Newsquawk Daily European Equity Opening News - 8th April 2024

8th April 2024

ASIA

APAC stocks were ultimately mixed as markets digested Friday's strong NFP report and US-China talks. ASX 200 eked mild gains amid strength in mining and tech, while there were some M&A-related headlines. Nikkei 225 outperformed with the help of recent currency weakness, while wage data matched estimates. Hang Seng and Shanghai Comp. swung between gains and losses with an early boost in Hong Kong after mainland markets and Stock Connect trade reopened from a 4-day weekend and with some encouragement from Yellen's meetings in China. However, stocks failed to sustain the early optimism with sentiment clouded by developer concerns after a winding-up petition was filed against Shimao Group.

EUROPEAN CLOSES

CLOSES: DAX: -1.30% at 18,164, FTSE 100: -0.81% at 7,911, CAC 40: -1.11% at 8,061, Euro Stoxx 50: +0.05% at 5,013, IBEX 35: -1.58% at 10,916, FTSE MIB: -1.29% at 34,011, SMI: -1.72% at 11,490.

SECTORS: Energy 0.20%, IT -0.11%, Industrials -0.56%, Healthcare -0.75%, Materials -0.96%, Financials -1.01%, Consumer Stpl -1.18%, Telecoms -1.27%, Consumer Disc -1.41%, Utilities -2.19%

FTSE 100

Miners - Iron ore futures rose above USD 100/t in Singapore, with desks citing speculation that demand will pickup in China. (Bloomberg)

National Grid (NG/ LN) - Gresham House Energy Storage Fund Director Guest says that National Grid is underusing battery storage within the electricity system, potentially placing investment in the sector at risk. (FT)

Rio Tinto (RIO LN) - Co. has named Bold Baatar as CCO "as the miner seeks growth", according to Bloomberg. (Bloomberg)

UK Stocks - Concern among large British companies about economic uncertainty has fallen to its lowest since mid-2021 although the improved sentiment is not yet converting to stronger investments, according to a survey by Deloitte. (Deloitte)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

Continental (CON GY) upgraded to Buy from Hold at Jefferies

Evonik (EVK GY) upgraded to Buy from Neutral at Citi

Wacker Chemie (WCH GY) upgraded to Buy from Sell at Citi

CAC

Airbus (AIR FP)/Airline Names - US FAA said a Southwest Airlines (LUV) Boeing (BA) 737-800 plane returned safely to Denver Airport on April 7th after crew reported an engine cowling fell off during take-off and struck a wing flap. US aviation regulators have begun an investigation. Boeing said teams have added additional inspections throughout build process. (Newswires) Separately, Canadian Airbus A220 jet workers rejected the second company offer, raising concern of production. (Reuters) 

OTHER FRENCH COMPANIES

BROKER MOVES

Michelin (ML FP) downgraded to Underperform from Hold at Jefferies

PAN EUROPE

Defence Names – Firms have warned that a reliance on Chinese cotton for gunpowder is threatening the expansion of their output. (FT)

BROKER MOVES

Pirelli (PIRC IM) upgraded to Buy from Hold at Jefferies

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Clariant (CLN SW) upgraded to Buy from Neutral at Citi

SCANDINAVIA

BROKER MOVES

Volvo (VOLVB SS) upgraded to Buy from Hold at Jefferies

US

CLOSES: SPX +1.11% at 5,204, NDX +1.28% at 18,108, DJI +0.80% at 38,904, RUT +0.47% at 2,063.

SECTORS: Communication Services +1.61%, Industrials +1.43%, Technology +1.38%, Energy +1.08%, Health +0.91%, Financials +0.89%, Consumer Discretionary +0.94%, Materials +0.92%, Real Estate +0.65%, Utilities +0.34%, Consumer Staples +0.22%.

Tesla (TSLA) - Co. is reportedly cutting prices of its Model Y "in a bid to clear its biggest-ever stockpile", according to Bloomberg. Separately, CEO Musk on Friday announced the Tesla Robotaxi unveil on 8th August. CEO Musk on Friday posted on X, "Reuters is lying (again)", in response to a story saying Tesla is scrapping low cost car plans. (Bloomberg, Newswires)

08 Apr 2024 - 06:48- EquitiesEconomic Commentary- Source: Newsquawk