Newsquawk Daily European Equity Opening News - 16th May 2025

ASIA

APAC stocks traded mixed after the recent soft US data releases spurred Fed rate cut bets, while participants also digested weak data from Japan and earnings reports. ASX 200 was led by strength in miners and outperformance of gold producers after the recent rally in the precious metal. Nikkei 225 initially retreated amid recent currency strength and after GDP data for Q1 showed a steeper-than-expected contraction in Japan's economy, although the index gradually recovered and returned to flat territory as USD/JPY regained some composure and with the weak data effectively narrowing the scope for the BoJ to resume normalisation. Hang Seng and Shanghai Comp declined with sentiment dampened by earnings releases after Alibaba's results underwhelmed which pressured its Chinese blue-chip tech and ecommerce peers such as Tencent, Meituan and JD.com.

EUROPEAN CLOSES

CLOSES: DAX: +0.76 % at 23,681, FTSE 100: +0.60 % at 8,636, CAC 40: +0.16 % at 7,850, Euro Stoxx 50: +0.12 % at 5,410, AEX: -0.08 % at 929, IBEX 35: +0.76 % at 13,927, FTSE MIB: +0.15 % at 40,418, SMI: +0.93 % at 12,219, PSI: +0.01 % at 7,177

SECTORS: Utilities 1.90%, Telecoms 1.88%, Consumer Stpl 1.38%, Healthcare 1.04%, Industrials 1.00%, Materials 0.30%, IT 0.27%, Financials 0.26%, Consumer Disc -0.65%, Energy -1.46%

FTSE 100

Rio Tinto (RIO LN) - Co. to invest USD 1.2bln to improve Quebec hydro plant; project to run until 2032. (Newswires)

OTHER UK COMPANIES

De La Rue (DLAR LN) - Co. says PSF entities no longer intend to make offer for De La Rue. (Newswires)

BROKER MOVES

Carnival (CCL LN) upgraded to Hold from Reduce at HSBC

DAX

Bayer (BAYN GY) - Bayer is seeking a new settlement over Roundup cancer claims, and is preparing a potential bankruptcy filing for its US Monsanto unit if talks fail, WSJ reports. The company aims to resolve most lawsuits via Missouri state court, but is considering Chapter 11 to manage liabilities if no agreement is reached, the report adds. (WSJ)

Deutsche Bank (DBK GY) - Co. says to keep CET1 ration within an operating range of 13.5-14%. (Newswires)

OTHER GERMAN COMPANIES

Metro (B4B GY) - Increased its sales in first half of 2024/25 by 5.3% in local currency; sales in stored-based business grew 2.6% to EUR 11.4bln. (Newswires)

BROKER MOVES

Allianz (ALV GY) downgraded to Hold from Buy at HSBC

CAC

Sanofi (SAN FP) - Sanofi’s rilzabrutinib received FDA orphan designation for treating sickle cell disease.

OTHER FRENCH COMPANIES

Rubis (RUB FP) - Nils Christian to step down as Chairman; Laurent to replace. (Newswires)

BROKER MOVES

PAN EUROPE

Aegon (AGN NA) - Q1 Trading Update - OCG EUR 267mln, +4% Y/. Plans new EUR 200mln share buyback. (Newswires)

Eni (ENI IM) - Starts new buyback program of up to 10% of share capital. (Newswires)

Gecina (GFC SM) - Strategic offer acquisition of offices in Paris for EUR 435mln. Accretive impact on recurring net income in the short term. (Newswires)

Pirelli (PIRC IM) - No alternative proposal from Sincohem/Marco Polo. Remains open to exploring other options. (Newswires)

BROKER MOVES

SMI

Helvetia (HELN SW) - BoD approves the merger of Caser, Helvetia Seguros and Helvetia Suizo. (Newswires)

Richemont (CFR SW) - FY (EUR): Sales 21.39bln (exp. 21.34bln), Op. Profit 4.46bln (exp. 4.56bln), Sales +4% (exp. +4.1%). Board proposes to pay an ordinary dividend of CHF 3.00/shr. (Newswires)

Swiss Re (SREN SW) - Q1 (USD): Net Income 1.28bln (prev. 1.1bln Y/Y), Insurance Revenue 10.4bln (prev. 11.7bln Y/Y). Impact of large claims from natural catastrophes amounted to USD 567mln, due to LA wildfires. Confidence in 2025 targets. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.41% at 5,917, NDX +0.08% at 21,336, DJI +0.65% at 42,323, RUT +0.52% at 2,095

SECTORS: Utilities +2.12%, Consumer Staples +2.00%, Real Estate +1.84%, Health +1.28%, Materials +1.15%, Industrials +1.11%, Financials +0.64%, Energy +0.08%, Technology -0.03%, Communication Services -0.42%, Consumer Discretionary -0.68%.

Covid Vaccines - HHS plans to end routine Covid-19 vaccine recommendations for children, teens and pregnant women, aligning the shift with a new vaccine approval framework, according to sources cited by the WSJ. (WSJ)

Applied Materials (AMAT) - Q2 adj. EPS 2.39 (exp. 2.30), Q2 revenue USD 7.10bln (exp. 7.11bln), as chip systems sales missed amid export curbs; revenue from China was -25% of total vs 43% Y/Y. Sees Q3 adj. EPS of 2.35 (exp. 2.32), and sees Q3 sales of USD 7.2bln (exp. 7.2bln).

Meta Platforms (META) - Co. is delaying the rollout of a flagship AI model, prompting internal concerns about the direction of its multibillion-dollar AI investments, WSJ reports

Take-Two Interactive (TTWO) - Q4 adj. EPS 1.08 (exp. 1.08), Q4 revenue USD 1.58bln (exp. 1.55bln). Q4 net bookings USD 1.58bln (exp. 1.55bln). Results include impairment charges of USD 3.55bln related to goodwill, and USD 176.3mln for acquisition-related intangible assets. Sees Q1 EPS at loss of between 0.65-0.78 (exp. 0.78), sees Q1 revenue between USD 1.35-1.40bln, and Q1 net bookings seen between USD 1.25-1.3bln (exp. 1.28bln). Sees FY26 EPS at loss between 2.45-2.79 (exp. 0.96), and sees FY26 revenue between USD 5.95-6.05bln (exp. 7.1bln).

16 May 2025 - 06:40- Research Sheet- Source: Newsquawk