Newsquawk Daily European Equity Opening News - 3rd July 2024

3rd July 2024

ASIA

APAC stocks mostly took impetus from the gains on Wall St where the S&P 500 and Nasdaq posted record closes amid softer yields and dovish-leaning comments from Fed Chair Powell, although gains were capped and China lagged on weak Caixin PMI data. ASX 200 kept afloat amid strength in the commodity-related sectors and with some encouragement from the better-than-expected Retail Sales and Building Approvals data from Australia. Nikkei 225 was underpinned and further extended above the 40,000 level on the back of recent currency weakness. Hang Seng and Shanghai Comp. were mixed in which the former attempted to reclaim the 18,000 status, while the mainland bucked the trend after Caixin Services PMI data disappointed and amid lingering global frictions as European officials alleged that China is building and testing lethal attack drones for Russia.

Honda (7267 JT) - June China vehicle sales fell 39% Y/Y to around 69k units. (Newswires)

Hyundai Motor (005380 KS)/LG Energy Solution (373220 KS) - Cos launched Indonesia's first EV battery cell plant. (Newswires)

Toyota (7203 JT) - North America US sales (June): -1.2% to 193k, EV sales +64.5% to to 84.7k vehicles. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX -0.75% at 18,153, CAC 40 -0.3% at 7,538, AEX +0.17% at 925, PSI flat at 6,590, FTSE 100 -0.56% at 8,121, FTSE MIB -0.70% at 33,481, Euro Stoxx 50 -0.47% at 4,907, IBEX 35 -1.3% at 10,913, SMI -0.32% at 12,011.

SECTORS: Energy 0.78%, IT 0.47%, Consumer Stpl -0.25%, Materials -0.30%, Industrials -0.37%, Telecoms -0.47%, Utilities -0.59%, Consumer Disc -0.62%, Healthcare -0.88%, Financials -0.92%

FTSE 100

Anglo American (AAL LN) - Co. reportedly considers options to sell coal assets after the fire at its Grosvenor project in Australia, options include selling single assets or excluding Grosvenor, according to Bloomberg. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

3i (III LN) downgraded to Equal Weight from Overweight at Morgan Stanley

DAX

BASF (BAS GY) - Co. reportedly pulled the plug on potential Chile investments in lithium rout, according to Bloomberg. (Bloomberg)

Volkswagen (VOW3 GY) - Rivian (RIVN) said there are no plans to partner on hardware or produce vehicles with Volkswagen (VOW3 GY) as part of JV, and added no changes to R2 production plans and it is to build R2 at normal Illinois plant followed by planned Georgia plant. (Newswires) It was earlier reported that Volkswagen and Rivian could significantly expand their partnership, according to Handelsblatt - the report said the two are also talking about collaborating on hardware and production. (Handelsblatt) German Government to block the planned sale of Man Energy Solution's (VOW3 GY) gas turbine division to China's CSIC Longjiang GH gas turbine, according to Reuters sources. (Reuters)

OTHER GERMAN COMPANIES

Grenke (GLJ GY) - Q2 New leasing business +21.5% Y/Y to a record EUR 790.3mln (prev. EUR 650.3mln Y/Y). Contribution margin 2 (CM2) +19.4 % to EUR 130.9mln (prev. EUR 109.7mln Y/Y). (Newswires)

BROKER MOVES

Rheinmetall (RHM GY) initiated with Overweight at Morgan Stanley

CAC

Engie (ENGI FP) - Signed five new corporate power purchase agreements with Google (GOOGL) in Belgium. (Newswires)

Sanofi (SAN FP) - Dupixent was approved in the EU as the first-ever targeted therapy for patients with COPD. (GlobeNewswire)

OTHER FRENCH COMPANIES

BROKER MOVES

L'Oreal (OR FP) upgraded to Sector Perform from Underperform at RBC

PAN EUROPE

bpost (BPOST BB) - Co. expects further persisting unfavourable market conditions in North America, and lowers North American and Belgian guidance. Group total operating income for 2024 to decrease by a low single-digit percentage, E-Logistics North America now seen at a low double-digit percentage decline in total operating income (prev. high single-digit percentage decline) and adj. EBIT margin between 2.5-4.5%(prev. 4 to 6% ). Gross capex envelope is revised downwards and is now expected to be around EUR 150mln (vs. EUR 180mln initially). E-Logistics Eurasia guidance increased, now sees high single-digit percentage growth seen in total operating income (vs. prev. low double-digit percentage growth), EBIT margin now seen at 6-8% (prev. 5-7%). (bpost)

China-exposed Stocks - Chinese Caixin Services PMI (Jun) 51.2 vs. Exp. 53.4 (Prev. 54.0). Chinese Caixin Composite PMI (Jun) 52.8 (Prev. 54.1). Caixin said “Market optimism weakened. The corresponding gauge remained in positive territory, but was significantly below the historical average, recording the lowest level since March 2020. The market was concerned about downward pressure on the economy." (Caixin)

EU-China - The EU plans to impose customs duties on cheap goods from Chinese online retailers like Temu and Shein to curb the influx of substandard items, FT reports. The EC will propose removing the current EUR 150 duty-free threshold, targeting platforms such as Temu, AliExpress, and Shein, which benefit from subsidised postage costs. The measures will apply to all non-EU online retailers, with potential compulsory VAT registration for large platforms. (FT)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.62% at 5,509, NDX +1.01% at 20,012, DJI +0.41% at 39,332, RUT +0.19% at 2,034.

SECTORS: Health -0.4%, Energy -0.2%, Materials +0.16%, Real Estate +0.4%, Utilities +0.44%, Technology +0.54%, Industrials +0.55%, Consumer Staples +0.62%, Communication Services +0.84%, Financials +1.1%, Consumer Discretionary +1.81%.

Apple (AAPL) - Co. is set to get an OpenAI board observer role as part of an AI pact, according to Bloomberg. (Newswires)

Eli Lilly (LLY) - Co. won US approval for the drug to slow Alzheimer’s disease. (Newswires)

Paramount Global (PARA) - Skydance has reached a preliminary agreement to buy National Amusements (which owns 77% of the voting shares of Paramount) for USD 1.75bln, WSJ reports citing sources. Skydance then plans to merge with Paramount, subject to approval by a special committee of Paramount’s directors. The deal is said to include a 45-day "go-shop" period. (Newswires)

03 Jul 2024 - 06:40- Research Sheet- Source: Newsquawk