Newsquawk Daily European Equity Opening News - 5th June 2024

5th June 2024

ASIA

APAC stocks traded mixed as the cautious mood from Wall Street reverberated into Asia-Pacific, with macro newsflow overnight on the lighter side. ASX 200 was modestly firmer with defensive sectors among the better performers, whilst lagging sectors include gold names, mining stocks, and energy companies. Little immediate reaction was seen on commentary from RBA Governor Bullock and the softer-than-expected Q1 GDP report. Nikkei 225 was the regional laggard and dipped under the 38,500 mark with mining and industrial firms among the losers, whilst autos continued to feel the woes of the latest safety scandal in the country. Hang Seng and Shanghai Comp varied with the former propped up by auto stocks after some firms were permitted to test out advanced levels of autonomous driving. Mainland markets shrugged off the improvement in Caixin Services PMI which also noted "China’s economy is generally stable and remains on the road to recovery."

EUROPEAN CLOSES

CLOSES: DAX: -1.02% at 18,417.54, FTSE 100: -0.37% at 8,232.04, CAC 40: - 0.75 at 7,937.90, Euro Stoxx 50: -1.01% at 4,953.25, IBEX 35: -0.97% at 11,286.40, FTSE MIB: -1.14% at 34,276.02, AEX: -0.38% at 901.68, SMI: +0.07% at 12,015.12

SECTORS: Healthcare 0.82%, Utilities 0.66%, Consumer Stpl 0.61%, Consumer Disc -0.16%, IT -0.22%, Telecoms -0.66%, Industrials -0.88%, Materials -1.14%, Financials -1.45%, Energy -2.61%

FTSE 100

Barclays (BARC LN) - Appoints Alexander Altmann as the global head of equities tactical strategies. (Newswires)

Deliveroo (ROO LN) - Secondary Accelerated Bookbuilding Offer: Orders below 131.50p/shr risk missing. (Newswires)

IDS (IDS LN) - Communication Workers Union has said the commitments offered by Kretinsky do not go far enough. (Newswires)

Rio Tinto (RIO LN) - Invests AUD 8mln in Pilbara Conservation Land Management. (Newswires)

UK Stocks - YouGov/Sky News Snap Debate Poll: PM Sunak won the first head-to-head election debate (Sunak 51%, Starmer 49%). (YouGov)

OTHER UK COMPANIES

BROKER MOVES

Haleon (HLN LN) initiated with Buy at Berenberg

Taylor Wimpey (TW/ LN) upgraded to Buy from Hold at Berenberg

DAX

Adidas (ADS GY)/Puma (PUM GY) - Nike (NKE) has cut staff in its European HQ as part of a multiyear cost-cutting plan, according to Bloomberg. (Bloomberg)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Wendel (MF FP) - Co. announced the discontinuation of its Credit rating from Moody's. (Newswires)

BROKER MOVES

PAN EUROPE

BBVA (BBVA SM) - To issue preferred securities contingently convertible into newly issued ordinary shares of Co. for a total of EUR 750mln. (Newswires)

China-exposed Stocks - Chinese Caixin Services PMI (May) 54.0 (Prev. 52.5). “Currently, China’s economy is generally stable and remains on the road to recovery. This is especially evident from the expectation-beating growth in industrial production in April". "Nevertheless, pressure on employment and weaker demand than supply remain prominent issues. The root cause is overall weak expectations, which have stemmed from a variety of adverse internal and external factors over a long period." (Caixin)

Eni (ENI IM) - S&P revises outlook to Negative; affirms rating. Says Co's lower cash flow generation and distribution policy to contribute to higher leverage over the next two years. (Newswires)

Erste (EBS AV) - Co. received the decision from the ECB pursuant to which it approved buybacks of own shares with a total consideration of up to EUR 500mln for the purpose of cancelling such shares. (Newswires)

Inditex (ITX SM) - Q1 (EUR): Net Profit 1.29bln (exp. 1.28bln), EBITDA 2.37bln (exp. 2.35bln), Net Sales 8.15bln (exp. 8.14bln). Expect a stable gross margin of +/- 50bps in 2024. To propose a dividend of 1.54/shr (approved in March). Co. says they continue to see strong growth opportunities; Spring/Summer collections continue to be very well received, sales +12% Y/Y between May 1st and June 3rd. At current FX, expects a -2% FX impact on FY24 sales. Implementing a logistics expansion programme in 2024 and 2025. Growth of annual gross space contribution to sales to be positive in 2024-2026 in conjunction with strong evolution of online sales. (Inditex)

Metal Stocks - Aluminium name Novelis has postponed its IPO due to market conditions; Novelis will continue to evaluate the timing of the offering in the future. (PR Newswire)

Tech Stocks - Hewlett Packard Enterprise Co (HPE) shares surged 15.3% after-hours as AI boosted sales. (CNBC)

voestalpine (VOE AV) - FY (EUR): Revenue 16.7bln (exp. 16.80bln), EBIT 569.3mln (exp. 922mln), Pretax Profit 383.4mln (exp. 429mln). (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Advances circular construction with the acquisition of land recovery in the UK. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Clas Ohlson (CLASB SS) - (SEK): May Sales 772mln, +15% Y/Y. Q4 Online Sales 414mln (prev. 212mln Y/Y). Proposed dividend 4.25/shr. (Newswires)

Equinor (EQNR NO) - Solidifies New York offtake contract for Empire Wind 1; strike price of USD 155/MWH. (Newswires)

Saab (SAABB SS) - Received first investment grade credit rating from S&P Global. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.15% at 5,291, NDX +0.29% at 18,655, DJIA +0.36% at 38,711, RUT -1.25% at 2,034

SECTORS: Energy -0.97%, Utilities flat, Industrials -0.23%, Materials -1.22%, Financials -0.44%, Real Estate +0.95%, Consumer Staples +0.93%, Consumer Discretionary +0.17%, Communication Services +0.33%, Health +0.33%, Technology +0.41%

Alphabet (GOOG) - Google's Chief privacy officer, Keith Enright, will leave the company this fall, after 13 years; departure is part of a broader reorganisation within the privacy teams

Capital Markets - A group backed by BlackRock (BLK) and Citadel Securities is planning to start a new national stock exchange in Texas, according to WSJ. (WSJ)

CrowdStrike Holdings Inc (CRWD) - Q1 2025 (USD): EPS 0.93(exp. 0.90), Revenue 921.036mln (exp. 904.66mln). (Newswires) Shares rose 6.8% after-market

Hewlett Packard Enterprise Co (HPE) - Q2 2024 (USD): EPS 0.42 (exp. 0.39), Revenue 7.2bln (exp. 6.82bln). FY EPS view 1.85-1.95 (exp. 1.88)Server revenue 3.87bln (exp. 3.45bln). (businesswire) Shares rose 15.3% after-market

Nike (NKE) - Co. has cut staff in its European HQ as part of a multiyear cost-cutting plan, according to Bloomberg. (Bloomberg)

05 Jun 2024 - 06:53- EquitiesResearch Sheet- Source: Newsquawk