Newsquawk Daily European Equity Opening News - 11th April 2025

ASIA

APAC stocks mostly followed suit to the declines on Wall St where the major indices gave back a chunk of their historic gains as tariff uncertainty lingered and with the US clarifying China tariffs were at 145%, not 125%. ASX 200 was pressured amid underperformance in energy, healthcare and tech, while gold miners outperformed after prices of the precious metal extended to fresh record highs. Nikkei 225 briefly fell beneath the 33,000 level with exporters hit by a firmer yen and global trade uncertainty. Hang Seng and Shanghai Comp initially conformed to the downbeat mood after the US clarified its tariff on China was at 145% although Chinese markets gradually recouped losses amid hopes of the PBoC to step in with monetary policy support.

Chinese Stocks - Trump Administration is moving toward a possible delisting of Chinese public Co shares on US exchanges, according to FBN's Gasparino citing sources Incoming SEC chair Paul Atkins likely to take up delisting issue when he officially takes office. Delisting possibility comes amid trade war with China but also growing GOP Congressional appetite to delist Chinese companies. US law allows delisting if Chinese companies don’t allow inspection of books and ties to the Chinese government. Lawmakers particularly concerned about so-called “golden shares” that grant the Chinese government control over listed cos.

PBoC - PBoC will implement a moderately loose monetary policy, support the smooth operation of financial markets, and consolidate the continued recovery of the economy

EUROPEAN CLOSES

CLOSES: DAX: +4.67% at 20,589, FTSE 100: +3.04% at 7,913, CAC 40: +3.83% at 7,126, Euro Stoxx 50: +4.22% at 4,817, AEX: +2.86% at 819, IBEX 35: +4.60% at 12,340, FTSE MIB: +4.73% at 34,277, SMI: +3.31% at 11,230, PSI: +2.41% at 6,405.

FTSE 100

Balfour Beatty (BBY LN) - The US DoJ has decided to keep corporate monitors in place for military housing companies, according to Reuters citing sources. (Reuters)

Rio Tinto (RIO LN) - Co. is to acquire remaining share in Energy Resources of Australia (ERA AT). (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Fresnillo (FRES LN) upgraded to Add from Hold at Peel Hunt

DAX

BMW (BMW GY) - Co. considers boosting output at its US plant by up to 80k units, as it looks at ways to win over the Trump administration. (Newswires)

Siemens (SIE GY) - Co. executive, his wife and young children were aboard the helicopter that plunged into New York's Hudson River. (Newswires)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - March total group traffic in March at 9.8mln passengers; Frankfurt airport passengers +0.3% Y/Y. (Newswires)

Gerresheimer (GXI GY) - Q1 (EUR): Revenue 520.1mln (exp. 527.1mln); Q1 significantly influenced by revenue shift in syringe business. (Newswires)

BROKER MOVES

K+S (SDF GY) upgraded to Hold from Sell at Stifel

CAC

Renault (RNO FP) - The FT writes that Renault has weathered the tariff uncertain environment well, but could yet hurt Co. plans to boost its market share in EVs and hybrids. (FT)

STMicroelectronics (STMPA FP) - French Industry Minister says he supports CEO Chery (Newswires) Follows accusations of potential insider trading

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Trade - White House clarified that US tariffs on China now totalled 145% after the latest hike (20% already in place + 125% added this year). US President Trump on stock market drop, says "I haven't seen it"; would love to get deal with China and think will end up working out something good for both countries. Looking at EU as one block on tariffs.

Argenx (ARGX BB) - Co. announces FDA approval of Vyvgart Hytrulo prefilled syringe for self-injection in generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. (Newswires)

Autos - EU Trade Commissioner Sefcovic and Chinese Minister Wang have agreed to look into setting minimum prices rather than duties for China-made EV imports. EU and China begin negotiations to abolish EU tariffs on Chinese EVs, via Handelsblatt. (Newswires / Handelsblatt)

EU Gas Storage - EU member states are set to approve more flexible rules for gas storage before winter, allowing a 10ppts deviation from the current requirement to fill tanks to 90%. The change aims to address concerns that existing targets artificially drive up prices. The new regulations could take effect before the next heating season.

