Newsquawk Daily European Equity Opening News - 6th July 2023

6th July 2023

ASIA

Asia-Pac stocks were mostly lower following the post-Independence Day hangover in the US owing to recent weak global data releases, a rising yield environment and after the FOMC Minutes provided little to deviate from the current view of future rate increases. ASX 200 (-1.3%) traded lower as underperformance in the mining and materials-related industries spearheaded the declines seen in nearly all sectors and with risk appetite also sapped by a rise in Aussie yields. Nikkei 255 (-1.7%) was pressured at the open with selling exacerbated after slipping beneath the 33,000 level. Hang Seng (-3.3%) and Shanghai Comp. (-0.5%) declined with notable pressure on Hong Kong-listed Chinese banks after China’s largest lenders cut rates for corporate US dollar deposits amid efforts to support the yuan and with banks said to have stopped buying bonds issued in the Shanghai free trade zone after heightened regulatory scrutiny, while the losses in the mainland were stemmed ahead of US Treasury Secretary Yellen’s arrival in Beijing later for meetings with senior officials.

TSMC (2330 TT) - Says doesn't expect China's ban on exports of gallium and germanium to have any direct impact on TSMC's production but will continue to monitor the situation closely. (Newswires)

EUROPEAN CLOSES

Bourses: DAX -0.63% at 15,937.58, FTSE 100: -1.03% at 7,442.10, CAC 40 -0.80% at 7,310.81, Euro Stoxx 50 -0.92% at 4,350.71, IBEX 35 -1.06% at 9,486.30, FTSE MIB -0.59% at 28,220.18, SMI -0.21% at 11,193.92

Sectors: Healthcare 0.48%, Consumer Stpl -0.35%, Telecoms -0.39%, Industrials -0.80%, Consumer Disc -0.80%, Materials -0.93%, Financials -1.15%, IT -1.18%, Energy -1.71%, Utilities -1.82%

FTSE 100

Shell (SHEL LN) - CEO Sawan says cutting gas and oil production would be dangerous and irresponsible, as moves to renewable energy are not occurring quickly enough to replace it. (BBC)

Tesco (TSCO LN) - To offer 310k workers access to virtual GP doctor appointments, 24 hours a day. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Mondi (MNDI LN) upgraded to Overweight from Neutral at JP Morgan Chase

Smiths Group (SMIN LN) upgraded to Sector Perform from Underperform at RBC

Smurfit Kappa (SKG LN) upgraded to Overweight from Neutral at JP Morgan Chase

United Utilities (UU/ LN) upgraded to Overweight from Equal Weight at Morgan Stanley

Wizz Air (WIZZ LN) reiterated with Overweight at JP Morgan Chase

DAX

Brenntag (BRN GY) - Reshapes board and introduces new management structure for both division of is strategy to win. Van Jarwaade will be appointed as CEO of Brenntag Essentials and Friede will be appointed as CEO of Brenntag Specialities. (Newswires)

BMW (BMW GY) - Q2 23 US sales +11.5% Y/Y, fully EV account for 12.9% of total brand sales, Mini sales +47.8%. (Newswires)

OTHER GERMAN COMPANIES

Gerresheimer (GXI GY) - Q2 (EUR): Revenue 499.6mln (Exp. 492.1mln), adj. Net Income 43.8mln (Exp. 41mln), adj. EPS 1.3 (Exp. 1.27). (Newswires)

Suedzucker (SZU GY) - Q1 (EUR): Revenue 2,518mln (Prev. 2,275mln), +11%; EBITDA 356mln (Prev. 236mln), Consolidated Operating Result 282mln (Prev. 163mln). Raises outlook for 2023/24. Expects Consolidated Operating Result between 850-950mln (Prev. 725-875mln), Expects EBITDA between 1.2-1.4bln (Prev. 1.1-1.3bln). (Newswires)

ThyssenKrupp (TKA GY) - Nucera set final offer price for it's IPO on the Frankfurt Stock Exchange at EUR 20/shr. (Newswires)

BROKER MOVES

Deutsche Bank (DBK GY) reiterated with Overweight at JP Morgan Chase

CAC

Air Liquide (AI FP) - Announces a project to transform its Home Healthcare activity, implying a possible reduction of 430 net positions. (Newswires)

Stellantis (STLAP FP) - Stellantis-LG Energy Solution (LGES) reaches a deal with Canadian government and will resume the construction of EV battery plant in Windsor. (Newswires)

BROKER MOVES

Nexans (NEX FP) reiterated with Neutral at JP Morgan Chase

PAN EUROPE

BROKER MOVES

SMI

Sika (SIKA SW) - Acquires a strong player in the US mining industry which will open up significant cross-selling potential and will support the Co's expansion in the US mining market. (Newswires)

Zurich Insurance Group (ZURN SW) - Partners with Insurtech Qover to expand embedded insurance capabilities. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.2% at 4,447, NDX -0.03% at 15,204, DJI -0.38% at 34,288, RUT -1.26% at 1,872.

SECTORS: Materials: -2.47%, Industrials: -0.6%, Technology: -0.56%, Energy: -0.54%, Financials: -0.33%, Cons stpl: -0.09%, Health: -0.05%, Cons disc: +0.08%, Real estate: +0.46%, Utilities: +1.1%, Communication svs: +1.21%.

Meta (META) - CEO Zuckerberg says Threads passed 5mln sign ups in the first four hours. (Newswires)

06 Jul 2023 - 06:52- Research Sheet- Source: Newsquawk