>>> US Gapping Up

Gapping up
In reaction to earnings/guidance:

  • PPG +4.1%, MATX +3.8%, AA +3.2%, JBHT +1.9%, ALLY +1.9%, BK +1%, STT +1%

M&A news:

  • GFN +54.8% (to be acquired by United Rentals (URI) for $19/share), ALXN +4.6% (Astrazenca received US clearance of proposed acquisition of the Co)

Other news:

  • PGNY +7% (to join S&P MidCap 400)
  • UFS +6.9% (to join S&P SmallCap 600)
  • LSCC +6.9% (to join S&P MidCap 400)
  • TGTX +6.9% (announces positive results from the ULTIMATE I & II Phase 3 trials of ublituximab in multiple sclerosis)
  • DKNG +4.7% (to become an Official Sports Betting Partner of the NFL)
  • BTX +4.3% (pays $1 mln towards acquisition of license for mRNA technology platform),
  • DMTK +3.3% (announces topline results from its second economic study of PLA), SYBX +2.5% (stock offering),
  • IDYA +1.6% (announces investor day to review data from Phase 1/2 Trial of Darovasertib)
  • REGI +1.5% (names new CFO)
  • KSU +1.4% (announces that Jeffrey Songer has been named to a new position as executive vice president - strategic merger planning and John Orr has been named executive vice president - operations)
  • PTC +1.3% (to join S&P 500)

Analyst comments:

  • IOVA +9.2% (initiated with a Buy at Goldman)
  • WIT +5.2% (upgraded to Buy from Neutral at Citi)
  • ARRY +3.8% (upgraded to Buy from Neutral at UBS)
  • DRNA +3.4% ( initiated with a Buy at Goldman)
  • RUN +3.1% (upgraded to Overweight from Neutral at Piper Sandler)
  • UBA +2.7% (upgraded to Overweight from Neutral at Piper Sandler)
  • WKHS +2.3% (initiated with a Buy at B. Riley Securities)
  • MITK +1.8% (initiated with a Buy at Jefferies)
  • MPC +1.7% (upgraded to Strong Buy from Mkt Perform at Raymond James)
  • JKS +1.4% (upgraded to Neutral from Sell at UBS)
  • OSK +1.4% (upgraded to Buy from Neutral at UBS)
  • SPG +1.4% (upgraded to Buy from Hold at Jefferies)
  • AAWW +1.4% (initiated with a Buy at Truist)
  • CMCSA +1.3% (upgraded to Outperform from Mkt Perform at Raymond James)
  • AFRM +1.2% (upgraded to Buy from Neutral at Seaport Global Securities)
  • BLDP +1.2% (initiated with a Buy at B. Riley Securities)
  • CSCO +1.2% (upgraded to Outperform from Peer Perform at Wolfe Research)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • GFN +54.8%, EH +9.2%, PGNY +6.8%, IDYA +6.7%, LSCC +6.2%, UFS +5.8%, PPG +4.7%, MATX +4.6%, DKNG +4.1%, DMTK +3.7%, AA +3.5%, JBHT +2.8%, BTX +2.1%, APA +1.9%, PTC +1.7%, ING +1.1%
  • Gapping down:
    • SPNE -6.8%, SPLK -3%, MAXN -2.4%, MRTN -2.3%, WAL -1.5%, BALY -1.2%, QS -1%

>>> Europe : Brokers Upgrades & Downgrades - 16tjh of April 2021 - V2(+)

>>> Up
* BP Raised to Buy at HSBC; PT 355 pence
* Dermapharm PT Raised to 85 euros from 70 euros at Commerzbank (+)
* Deutsche Wohnen Raised to Buy at SocGen; PT 52.80 euros
* Experian Raised to Buy at Goldman; PT 3,250 pence
* MTU Aero Raised to Outperform at Oddo BHF; PT 235 euros
* OVS Raised to Buy at Citi (+)
* Safran Raised to Outperform at Oddo BHF; PT 135 euros
* Simon Property Raised to Buy at Jefferies; PT $130
* VW PT Raised to 330 euros from 225 euros at Bankhaus Metzler
* WH Smith Raised to Outperform at RBC

