Newsquawk Daily European Equity Opening News - 7th July 2023

7th July 2023

ASIA

Asia-Pac stocks were mostly lower amid spillover selling from global peers including in the US where the major indices were pressured as firm data releases added to the hawkish impulse. ASX 200 (-1.5%) suffered its largest intraday drop since March with real estate and tech front running the declines across all sectors as Australian bond yields climbed. Nikkei 225 (-0.5%) slumped at the open following disappointing Household Spending data which showed a surprise monthly contraction although the index has bounced off its lows and recouped around half of the earlier losses, while the KOSPI (-1.3%) was dragged lower by weakness in index-heavyweight Samsung Electronics after its preliminary Q2 earnings in which operating profit topped forecasts but slumped by 96% Y/Y. Hang Seng (-1.3%) and Shanghai Comp. (-0.4%) conformed to the downbeat mood as growth concerns and trade frictions lingered and with little hope of any breakthrough during US Treasury Secretary Yellen’s trip to China.

Alibaba (9988 HK) - Chinese regulators are reportedly to fine the Co's affiliate Ant Group as soon as today with the fine likely to be at least CNY 8bln to end its regulatory revamp. (Newswires)

Samsung Electronics (005930 KS) - Q2 (KRW) oper. profit likely fell 96% Y/Y to 600bln (exp. 555bln), rev. is likely 60.0tn (exp. 61.8tln). (Newswires)

EUROPEAN CLOSES

Bourses: DAX -2.57% at 15,528.54, FTSE 100: -2.17% at 7,280.50, CAC 40 -3.13% at 7,082.29, Euro Stoxx 50 -2.93% at 4,223.09, IBEX 35 -2.12% at 9,285.00, FTSE MIB -2.53% at 27,506.91, SMI -1.80% at 10,992.20

Sectors: Consumer Stpl -1.36%, Utilities -1.43%, Telecoms -1.51%, Healthcare -1.94%, Industrials -2.28%, Financials -2.29%, IT -2.65%, Energy -2.88%, Materials -2.92%, Consumer Disc -3.48%

FTSE 100

Banking Names - Regulator tells banks to raise their interest rates for savers. (The Times)

Airline Names - Up to a third of European flights are at risk of being delayed or cancelled this summer, due to strikes. (The Times)

OTHER UK COMPANIES

YouGov (YOU LN) - Announced the acquisition of Gfk for EUR 315mln. (Newswires)

BROKER MOVES

HSBC (HSBA LN) reiterated with Neutral at JP Morgan Chase

Just Eat Takeaway.com (JET LN) reiterated with Neutral at JP Morgan Chase

DAX

OTHER GERMAN COMPANIES

Kion Group (KGX GY) - Appoints new CEO Christian Harm, to replace Wassenberg, effective immediately. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Reports June 2023 deliveries of 72 to 48 customers. (Newswires)

Saint-Gobain (SGO FP) - Are to invest USD 235mln in Expand Gypsum manufacturing facility in Florida. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

PAN EUROPE

Generali (G IM) - Agreed to buy Conning Holdings in partnership with Cathay Life. (Newswires)

Pirelli (PIRC IM) - China's CNRC aims to elect Jio Jian to Presidency of the Co. (Newswires)

Stellantis (STLAM IM/STLAP FP) - The Co. sign Rare Earth Offtake Term Sheet in support of the Co's commitment to reaching carbon net zero by 2028. (Newswires)

Telefonica (TEF SM) - Informs Telefonica Hispanoamerica entered into share subscription agreements with KKR and Entel Peru for the entry of both companies into the share capital of Pangeaco. After close of transaction, the Co. net financial debt will be reduced by around USD 0.2bln

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Clariant (CLN SW) - Q2 (CHF): Revenue 1.08bln (Prev. 1.30bln YY), EBITDA 650-700mln. Expects Sales 4.55-4.65bln in H2. Slow pace of Chinese recovery and prolonged destocking cycle has continued to impact demand. (Newswires)

BROKER MOVES

SCANDINAVIA

Class Ohlson (CLASB SS) - Reports June Sales; Organic Revenue +5% YY, Online Revenue +2% YY. (Newswires)

BROKER MOVES

Getinge (GETIB SS) downgraded to Equal Weight from Overweight at Morgan Stanley

US

CLOSES: SPX -0.79% at 4,412, NDX -0.75% at 15,089, DJI -1.07% at 33,923, RUT -1.64% at 1,842.

SECTORS: Energy: -2.44% Cons Disc: -1.64% Utilities: -1.21% Communication Svs: -1.06% Financials: -0.91% Health: -0.86% Industrials: -0.74% Materials: -0.71% Real Estate: -0.6% Cons Stpl: -0.34% Technology: -0.16%

Tesla (TSLA) - Begins to layoff some battery workers at its China factory, according to Bloomberg (Bloomberg)

07 Jul 2023 - 06:48- EquitiesEconomic Commentary- Source: Newsquawk