Newsquawk Daily European Equity Opening News - 17th October 2025

ASIA

APAC stocks were predominantly lower as the region followed suit to the losses on Wall Street, where risk sentiment took a hit as regional bank concerns were reignited following loan fraud disclosures by Western Alliance and Zion Bancorp. ASX 200 was led lower by underperformance in financials, energy and tech, while gold miners were boosted by the record highs in the precious metal. Nikkei 225 retreated amid a firmer currency and as banking stocks suffered in sympathy with US counterparts, while uncertainty lingered ahead of next Tuesday's PM vote with the Japanese Innovation Party noting a 50-50 chance of a coalition with the LDP. Hang Seng and Shanghai Comp conformed to the downbeat mood amid US-China frictions, with both sides blaming each other for the tensions.

Samsung Electronics (SSNLF) - Samsung will debut its first trifold smartphone at the Asia-Pacific Economic Cooperation summit in South Korea later this month. The device features two hinges, allowing it to function as a standard smartphone or a larger tablet when fully unfolded, and will be showcased at a Korean technology exhibition during the summit.

Nintendo (7974 JT) - Co. plans 25mln Switch 2 units by end of March 2026, according to Bloomberg. (Bloomberg)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.89% at 5,655, Dax 40 +0.38% at 24,273, FTSE 100 +0.12% at 9,436, CAC 40 +1.38% at 8,189, FTSE MIB +1.12% at 42,374, IBEX 35 +0.48% at 15,646, PSI +1.08% at 8,341, SMI +1.25% at 12,686, AEX +0.40% at 959.

SECTORS: Consumer Stpl 3.00%, Industrials 1.12%, Utilities 0.95%, Materials 0.85%, Healthcare 0.57%, Consumer Disc 0.43%, IT 0.36%, Telecoms 0.32%, Financials -0.15%, Energy -0.17%     

FTSE 100

HSBC Holdings (HSBA LN) - HSBC pledged no layoffs and plans to invest billions over the next few years as part of its proposed privatisation of Hong Kong subsidiary Hang Seng Bank. Investments will target customer services, technology, and the private wealth business, according to Hong Kong Financial Secretary Paul Chan.

GSK (GSK LN) - Viiv Healthcare’s cabotegravir receives positive recommendation from NICE for pre-exposure prophylaxis. NHS to have long acting cabotegravir available within 2 months in Wales and 3 months in England. (GSK)

IAG (IAG LN) - UK’s Unite Union says Aer Lingus flights at Manchester will face disruptions between Oct 30 to Nov 2 as 130 cabin crew have opted to strike. (Unite)

Smiths (SMIN LN) - Co. to sell Smiths Interconnect to Molex Electronic Technologies at an enterprise value of GBP 1.3bln. (Smiths)

UK Housing - London is set to loosen planning rules in drive to boost housebuilding, according to FT. (FT)

OTHER UK COMPANIES

Asos (ASC LN) - Co. is in a legal dispute with German tax authorities over unpaid custom duties, according to the FT. (FT)

BROKER MOVES

BP (BP/ LN) initiated with Equal Weight at Wells Fargo

Shell (SHEL LN) initiated with Equal Weight at Wells Fargo

DAX

Continental (CON GY) - Q3 2025 (EUR): EBIT 11.4% (exp. 8.9%), Revenue 5bln (exp. 4.9bln); affirms FY guidance. (Newswires)

Porsche AG (P911 GY) / Volkswagen (VOW3 GY) - CEO Blume is set to give up his CEO role at Porsche AG, as he aims to fully concentrate on Volkswagen, according to Bild; the report suggests he will leave his role “starting next year”. (Bild)

Merck (MRK GY) / Sanofi (SAN FP) - US FDA announced nine new products under new fast-track review process, including Merck’s fertility drug Pergoveris and Sanofi’s Type 1 diabetes drug teplizumab. Elsewhere, Merck subsidiary EMD Serono has agreed with the US administration to cut the cost of IVF medications and treatment. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Aurubis (NDA GY) downgraded to Underweight from Equal Weight at Morgan Stanley

CAC

EssilorLuxottica (EL FP) - Q3 2025 (EUR): Revenue 6.9bln (exp. 6.7bln), Rev. ex-FX +11.7% (exp. +8.5%); confirms target of mid-single digit annual revenue growth from 2022-26 Expects to achieve adj. op. profit as a percentage of revenue between 19-20% by end of that period. (Newswires)

Orange (ORA FP) - Co. formally denied reports that it had submitted a EUR 4.8bln offer for its remaining stake in MasOrange. (Newswires)

OTHER FRENCH COMPANIES

Lagardere (MMB FP) - Q3 (EUR): Revenue 2.55bln (prev. 2.42bln Y/Y). LFL +5.4% Y/Y. (Newswires)

BROKER MOVES

PAN EUROPE

Autos - US nears tariff relief for auto industry after lobbying push and is to make an announcement as soon as Friday, according to Bloomberg. (Bloomberg)

