Newsquawk Daily European Equity Opening News - 16th October 2025

ASIA

APAC stocks took impetus from the positive handover from Wall Street, where most major indices ultimately gained despite a choppy performance as US-China frictions remained in focus. ASX 200 printed a record high with most sectors in the green amid a softer yield environment, which was facilitated by a rise in unemployment. Nikkei 225 climbed higher and was unfazed by disappointing Machinery Orders and comments from BoJ hawk Tamura. Hang Seng and Shanghai Comp lagged behind regional peers amid US-China frictions, and with the Hong Kong benchmark underperforming amid weakness in Chinese tech stocks, while it was also reported that the FCC is to expel Hong Kong Telecom from US networks.

TSMC (2330 TT) - Q3 (TWD) Net Profit 452.3bln (exp. 417.7bln), Revenue 989.9bln (prelim. 989.9bln), Op. Margin 50.6% (prev. 47.5%); Capex 9.7bln (prev. 9.63bln Q/Q). (USD): Revenue 33.1bln (exp. 31.5bln). Gross Margin 59.5% (prev. 57.8% Y/Y); primarily due to cost improvement efforts and higher capacity utilisation rate, which partially offset unfavourable FX rates and dilution from overseas fabs. (TSMC)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.89% at 5,602, Dax 40 -0.11% at 24,211, FTSE 100 -0.30% at 9,425, CAC 40 +1.99% at 8,077, FTSE MIB -0.40% at 41,907, IBEX 35 -0.10% at 15,570, PSI +0.29% at 8,252, SMI +0.54% at 12,502, AEX +0.61% at 955.

SECTORS: Telecoms 1.76%, IT 1.74%, Financials 1.10%, Consumer Stpl 0.97%, Industrials 0.46%, Utilities 0.41%, Healthcare 0.11%, Energy 0.06%, Materials -0.01%, Consumer Disc -0.45%

FTSE 100

UK Pensions - UK Chancellor Reeves is to launch an initiative next week with 20 of the UK’s largest pension funds which will try to make it more seamless for pension funds to back British infrastructure and growth projects, according to FT. (FT)

UK Budget - UK Chancellor Reeves says higher taxes on the wealthy "will be part of the story" at the upcoming budget, via The Guardian. "the chancellor told the Guardian there “won’t be a return to austerity” and hinted at tax increases for the most well off." (The Telegraph)

OTHER UK COMPANIES

BROKER MOVES

DAX

Merck (MRK GY) - Slightly improved its mid-term guidance for its healthcare business; affirms FY25 outlook. Affirms guidance. Lifts mid-term healthcare business annual organic rev. growth in “low mid single digit” (prev. “slight” growth”. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Renk (R3NK GY) downgraded to Sell from Neutral at Citi.

CAC

AXA (CS FP) - Announced a strategic partnership with Bolttech to drive embedded insurance solutions across Europe. (AXA)

EssilorLuxottica (EL FP) - Co. acquires RetinAI, accelerating transformative AI and data-powered eye health solutions; terms not disclosed. (EssilorLuxottica)

Pernod Ricard (RI FP) - Q1 (EUR): Revenue 2.38bln (exp. 2.35bln). Organic Rev. by region: Asia-Rest of World -7% Y/Y. Europe -4% Y/Y. Americas -12% Y/Y. For FY26, expect improving trends skewed towards H2. FX impact exp. to be significantly negative. (Pernod Ricard)

Sartorius Stedim (DIM FP) - 9M (EUR): Adj. Net Income 320mln (prev. 238mln Y/Y), EBITDA 683.1mln (prev. 564.7mln), Revenue 2.20bln (prev. 2.03bln Y/Y). Lifts FY25 Revenue +9% (prev. +5-9%). (Sartorius Stedim)

Societe Generale (GLE FP) - Co. completes share buyback programme. (Societe Generale)

Saipem (SPM IM) - Co. awarded three new offshore contracts in Azerbaijan, worth USD 600mln. Activities to start in Q3 2026, with completion in 2029. (Saipem)

OTHER FRENCH COMPANIES

FDJ United (FDJU FP) - Q3 (EUR): Sales 864mln (-3% Y/Y), reaffirms 2025 targets, confirms recurring EBITDA margin above 24%. (FDJ United)

Orange (ORA FP), Bouygues Telecom (EN FP) - Orange, Bouygues and Free-Iliad group issue joint statement following rejection of their acquisition bid by Altice France. (Newswires)

BROKER MOVES

Kering (KER FP) downgraded to Sell from Hold at Berenberg.

LVMH (MC FP) upgraded to Buy from Neutral at UBS; PT EUR 680/shr.

LVMH (MC FP) downgraded to Hold from Buy at Berenberg.

Rexel (RXL FP) downgraded to Equal-Weight from Overweight at Barclays.

PAN EUROPE

Ahold Delhaize (AD NA) upgraded to Neutral from Sell at UBS

Raiffeisen Bank (RBI AV) - Appointed Kamila Makhmudova as CFO; effective 1 Jan 2026. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Canada threatens legal action against Stellantis (STLAM IM) over US Jeep production relocation, according to Bloomberg

BROKER MOVES

ASML (ASML NA) upgraded to Buy from Neutral at Fubon Securities; PT EUR 1,155

Intesa Sanpaolo (ISP IM) initiated with Outperform at RBC.

