Newsquawk Daily European Equity Opening News - 10th April 2025

ASIA

APAC stocks surged following the historic rally on Wall St where the S&P 500 posted its biggest gain since 2008 after US President Trump announced a 90-day pause on reciprocal tariffs to countries aside from China. ASX 200 rallied with the broad-based gains led by outperformance in the tech and energy sectors, while National Australia Bank revised its RBA forecast in which it now sees an oversized 50bps cut in May and the OCR to decline to 2.6% by February next year. Nikkei 225 rocketed to back above the 34,000 level as Japanese exporters cheered the tariff-related relief. Hang Seng and Shanghai Comp joined in on the global rally but with the advances somewhat moderated in the mainland after US President Trump upped the total tariffs on China to 125% from 104% due to China's recent retaliation, while reports also reported that Chinese leaders are to meet on stimulus following the tariff shock.

China Trade - China leaders are to meet on stimulus following President Trump's tariff shock, according to Bloomberg. (Bloomberg)

Chinese Inflation - Chinese CPI MM (Mar) -0.4% vs. Exp. -0.3% (Prev. -0.2%); CPI YY (Mar) -0.1% vs. Exp. 0.0% (Prev. -0.7%); PPI YY (Mar) -2.5% vs. Exp. -2.3% (Prev. -2.2%). (Newswires)

TSMC (TSM / 2330 TT) - March (TWD) Revenue 285.96bln (prev. 260.01bln M/M); Q1 Sales 839.25bln (exp. 836bln), +41.6% Y/Y. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -2.96% at 19,680, FTSE 100: -2.92% at 7,679, CAC 40: -3.34% at 6,863, Euro Stoxx 50: -3.31% at 4,616, AEX: -3.33% at 796, IBEX 35: -2.01% at 11,824, FTSE MIB: -2.75% at 32,731, SMI: -4.64% at 10,860, PSI: -2.85% at 6,254

SECTORS: Telecoms -2.10%, Utilities -2.13%, Consumer Stpl -2.47%, Materials -2.99%, Consumer Disc -3.11%, Industrials -3.16%, Financials -3.16%, IT -3.93%, Energy -5.39%, Healthcare -5.95%                         

FTSE 100

Ex-dividends - Lloyds (LLOY LN), Croda (CRDA LN), Aviva (AV/ LN), St. James's Place (STJ LN), Howden Joinery (HWDN LN), Reckitt (RKT LN), F&C (FCIT LN) to trade without entitlement to their latest dividend payouts. (dividenddata)

Flutter (FLTR LN) - Gets regulatory approval for acquisition of SNAI. (Newswires)

UK RICS - UK RICS Housing Survey (Mar) 2.0 vs. Exp. 8.0 (Prev. 11.0); "The expiry of the stamp duty break was always going to lead to a pause in activity in the sales market."

OTHER UK COMPANIES

Playtech (PTEC LN) - Received all regulatory approvals for Snaitech sale; to return EUR 5.73/shr to shareholders as a special dividend, which is to be paid in June 2025. (Newswires)

BROKER MOVES

DAX

Porsche (PAH3 GY) - Q1 North America Retail Deliveries: 18,884. (Newswires)

Volkswagen (VOW3 GY) - Prelim Q1 operating result of EUR 2.8bln (prev. 4.6bln Y/Y); operating results impacted by EUR 1.1bln special items; revenue +3% to EUR 78bln (exp. 78.6bln); confirms 2025 outlook. Confirms 2025 outlook FY operating return on sales still expected to be +5.5-6.5% Says impact of US import tariffs are still not included in its forecast. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Booked 280 gross aircraft orders and 204 net aircraft orders in January-March. Delivered 9 A350 aircraft. Delivered 37 A320neo aircraft. Delivered 65 A321neo aircraft. March deliveries: 71. March gross orders: 211. 2025 YTD deliveries: 136. (Newswires)

LVMH (MC FP) - Co. is to close one of the two Californian production sites by 2028, via Reuters citing sources. (Reuters)

STMicroelectronics (STMPA FP) - Italian Economic Minister Giorgetti says Italy is to adopt critical stance of the Co's management. Says they sold shares before reporting negative results. (Newswires)

OTHER FRENCH COMPANIES

Remy Cointreau (RCO FP) - Eric Vallat to resign as CEO, effective this summer. (Newswires)

BROKER MOVES

PAN EUROPE

Trade - US President Trump raises tariff charged to China by the US to 125% (prev. 104%); effectively immediately; But authorises 90 day pause and lowers reciprocal tariff during this period on the 75 countries that have asked for talks. White House officials are reportedly conceding that the potential TikTok US deal is off the table for the foreseeable future, and maybe forever, as the trade war focusses solely on China, Fox's Gasparino reports. US President Trump says will have to wait and see what happens with China on TikTok deal; it is still on the table. US Commerce Secretary Lutnick says expect the EU will delay its planned tariff retaliation after today's announcement. (Newswires)

