k people have placed orders so far. (Newswires)

Eni (ENI IM) – Co. is evaluating the sale of its newswire AGI, though discussions were preliminary and non-exclusive, according to Reuters citing sources. (Reuters)

Fabless Chip Names - Taiwan was hit by the strongest earthquake in 25 years with a magnitude of 7.2, according to the Taiwan Central Weather Administration. TSMC (2330 TT) evacuated production lines after the major Taiwan earthquake, Co. said some fabs were evacuated according to Co. procedure. Taiwan chipmaker UMC (2303 TT) said it evacuated staff at the Hsinchu and Southern Taiwan Science Parks according to its operating standards, while Taiwan's largest chip packaging and test firm ASE (3711 TT) said its operations are normal. Foxconn (2354 TW) says at present there is no impact from the earthquake. (Newswires)

Italian Stocks - Italy cut its 2024 GDP growth target to 1.0% (prev. 1.2% set in September); cuts 2025 target to 1.2% (prev. 1.4% set in September), according to Reuters citing press. (Newswires)

Renault (RNO FP) / Volvo (VOLVB SS) - CMA CGM joined Renault and Volvo as founding members of Flexis SAS, a JV for the generation of electric vans. Renault and Volvo are to invest EUR 300mln over the next three years and will each hold a 45% stake in the Co. (Newswires)

BROKER MOVES

WDP (WDP BB) upgraded to Overweight from Underweight at Barclays

SMI

Holcim (HOLN SW) – Proposed Catrin Hinkel as a new independent member of its BoD. (Newswires)

Swiss Re (SREN SW) – Announced CEO transition and BoD appointed Andreas Berger as group CEO, effective 1st July 2024. (Newswires)

Sika (SIKA SW) – Acquired infrastructure refurbishment company in the US. (Newswires)

OTHER SWISS COMPANIES

Avolta (AVOL SW) – Announced expanded contract with Norwegian Cruise Line; wins 4 new ships and boosts total Presence to 18 ships. (Newswires)

Clariant (CLN SW) – Completed USD 810mln acquisition of Lucas Meyer cosmetics. (Newswires)

BROKER MOVES

SCANDINAVIA

Genmab (GMAB DC) - Co. is to broaden and strengthen its oncology portfolio with the acquisition of ProfoundBio for around USD 1.8bln. Revenue guidance remains unchanged. Operating expenses before the proposed deal are anticipated to be at or moderated above the upper end of prev. guidance range of DKK 12.4-13.4bln. (Newswires)

Skanska (SKAB SS) - Co. has signed a USD 1.4bln contract with the Washington State Department of Transportation to replace the Portage Bay Bridge in Seattle. (Skanska)

BROKER MOVES

US

CLOSES: SPX -0.72% at 5,205, NDX -0.94% at 18,121, DJIA -1.00% at 39,170, RUT -1.80% at 2,065.

SECTORS: Health -1.62%, Consumer Discretionary -1.27%, Real Estate -1.12%, Technology -0.97%, Consumer Staples -0.57%, Industrials -0.52%, Financials -0.44%, Materials -0.41%, Communication Services +0.1%, Utilities +0.17%, Energy +1.38%.

Intel (INTC) - Co. outlined its financial framework for the foundry business and set a path to margin expansion, noting Intel Foundry's operating loss for 2023 at USD 7.0bln. (Newswires)

Microsoft (MSFT) - The Review Board is to issue a report detailing Microsoft's lapses in the China hack, according to the Washington Post. (WaPo)

Teck Resources (TECK) - Co. is to cut the fees it pays Korea Zinc by 40% to turn its concentrate into zinc metal, according to Reuters sources. (Reuters)

03 Apr 2024 - 06:50- Geopolitical- Source: Newsquawk