Newsquawk Daily European Equity Opening News - 7th September 2023

7th September 2023

ASIA

Asian equities were pressured as the region took its cue from the losses stateside where stocks and bonds declined in the aftermath of hawkish ISM Services data, while participants also digested the latest Chinese trade data. ASX 200 (-1.4%) was dragged lower by underperformance in the commodity-related sectors and amid the key data from Australia’s largest trade partner. Nikkei 225 (-0.8%) swung between gains and losses with early support from a weaker currency and reports that the Japanese government will put together economic measures around October, although the index later succumbed to the selling pressure. Hang Seng (-1.1%) and Shanghai Comp. (-0.6%) conformed to the downbeat mood as the latest Chinese trade data showed a continued contraction in the nation’s exports and imports but was not as bad as feared, while tech stocks were pressured by frictions after the FCC chair asked US government agencies to address the threat posed by Chinese cellular connectivity modules and a lawmaker called for an investigation into SMIC for potentially violating US sanctions by supplying components to Huawei. Furthermore, China reportedly banned government officials from using iPhones at work and was said to be seeking to extend this to state firms and agencies.

EUROPEAN CLOSES

CLOSES: DAX -0.19% at 15,741, FTSE 100 -0.16% at 7,426, CAC 40 -0.84% at 7,194, Euro Stoxx 50 -0.70% at 4,239, IBEX 35 -0.83% at 9,314, FTSE MIB -1.54% at 28,211, SMI -0.36% at 10,919.

SECTORS: Industrials 0.09%, Telecoms 0.04%, Energy 0.00%, Utilities -0.06%, IT -0.09%, Materials -0.19%, Consumer Stpl -0.33%, Healthcare -0.74%, Financials -1.08%, Consumer Disc -1.76%

FTSE 100

Ex-Dividends - Smith (SMDS LN), Admiral (ADM LN), Prudential (PRU LN) will trade without entitlement to its latest dividend payout. (Newswires)

Shell (SHEL LN) - Considered shutting giant Prelude floating LNG facility offshore Australia for a year-long maintenance but opted for a shorter two-month maintenance amid strong global LNG demand, according to Reuters sources. (Reuters)

OTHER UK COMPANIES

Intermediate Capital Group (ICP LN) - Invests EUR 400mln in renewable energy company Enfinity Global. (Newswires)

BROKER MOVES

DAX

SAP (SAP GY) - Looking to acquire Leanix, a software management company. (MarketScreener)

OTHER GERMAN COMPANIES

Bilfinger (GBF GY) - Regional expansion through acquisition of Fluor's Industrial Services business stock in the Netherlands and Belgium. (Newswires)

Encavis (ECV GY) - Reaches ready-to-build status for a further solar park in Denmark with a generation capacity of 132MW. (Newswires)

ThyssenKrupp (TKA GY) - CFO Klaus Keysbeg decided not to be available for an extension of his contract, which expires at the end of July 2024. (Newswires)

BROKER MOVES

MTU Aero Engines (MTX GY) upgraded to Buy from Hold at Kepler Cheuvreux

CAC

Airbus (AIR FP) - 52 August deliveries to 34 customers; August gross orders 117; says 2023 YTD orders 433 to 77 customers. (Newswires)

OTHER FRENCH COMPANIES

Scor (SCOR FP) - Launches a new strategic plan: ROE is expected to be excess of 12% per annum over 2024-2026. SCOR continues its transformation and simplification, which will allow the Group to maintain flat total management expenses between 2023 and 2026, thanks to cost savings of EUR 150mln by the end of 2026. The calibration of the regular dividend for the FY 2023 and any potential share buyback or special dividend amount will be announced together with the FY 2023 results in March 2024. A financial target: an Economic Value growth rate of 9% per annum, at constant interest and foreign exchange rates. (Newswires)

Valneva (VLA FP) - Reports positive paediatric and adolescent phase 2 booster results for its Lyme disease vaccine candidate with Pfizer. (Newswires)

BROKER MOVES

PAN EUROPE

Elia (ELI BB) – Appoints current CFO Catherine Vandenborre as interim CEO, effective October 30th. (Newswires)

BROKER MOVES

InPost (INPST NA) reiterated with Neutral at JP Morgan

Unibail-Rodamco-Westfield (URW NA) initiated with Buy at Kepler Cheuvreux

SMI

Nestle (NESN SW) - Acquires Kopenhagen chocolate shop chain for BRL 3bln, via Reuters. (Reuters)

OTHER SWISS COMPANIES

BROKER MOVES

Schindler Holding (SCHP SW) initiated with Overweight at Barclays

Novo Nordisk (NOVOB DC) reiterated with Overweight at JP Morgan

SCANDINAVIA

BROKER MOVES

Coloplast (COLOB DC) initiated with Sector Perform at RBC

KONE (KNEBV FH) initiated with Underweight at Barclays

Maersk (MAERSKB DC) downgraded to Reduce from Buy at Kepler Chevreux

Nibe (NIBEB SS) upgraded to Buy from Hold at Carnegie Securities

US

CLOSES: SPX -0.69% at 4,465, NDX -0.88% at 15,371, DJIA -0.57% at 34,444, RUT -0.33% at 1,874.

SECTORS: Technology -1.37%, Consumer Discretionary -0.97%, Health -0.6%, Communication Services -0.54%, Industrials -0.48%, Materials -0.33%, Real Estate -0.23%, Consumer Staples -0.18%, Financials -0.16%, Energy +0.14%, Utilities +0.21%.

T-Mobile (TMUS) - CEO says higher cash flow have opened up more buybacks and authorising USD 19bln in buybacks, adding to USD 14bln. Parent Deutsche Telekom (DTE GY) won't be selling shares. (Newswires)

07 Sep 2023 - 06:46- EquitiesResearch Sheet- Source: Newsquawk