Newsquawk Daily European Equity Opening News - 4th November 2024

4th November 2024

ASIA

APAC stocks began the week mostly positive but with the gains capped amid the holiday closure in Japan and as global markets braced for this week's major risk events including the US Presidential Election. ASX 200 was led by strength in tech, telecoms and utilities, while financials also benefitted after Westpac's earnings. Hang Seng and Shanghai Comp were mixed as the former traded indecisively with strength in automakers offsetting the losses in the property sector, while the mainland was underpinned amid tailwinds from an unwinding of the Trump trade and with the NPC Standing Committee convening this week with participants eyeing the approval of over CNY 10tln of additional debt issuance for the next few years.

SK Hynix (000660 KS) - Chairman said NVIDIA (NVDA) CEO Huang asked SK Hynix to bring forward the supply of HBM4 chips by six months

Westpac (WBC AT) - Co. FY (AUD) net fell 3% Y/Y to 7.0bln, rev. was flat Y/Y at 21.6bln, Co. further increased its share buyback program by AUD 1bln and expects solid demand for both housing and business credit in 2025. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.92% at 19,252, FTSE 100 +0.83% at 8,177, CAC 40 +0.80% at 7,409, Euro Stoxx 50 +1.04% at 4,878, AEX +1.08% at 884, IBEX 35 +1.46% at 11,843, FTSE MIB +1.15% at 34,676, SMI +1.65% at 11,974.

SECTORS: Financials 1.31%, Healthcare 1.28%, Consumer Stpl 1.22%, Industrials 1.21%, IT 1.09%, Utilities 0.99%, Telecoms 0.95%, Materials 0.87%, Consumer Disc 0.75%, Energy 0.66%                        

FTSE 100

Sainsbury’s (SBRY LN) – Co. is to price match up to 200 Aldi products at its smaller stores as it aims to get more customers in its convenience stores, via BBC. (BBC)

UK Home buyers – Home sales will “jump” at the beginning of next year as people try to buy before the rise in stamp duty, via the BBC citing Nationwide. (BBC)

OTHER UK COMPANIES

Burberry (BRBY LN) – Miss Tweed reports that Moncler (MONC IM) is considering making a bid for Burberry as it aims to create an outdoor specialist giant. Moncler subsequently responded that it “does not comment on unsubstantiated rumours”. (Miss Tweed)

BROKER MOVES

3i (III LN) downgraded to Sector Perform from Outperform at RBC

Frasers (FRAS LN) upgraded to Outperform from Sector Perform at RBC

Reckitt (RKT LN) downgraded to Market Perform from Outperform at Bernstein

NatWest (NWG LN) upgraded to Outperform from Market Perform at Keefe Bruyette

DAX

OTHER GERMAN COMPANIES

Qiagen (QIA GY) - QIAGEN receives FDA clearance of QIAstat-Dx meningitis/encephalitis panel to support emergency diagnostics. (Qiagen)

BROKER MOVES

CAC

Atos (ATO FP) - French Finance Minister said France decision to buy preferential share in Atos unit Bull will protect France's influence in Co.; France is continuing to examine with Atos possible acquisition of assets deemed to be of strategic interest. (Newswires)

Schneider Electric (SU FP) – Appointed Olivier Blum as new CEO, effective immediately. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

STMicroelectronics (STM FP) downgraded to Neutral from Outperform at Oddo

STMicroelectronics (STM FP) downgraded to Underweight from Equal Weight at Morgan Stanley

PAN EUROPE

Auto Name - China Commerce Minister met with French Foreign Trade Ministerial Delegate Sophie Primas on Sunday and stated the EU's countervailing investigation on China's electric vehicles has 'seriously hindered' China-EU auto industry cooperation

China-Exposed Stocks - China is not planning "bazooka" stimulus for this year, according to WSJ sources; Chinese authorities reportedly set to signal after the NPC that more steps to support growth are in the pipeline. (WSJ)

PostNL (PNL NA) – Q3 (EUR): EBIT -18mln (prev. -34mln Y/Y), Revenue 756mln (prev. 722mln Y/Y). Cuts FY24 EBIT to approx. 80mln (prev. guided 80-110mln). Announced that Herna Verhagen as decided to step down as CEO and hand over responsibilities and duties to Pim Berendsen, who is the current CFO. (Newswires)

Ryanair (RYA ID) – H1 (EUR): Net Income 1.79bln (prev. 2.18bln Y/Y), Revenue 8.69bln (prev. 8.58bln Y/Y)/. Notes that “things appear to be strong in Q3” with decline in pricing appears to be moderating; Q3 deliveries slip into Q4 on Boeing (BA) strikes. Other key metrics: Passengers 115.3mln, +9% Y/Y. Load Factor 95% (exp. 94.9%), Average fares EUR 52, -10% Y/Y. CFO said fall in avg. fares in Q3 likely to be “somewhere below 5%”. Market capacity will be constrained next year and interest rates set to fall, says “hopefully that leads to a slightly better pricing environment.” Too soon to give FY25 profit guidance, but safe to assume that profits will be down in the FY. OTA issue is “pretty much behind us”. Guides Q3 average fares “fell somewhere below 5%”. Affirms FY24/25 198-200mln (exp. 199.5mln, prev. guided 198-200mln. Cuts FY26 passengers 210mln (prev. guided 215mln). (Newswires)

Sabadell (SAB SM) – Co. has been in a legal battle with US private equity group Cerberus over a soured multi-billion euro property deal, according to the FT. The lawsuit is worth up to EUR 365mln. (FT)

Stellantis (STLAM IM/STLAP FP) – Presidential Candidate Trump says if Stellantis plans on moving, they will charge them a 100% tariff on every car. (Newswires)

BROKER MOVES

Ageas (AGS BB) upgraded to Neutral from Underweight at JP Morgan

Bankinter (BKT SM) initiated with Hold at HSBC

SMI

Clariant (CLN SW) – Co. says it is well positioned for further growth and profitability improvement, at its investor day. Reinformed medium term financial targets. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.41% at 5,729, NDX +0.72% at 20,003, DJIA +0.69% at 42,052, RUT +0.61% at 2,210.

SECTORS: Consumer Discretionary +2.40%, Technology +0.61%, Health +0.59%, Industrials +0.16%, Financials +0.11%, Communication Services -0.07%, Consumer Staples -0.07%, Materials -0.19%, Energy -0.74%, Real Estate -1.09%, Utilities -2.26%.

Boeing (BA) - Reached a proposed agreement with the IAM bargaining committee on a new four-year contract and vote is on Monday on agreement. (Newswires)

Chevron (CVX) - flagged possible job cuts in USD 3bln cost plan, according to Bloomberg

04 Nov 2024 - 06:59- Rumour- Source: Newsquawk