Newsquawk Daily European Equity Opening News - 5th November 2024

ASIA

APAC stocks were ultimately mixed with most major indices in the green after further encouraging Chinese PMI data although some of the gains were capped as cautiousness lingered heading into the US Presidential Election coin toss. ASX 200 was dragged lower amid weakness across all sectors and underperformance in the top-weighted financial industry, while the RBA decision provided little surprise and the SoMP included a reduction in GDP and household consumption forecasts. Nikkei 225 rallied on return from the long weekend with some encouragement from earnings and strength in exporters. Hang Seng and Shanghai Comp benefitted following the better-than-expected Chinese Caixin Services PMI data, while Premier Li suggested a favourable outlook and optimism regarding economic prospects during his keynote speech at the CIIE.

Nintendo (7974 JT) - H1 (JPY): Revenue 523bln (prev. 793bln), Net 108bln (prev. 271bln), Operating Income 122bln (prev. 279bln). FY Guidance: Operating Income 360bln (prev. 420bln, exp. 400bln)  Net Profit forecast maintained at 300bln  Total Switch sales 12.50mln (exp. 13.50mln). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX -0.56% at 19,148, FTSE 100 +0.09% at 8,184, CAC 40 -0.50% at 7,372, Euro Stoxx 50 -0.50% at 4,853, AEX -0.47% at 880, IBEX 35 -0.32% at 11,805, FTSE MIB -0.39% at 34,541, SMI -0.46% at 11,913.

SECTORS: Energy 0.27%, Financials 0.13%, Telecoms -0.26%, Materials -0.32%, Utilities -0.38%, Consumer Disc -0.45%, Healthcare -0.45%, Industrials -0.55%, Consumer Stpl -0.63%, IT -1.28%

FTSE 100

Hikma Pharmaceuticals (HIK LN) - US FDA ANDA supplement 16 approval for Oxycodone Hydrochloride. (Newswires)

Shell (SHEL LN) - Says it has safely paused some drilling operations and moved non-essential personnel to shore at the Appomattox, Vito, Ursa, Mars, Auger, & Enchilada/Salsa assets. (Newswires)

UK Consumer spending - Barclaycard UK October consumer spending rose 0.7% Y/Y (Prev. 1.2% Y/Y)

UK BRC - UK BRC Retail Sales YY (Oct) 0.3% vs Exp. 1.4% (Prev. 1.7%); Total Sales YY (Oct) 0.6% (Prev. 2.0%)

UK Flight Names - UK government is reportedly split over whether to allow a 3rd runway at Heathrow airport, via FT citing sources; current expansion plans are being finalised, plans do not include a 3rd runway. (FT)

OTHER UK COMPANIES

BROKER MOVES

Pennon Group (PNN LN) upgraded to Overweight from Neutral at JPMorgan

Severn Trent (SVT LN) upgraded to Overweight from Neutral at JPMorgan

United Utilities (UU/ LN) upgraded to Buy from Neutral at Citi

DAX

DHL (DHL GY) - Q3 (EUR): EPS 0.68 (exp. 0.65, prev. 0.64 Y/Y), EBIT 1.37bln (prelim. 1.37bln), Revenue 20.6bln (exp. 20.14bln, prev. 19.4bln Y/Y). Notes for B2B and mail volumes there is, based on trading in October, currently no indication of a better development. Affirms FY25 EBIT guidance. (Newswires)

LEG Immobilien (LEG GY) - Acquisition of Brack Capital properties through share purchase agreement. No significant effects on loan to value planned for early 2025. (Newswires)

Salzgitter (SZG GY) - Major shareholder is mulling a takeover bid for the Co. Potential voluntary public takeover bid to the shareholders of Salzgitter. Potential offer price not yet disclosed. (Newswires) Shares +27% in pre-market trade

Zalando (ZAL GY) - Q3 (EUR): Adj. EBIT 92.7mln (exp. 174mln, prev. 23.2mln Y/Y), Revenue 2.39bln (exp. 3.14bln, prev. 2.30bln Y/Y). Affirms guidance. (Newswires) Shares +2.7% in pre-market trade

OTHER GERMAN COMPANIES

Evotec (EVT GY) - Sells its chemical API manufacturing site; no terms disclosed. (Newswires)

Fresenius Medical Care (FMC GY) - Q2 (EUR): Net Income 21mln (prev. 84mln Y/Y), Revenue 4.76bln (exp. 4.84bln). Affirms guidance. (Newswires)

