Newsquawk Daily European Equity Opening News - 14th April 2025

ASIA

APAC stocks began the week on the front foot after reports of a tariff reprieve for smartphones and other electronic goods but with gains capped by President Trump's walk-back regarding this, while participants also digested somewhat mixed Chinese trade data. ASX 200 advanced at the open with real estate, health care and tech leading the broad gains seen in nearly all sectors. Nikkei 225 climbed above the 34,000 level with notable strength in pharmaceuticals and electronic goods/component manufacturers. Hang Seng and Shanghai Comp conformed to the positive risk environment amid some tariff-related reprieve with Chinese consumer electronic goods currently 20% fentanyl tariffs instead of the 145% reciprocal tariffs, although President Trump said he would be announcing the tariff rate for semiconductors over the next week and semiconductor tariffs will be in place in the not distant future. Furthermore, participants digest stronger lending data from China and mostly better-than-expected trade figures in which Trade Balance and Exports topped forecasts but Imports showed a wider-than-expected contraction.

Chinese Trade - Chinese Trade Balance USD (Mar) 102.64B vs. Exp. 77.0B (Prev. 170.52B); Imports YY (Mar) -4.3% vs. Exp. -2.0% (Prev. -8.4%); Exports YY (Mar) 12.4% vs. Exp. 4.4% (Prev. 2.3%). (Newswires)

PBoC - China is to roll out more monetary easing steps with China to ramp up counter-cyclical policy adjustments and implement various monetary policy measures in the future, according to Shanghai Securities News. (Shanghai Securities News)

EUROPEAN CLOSES

CLOSES: DAX: -0.78% at 20,429, FTSE 100: +0.59% at 7,960, CAC 40: -0.30% at 7,105, Euro Stoxx 50: -0.42% at 4,799, AEX: +0.04% at 820, IBEX 35: -0.43% at 12,287, FTSE MIB: -0.84% at 33,989, SMI: -0.28% at 11,228, PSI: +1.81% at 6,520

SECTORS: Utilities 1.10%, Healthcare 1.05%, Consumer Stpl 0.93%, Materials 0.87%, Consumer Disc -0.04%, Financials -0.39%, Telecoms -0.59%, Industrials -0.80%, IT -1.18%, Energy -1.49%

FTSE 100

HSBC Group (HSBA LN) - HSBC is exploring entry into private credit via partnerships, aiming to boost revenue post-restructuring, Reuters reports citing sources. Talks are ongoing, with the bank taking a cautious approach due to cost and risk concerns. No full-scale push is planned, the article adds; HSBC may leverage existing asset management units. (Reuters)

UK Commodities - UK officials are working quickly to secure raw materials for Britain’s last primary steel manufacturer, the British Steel plant in Scunthorpe, Bloomberg reports. Several companies, including Tata and Rainham Steel, have offered both raw materials and managerial support to ensure the plant remains operational. (Bloomberg)

UK-China - UK retail bosses raise fears of Chinese product ‘dumping’ into the UK and European markets through platforms such as Temu, Shein and Amazon (AMZN) amid Trump tariffs, according to FT. (FT)

UK Housing - UK House Price Rightmove YY (Apr) 1.3% (Prev. 1.0%); House Price Rightmove MM (Apr) 1.4% (Prev. 1.1%). Rightmove exec says, "Increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient". (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Salzgitter (SZG GY) - Co. ended talks with GP and TSR consortium on takeover. (Newswires)

BROKER MOVES

CAC

Axa (CS FP) / BNP Paribas (BNP FP) - Acquisition by BNP Paribas Cardif of Axa Investment Manager. Closing exp. in early July 2025. BNP Paribas says dividend and shareholder return policy unchanged. Impact on BNP Paribas CET1 Ratio exp. at -35bps. Overall profitability objectives/CET1/growth trajectory would not be modified. (Newswires)