>>> Down
* Akasol Cut to Neutral at Citi
* BMW Cut to Underweight at Morgan Stanley; PT 80 euros
* Carlsberg Cut to Hold at Handelsbanken; PT 1,100 kroner
* Clarkson Cut to Hold at HSBC; PT 3,000 pence
* Dixons Carphone Cut to Sector Perform at RBC
* Entra Cut to Hold at Handelsbanken; PT 195 kroner
* Erytech Pharma Cut to Neutral at Oddo BHF; PT 10 euros (+)
* Essity Cut to Hold at Jefferies
* Gestamp Cut to Equal-Weight at Morgan Stanley; PT 4 euros
* Goodyear Cut to Equal-Weight at Morgan Stanley; PT $16
* Granges Cut to Hold at Handelsbanken; PT 130 kronor
* Kainos Cut to Hold at Canaccord; PT 1,685 pence (+)
* Selvaag Bolig Cut to Hold at Handelsbanken; PT 70 kroner
* Spectris Cut to Add at Peel Hunt

>>> Initiation
* Ambu Rated New Overweight at Morgan Stanley; PT 350 kroner
* Begbies Traynor Rated New Buy at Berenberg; PT 155 pence
* Flyr Rated New Buy at Arctic Securities; PT 10 kroner
* FRP Advisory Group Rated New Buy at Berenberg; PT 140 pence
* Jenoptik Rated New Hold at Stifel; PT 28 euros
* Knights Rated New Hold at Berenberg; PT 410 pence
* Neste Rated New Buy at Tudor Pickering; PT 54 euros
* Sbanken Rated New Buy at SEB Equities; PT 122 kroner
* Tinybuild Rated New Buy at Jefferies; PT 315 pence

>>> Call
* BMW Risk-Reward Skews to Downside; EPS Peak Near: Morgan Stanley
* Carlsberg On-Trade Still Pressured by Lockdowns: Handelsbanken (+)
* Dixons Carphone Shares Less Compelling After Rally, RBC Says
* Entain Had ‘Another Impressive Quarter,’ Deutsche Bank Lifts PT (+)
* Essity Cut with Pulp Prices to Weigh on Margins: Jefferies
* Granges Downgraded at Handelsbanken, Sees Time for Breather
* HeidelbergCement a Beat, Implies Strong 1Q Exit Rate: Jefferies
* L’Oreal’s 1Q Sales Show a ‘Great Start to the Year:’ Bernstein
* UPM´s Pre-Release Supports Paper Stocks Ahead of Earnings: Citi
* WH Smith Upgraded With U.S. Showing Signs of Promise, RBC Says

>>> TradeGate Pre-Market Indications

DAX:
  • Daimler (DAI TH) +2%
    • Europe Car Sales Surge 63% in March, Erasing Early-Year Decline
  • HeidelbergCement (HEI TH) +1.8%
    • HeidelbergCement Prelim 1Q Revenue EU3.96B
  • Deutsche Wohnen (DWNI TH) +1%
    • Deutsche Wohnen Raised to Buy at SocGen; PT 52.80 euros
  • Continental (CON TH) +0.9%
MDAX:
  • HelloFresh (HFG TH) +5.2%
    • HelloFresh 1Q a ‘Massive Beat,’ Deutsche Bank Says; Watch Peers
  • Hochtief (HOT TH) +2.1%
  • Thyssenkrupp (TKA TH) +1.8%
  • Evotec SE (EVT TH) +1%
  • Siemens Healthineers (SHL TH) +0.9%
  • Encavis (CAP TH) -0.7%
SDAX:
  • Adler Group (ADJ TH) +2.2%
  • Eckert & Ziegler Strahlen- und Medizintechnik AG (EUZ TH) +1.2%
  • Leoni (LEO TH) +0.9%
  • ADVA Optical (ADV TH) +0.8%
  • Deutz (DEZ TH) -1%
  • Draegerwerk (DRW3 TH) -1.1%
  • Borussia Dortmund (BVB TH) -1.3%
  • Global Fashion Group (GFG TH) -2.6%