Banco BPM (BAMI IM) / Anima (ANIM IM) - Banco BPM has reached 89.949% of Anima's share capital. (Newswires)

Gas - EU weighs buying more US gas due to Trump tariff pressure, according to FT. (FT)

Pharma - US President Trump affirms he will put tariffs on pharma companies and noted that everybody wants to make a deal on tariffs. (Newswires)

Orsted (ORSTED DC) - CEO says tariffs would have a "meaningful impact" on the cost of its projections in the US, via the FT. (FT)

BROKER MOVES

SMI

Givaudan (GIVN SW) - Q1 (CHF): Revenue 1.97bln (exp. 1.93bln). Notes that it is likely to exceed the upper end of its avg. five-year sales growth target of 4-5% on a LFL basis for the period of 2021-25. (Newswires)

Nestle SA (NESN SW) - Nestle may be forced to stop marketing Perrier as a mineral water after admitting it used filtration methods deemed illegal for natural mineral waters. The French government's hydrogeologists issued an unfavourable opinion on the practice, prompting the company to launch an audit of its filtration methods. (Newswires)

OTHER SWISS COMPANIES

Barry Callebaut (BARN SW) - H1 (CHF): Net Income 63.5mln (prev. 215.8mln Y/Y), Revenue 7.29bln (exp. 7.12bln). Guides initial FY25 sales volumes mid-single digit Y/Y decrease. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

H&M (HMB SS) downgraded to Reduce from Accumulate at Inderes

US

CLOSES: SPX +9.52% at 5,457, NDX +12.02% at 19,145, DJI +7.87% at 40,608, RUT +8.66% at 1,913

SECTORS: Utilities +3.91%, Consumer Staples +4.22%, Health +4.34%, Real Estate +5.74%, Energy +7.47%, Financials +7.59%, Materials +8.63%, Industrials +8.97%, Communication Services +9.99%, Consumer Discretionary +11.36%, Technology +14.15%.

Constellation Brands (STZ) - Constellation Brands shares fell 3.6% in extended trading after it lowered its FY26 profit forecast, citing the impact of new tariffs imposed by the Trump administration on its beer and spirits business, and after it sold several wine brands to The Wine Group. Q4 EPS 2.63 (exp. 2.26), Q4 revenue USD 2.16bln (exp. 2.13bln); Q4 comparable operating profit +4.4% Y/Y to USD 659mln (exp. 637.7mln). Wine & Spirits operating income -10% Y/Y to USD 99.7mln (exp. 91.6mln), while wine & spirits net sales were USD 459.8mln (exp. 408.7mln). Constellation will divest its mainstream wine brands, vineyards, and facilities to The Wine Group, including Woodbridge, Meiomi, and Robert Mondavi Private Selection; The deal is expected to close by FY26-end, and aims to streamline its wine portfolio, achieving cost savings of over USD 200mln by FY28. Sees EPS growth for FY28 of low-single digit to mid-single digits; guidance assumptions reflect the anticipated impact of tariffs announced by US on April 2nd, Canada on March 4th.

Google (GOOGL) - Plans to invest around USD 75bln in total CAPEX in 2025 (maintained from view in February 2025). (Newswires)

NVIDIA (NVDA) - Trump administration reportedly backs off Nvidia's H20 chip crackdown after CEO's Mar-A-Lago dinner, via report cited by CNBC. (CNBC)

Occidental (OXY) - Occidental Petroleum reported higher Q1 prices for oil and gas production compared to the previous quarter; Q1 unhedged worldwide oil price realisation of USD 71.07/bbl and a worldwide natural gas price realisation of USD 2.30/MMBtu.

Prada and Versace (CPRI) - Deal could close after a USD 200mln discount, according to FT "Italian fashion group Prada is closing in on the purchase of Versace after negotiating a discount of more than $200mn, due to the impact of US President Donald Trump’s trade war." Prada and Capri are set to announce a deal worth about USD 1.38bln as soon as Thursday, according to FT citing sources. (FT)

US Steel (X), Nippon Steel (NPSCY) - US Steel's shares dropped as much as 16% in afterhours trading following US President Trump's statement opposing the steelmaker's acquisition by a Japanese company. Trump highlighted the rising steel orders at US Steel as evidence it doesn’t need investment, asserting he does not want it to be bought by foreign entities.

10 Apr 2025 - 06:51- Research Sheet- Source: Newsquawk