Hugo Boss (BOSS GY) - Q3 (EUR): Revenue 1.03bln (exp. 1.02bln, prev. 1.03bln Y/Y). Affirms outlook. Says persistently weak demand in China leads to a decline of 7% in Asia/Pacific. (Newswires) Shares +2.6% in pre-market trade

Fraport (FRA GY) - Q3 (EUR): EBITDA 483.7mln (exp. 265mln, prev. 478.1mln Y/Y), Revenue 1.13bln (exp. 959mln, prev. 1.21bln Y/Y). Affirms guidance. (Newswires)

BROKER MOVES

Deutsche Lufthansa (LHA GY) upgraded to Equalweight from Underweight at Morgan Stanley

CAC

Carrefour (CA FP) - Reportedly looking at ways to boost valuation, discussing divestments or other M&A, is internally discussing various scenarios but talks are at an early stage and may not lead to a deal; is not in talks with any suitors, via Bloomberg sources. (Bloomberg)

OTHER FRENCH COMPANIES

Atos (ATO FP) – To sell Worldgrid to ALTEN for EV of EUR 270mln. (Newswires)

Bouygues (EN FP) - 9m (EUR): Net Income 687mln (prev. 665mln Y/Y), Revenue 41.5bln (prev. 41bln Y/Y). Affirms guidance. (Newswires)

BROKER MOVES

Klepierre (LI FP) downgraded to Neutral from Buy at Goldman Sachs

Schneider Electric (SU FP) downgraded to Hold from Buy at Berenberg

PAN EUROPE

Banco BPM (BAMI IM) - DBRS improves co's long-term deposit rating trend to "positive". (Newswires)

China-exposed stocks - Chinese Caixin Services PMI (Oct) 52.0 vs. Exp. 50.5 (Prev. 50.3); Caixin Composite PMI (Oct) 51.9 (Prev. 50.3)

Intesa Sanpaolo (ISP IM) - Morningstar DBRS revises co's long-term trend to positive. (Newswires)

Italian autos - Italy Car Sales (Oct.): -9.05% Y/Y in October; Stellantis (STLAM IM/STLAP FP) held 25.15% of the car market vs 24.11% in September. (Newswires)

UCB (UCB BB) - Projecting rev. ear EUR 6bln and adj. EBITDA margin exp. now to be within the upper part of 23-24.5%. (Newswires)

BROKER MOVES

SMI

Baloise (BALN SW) - Appoints Thomas Schoeb as new CEO; effective Jan 1st. (Newswires)

OTHER SWISS COMPANIES

Adecco (ADEN SW) - Q3 (EUR): Net income 99mln (exp. 86.6mln), Revenue 5.70bln (exp. 5.84bln). (Newswires)

BROKER MOVES

SCANDINAVIA

Bakkafrost (BAKKA NO) - Q3 (DKK): Revenue 1.42bln (exp. 1.92bln). (Newswires)

Coloplast (COLOB DC) - Q4 (DKK): Revenue 1.31bln (exp. 1.32bln), Adj. EBIT 1.8bln (exp. 1.89bln). FY24/25 guidance of 8-9% organic growth and an EBIT margin before special items of around 28%. (Newswires)

Vestas Wind Systems (VWS DC) - Q3 (EUR): Adj. EBIT 235mln (exp. 353mln), EBITDA 444mln (exp. 573mln), Revenue 5.18bln (exp. 4.85bln). Sees FY Adj. EBIT margin low end of 4-5% (exp. 4.13%). (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.28% at 5,713, NDX -0.35% at 19,964, DJI -0.61% at 41,795, RUT +0.4% at 2,219.

SECTORS: Energy +1.87%, Real Estate +1.13%, Materials +0.47%, Consumer Staples +0.28%, Technology -0.12%, Industrials -0.14%, Consumer Discretionary -0.61%, Health -0.68%, Financials -0.71%, Communication Services -0.92%, Utilities -1.21%

Boeing (BA) - IAM 751 reportedly approves Boeing contract to end 53-day strike

Goodyear Tire (GT) - Q3 2024 (USD): EPS 0.37 (exp. 0.25), Net sales 4.82bln (exp. 4.97bln). Of note for Michelin (ML FP) and Continental CON GY)

NXP Semiconductors NV (NXPI) - Q3 2024 (USD): Adj. EPS 3.45 (exp. 3.43), Revenue 3.25bln (exp. 3.25bln)

Palantir Technologies (PLTR) - Q3 2024 (USD): Adj. EPS 0.10 (exp. 0.09), Revenue 0.73bln (exp. .70bln)

05 Nov 2024 - 06:59- Research Sheet- Source: Newsquawk