Repsol (REP SM) downgraded to Equal Weight from Overweight at Morgan Stanley

Telecom Italia (TIT IM) upgraded to Buy from Hold at Deutsche Bank

SMI

ABB (ABBN SW) - Q3 2025 (USD): Revenue 9.083bln (exp. 8.95bln), Net income 1.208bln (prev. 932mln Y/Y); Co. anticipates Q4 revenue growth to be in mid-single digit range, operational EBITDA margin to soften by approximately 150bps. Expects FY positive book-to-bill, comparable growth in the mid-single range. Co. acknowledges the uncertainty for the global business environment. CFO Timo Ihamuottila to step down as CFO, Christian Nilsson appointed new CFO, effective February 2026. On trade, not yet seen any material impact on demand/profitability from US-tariffs. (ABB)

Nestle (NESN SW) - 9-month (CHF): Revenue 65.9bln (exp. 65.8bln), Organic Rev. +3.3% (exp. +3.2%); 2025 guidance unchanged: OSG expected to improve vs 2024 Q3: Revenue 21.6bln (exp. 21.5bln). Real Internal Growth 1.5%. Organic Growth 4.3% (prev. 2.9%). Commentary: Greater China continues to be a drag, impacting Q3 Group OG by 80 bps and RIG by 40 bps; new management is now in place and executing our plan to transform this business. Focused on driving cash generation, committed to sustainable shareholder returns. (Nestle)

Novartis (NOVN SW) - Novartis Fabhalta meets Phase 3 primary endpoint; slows kidney function decline in patients with IgA nephropathy. (Newswires)

Roche (ROG SW) - Co. shows major advances for its sequencing by expansion technology(1), including a new Guinness World Record. (Roche)

VAT Group (VACN SW) - Q3 (CHF): Sales 258mln (prev. 209.4mln Y/Y), Orders 238mln, confirms results outlook, 2025 order intake and EBITDA margin at lower end of 30-37% band due to soft semiconductor business and FX headwinds. (VAT)

OTHER SWISS COMPANIES

Kuehne und Nagel (KNIN SW) - Co. to expand operations in India with a 100Ksqm fulfilment centre, creating 1.5k jobs. (Newswires)

BROKER MOVES

SCANDINAVIA

Bavarian Nordic (BAVA DC) - Group consisting of Nordic Capital and Permira increases offer price for the takeover offer to the shareholders of Bavarian Nordic. Offer period extended until 5 November 2025. (Bavarian Nordic)

Nordea Bank (NDAFI FH) - Q3 (EUR): EPS 0.36, Net interest income 1.775mln (prev. 1.88mln Y/Y); on track to deliver RoE above 15% for 2025, will soon launch another EUR 250mln share buyback programme (Nordea)

Novo Nordisk (NOVOB DC) - Co. says FDA approves WeGovy's supplemental new drug application amended for labelling with minor editorial revisions. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.41% at 6,672, NDX +0.68% at 24,745, DJI -0.04% at 46,253, RUT +0.89% at 2,518.

SECTORS: Real Estate +1.50%, Utilities +1.29%, Communication Services +1.27%, Technology +0.73%, Consumer Staples +0.15%, Consumer Discretionary +0.10%, Health +0.03%, Energy -0.08%, Financials -0.08%, Industrials -0.47%, Materials -0.49%.

J.B. Hunt (JBHT) - J.B. Hunt’s Q3 results exceeded expectations, sending shares up over 12% in extended trading; performance was driven by steady freight demand, and the company’s strong cost discipline and balanced network efficiency supported margins, offsetting volume pressures amid a mixed freight market backdrop. It reported Q3 EPS of 1.76 (exp. 1.47), and Q3 revenue of USD 3.05bln (exp. 3.02bln).

Hewlett Packard Enterprise (HPE) - Co. to raise annual dividend for fiscal 2026 by 10% and expand share buyback programme by additional USD 3bln, sees USD 3.5bln free cash flow by FY2028. (Newswires)

NVIDIA (NVDA) - Nvidia is partnering with Australian startup Firmus Technologies to build renewable energy-powered AI data centres under Project Southgate, an AUD 4.5bln initiative. Two facilities in Melbourne and Tasmania using NVIDIA GB300 chips are under construction and expected to launch by April.

Salesforce (CRM) - Salesforce shares gained almost 4% in extended trading after its issued an outlook at its Dreamforce presentation. The company targets over USD 60bln in revenue by FY30 (excluding contributions from the planned Informatica acquisition expected in H1 2026), with 10%+ organic CAGR from FY26-FY30. It anticipates a gradual revenue inflection in 12-18 months and sees bookings reaccelerating. Salesforce plans to buy back USD 7bln of common stock over the next six months, continuing a capital return strategy that historically uses ~80% of free cash flow for buybacks.

United Airlines Holdings (UAL) - United Airlines’ shares finished extended trading with losses of around 3%. Q3 earnings beat expectations, but it also reported softer revenue. It raised Q4 profit guidance, citing operational resilience, loyal customers, and ongoing investments in service and network expansion as key factors supporting its improved outlook. Reported Q3 adj. EPS of 2.78 (exp. 2.65), Q3 revenue USD 15.2bln (exp. 15.35bln); Q3 adj. net income 900mln (exp. 888.4mln). Sees Q4 adj. EPS between 3.00-3.50 (exp. 2.90); said the economy and demand are seen improving in Q4, and expects to invest over USD 1bln more in 2026.

16 Oct 2025 - 06:59- Research Sheet- Source: Newsquawk