>>> Stoxx 600 Pre-Market Indications

  • HelloFresh (HFG TH) +4.5%
    • HelloFresh 1Q a ‘Massive Beat,’ Deutsche Bank Says; Watch Peers
  • GlaxoSmithKline (GS7 TH) +2.4%
    • April 15: Glaxo Jumps; Analysts See Elliott Focus on R&D Spending (1)
  • Vodafone (VODI TH) +2.2%
  • Daimler (DAI TH) +2.2%
    • Daimler Quarterly Earnings Exceed Projections on China Sales (1)
  • British American Tobacco (BMT TH) +1.9%
  • Glencore (8GC TH) +1.9%
  • Diageo (GUI TH) +1.8%
  • HeidelbergCement (HEI TH) +1.6%
    • HeidelbergCement a Beat, Implies Strong 1Q Exit Rate: Jefferies
  • BP (BPE5 TH) +1.5%
    • Clean Energy Fuels in 50/50 JV With BP Products North America
  • ThyssenKrupp (TKA TH) +1.3%
  • Fraport (FRA TH) -1%
  • Vestas Wind Systems (VWS TH) -1.3%
  • L’Oreal (LOR TH) -1.3%
    • L’Oreal Sales Rise Helped by Chinese Duty-Free Demand in Hainan

>>> What to look at today - 16th of April 2021

A gauge of Asia-Pacific stocks was steady Friday after surprisingly robust American economic data sent U.S. equity indexes to record levels. Yields on benchmark 10-year Treasury notes held a drop.
Shares rose in China as figures showed economic growth soared from a year earlier but that quarter-on-quarter expansion slowed. Japan and Hong Kong were little changed in a soft end to the week despite optimism on Wall Street.
European contracts edged up and U.S. futures slipped after the S&P 500 and Nasdaq 100 hit all-time highs on better-than-expected retail sales and jobless claims figures. Financials weakened amid the slide in bond yields, even after Citigroup Inc. and Bank of America Corp. beat trading-revenue forecasts.
Traders suggested foreign buying and geopolitical risks may have contributed to the rally in Treasuries, with many investors caught positioned for further weakness. The U.S. dollar inched higher after a series of declines.
US After Hours PPG +4.7%, AA +3.5% rise on earnings; LSCC +7% as it joins the S&P MidCap 400; DKNG +5.3% higher as it becomes an Official Sports Betting Partner of the NFL

Nikkei +0.13% Hang Seng +0.29% CSI +0.18% Shanghai +0.66% Shenzen +0.55%

Eur$ 1.1958 CNH 6.5332 CNY 6.5310 JPY 108.83 GBP 1.3761 CHF 0.9226 RUB 76.3811 TRY 8.0359 WTI$63.44 -0.03% Gold 1,763.20 -0.05% BTC 62,970 +240

S&P -0.11% Nasdaq -0.20% EuroStoxx +0.15% FTSE +0.09% Dax +0.25% SMI -0.11%

Macro :
- Europe Car Sales Surge 63% in March, Erasing Early-Year Decline
- Fed’s Mester Says Economy Making Progress, Outlook Brightening
- Brevan Howard’s Main Hedge Fund to Start Buying Cryptocurrencies
- Apollo Weighs Florida Outposts as Escape From New York Heats Up
- Pfizer CEO Says 3rd Dose Likely Needed Within 12 Months: CNBC

SPACS :
- Betty Liu’s D & Z SPAC Said In Talks to Merge With Simplifi
- Family Offices Are Targeting 800% Returns With SPAC Economics
- Travel Startup Inspirato Said in Talks to Merge With Thayer SPAC
- Nikola Approaches $10 a Share, Erasing Startup’s Post-IPO Gains

