Newsquawk Daily European Equity Opening News - 18th February 2025

ASIA

APAC stocks traded somewhat mixed in the absence of a lead from Wall St owing to the Presidents' Day holiday, while participants in the region braced for central bank updates beginning with the RBA rate decision. ASX 200 traded negative amid underperformance in energy and the top-weighted financials sector, while sentiment failed to benefit from the RBA's widely expected 25bps rate cut as it also signalled caution on further cuts. Nikkei 225 gained but with upside capped after swinging between gains and losses amid firmer yields and a quiet calendar. Hang Seng and Shanghai Comp were varied as the Hong Kong benchmark resumed its recent outperformance with the help of strength in tech and auto names, while the mainland was lacklustre as US-China frictions lingered and after reports noted that the PBoC may further limit its MLF rollover to prevent idle funds.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.5%, DAX 40 +1.3%, FTSE 100 +0.4%, CAC 40 +0.4%, SMI +0.3%

SECTORS: Industrials 1.34%, Financials 0.97%, Healthcare 0.45%, IT 0.31%, Telecoms 0.24%, Materials 0.11%, Consumer Disc 0.11%, Consumer Stpl 0.01%, Energy -0.03%, Utilities -0.18%

FTSE 100

HSBC (HSBA LN) - Co. cut around 40 investment bankers in Hong Kong as part of a global restructuring, via Reuters citing sources. (Reuters)

Prudential (PRU LN) - ICICI Bank (ICICIBC IS) is said to weigh buying additional stake in Prudential JV, of around 3%, via Bloomberg. (Bloomberg)

UK Motor Finance - Shares in UK lenders such as Close Brothers (CBG LN) and Lloyds (LLOY LN) fell in the prior session amid reports that the UK Supreme Court rejected Chancellor Reeves' plans to intervene in the car loan mis-selling case. This was later confirmed by a Treasury spokesperson, towards the European cash close. (Reuters)

UK Cos - UK Chancellor Reeves is reportedly to inform all cabinet ministers to audit all 130 regulators to ensure they are progressing growth, via FT citing sources. (FT)

OTHER UK COMPANIES

Shein IPO - Shein Executive Chairman says growth remains strong despite the recent challenges, according to Reuters citing a letter to shareholders. (Reuters)

BROKER MOVES

BT (BT/ LN) downgraded to Sell from Buy at Citi

Direct Line (DLG LN) downgraded to Hold from Add at Peel Hunt

Glencore (GLEN LN) upgraded to Overweight from Equal Weight at Morgan Stanley

St James's Place (STJ LN) upgraded to Hold from Reduce at HSBC

DAX

Deutsche Bank (DBK GY) - Co. has been on a three-year hiring spree which reversed the majority of the 18k reduction CEO Sewing committed to. FT analysis shows that most hires were back-office, which do not generate revenue. (FT)

Rheinmetall (RHM GY) - CEO Papperger says years of European under-investment in defence have left Europe being treated "like kids" over Ukraine's future. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

BASF (BAS GY) downgraded to Hold from Buy at Berenberg

CAC

Airbus (AIR FP) - To delay entry to service of its A350 Freighter Aircraft amid production and supply chain problems, via Reuters citing sources. (Reuters)

Capgemini (CAP FP) - FY (EUR): Net Income 1.67bln (exp. 1.69bln), Revenue 22.1bln (exp. 22.2bln). Sales -2% Y/Y. Dividend/shr 3.40 (exp. 3.49). Guides initial FY25 rev. -2 to +2%. Op Margin 13.3-13.5% (exp. 13.7%). (Newswires)

Renault (RNO FP) - Co. and Geely Holding (175 HK) sign a framework agreement for a new strategic cooperation in Brazil. (Newswires)

Sanofi (SAN FP) - The FDA grants priority review to the supplemental license application for Dupixent for the targeted treatment of bullous pemphigoid. The FDA's decision is expected on 20 June 2025. Priority review was granted based on positive results from a pivotal study, with Dupixent achieving significant improvements in sustained remission of the disease. (Newswires)

TotalEnergies (TTE FP) - Co. and Eni (ENI IM) sign an agreement with Cyprus and Egypt for the export of Cyprus Block 6 gas through Egypt. (Newswires)

OTHER FRENCH COMPANIES

Edenred (EDEN FP) - Q4 (EUR): Revenue 719mln (prev. 655mln Y/Y). Affirms FY25 LFL EBITDA growth of at least 10%. (Newswires)

BROKER MOVES

PAN EUROPE

Enagas (ENG SM) - FY (EUR): EBITDA 760.7mln (exp. 743mln), Revenue 913.2mln (exp. 899.2mln). (Newswires)

Capital Markets Union - Spanish Economy Minister Cuerpo said to Politico that they are renewing a drive to unblock the stalled capital markets union, current thinking is towards the creation of a regulatory sandbox where nations who are impatient with slow progress can experiment on regulatory innovations. (Politico)

China-exposed stocks - China's state planner says 'precise' policies to be implemented to help ease difficulties faced by private companies, adds the current political, economic, and social environment is conducive to the development of the private economy. (Newswires)

Mining names - BHP Group (BHP AT) H1 (USD): Revenue 25.176bln (prev. 27.23bln Y/Y), EPS 0.87 (prev. 0.18 Y/Y), Interim dividend 0.50 (prev. 0.72); still expects lingering labour market tightness to impact mining sector's cost base in remainder of FY25. Demand for BHP products remains strong despite global economic and trade uncertainties. In near term, copper market expected to be broadly balanced, global seaborne demand for iron ore expected to remain in a plateau phase. Estimates copper projects could potentially deliver over 2mtpa of attributable copper production by mid-2030. Notes that trade tensions pose a risk to growth. (Newswires)

UniCredit SpA (UCG IM), Commerzbank AG (CBK GY) - The German government’s opposition to UniCredit's takeover of Commerzbank has reduced the likelihood of the deal going through, Bloomberg reports, citing KBW, which downgraded Commerzbank’s stock to Market Perform, citing limited reasons for the bank to continue outperforming the sector. (Bloomberg)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Galderma (GALD SW) - Galderma's Nemluvio (Nemolizumab) granted marketing authorization in the United Kingdom and Switzerland for moderate-to-severe Atopic Dermatitis and Prurigo Nodularis. (Galderma)

SGS (SGSN SW) - SGS has been awarded a major EU tender to advance soil quality. The contract will run for 38 months, involving extensive laboratory analyses on soil health and quality across the European Union. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

US cash equity trade was closed on Monday on account of US Presidents' Day; trading to resume today.

Petrobras (PBR) - Brazil President Lula urged Petrobras to eliminate intermediaries and sell fuel directly to consumers to reduce prices. It comes as Petrobras raised diesel prices for the first time since 2023, amid growing public frustration and a decline in Lula's popularity due to rising costs, Bloomberg reports.

18 Feb 2025 - 06:51- Research Sheet- Source: Newsquawk