Newsquawk Daily European Equity Opening News - 17th March 2025

ASIA

APAC stocks began the week on the front foot following last Friday's resurgence on Wall St and amid encouraging Chinese activity data but with gains capped owing to geopolitical tensions after the US conducted strikes on Yemen's Houthis and with participants awaiting this week's central bank decisions. ASX 200 gained with the advances led by notable strength in the commodity-related sectors and following encouraging data from Australia's largest trading partner. Nikkei 225 climbed at the open despite the lack of obvious catalysts, while Japan's largest labour union anticipates an average 5.46% wage increase this year which would surpass 5% for the second consecutive year and would be the highest in 34 years but is still below the union's 6.09% pay increase demand. Hang Seng and Shanghai Comp were positive with sentiment underpinned following recent support pledges and after encouraging Chinese activity data in which Industrial Production topped forecasts and Retail Sales matched estimates. However, gains in the mainland were limited as data also showed an increase in Urban Unemployment and House Prices remained in deep contraction territory.

Chinese Data - Chinese Retail Sales YY (Feb) 4.0% vs. Exp. 4.0% (Prev. 3.7%); Industrial Output YY (Feb) 5.9% vs. Exp. 5.3% (Prev. 6.2%); Unemployment Rate Urban Area (Feb) 5.4% (Prev. 5.1%)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +1.56% at 5,411, DAX +1.65% at 22,939, FTSE 100 +1.05% at 8,632, CAC 40 +1.13% at 8,028, AEX +0.85% at 906, IBEX 35 +1.43% at 13,005, FTSE MIB +1.73% at 38,655, SMI +0.71% at 12,929

SECTORS: Industrials 2.18%, IT 2.04%, Financials 1.55%, Materials 1.36%, Energy 0.94%, Consumer Disc 0.65%, Healthcare 0.49%, Utilities 0.25%, Consumer Stpl -0.16%, Telecoms -0.49%

FTSE 100

Rio Tinto (RIO LN) - Palliser Capital says Glass Lewis has endorsed its proposal for a review of Rio Tinto's dual listed company structure. (Newswires)

UK M&A - UK Chancellor Reeves is to pledge to change the law to restrict merger investigations by the Competition and Markets Authority, according to FT. (FT)

UK Housing - UK Rightmove House Prices YY (Mar) 1.0% (Prev. 1.4%); Rightmove House Prices MM (Mar) 1.1% (Prev. 0.5%); “We’re still seeing lenders price competitively where they can to secure mortgage business at this typically busy time of year", says a Rightmove mortgage expert. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

National Grid (NG/ LN) upgraded to Outperform from Market Perform at SocGen

DAX

BMW (BMW GY) - Develops smart application ecosystem based on Harmony OS for BMW drivers using Huawei devices in China. (Newswires)

Porsche SE (PAH3 GY), Volkswagen (VOW3 GY) - VW's largest shareholder Porsche SE stated it is not considering selling any voting shares in the carmaker, refuting a report by Bild suggesting that Porsche and Piech families were contemplating divesting shares, Reuters reports. Porsche emphasised that it remains committed to its long-term investment in Volkswagen. (Bild/Reuters)

Volkswagen (VOW3 GY) - Volkswagen, in partnership with FAW Group, will introduce 11 new models tailored for the Chinese market, including six electric vehicles, two plug-in hybrids, and two range-extended EVs, Bloomberg reports. The lineup, starting in 2026, includes the first electric Jetta model for the entry-level market, and responds to increasing EV demand in China. (Newswires)

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Received order for 94MW in Canada. (Newswires)

ProSiebenSat.1 Media (PSM GY) - ProSiebenSat.1 Media is close to a deal with General Atlantic, offering up to a 10% stake through a convertible bond. In exchange, General Atlantic will provide its minority stakes in NuCom Group and ParshipMeet Group. ProSieben's supervisory board could approve the transaction as soon as today, Bloomberg said. (Bloomberg)