Keep an eye on :
- ADP FP : ADP March Passenger Traffic -63.2%
- ARCUS NO : Arcus-Altia Merger Gets Conditional Approval from Sweden’s SCA
- BAYN SS : Bayn Group Offering of 20.5m Shares Prices at SEK24.5/Share
- BALY US : Bally’s to Pursue Possible Offering to Strategic Investor
- CO FP : Casino, Intermarche Announce Five-Year Purchasing Partnership
- CNHI IM : Nikola Approaches $10 a Share, Erasing Startup’s Post-IPO Gains
- COFA FP : Coface Anticipates Net Income Above EU50M for 1Q
- COIN US : Ark Funds Buy $352 Million Worth of Coinbase in Two Days
- CON SW : Conzzeta 1Q Net Revenue CHF337.8M Vs. CHF298.4M Y/y
- CSGN SW : SoftBank Infusion Meant to Pay Back Credit Suisse Investors Went to Greensill Bank
- DAI GY : Daimler First-Quarter Earnings Exceed Projections on China Sales
- DANSKE DC : Danske Bank May Relax Ban on Crypto-Currency Trading: Berlingske
- DIA SM : Auchan, Casino, DIA, Metro, Schiever Won’t Renew Cooperation
- ECONB BB : Econocom 1Q Organic Revenue +4.7%
- EDP PL : EDP First-Quarter Electricity Generation Falls 9% Y/y
- EDPR PL : EDP Renovaveis Clean Energy Production Rose 5% in 1Q
- ENEL IM : Enel Stake in Enel Americas Rises to 82.3% After Offer
- ENGI FP : Bouygues, Spie Interested in Engie’s Services Business: Echos
- EVR LN : Evraz to Prepare for Demerger of Coal Business
- FDJ FP : FDJ 1Q Revenue EU538M
- FLTR LN : Flutter’s FanDuel Named an Official NFL Sports Betting Partner
- FNAC FP : Fnac Darty 1Q Rev. Rises 22%, Confirms Outlook
- HEI GY : HeidelbergCement Prelim 1Q Revenue EU3.96B
- HFG GY : HelloFresh Boosts FY Sales At Constant Exchange Rates Forecast
- IMPASDB SS : Implantica Offering of 4.9m Shares Prices at SEK122/Share
- INGA NA : ING to Separate Board Roles for Operations and Technology
- JPM US : JPMorgan to Sell $13 Billion of Bonds: Financials Wrap
- KESKOB FH : Kesko Raises 2021 Comparable Operating Profit View
- DRLCO DC : Maersk Drilling Get $24 Million Contract Offshore Gabon
- ML FP : Michelin Says Altaris to Buy 51% of Solesis Healthcare Unit
- COX FP : Nicox Says Vyzulta Receives Regulatory Approval in Brazil
- NHY NO : New Fortress to Supply Gas to Norsk Hydro’s Brazil Alumina Plant
- OR FP : L'Oreal 1Q Like-for-like Sales Miss Estimates
- PFV GY : Pfeiffer Vacuum Prelim 1Q Ebit EU22.6M
- QS US : QuantumScape Adds Panasonic Manufacturing Executive to Board
- ROG SW : Roche Says New Analyses Reinforce Ocrevus Benefits
- SCR FP : Scor Reinsurance Premiums Rise 14.3% at April Renewals
- SICT IM : Circular BidCo Offers to Buy Sicit Group in Tender Offer
- STLA IM : Stellantis CEO Vows to Speed Up Carmaker’s Electric Shift
- STLA IM : Stellantis May Use One Line at Melfi Plant Due to Chip Shortage
- 2330 TT : TSMC Lifts Targets After Warning Chip Crunch May Hit 2022
- VALMT FH : Valmet Raises Net Sales, Comparable Ebita Guidance for 2021
- WDI GY : Wirecard Administrator Sues EY to Release Documents: HB
- WDI GY : Wirecard administrator agrees sale of chunk of Asia operations - FT
- WIZZ LN : Once-Bullish Wizz Air CEO Says His Optimism for Summer Is Fading

