Newsquawk Daily European Equity Opening News - 3rd July 2023

3rd July 2023

ASIA

Asia-Pac stocks began the new trading month on the front foot with momentum from last Friday's rally on Wall Street and as participants digested key data releases including an improved Tankan survey and better-than-expected Chinese Caixin Manufacturing PMI. ASX 200 (+0.6%) was positive as gains in the commodity-related sectors offset the losses in tech stocks and with encouragement from a surge in Building Approvals, although further upside was capped ahead of tomorrow’s RBA meeting with analysts near-evenly split regarding forecasts for a hike or a pause. Nikkei 225 (+1.7%) was underpinned following the BoJ’s quarterly Tankan survey which mostly topped estimates and showed Japanese large manufacturers' sentiment improved for the first time in seven quarters. Hang Seng (+2.0%) and Shanghai Comp. (+1.3%) conformed to the positive mood after Chinese Caixin Manufacturing PMI topped forecasts for its second consecutive monthly expansion and the PBoC recently pledged that China will continue to provide inclusive loan support for small and micro businesses. In addition, the US confirmed that Treasury Secretary Yellen will visit China on July 6th-9th for meetings with senior Chinese officials although a Treasury official already tempered expectations and noted that no significant breakthrough was anticipated.

Auto Names - Li Auto (LI), XPeng (XPEV), and NIO (NIO) - The Chinese EV trio delivered 51,902 vehicles in June, a record for any month and up from 41,280 delivered in June 2022, Barron's reports, adding that the data showed that EV demand in China has been growing.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +1.02% at 4,399, FTSE 100 +0.80% at 7,531, DAX 40 +1.26% at 16,147, CAC 40 +1.19% at 7,400, FTSE MIB +1.08% at 28,230, IBEX 35 +0.87% at 9,593, SMI +1.01% at 11,283.

Sectors: Energy 1.20%, Materials 1.05%, Industrials 1.38%, Consumer Disc 1.14%, Consumer Stpl 1.09%, Healthcare 1.32%, Financials 1.19%, IT 0.69%, Telecoms 0.28%, Utilities 0.70%

FTSE 100

Barclays (BARC LN) - Seeks to end relationship as Odey Asset Management's corporate bank, following sexual misconduct allegations, according to the FT. (FT)

Energy Names - IEA's Birol says energy prices could spike this winter, forcing the government to step in and subsidise bills again. (BBC)

Tesco (TSCO LN) - Current chairman of Burberry (BRBY LN) will replace Allan as the new chairman of Tesco. (BBC)

Utility Names - The Thames Water crisis could deter foreign investment into the UK, after Thames Water seeks to raise GBP 1bln to shore up its finances, according to FT (FT).

OTHER UK COMPANIES

Mulberry (MUL LN) – Reportedly denies request from Fraser Group, a 36.8%, to appoint Mike Ashley to the board. (Newswires)

BROKER MOVES

Croda (CRDA LN) downgraded to Hold from Buy at Stifel

EasyJet (EZJ LN) reiterated with Neutral at JP Morgan Chase

WPP (WPP LN) maintained with Underperform at BofA

DAX

BMW (BMW GY) – Begins to share buyback program for up to EUR 2bln (Newswires)

Deutsche Bank (DTE GY) - Head of Human Resources Ilgner to step down after compliance probe into an ill-timed purchase of company bonds earlier in the year, according to the FT. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

Brenntag (BNR GY) downgraded to Hold from Buy at Stifel

CAC

OTHER FRENCH COMPANIES

Casino (CO FP) – Announces partnership with Prosol to develop “fresh” concept in Casino stores. (Newswires)

SES Imagotag (SESL FP) - Furthers expansion into the US by approximately 6000 stores. (Newswires)

Technip Energies (TE FP) - Acquires Processium, with no terms disclosed. (Newswires)

BROKER MOVES

PAN EUROPE

Chemical Names - The EU rail industry will fall unless regulators delay a proposed ban on so-called forever chemicals, according to FT (FT)

Generali (G IM) - Italy insurance regulator Ivass authorises Delfin to hold a stake of over 10% in the Co. (Newswires)

Universal Music Group (UMG NA) – To buy RS Group’s Thailand catalogue. (Newswires)

BROKER MOVES

Acciona Energias (ANE SM) downgraded to Neutral from Underweight at JP Morgan Chase

SMI

UBS (UBSG SW) - Aims to avoid using USD 10bln Credit Suisse backstop amid backlash with UBS executives hoping to announce that the bank will not call on government backstop when it publishes Q2 results on August 31st, according to FT. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Skansa (SKAB SS) – Awarded SEK 1.3bln order under the existing contract with Hs2, towards work on phase one of a new high-speed railway in the UK. (Newswires)

BROKER MOVES

Vestas Wind Systems (VWS DC) reiterated with Underweight at JP Morgan Chase

US

CLOSES: SPX +1.22% at 4,450, NDX +1.60% at 15,179, DJIA +0.83% at 34,406, RUT +0.38% at 1,888.

SECTORS: Technology +1.82%, Consumer Discretionary +1.36%, Utilities +1.21%, Health +1.06%, Communication Services +0.99%, Consumer Staples +0.92%, Materials +0.9%, Financials +0.9%, Industrials +0.87%, Energy +0.63%, Real Estate +0.5%.

Apple (AAPL) - Is reportedly forced to make major cuts to Vision Pro headset production plans with initial hopes of 1mln shipments in 2024 dashed by manufacturing problems, according to FT. (FT)

Amazon (AMZN) - Is reportedly offering new features to ad-sellers in effort to take share from Google (GOOGL) and The Trade Desk (TTD), according to Business Insider. (Newswires)

BNY Mellon (BK) - Intends to lift quarterly dividend by 14% to USD 0.42/shr. (Newswires)

Netflix (NFLX) - Is to revamp strategy to lure brands and boost revenue, according to FT. (FT)

Spotify (SPOT) – Reportedly in talks with unidentified partners to add full-length music videos to the platform (Newswires)

Tesla (TSLA) - Reports Q2 deliveries 466.1k units (Exp. 448.4k). Analysts were looking at the data in the context of Tesla recent price cuts to boost demand for its EVs. Citi sees positive reaction for Tesla shares after the company beats Q2 delivery expectations. The strong deliveries put Tesla on track for over 1.8mln units this year, Citi said, but pricing pressure in Q3 remains a concern. Citi has a Neutral rating with a USD 215 price target. (Newswires)

03 Jul 2023 - 06:55- Research Sheet- Source: Newsquawk