Newsquawk Daily European Equity Opening News - 6th January 2025

ASIA

APAC stocks traded mostly subdued following the lack of macro catalysts over the weekend and as participants digested the mixed signals from Chinese Caixin PMI data, while Japanese markets underperformed in their first trading session of 2025. ASX 200 failed to sustain early gains as strength in real estate and tech was offset by losses in materials and miners. Nikkei 225 retreated on return from the New Year holiday closures amid higher yields and after the US blocked Nippon Steel's bid to take over US Steel, while a weaker currency failed to support the risk appetite as participants also braced for weak results from retailers including Fast Retailing and Seven & I Holdings. Hang Seng and Shanghai Comp were choppy following the somewhat mixed PMI data in which Chinese Caixin Services PMI data beat expectations, but the Caixin Composite PMI figure slowed, while comments late last week from the PBoC's MPC, which recommended strengthening the intensity of monetary policy adjustments and said it will cut RRR and interest rates at the proper time, did little to spur demand.

EUROPEAN CLOSES

CLOSES: DAX: -0.58% at 19,909, FTSE 100: -0.44% at 8,224, CAC 40: -1.51% at 7,282, Euro Stoxx 50: -0.95% at 4,871, AEX: -0.29% at 885, IBEX 35: -0.22% at 11,652, FTSE MIB: -0.72% at 34,128, SMI: +0.17% at 11,621, PSI: +0.51% at 6,445.

SECTORS: Energy 1.10%, Utilities 0.24%, Financials 0.12%, Healthcare -0.30%, Telecoms -0.56%, Industrials -0.64%, Consumer Stpl -0.68%, IT -0.84%, Materials -1.03%, Consumer Disc -2.04%

FTSE 100

Shell (SHEL LN) - Co. is restarting a unit at the Shell manufacturing centre in Corunna, resulting in increased flaring. (Newswires)

UK Businesses - Number of UK businesses planning to raise prices in the coming three months rose to about 55% from 39% as tax increases and higher wage costs caused confidence to slump, according to a survey of 5,000 businesses by the British Chambers of Commerce via FT. The survey also showed that UK business morale has hit a two-year low; the lowest since former Prime Minister Truss' "mini-budget" in 2022. (FT/Newswires)

OTHER UK COMPANIES

BROKER MOVES

Burberry (BRBY LN) - Citi raises price target to 980p (prev. 695p). (Newswires)

Experian (EXPN LN) upgraded to Outperform from Sector Perform at RBC

Rolls Royce (RR/ LN) downgraded to Neutral from Buy at Citi

Unilever (ULVR LN) downgraded to Underperform from Sector Perform at RBC; cuts target price to 4000p (prev. 4800p).

DAX

DAX 40 Index (DAX) - Despite challenges like elections, rising unemployment, and a struggling automotive sector, Germany's DAX Index companies are projected to achieve over 10% EPS growth in 2025, Bloomberg reports. This is the highest among European benchmarks, surpassing the Stoxx Europe 600's 7.1% and France's CAC 40's 8.8%. (Bloomberg)

Volkswagen (VOW3 GY) - XPeng Motors (9868 HK) announces the signing of MoU with Volkswagen to cooperate on an ultra-fast charging network. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Qiagen (QIA GY) downgraded to Equalweight from Overweight at Morgan Stanley

CAC

Air Liquide (AI FP) - Currency impact estimated to be around +0.5% in Q4'24 for both Group and Gas & Services revenue; currency impact for FY24 to be around -2.5%. (Newswires)

Carrefour (CA FP) - Board noted that the resignation of Mr Israel from his position as Director; effective Jan 6, 2025. (Newswires)

French stocks - Le Parisien reported that Amelie de Montchalin reaffirmed their position that France's budget deficit "will not be much above 5%". (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ArcelorMittal (MT NA) - ArcelorMittal South Africa will shut down its long-steel production operations, potentially affecting 3,500 jobs, Bloomberg reports. The decision was driven by high logistics and energy costs and a lack of sufficient government policy support. The closures will impact the Newcastle and Vereeniging Works, as well as the Amras unit, though a reduced coke-making operation will remain at Newcastle. (Bloomberg)

Austrian stocks - Austrian Chancellor Nehammer said coalition talks between the two largest centrist parties in Austria on forming a government without the far-right Freedom Party have collapsed, while he will stand down as Chancellor and leader of the People’s Party in the coming days. It was later reported that the Austrian President van der Bellen agreed to meet with far-right Freedom Party leader Kickl on Monday and that Conservative People’s Party (OVP) Secretary-General Stocker was named as interim party leader. Furthermore, Stocker expects far-right leader Kickl will be tasked with forming a government and said the OVP will take part in coalition talks with the far-right Freedom Party and take them seriously.

Eni (ENI IM) - Corriere della Sera reported that investors are interested in purchasing a minority stake in Eni's carbon capture unit and will submit binding offers by February. (Newswires)

Leonardo (LDO IM) - CEO told Milano Finanza that the Co. could make an M&A announcement in the early part of the year. (Milano Finanza)

Energy names / Uniper (UN01 GY) - German energy import Uniper’s CEO Mike Lewis said the company is working to protect its fleet of LNG tankers from seizure by nations friendly to Russia after it was hit with a EUR 14bln penalty by a Russian court in March as part of an international dispute with a subsidiary of Russian state-backed gas company Gazprom, according to FT. (FT)

TomTom (TOM2 NA) - TomTom and ESRI Partner to deliver advanced location analytics. (Newswires)

URW (URW NA) - Co. sold 15% stake in Westfield Forum Des Halles to CDC Investissement Immobilier; net disposal price is EUR 235mln. (Newswires)

BROKER MOVES

SMI

UBS (UBSG SW) - Co. is working with an independent ombudsman to investigate undisclosed Nazi-linked accounts at Credit Suisse, via Reuters citing sources. (Reuters)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Bakkafrost (BAKKA NO) - Q4'24 Trading Update: Feed sales 39.8k tonnes. (Newswires)

BROKER MOVES

Novo Nordisk (NOVOB DC) - Berenberg cuts target price cut to DKK 727 (prev. 975)

US

CLOSES: SPX +1.26% at 5,942, NDX +1.67% at 21,326, DJIA +0.80% at 42,732, RUT +1.65% at 2,268.

SECTORS: Materials +0.03%, Consumer Staples +0.1%, Financials +0.79%, Communication Services +0.79%, Energy +0.9%, Health +0.99%, Utilities +1.1%, Industrials +1.11%, Real Estate +1.36%, Technology +1.62%, Consumer Discretionary +2.42%.

Microsoft (MSFT) - Plans to spend USD 80bln to build out AI this FY, according to CNBC. (CNBC)

06 Jan 2025 - 06:48- Research Sheet- Source: Newsquawk