Newsquawk Daily European Equity Opening News - 4th May 2021

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asian equity markets traded somewhat mixed following on from a mostly positive US session after sentiment was underpinned amid an easing of COVID restrictions in the Tri-state area and for Florida. The Nasdaq underperformed with tech pressured by losses in work-from-home stocks and US equity futures also marginally pulled back in overnight trade. ASX 200 (+0.5%) was positive with the index kept afloat as the commodity-related sectors benefitted from recent upside in the complex but with gains limited by weakness in tech and a lacklustre mood for the top-weighted financials, while the RBA announcement and soft Trade Data added to the tentativeness. KOSPI (-0.1%) swung between gains and losses as some inflation concerns re-emerged following firmer than expected CPI data which printed 2.3% vs exp. 2.2% and was the fastest pace of increase since 2017, as well as the first time above the 2% target in 2 years. Hang Seng (+0.4%) was mildly underpinned after the recent stronger than expected Hong Kong GDP data for Q1, but with relatively light newsflow and continued absence of participants in mainland China and Japan, keeping price action in the region tepid.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.55% AT 3,997; FTSE 100 +0.12% AT 6,970; DAX +0.67% AT 15,238; CAC 40 +0.49% AT 6,300; IBEX 35 +0.81% AT 8,886; FTSE MIB +1.09% AT 24,405; SMI +0.90% AT 11,122

SECTORS: Utilities 0.89%, Energy 0.86%, Consumer Disc 0.76%, Industrials 0.70%, Healthcare 0.63%, Materials 0.47%, Financials 0.45%, Consumer Stpl 0.44%, Telecoms 0.28%, IT 0.17%

4th May 2021

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asian equity markets traded somewhat mixed following on from a mostly positive US session after sentiment was underpinned amid an easing of COVID restrictions in the Tri-state area and for Florida. The Nasdaq underperformed with tech pressured by losses in work-from-home stocks and US equity futures also marginally pulled back in overnight trade. ASX 200 (+0.5%) was positive with the index kept afloat as the commodity-related sectors benefitted from recent upside in the complex but with gains limited by weakness in tech and a lacklustre mood for the top-weighted financials, while the RBA announcement and soft Trade Data added to the tentativeness. KOSPI (-0.1%) swung between gains and losses as some inflation concerns re-emerged following firmer than expected CPI data which printed 2.3% vs exp. 2.2% and was the fastest pace of increase since 2017, as well as the first time above the 2% target in 2 years. Hang Seng (+0.4%) was mildly underpinned after the recent stronger than expected Hong Kong GDP data for Q1, but with relatively light newsflow and continued absence of participants in mainland China and Japan, keeping price action in the region tepid.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.55% AT 3,997; FTSE 100 +0.12% AT 6,970; DAX +0.67% AT 15,238; CAC 40 +0.49% AT 6,300; IBEX 35 +0.81% AT 8,886; FTSE MIB +1.09% AT 24,405; SMI +0.90% AT 11,122

SECTORS: Utilities 0.89%, Energy 0.86%, Consumer Disc 0.76%, Industrials 0.70%, Healthcare 0.63%, Materials 0.47%, Financials 0.45%, Consumer Stpl 0.44%, Telecoms 0.28%, IT 0.17%

FTSE 100

AstraZeneca (AZN LN) - Farxiga has been approved in the US for the treatment of chronic kidney disease in patients at risk of progression with and without type-2 diabetes. (AstraZeneca)

BP (BP/ LN) - Co. is looking to bid for rights to build wind farms off Scotland, according to its CEO cited by The Times. BP is teaming up with EnBW Energie Baden Wuerttemberg (EBKG GY) on bids for the Scottish leases. (The Times)

Vodafone (VOD LN) - Co. has partnered with Google (GOOG) on data analytics. (Newswires)

OTHER UK COMPANIES

Babcock (BAB LN) – Co. is preparing the sale of its rail business alongside sections of aerial emergency services; analysts write that such a sale would raise circa GBP 300mln. (FT) Follows restructuring plans which looked for the Co. to raise GBP 400mln from asset sales.

