Newsquawk Daily European Equity Opening News - 5th June 2023

5th June 2023

ASIA

APAC stocks were mostly positive amid momentum from Friday's post-NFP gains on Wall Street and as participants digested stronger Chinese Caixin Services and Composite PMI data. ASX 200 was led higher by gains across nearly all sectors with early tailwinds in energy names following Saudi Arabia’s additional 1mln bpd output cut, while the RBA is seen to keep rates unchanged at tomorrow’s meeting. Nikkei 225 climbed above 32,000 for the first time since 1990 with exporters propelled by a weaker currency. Hang Seng and Shanghai Comp. were kept afloat following the encouraging Caixin PMIs but with gains capped amid US-China frictions and after China’s Cabinet noted that the foundation for the economic recovery is not solid, while property names were also pressured despite reports that China is mulling a support package for the property sector and bolster the economy.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +1.55% at 4,323, FTSE 100 +1.56% at 7,607, DAX 40 +1.25% at 16,051, CAC 40 +1.87% at 7,270, FTSE MIB +1.85% at 27,068, IBEX 35 +1.63% at 9,317, SMI +1.27% at 11,439.

SECTORS: Materials 2.77%, Consumer Disc 2.64%, Energy 2.36%, Financials 2.06%, Industrials 1.72%, Consumer Stpl 0.88%, Healthcare 0.82%, Utilities 0.40%, IT 0.32%, Telecoms -2.43%

FTSE 100

AstraZeneca (AZN LN) - Imfinzi improved PCR in gastric and gej cancers; first global phase III trial of immunotherapy and chemotherapy combination to demonstrate clinical benefit in this setting. (Newswires)

Barclays (BARC LN)/ Lloyds Banking Group (LLOY LN) - Lloyds Banking Group said it will shut 21 Lloyds Bank sites, along with 15 Halifax high street branches and 17 Bank of Scotland buildings between September and May 2024. Barclays said on Friday it will shut another 10 branches, on top of the over 70 branch-closures already announced. (Sky News)

Oil Names - Crude future rose following the OPEC+ meeting over the weekend, which saw members extend existing cuts while Saudi pledged an additional 1mln BPD cut.

UK Supermarkets/ Just Eat Takeaway (JET LN)/ Deliveroo (ROO LN) - Consumer survey "Which?" suggests ordering groceries on food delivery apps can cost double. (Sky News)

OTHER UK COMPANIES

Asos (ASC LN) - The Times suggests Asos is on "bid alert" after being approached in late-December for a GBP 1bln takeover by Alibaba-backed Turkish online retailer Trendyol, valuing Asos between GBP 10-12/shr (vs GBP 3.50/shr close on Friday). There are no live talks according to the article. (The Times)

BROKER MOVES

DAX

Siemens (SIE GY) - Co . is reportedly coordinating a letter of support for crisis-hit UK lobby group CBI ahead of a vote of confidence on CBI's leadership on Tuesday, according to sources cited by the FT and Sky News. (FT/Sky News)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Co's CCO said there will probably be a supply crunch on widebody aircrafts as airlines stock up on long-haul planes. Separately, Qantas CEO said there is significant demand for wide-body jets and looks to replace its current fleet of Airbus A330 jets. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Gaming Names - Sony (6758 JT) CEO warned cloud gaming is still "very tricky", but the Co. will study various options for streaming games over the internet, and will use AI agent to enhance cloud gaming. (FT)

BROKER MOVES

SMI

UBS (USBG SW)/Credit Suisse (CSGN SW) - UBS said it will complete the takeover of Credit Suisse as early as June 12th; Credit Suisse shareholders to receive one UBS share for every 22.48 outstanding shares held. Exchange of Credit Suisse ADS (CS) may be subject to certain fees. Upon completion, Credit Suisse shares and American Depositary Shares (ADS) will be delisted from the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE). Credit Suisse Group AG’s obligations under its outstanding debt securities will become obligations of UBS Group AG. (UBS IR)

UBS (UBS SW) - Co. is reportedly mulling delaying its Q2 results as long as possible amid financial and political "complexities" following the Credit Suisse (CSGN SW) takeover, according to sources cited by the FT. (FT) UBS was due to report on July 25th

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.45% at 4,282, NDX +0.73% at 14,546, DJIA +2.12% at 33,762, RUT +3.56% at 1,830.

SECTORS: Materials +3.37%, Industrials +2.96%, Energy +2.96%, Consumer Discretionary +2.2%, Financials +2.18%, Real Estate +2.09%, Consumer Staples +1.39%, Health +1.33%, Utilities +1.02%, Technology +0.51%, Communication Services +0.1%.

Apple (AAPL) - Apple is expected to announce a mixed reality headset - its first brand-new product for eight years - at its annual event for developers. (Sky News)

Microsoft (MSFT) - Microsoft President Smith is set for talks with UK Chancellor Hunt regarding Activision Blizzard (ATVI) deal ban, according to Bloomberg. (Newswires_

US Banks - Large US banks could face a 20% boost to capital requirement as those relying on fees may need larger capital buffers to absorb losses under planned rules, according to WSJ. (WSJ)

Walt Disney (DIS) - Co. sees USD 1.5bln impairment charge for direct-to-consumer services but does not expect material cash expenditures; sees up to USD 400mln in additional charges. (Newswires)

05 Jun 2023 - 06:38- Research Sheet- Source: Newsquawk