BROKER MOVES

Kion (KGX GY) upgraded to Overweight from Equal Weight at Barclays

Siltronic (WAG GY) downgraded to Hold from Buy at Jefferies

CAC

Sanofi (SAN FP) - Sanofi adopts FDA-selected flu strains to ensure readiness for the 2025-26 flu season; plans to begin shipping summer'25. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Trade - US President Trump says he has no intention of creating exemptions on steel and aluminium tariffs, while he adds reciprocal tariffs will happen on April 2nd. EU Trade Chief Sefcovic says he had an important exchange with US Commerce Secretary and USTR; there is a lot of work ahead. (Newswires)

Russia/Ukraine - US President Trump says he will be speaking with Russia's President Putin on Tuesday and may have something to announce on Ukraine-Russia talks by Tuesday. US President Trump says they will know more about Russia's readiness to agree to the proposal for a 30-day ceasefire with Ukraine on Monday. (Newswires)

ASML Holding (ASML NA) - China's Changchun Institute of Optics, Fine Mechanics, and Physics (CIOMP) is offering uncapped salaries to PhD researchers as part of its drive to develop a domestic alternative to ASML’s advanced semiconductor lithography technology, DigiTimes reports. The move is in response to escalating US technology restrictions, which have limited China’s access to ASML's cutting-edge equipment. (DigiTimes)

ArcelorMittal (MT NA) - ArcelorMittal South Africa unit is seeking a ZAR 3.1bln (around USD 170mln) rescue package from the Industrial Development Corp. to prevent the closure of its steel mills in South Africa. The funding would avoid the loss of 3,500 jobs by keeping the long-steel plants operational, which are set to close in Q2

HSBC (HSBA LN) / UBS (UBSG SW) - Cos expand India’s wealth management operations following IPO surge, reports Financial Times. (FT)

Infrastructure Fund - Airbus (AIR FP), Dassault Systems (DSY FP) and more than 90 smaller European tech companies have called on the EU to create a sovereign infrastructure fund to increase public investment in key tech. (Newswires)

BROKER MOVES

argenx (ARGX BB) upgraded to Outperform from Underperform at SocGen

SMI

Novartis (NOVN SW) - CEO said Co. is watching US reciprocal tariffs "very closely" in early April. (Newswires)

UBS (UBSG SW) - 2024 Annual Report: Affirms guidance. Public debate on risks from UBS’s business and size, along with intensified capital demands, has created uncertainties entering 2025. Expects economic uncertainty to remain high in 2025, with potential significant policy developments from the new US administration and elevated geopolitical risks. The prospect of higher tariffs on exports to the US could pose a headwind to growth in Europe and Asia. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Skanska (SKAB SS) - Signed USD 72mln university contract in Kentucky. (Newswires)

BROKER MOVES

Assa Abloy (ASSAB SS) downgraded to Hold from Buy at Deutsche Bank

Telia (TELIA SS) downgraded to Sell from Hold at Nordea

Orsted (ORSTED DC) downgraded to Market Perform from Outperform at Bernstein

US

SECTORS: Technology +3.04%, Energy +2.83%, Financials +2.29%, Consumer Discretionary +2.14%, Communication Services +2.02%, Utilities +1.90%, Real Estate +1.84%, Industrials +1.84%, Materials +1.31%, Health +0.74%, Consumer Staples +0.28%.

CLOSES: SPX +2.13% at 5,639, NDX +2.49% at 19,705, DJI +1.65% at 41,488, RUT +2.53% at 2,044.

Klarna IPO - Klarna Group has filed for a US IPO at NYSE, according to an SEC filing, under the symbol "KLAR". (Newswires)

NAND Prices - NAND flash prices are expected to rise as Micron (MU), Samsung Electronics (SSNLF), SK Hynix (HXSCL), and Yangtze Memory Technology plan to hike prices in April, following SanDisk's announcement of a price increase, DigiTimes reports. The price rebound is driven by tight supply conditions in the market, it added. (DigiTimes)

US Energy - President Trump is set to meet with top oil executives at the White House this week. It will be his first meeting with a large group of oil and gas leaders since his inauguration. The meeting comes as the industry faces challenges from falling crude prices and tariff uncertainties. (Newswires)

17 Mar 2025 - 06:54- Geopolitical- Source: Newsquawk