Banco BPM (BAMI IM) - Co. launches European green bond for EUR 500mln. (Banco BPM)

Bper (BPE IM) - Approval of merger plan with Banco Popolare Di Sondrio to be submitted to Boards on their November 5 meeting. Completion of merger to take place in the first half of 2026. (Bper)

Brunello Cucinelli (BCU IM) - Co. says October confirms the very positive sales trend recorded in the first nine months of the year across all geographic areas. (Newswires)

BBVA (BBVA SM) - Co. fails in hostile bid for Sabadell (SAB SM), via FT; Tender offer only won over shareholders holding 25% of smaller rival’s stock. (Newswires)

Cellnex (CLNX SM) - Co. signs put option contract with Vauban Infra Fibre worth EUR 391mln. Cellnex France to sell all its shares in Towerlink France. (Cellnex)

Ferrari (RACE IM) - Co. to cut the number of cars it sells in the UK to protect resale values following non-dom tax change. (FT)

Geopols - Kremlin aide said two countries (US & Russia) will quickly prepare for a summit. Trump-Putin call lasted almost 2.5 hours Call was substantive and open. Putin-trump call took place at Russia's initiative. (Newswires)

Iberdrola (IBE SM) - Co. has spoken with rivals in the UK about a potential combination with its unit, Scottish Power, via the FT. Talks started earlier in the year, though no suitors found yet. (FT)

IMCD (IMCD NA) - To acquire 100% of Dong Yang, deal to be expected to close in Q1 2026. (IMCD)

BROKER MOVES

SMI

Roche (ROG SW) - Hansoh Pharmaceutical announces a licensing agreement in relation to HS-20110; total possible payments total up to USD 1.45bln. (Hansoh)

OTHER SWISS COMPANIES

Comet Holdings (COTN SW) - Q3 (CHF): Revenue 102.5mln, on track after nine months amid market certainty. (Comet)

BROKER MOVES

SCANDINAVIA

Telia (TELIA SS) - Co. extends the acceptance period for the recommended cash offer to Bredband2 I Skandinavien shareholders, extended until January 30, 2026. (Telia)

Tomra Systems (TOM NO) - Q3 (EUR): Revenue 306mln (exp. 326mln), Adj. EBITA 30mln (exp. 40mln), growth prospects in 2025 on collection are dependent on developments in new deposit markets, short and mid-term performance on recycling will be largely dependent on installation volumes. (Tomra)

Weight-Loss Drugs / Eli Lilly (LLY) / Novo Nordisk (NOVOB DC) - Eli Lilly and Novo Nordisk's shares are lower in extended trading after US President Trump said Ozempic prices would fall “pretty fast” to about USD 150/month (from roughly USD 1,000/month). Novo Nordisk confirmed discussions with the administration over the Most Favored Nation order, while CMS head Mehmet Oz said price talks for GLP-1 drugs, including Ozempic, are ongoing.

BROKER MOVES

US

CLOSES: SPX -0.63% at 6,629, NDX -0.36% at 24,657, DJI -0.65% at 45,952, RUT -2.09% at 2,467

SECTORS: Financials -2.75%, Energy -1.12%, Utilities -1.03%, Consumer Discretionary -0.88%, Consumer Staples -0.78%, Industrials -0.59%, Materials -0.56%, Communication Services -0.45%, Real Estate -0.30%, Health -0.11%, Technology +0.13%.

Meta Platforms (META), Morgan Stanley (MS) - Meta Platforms and Blue Owl Capital are finalising a nearly USD 30bln financing package for the Hyperion data centre in Louisiana. Meta will retain 20% ownership, with the remainder held by Blue Owl. Morgan Stanley arranged over USD 27bln in debt and USD 2.5bln in equity financing via a special purpose vehicle.

Oracle (ORCL) - Oracle forecasted cloud revenue of USD 166bln and total revenue of USD 225bln by fiscal year 2030, with adj. EPS of 21.00 (exp. 18.92). It expects AI infrastructure margins between 30-40%, and broader cloud margins of 65-80%. Shares rose 3% but fell 2% after hours; Stifel reiterated Buy rating with a USD 350 price target, calling the outlook upbeat, but noted that FY26/27 EPS of 8.00/shr and 10.65/shr were below expectations; still Stifel expects Oracle to consolidate its recent gains.

US Regional Banks - US stocks were pressured with risk-off trade seen amid a reignition of regional banking woes after Western Alliance (WAL) and Zion Bancorp (ZION) announced exposure to bad loans tied to fraud, adding to the concerns following the collapse of Tricolor and First Brands. US KRE (Regional Banking ETF) closed lower by over 6% and the financial sector saw a near 3% hit, while the broad risk sentiment was hit with equities sliding throughout the US session.

17 Oct 2025 - 06:59- EquitiesResearch Sheet- Source: Newsquawk