>>> Europe : Brokers Upgrades & Downgrades - 16tjh of April 2021

>>> Up
* BP Raised to Buy at HSBC; PT 355 pence
* Deutsche Wohnen Raised to Buy at SocGen; PT 52.80 euros
* Experian Raised to Buy at Goldman; PT 3,250 pence
* MTU Aero Raised to Outperform at Oddo BHF; PT 235 euros
* Safran Raised to Outperform at Oddo BHF; PT 135 euros
* Simon Property Raised to Buy at Jefferies; PT $130
* VW PT Raised to 330 euros from 225 euros at Bankhaus Metzler
* WH Smith Raised to Outperform at RBC

>>> Down
* Akasol Cut to Neutral at Citi
* BMW Cut to Underweight at Morgan Stanley; PT 80 euros
* Carlsberg Cut to Hold at Handelsbanken; PT 1,100 kroner
* Clarkson Cut to Hold at HSBC; PT 3,000 pence
* Dixons Carphone Cut to Sector Perform at RBC
* Entra Cut to Hold at Handelsbanken; PT 195 kroner
* Essity Cut to Hold at Jefferies
* Gestamp Cut to Equal-Weight at Morgan Stanley; PT 4 euros
* Goodyear Cut to Equal-Weight at Morgan Stanley; PT $16
* Granges Cut to Hold at Handelsbanken; PT 130 kronor
* Selvaag Bolig Cut to Hold at Handelsbanken; PT 70 kroner
* Spectris Cut to Add at Peel Hunt

>>> Initiation
* Ambu Rated New Overweight at Morgan Stanley; PT 350 kroner
* Begbies Traynor Rated New Buy at Berenberg; PT 155 pence
* Flyr Rated New Buy at Arctic Securities; PT 10 kroner
* FRP Advisory Group Rated New Buy at Berenberg; PT 140 pence
* Jenoptik Rated New Hold at Stifel; PT 28 euros
* Knights Rated New Hold at Berenberg; PT 410 pence
* Neste Rated New Buy at Tudor Pickering; PT 54 euros
* Sbanken Rated New Buy at SEB Equities; PT 122 kroner
* Tinybuild Rated New Buy at Jefferies; PT 315 pence

>>> Call
* BMW Risk-Reward Skews to Downside; EPS Peak Near: Morgan Stanley
* Dixons Carphone Shares Less Compelling After Rally, RBC Says
* Essity Cut with Pulp Prices to Weigh on Margins: Jefferies
* Granges Downgraded at Handelsbanken, Sees Time for Breather
* HeidelbergCement a Beat, Implies Strong 1Q Exit Rate: Jefferies
* L’Oreal’s 1Q Sales Show a ‘Great Start to the Year:’ Bernstein
* UPM´s Pre-Release Supports Paper Stocks Ahead of Earnings: Citi
* WH Smith Upgraded With U.S. Showing Signs of Promise, RBC Says

WSJ : Chinese Economy Grew More Than 18% in First Quarter

Chinese Economy Grew More Than 18% in First Quarter
The year-over-year GDP growth rate will almost certainly trend lower in coming quarters

BEIJING—China’s economy surged 18.3% in the first quarter from a year earlier, a record rate of growth that reflected the recovery from a deep coronavirus-induced trough in early 2020 and the continued momentum of the world’s second largest economy.

The rate of gross domestic product growth in the first three months of 2021 was sharply higher than the 6.5% year-over-year growth recorded in the final quarter of 2020, though it fell short of the 19.2% growth expected by economists polled by The Wall Street Journal.

Analysts had anticipated GDP growth in the first three months of the year to jump sharply when compared with the year-earlier period, when the Chinese economy suffered a historic 6.8% contraction as the coronavirus’ initial emergence forced Beijing to shut down large swaths of the country.

In recent weeks, China has reported economic indicators showing growth of 30% or more from a year earlier.

The year-over-year GDP growth rate will almost certainly trend lower in coming quarters as the Chinese economy is measured against higher levels from the year-earlier period. China’s economy began its recovery in the second quarter of 2020 and recorded higher year-over-year growth figures through the remaining quarters of the year.