OTHER FRENCH COMPANIES

Nexans (NEX FP) - Launched share buyback program for 750k shares; shares to be cancelled. (Newswires)

Vallourec (VK FP) - Co. is in exclusive negotiations to sell Serimax for EUR 79mln; completion in next few months. (Newswires)

BROKER MOVES

PAN EUROPE

Trade - Trump said there were no exceptions announced on Friday; Lutnick said semiconductor-tariffs in a month & pharma-tariffs in a month or two. US President Trump issued a clarification of exceptions under Executive Order 14257 in which items excluded from reciprocal tariffs include smartphones, storage devices and some other electronics. However, Trump posted on Sunday that there was no tariff exception announced on Friday and that these products are subject to the existing 20% fentanyl tariffs and are just moving to a different tariff bucket, while he stated that “NOBODY is getting “off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”. On Friday 11th: CEOs are speaking with the White House on the trade war; one told FBN that Trump has an open door policy and is listening to their concerns on the tariff impact on the economy and markets, via FBN's Gasparino on X. (FBN's Gasparino/Newswires)

Ageas (AGS BB) - Reached an agreement with Bain Capital to acquire Esure for EUR 1.51bln in cash. (Newswires)

Critical Materials - The Trump administration is drafting an executive order to stockpile deep-sea metals like nickel and cobalt from Pacific seabed nodules. The move aims to reduce reliance on China for key minerals. The US also seeks to fast-track mining permits and develop onshore processing capacity for strategic needs. (Newswires)

Stoxx 600 - Goldman Sachs cuts Stoxx 600 forecast for next 12 months to 520 from 570. (Newswires)

Chip names - US President Trump says to announce tariff rate for semiconductors over the next week and semiconductor tariffs will be in place in the not distant future, while there will be some flexibility on some companies on semiconductor tariffs but it is not clear Says: When asked about tariffs on Apple (AAPL) iPhones, Trump stated that they will be announced soon but there has to be some flexibility. (Newswires)

Iberdrola (IBE SM) - Q1 Net Electricity Production -13.3% Y/Y at 35,515 GWH. Installed capacity at end-March at 56,865 MW. (Newswires)

Mediobanca (MB IM) / BMPS (BMPS IM) - Norway's Wealth Fund will vote in favour of the BMPS share issue to support its Mediobanca bid. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Proposed dividend of CHF 3.10/shr. Proposed Kim Fausing as Chairman. If approved by shareholders, Amrize spin-off exp. to occur in June 2025. (Newswires)

Roche (ROG SW) - The European Commission approved Roche’s Columvi as the first bispecific antibody for diffuse large B-cell lymphoma after initial therapy. A condition to convert existing marketing authorisation to a regular approval has been fulfilled. (Roche)

SoftwareOne (SWON SW) - Co. announces amendments to existing Crayon total return swap agreement. Upon completion of its voluntary offer to acquire all outstanding shares of Crayon, settlement of the TRS will automatically be expedited. (Newswires)

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Sandoz files antitrust litigation against Amgen regarding patient access to etanercept biosimilar in the US. (Sandoz)

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) - March (EUR): Revenue 1.05bln, +3.9% Y/Y. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.72% at 5,359, NDX +1.89% at 18,690, DJI +1.56% at 40,213, RUT +1.47% at 1,858.

SECTORS: Materials +2.99%, Technology +2.56%, Energy +2.50%, Industrials +1.73%, Financials +1.67%, Health +1.45%, Real Estate +1.28%, Consumer Staples +1.25%, Utilities +1.18%, Communication Services +1.10%, Consumer Discretionary +1.09%.

Big Tech - Germany and other European countries have cautioned against Brussels potentially hitting Big Tech if trade negotiations with the Trump administration fail over the next few months., according to FT. (FT)

US Stocks - Citigroup downgrades US equities to Neutral from Overweight

14 Apr 2025 - 06:54- EquitiesExclusive- Source: Newsquawk