Stellantis (STLAM IM/STLAP FP) - Q1 Consolidated Shipments 1.22mln, -9% Y/Y. By Region (shipments): In North America -20% Y/Y; Enlarged Europe -8% Y/Y; China, India and APAC -20% Y/Y. (Newswires)

Vietnam / Adidas (ADS GY) / Sportswear names - US Treasury Secretary Bessent and Vietnamese deputy PM agree to begin formal discussions on reciprocal trade between the US and Vietnam Putting process in place for negotiations. Vietnam plans to crack down on illicit transhipment of goods from China to the US amid Trump tariff risks. (Newswires)

UK-EU - UK Chancellor Rachel Reeves will advocate for deeper defence financing cooperation with the EU during a meeting of finance ministers in Poland. She will argue that a "changed world" requires stronger collaboration on defense spending, following strained transatlantic relations under President Trump. (Newswires)

BROKER MOVES

SMI

ABB (ABBN SW) - Co. opened a USD 40mln manufacturing facility in Mexico. (Newswires)

Logitech (LOGN SW) - Logitech reaffirmed FY25 revenue guidance of USD 4.54-4.57bln (exp. 4.57bln) and operating income between USD 755-770mln, but withdrew its FY26 outlook due to tariff-related uncertainty. (Newswires)

Novartis (NOVN SW) - Co. plans to spend USD 23bln to build and expand 10 US facilities; the new sites and extensions will be built over five years and are expected to create more than 4,000 jobs. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Mowi (MOWI NO) - Q1 (EUR): Operating EBIT 214mln (exp. 250.6mln). (Newswires)

Maersk (MAERSKB DC) / Five Below (FIVE) - Five Below instructed vendors to halt shipments of products from China ahead of their departure for the US, as a result of the US-China tariff impacts. The decision, communicated via AP Moller-Maersk suspends cargo shipments, though it is unclear whether the suspension affects all vendors or only a subset, Bloomberg reports. (Bloomberg)

BROKER MOVES

US

CLOSES: SPX -3.46% at 5,268, NDX -4.19% at 18,344, DJI -2.50% at 39,594, RUT -4.27% at 1,831

SECTORS: Energy -6.40%, Technology -4.55%, Communication Services -4.14%, Consumer Discretionary -4.12%, Materials -3.00%, Financials -2.89%, Health -2.78%, Industrials -2.61%, Real Estate -2.07%, Utilities -0.63%, Consumer Staples +0.21%.

Big Tech - EU Commissioner President Von De Leyen says could tax big tech if Trump trade talks fail, FT reports The EU would seek a "completely balanced" agreement with the US during Trump's 90-day pause in applying additional tariffs. There's a wide range of countermeasures in case the negotiations are not satisfactory. "We are developing retaliatory measures”. Said the EU “will not tolerate” Chinese goods hit by US tariffs being redirected to Europe, adding that Brussels would “take safeguards” if a new monitoring mechanism detected an increase in Chinese imports. (FT)

Tesla (TSLA) - Tesla has suspended new orders for Model S and Model X on its Chinese website and WeChat mini programme, with no official comment provided, Reuters reports. The move affects two imported models amid broader strategic adjustments. Separately, Tesla unveiled a new USD 70,000 Cybertruck ‘Long Range’ RWD with a 350 mile range, using the same 123 kWh battery as higher trims, but lacking features like air suspension and rear display, Electrek reports. It replaces the earlier USD 61,000 RWD version, and launched alongside Tesla’s Middle East debut. (Newswires)

US-Japan - Manitowoc (MTW) has filed an anti-dumping petition with the USITC and Commerce Department, alleging that Japanese producers, notably Kobelco, are harming its US lattice-boom crawler crane business via predatory pricing. CEO urged swift government intervention to protect domestic operations and workers. (Newswires)

US-Mexico - US President Trump claimed that Mexico owes Texas 1.3mln acre-feet of water under its 1944 Water Treaty, accusing Mexico of violating the agreement. He criticised the impact on Texas farmers, particularly the closure of a sugar mill, and pledged to take action, including tariffs and sanctions, to ensure compliance. (Newswires)

11 Apr 2025 - 06:50- Research Sheet- Source: Newsquawk