The 18.3% year-over-year growth rate for the first quarter is the highest since China began reporting quarterly GDP in 1992, surpassing the 15.3% rate in the first quarter of 1993.

But stripping out the statistical distortion from last year’s low base of comparison, economists at HSBC in Hong Kong estimate that underlying year-over-year GDP growth in the first three months of 2021 was about 5.4%, lower than the pre-coronavirus trend of roughly 6% growth. The bank expects the economy to continue “running below full speed” in the coming months.

When compared with the last three months of 2020, the Chinese economy expanded just 0.6% in the first quarter of 2021, slowing from a 2.6% quarter-on-quarter GDP increase in the fourth quarter of 2020, according to data released Friday by the National Bureau of Statistics.

Beijing set a relatively modest 2021 growth target of 6% or higher, which leaves more room for officials to tackle rising debt levels and other financial risks. Economists polled by The Wall Street Journal expect the Chinese economy to grow 8.5% in 2021 from a year earlier.

The Chinese recovery now faces a raft of challenges as it enters a second year, including nascent signs of inflation, a lagging consumer recovery, worries about asset bubbles and rising geopolitical tensions that could hurt trade. Unemployment is also hovering near a ceiling that authorities have targeted, though Beijing’s most closely watched metric, the surveyed urban unemployment rate, eased to 5.3% in March from 5.5% a month earlier.

Also, longer-term demographic hurdles are also manifesting themselves, prompting officials to consider policies to increase the country’s rapidly falling birthrate.

Inflation has become more concerning in recent weeks, as rising prices for copper, aluminum and steel have prompted makers of home appliances, for example, to raise the prices of their products, even though many haven’t yet returned to their pre-virus sales levels.

Midea Group, a large appliance maker based in the southern province of Guangdong, increased the prices of its refrigerators by 10% to 15% beginning last month, citing the rapid run-up in raw material prices.

Hefei Meiling Co., an appliance maker based in eastern China’s Anhui province, said it expects to rack up a modest net profit equivalent to between $690,000 and $840,000 in the first quarter of 2021, after suffering a loss of about $40 million in the year-earlier period.

Though the company attributes its rebound to China’s successful containment of the coronavirus and recovering domestic demand for refrigerators, washing machines and air conditioners, Hefei Meiling also expressed concerns about rising commodity prices eating into profitability.

On domestic consumption, meantime, hopes for a full recovery were stymied throughout the latter half of 2020 by periodic Covid-19 flare-ups, which kept a lid on travel, restaurant dining and other spending. Instead, manufacturing and exports largely drove the economic recovery last year.

That might be starting to change a year after the initial outbreak, as vaccinations begin to be rolled out and new infections decline. Sentiment among Chinese consumers recovered to its pre-pandemic level for the first time in March and then continued to build on those gains in the first half of April, according to surveys conducted by research firm Morning Consult.

“Chinese consumers have emerged from the pandemic even stronger than they were before,” said John Leer, an economist at the research firm.

In March, retail sales jumped 34.2% from a year earlier, the National Bureau of Statistics said Friday. The result was higher than 33.8% growth posted in the first two months of the year and beat economists’ expectation for 28% growth.

In month-on-month terms, retail sales rose 1.75% in March, accelerating from 0.56% in February.

Other closely watched indicators also posted double-digit percentage growth in year-over-year terms, though the growth rates were lower than those during the January to February period, which were measured against the historically low base from a year earlier.

Industrial output rose 14.1% in March from a year earlier, down from 35.1% year-over-year growth in the January to February period and lower than a 16.5% pace expected by the economists polled by The Wall Street Journal.

China’s fixed-asset investment rose 25.6% from a year earlier in the first quarter, slowing from 35% in the January to February period.

Home sales by volume, a major indicator of demand, soared 95.5% in the first three months of 2021 from a year earlier, though the pace was slower than the 143.5% year-over-year gain in the first two months of the year. Real-estate investment in China rose 25.6% in the January-to-March period, compared with a 38.3% gain for the January-to-February period.