Newsquawk Daily European Equity Opening News - 4th September 2024

4th September 2024

ASIA

APAC stocks traded with losses across the board following the dire session on Wall Street, which saw a tech rout led by downside in chips, with a similar picture seen in APAC with the likes of SK Hynix opening lower by over 9%. ASX 200 saw losses led by miners and tech following a similar sectoral picture stateside, whilst the downside was somewhat cushioned by heavyweight healthcare and telecoms. The index extended on losses after the QQ GDP miss. Nikkei 225 felt a double-whammy from the tech-led downside coupled with the stronger JPY, with the index slipping under 38k and eventually 37k from a 38,728.50 close on Tuesday. Hang Seng and Shanghai Comp also fell victim to the regional losses, with the former seeing its large-cap oil names with the deepest losses, whilst the mainland saw shallower losses. Caixin Services PMI deteriorated, but the accompanying commentary was rosier.

EUROPEAN CLOSES

CLOSES: DAX: -0.92% at 18,756, FTSE 100: -0.78% at 8,298, CAC 40: -0.93% at 7,575, Euro Stoxx 50: -1.21% at 4,913, AEX: -1.29% at 909, IBEX 35: -1.02% at 11,279, FTSE MIB: -1.33% at 33,863, SMI: -0.95% at 12,333, PSI: -0.99% at 6,707

SECTORS: Consumer Stpl 0.67%, Utilities 0.04%, Telecoms -0.35%, Consumer Disc -0.53%, Healthcare -0.63%, Industrials -0.93%, Financials -1.17%, Materials -1.49%, IT -2.70%, Energy -2.97%

FTSE 100

Rolls Royce (RR/ LN) - Confirmed that the Cathay Pacific flight CX383 was powered by Rolls Royce trent XWB-97 engines. (Newswires)

Shell (SHEL LN), Helix Energy Solutions (HLX) - Helix Energy Solutions secured a multi-year contract with Shell Offshore, starting in 2025, to provide well intervention services in the Gulf of Mexico. (Newswires)

UK Banks - UK regulators plan to curtail a new rule which would have forced banks/payment companies to reimburse fraud victims up to GBP 415k, via the FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

Airtel Africa (AAF LN) downgraded to Neutral from Overweight at JP Morgan

DAX

OTHER GERMAN COMPANIES

Commerzbank (CBK GY) - Germany reportedly plans to cut its stake in Commerzbank, according to Bloomberg. Germany's federal government says it will decide on further sales steps of stake in Commerzbank in due course, as the German finance agency says it plans to cut its stake. German federal government says it currently holds a 16.49% stake. (Bloomberg/Newswires) Shares -2.2% in pre-market trade

BROKER MOVES

CAC

Thales (HO FP) - Co. and WB Group signed a frame agreement on strategic cooperation in the defence sector. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

China-exposed Stocks - Chinese Caixin Services PMI (Aug) 51.6 (Prev. 52.1); Compose 51.2 (Prev. 51.2). “Market optimism was retained. Businesses expressed confidence in further market improvement, keeping the corresponding gauge in positive territory. But it was still below the historical average, indicating the optimistic sentiment needed to be strengthened." (Caixin)

Stellantis (STLAM IM/STLAP FP) - Names Bob Broderdorf head of Jeep North America, effective immediately. (Newswires)

Saipem (SPM IM) - Won two offshore contracts in Saudi worth around USD 1bln. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Barry Callebaut (BARN SW) initiated with Neutral at JP Morgan

Chocoladefabriken Lindt & Spruengli (LISN SW) initiated with Underweight at JP Morgan

SCANDINAVIA

Metso (METSO FH) - Terminates its waste-to-energy business and books a one-time expense of EUR 255mln in discounted operations results. (Newswires)

Telia (TELIA SS) - Co. initiated targeting annual savings of at least SEK 2.6bln. Subject to union negotiations; Co. aims to reduce headcount by 3k in 2024. Restructuring charges are expected at SEK 1.4bln, but are not expected to impact the financial outlook statement for 2024. (Newswires)

Volvo Car AB (VOLCARB SS) - All-new, all-electric, Volvo EX90 SUV on road; first customers will get their cars this month. Will ramp up deliveries, including more markets between Q4 of this year and Q1'25. (Newswires)

BROKER MOVES

US

CLOSES: SPX -2.12% AT 5,529, NDX -3.15% at 18,959, DJIA -1.51% at 40,937, RUT -3.09% at 2,149

SECTORS: Technology -4.43%, Energy -2.41%, Communication Services -2.34%, Materials -2.29%, Industrials -2.27%, Consumer Discretionary -1.39%, Financials -0.71%, Health -0.21%, Utilities -0.13%, Real Estate +0.27%, Consumer Staples +0.76%.

Nvidia (NVDA) - Nvidia received a DOJ subpoena as part of an escalating antitrust investigation into its dominance in AI computing, Bloomberg reports. The DOJ, which previously sent questionnaires, is now issuing legally binding requests for information to Nvidia and other companies, potentially leading to a formal complaint against the chipmaker. Nvidia responded to the subpoena, saying customers can choose whatever solution is best. (Bloomberg)

Salesforce (CRM) - Salesforce will acquire AI-powered voice agent developer Tenyx to enhance its AI-driven solutions. Tenyx's co-founders and team will join Salesforce. The deal is expected to close in Q3. Reuters said the deal marks a shift for CRM, which last year came under pressure from activist investors, and then subsequently announced plans to double share buybacks and shift away from acquiring more companies. (Reuters)

04 Sep 2024 - 06:52- EquitiesData- Source: Newsquawk