Newsquawk Daily European Equity Opening News - 6th March 2023

6th March 2023

ASIA

Asia-Pac stocks were mostly positive as the majority of bourses took impetus from last Friday’s gains on Wall St where the Nasdaq outperformed amid a softening yield environment, although gains were capped in the region after China set a modest economic growth target of about 5% for 2023. ASX 200 (+0.6%) was positive as strength in tech, financials and the consumer sector offset the weakness in the mining industry but with further upside limited heading into the RBA rate decision tomorrow where the central bank is widely expected to deliver a 10th consecutive rate hike. Nikkei 225 (+1.2%) outperformed after topping the 28k level for the first time this year with SoftBank leading the advances following reports that its Arm unit is seeking to raise at least USD 8bln from a US IPO, while the KOSPI (+0.5%) was also higher as softer-than-expected CPI data eased the pressure for the BoK to resume rate hikes and with South Korea unveiling a plan to ease tensions with Japan regarding wartime forced labour compensation. Hang Seng (+0.4%) and Shanghai Comp. (-0.2%) traded mixed with early pressure after China set its growth target at about 5% which is the slowest growth target in over two decades and with the PBoC’s operations resulting in a significant net liquidity drain of CNY 329bln, although some of the losses were pared given that China also made several support pledges and following the announcement of further inclusions to the Stock Connect.

Chinese Stocks - Chinese Premier Li announced at the National People’s Congress that China’s 2023 GDP growth target is about 5.0% (exp. 5.0%-5.5%), while the target for CPI is around 3% and the jobless rate at around 5.5% for 2023. (Newswires)

South Korean/Japanese Stocks - South Korea said will halt WTO dispute over Japan export curbs. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.28% at 4,294, FTSE 100 +0.04% at 7,947, DAX 40 +1.64% at 15,578, CAC 40 +0.88% at 7,348, FTSE MIB +1.56% at 27,825, IBEX 35 +1.47% at 9,464, SMI +0.20% at 11,187.

SECTORS: IT 2.14%, Consumer Disc 1.62%, Materials 1.28%, Industrials 1.23%, Financials 0.97%, Telecoms 0.60%, Healthcare 0.33%, Consumer Stpl 0.11%, Energy -0.50%, Utilities -2.53%

FTSE 100

BP (BP/ LN) - Chair of BP American Lawler says they are continuing with their transition from fossil fuels, saying there are different opinions on what it does/doesn’t mean, but it has not changed. (FT)

Commodity-related names - Oil and some industrial metals fell after China announced a lower-than-expected GDP growth target of "about 5.0%" (exp. 5.0%-5.5%). (Newswires)

Gambling Names – Lawyers representing Austrian gamblers who have lost money on sites owned by 888 (888 LN) and Flutter (FLTR LN) say they are pursuing enforcement action in courts in Malta, where the Cos have offices. This comes in the context of gamblers looking to recoup lost money on sites owned by the Cos as the Austrian supreme court ruled they are in breach of a federal gambling monopoly. (FT)

Shell (SHEL LN) - Shell’s new CEO is considering ditching plans to reduce its oil output this decade, The Times reports, declaring that it is 'not healthy'; CEO said Shell was now reflecting on what is the right guidance to the market, because it made steeper cuts than anticipated since the target was set. (Newswires)

UK Stock Market - WANdisco (WAND LN) has reportedly hired banks to prepare for a US listing, via Sky News; the dual listing is likely to occur in 2023/24. (Sky News)

OTHER UK COMPANIES

Foxtons (FOXT LN) - Agreed to acquire Atkinson McLeon, via Sky News citing sources; the deal will be announced on Monday. (Sky News)

The Restaurant Group (RTN LN) - Activist investor Oasis reportedly wants the Co. to look into selling its airport concessions business and its Brunning & Price pubs in a bid to reduce debt. (Times)

BROKER MOVES

Kingfisher (KGF LN) reiterated with Underweight at JPMorgan Chase

Reckitt (RKT LN) downgraded to Hold from Buy at Deutsche Bank

DAX

DAX 40 Reshuffle - Rheinmetall (RHM GY) will replace Fresenius Medical Care (FME GY), effective March 20th. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Deutsche Lufthansa (LHA GY) reiterated with Overweight at JPMorgan Chase

CAC

Volkswagen (VOW3 GY) - EV brand Scout is to build a USD 2bln manufacturing plant near Columbia, South Carolina. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Eni (ENI IM) - Co. said it has reached a deal with UAE's ADNOC on energy transition projects. The two Cos will also work on reducing greenhouse gas and methane gas emissions. (Newswires)

Eurozone Stocks - Senior EU official said the US and EU are working towards an agreement in principle on 'Free Trade Agreement-like status'. (Newswires)

Flight Names - EU Ombudsman is launching an inquiry into flights taken by EU Commission officials paid for by Cos/foreign gov’ts; following reports that EU Transport Commissioner Hololei flew for free on Qatar Airways. Commission says there was no conflict of interest. (Politico)

Solvay (SOLB BB) - Co. is to sell its stake in RusVinyl for some EUR 430mln. (Newswires)

Telecom Italia (TIT IM) - Italian state lender CDP said its board had approved a non-binding offer for the fixed-line network Telecom Italia. The offer will be valid until March 31st. (Newswires)

Telecom Names – Liberty Global’s (LBTYA) CEO says the European Commission’s interest in cross-border telecom deals are a “dream that does not reflect the reality of operating businesses” and “are not going to happen”. (FT)

BROKER MOVES

Grifols (GRF SM) downgraded to Equal Weight from Overweight at Morgan Stanley

Solvay (SOLB BB) reiterated with Overweight at JPMorgan Chase

SMI

Credit Suisse (CSGN SW) - Harris Associates, which owned as much as 10% of the Co. in 2022, began cutting its exposure in October and has now divested completely, via FT citing CIO Herro. Saying, “there is a question about the future of the franchise. There have been large outflows from wealth management”. (FT)

Roche (ROG SW) - Co. received FDA approval of label expansion for Ventana PD-L1. (Newswires)

OTHER SWISS COMPANIES

Aryzta (ARYN SW) - H1 2022 (EUR): Revenue 1.04bln (prev. 835mln Y/Y). Underlying EBITDA 129.1mln (prev. 59.7mln). EPS +0.03 (prev. -0.06). EBIT margin 12.5% (prev. 7.1%). (Newswires)

GAM (GAM SW) - Co. recently postponed the release of FY results until end-April, reportedly in the hope that the extra time would allow it to find a buyer and come to an agreement, via FT citing sources. (FT)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.61% at 4,045, NDX +2.04% at 12,290, DJIA +1.17% at 33,390, RUT +1.35% at 1,928.

SECTORS: Technology +2.14%, Consumer Discretionary +2.12%, Communication Services +2.09%, Utilities +1.75%, Real Estate +1.74%, Financials +1.59%, Materials +1.39%, Energy +1.28%, Health +1.16%, Industrials +1.06%, Consumer Staples +0.07%.

Tesla (TSLA) - Cuts prices of Model X AWD and Model X Plaid by USD 10,000, while it cuts prices on Model S AWD and Model S Plaid by USD 5,000, according to the Co. website. (Newswires)

06 Mar 2023 - 06:43- MetalsResearch Sheet- Source: Newsquawk