Dixons Carphone (DC/ LN)/WH Smith (SMWH LN) - WH Smith is reportedly eyeing Dixons Carphone's airport stores. WH Smith last week announced it would borrow around GBP 325mln to open 100 stores at airports and train stations. (Telegraph)

FirstGroup (FGP LN) - Co. is facing a clash with rail unions over its plans to restart dividends, with workers demanding a pay rise. (Telegraph)

Provident Financial (PFG LN) – To close its doorstop lending business according to sources. Shareholders were reportedly to be informed of this at the May 10th results publication. (Mail on Sunday/FT)

BROKER MOVES

IAG (IAG LN) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN CHASE

SMURFIT KAPPA (SKG LN) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

DAX

Infineon (IFX GY) - Q2 diluted EPS from cont. ops EUR 0.15 vs exp. EUR 0.15. Revenue EUR 2.7bln vs exp. EUR 2.78bln. Q2 net profit EUR 208mln vs exp. EUR 228mln. Co. says investments are still planned to be around EUR 1.6bln and FCF is now anticipated to exceed EUR 1.2bln. Co. also raises its revenue growth guidance for the FY. Co. says manufacturing facilities are running at full speed. (Newswires)Shares seen opening higher by 1.7%

Lufthansa (LHA GY) - Co. has purchased five Airbus (AIR FP) a350-900s and five Boeing (BA) 787-9 aircrafts. (Newswires)

Vonovia (VNA GY) - Q1 FFO EUR 382mln vs prev. EUR 335.5mln Y/Y. Rental revenue EUR 1.15bln vs prev. EUR 564mln. Co. affirms FFO and adj. EBITDA guidance. (Newswires)

OTHER GERMAN COMPANIES

HelloFresh (HFG GY) - Q1 revenue EUR 1.44bln vs prev. EUR 699mln Y/Y. EBITDA EUR 159.2mln vs prev. EUR 63.1mln. (Newswires)

BROKER MOVES

SIEMENS HEALTHINEERS (SHL GY) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

SIEMENS HEALTHINEERS (SHL GY) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK

CAC

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - Co. has been selected by high-speed connectivity provider GlobalEagle to increase capabilities over North America. (Newswires)

Valeo (EPA FP) - Co. notes that the chip situation will be better in Q3 vs Q2. (Newswires)

BROKER MOVES

PAN EUROPE

Mediaset (MS IM)/ Vivendi (VIV FP) - Cos have reached a comprehensive deal to end their dispute. Vivendi's subsidiary Dailymotion will pay EUR 26.3mln to cancel copyright litigation with Mediaset's subsidiaries. (Newswires)

BROKER MOVES

SMI

Adecco (ADEN SW) - Q1 net EUR 124mln vs exp. EUR 96mln. Revenue EUR 4.97bln vs prev. EUR 4.98bln. Organic revenue +2 Y/Y, gross margin +80bps. (Newswires)

OTHER SWISS COMPANIES

AMS (AMS SW) - Q1 revenue USD 1.5bln vs exp. USD 1.571bln. USD. EBIT USD 172mln vs prev. USD 111mln. Net USD 89mln vs prev. USD 29mln.

BROKER MOVES

SCANDINAVIA

Pandora (PNDORA DC) - Q1 revenue DKK 4.5bln vs exp. DKK 4.512bln. EBIT DKK 903mln vs exp. DKK 847mln. Capex for the year is seen between DKK 1.0-1.2bln. Co. launched a DKK 500mln share buyback. Co. says revenue was driven by continued strong growth in the US alongside sustained online performance. Co. says China performance continues to be weak, albeit in-line with expectations. (Newswires)

Telenor (TEL NO) - Q1 revenue NOK 28.9bln vs exp. NOK 28.9bln. EBITDA NOK 13bln vs exp. NOK 13.1bln. Net NOK -3.89bln vs prev. NOK 698mln. (Newswires)

BROKER MOVES

NOVOZYMES (NOVOB DC) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN CHASE

US

CLOSES: SPX +0.27% AT 4,192, NDX -0.44% AT 13,799, DJIA +0.71% AT 34,113, R2K +0.37% AT 2,273

SECTORS: ENERGY +2.94%, MATERIALS +1.52%, HEALTH +1.17%, INDUSTRIALS +1.03%, CONSUMER STAPLES +0.89%, FINANCIALS +0.54%, UTLITIES -0.04%, TECHNOLOGY -0.22%, COMMUNICATION SVS. -0.39%, REAL ESTATE -0.48%, CONSUMER DISCRETIONARY -0.66%

04 May 2021 - 06:50- Research Sheet- Source: Newsquawk