Newsquawk Daily European Equity Opening News - 1st April 2025

ASIA

APAC stocks traded mostly higher as markets recovered from the recent sell-off and with sentiment helped by data releases although gains were capped as tariff uncertainty persists heading into April 2nd 'Liberation Day' reciprocal tariffs. ASX 200 advanced with broad gains seen across sectors, while there was a muted reaction to the RBA rate decision in which the central bank maintained the Cash Rate at 4.10% as unanimously forecast and provided little clues for future policy. Nikkei 225 rallied at the open after data showed a decline in the Unemployment Rate and a mostly better-than-expected Tankan survey although the index then pulled back and gradually reversed the gains after failing to sustain a brief reclaim of the 36,000 level. Hang Seng and Shanghai Comp were underpinned after stronger-than-expected Chinese Caixin Manufacturing PMI data.

China-exposed stocks - Chinese Caixin Manufacturing PMI Final (Mar) 51.2 vs. Exp. 51.1 (Prev. 50.8)

EUROPEAN CLOSES

CLOSES: DAX: -1.33% at 22,162, FTSE 100: -0.88% at 8,583, CAC 40: -1.58% at 7,791, Euro Stoxx 50: -1.44% at 5,255, AEX: -0.95% at 899, IBEX 35: -1.24% at 13,144, FTSE MIB: -1.77% at 38,052, SMI: -2.05% at 12,593, PSI: -1.23% at 6,866

SECTORS: Energy 0.57%, Utilities -0.36%, Telecoms -0.39%, Consumer Stpl -0.41%, Healthcare -1.49%, Financials -1.70%, Consumer Disc -2.01%, Industrials -2.07%, Materials -2.15%, IT -2.23%

FTSE 100

FTSE 100 - Goldman Sachs raised its FTSE 100 forecast for next 12 months to 9100 from 9000. (Newswires)

Glencore (GLEN LN) - Indigenous communities in Peru protest Glencore's expansion of the Antapaccay mine. (Newswires)

Rio Tinto (RIO LN) - Norway's Sovereign Wealth Fund said it will vote against Rio Tinto's dual-listing review resolution, according to Reuters citing Norway's sovereign wealth fund website. (Reuters)

Shell (SHEL LN) - Co. said it completed sale of Singapore Energy and Chemicals Park to Chandra Asri-Glencore tie-up. (Newswires)

UK BRC - UK BRC Shop Price Index YY (Mar) -0.4% (Prev. -0.7%); "With retailers bracing for significant extra costs which kick in later this week as a result of the budget, inflation will likely accelerate in the coming months", says BRC's Chief Exec. (Newswires)

OTHER UK COMPANIES

Aston Martin (AML LN) - In response to media comments, takeover panel confirms comments not a possible offer announcement; waiver & resolution is to be sought for potential increase in Yew Tree's consortium's shareholding to up to 35% of issued share capital of the co. (Newswires)

BROKER MOVES

AJ Bell (AJB LN) upgraded to Buy from Hold at Deutsche Bank

Close Brothers (CBG LN) reinstated with Hold at Peel Hunt

DAX

Bayer (BAYN GY), FMC (FMC) - FMC and Bayer have partnered to commercialise Isoflex in the EU and the UK. Isoflex, a Group 13 herbicide, offers effective control of resistant grass weeds in cereals and other crops. It received registration in UK in 2024, with EU approval expected in 2025. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Amundi (AMUN FP) - Co. and Victory Capital become strategic partners. (Newswires)

Eurofins Scientific (ERF FP) - Closes acquisition of Synlab's clinical diagnostics operations in Spain. (Newswires)

Michelin (ML FP) - TBC Corp is to divest its Midas Franchise Network, exp. to close in the coming weeks. Transaction should have a positive impact in 2025 on the co's net result of around USD 200mln. (Newswires)

Safran (SAF FP) - CEO says co. is ready to invest and increase defence production as long as demand is based on orders. (Newswires)

STMicroelectronics (STMPA FP) - STMicroelectronics and Innoscience have agreed to jointly develop GaN power technology and share manufacturing capacity. The deal aims to enhance GaN power solutions for multiple industries while improving supply chain resilience. Innoscience will access ST's facilities outside China, while ST will utilise Innoscience's capacity in China.

Vinci (DG FP) - Awarded contract worth around EUR 150mln for operations in Brazil. (Newswires)

OTHER FRENCH COMPANIES

Wendel (MF FP) - Completed the acquisition of a controlling stake in Monroe Capital. (Newswires)

BROKER MOVES

Schneider Electric (SU FP) upgraded to Buy from Hold at HSBC

PAN EUROPE

Clothing Brands - PVH (PVH) shares surged 16% afterhours following a Q4 EPS and revenue beat, and while its Q1 guidance was a little light, it topped FY earnings expectations.

Chips - US chip grants are reportedly in limbo as Commerce Secretary Lutnick pushes for more investment and signalled he could scrap past awards, according to Bloomberg. (Bloomberg)

DSM-Firmenich (DSFIR NA) - Announced repurchase programme of EUR 1bln. (Newswires)

Italian Firms - Italy considers hiking ownership thresholds triggering mandatory takeover bids in listed firms, according to Reuters sources; likely to raise 25% threshold for large firms. (Newswires)

Iberdrola (IBE SM) - Sells Maine Natural Gas for nearly USD 90mln to US Energy Company. (Newswires)

Orlen (PKN PW) - Conducts impairment tests impacting 2024 financial statements. Expects to reverse impairment charges totalling approx. PLN 4bln; estimates 2024 rev. at PLN 249.9bln. (Newswires)

Stellantis (STLAM IM / STLAP FP) - Entire Vauxhall electric car range now priced under GBP 40k, in response to road tax (VED) changes. (Newswires)

Trade - US President Trump says maybe tomorrow night or Wednesday you will see tariff details and we are going to be nice in comparison to other countries, adds in some cases maybe substantially lower. US Treasury Secretary Bessent said President Trump will announce reciprocal tariffs at 15:00EDT/20:00BST on Wednesday. US President Trump is still deciding which plan he will take for reciprocal tariffs, according to sources via FBN's Lawrence, Those sources saying he has been presented with "multiple" tariff plans. China's Foreign Minister Wang Yi says higher US tariffs on Chinese goods are unreasonable and harm global markets. (Newswires)

BROKER MOVES

SMI

Lonza (LONN SW) - Completed its share buyback program of CHF 2bln; to cancel repurchased shares. (Newswires)

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Strengthens its balance sheet by issuing bonds to repay spin-off term loans and signs a new USD 2bln revolving credit facility. (Newswires)

BROKER MOVES

SCANDINAVIA

Bavarian Nordic (BAVA DC) - Co. received US FDA approval of freeze-dried Smallpox and Mpox vaccine; to be delivered in 22025. (Newswires)

Skanska (SKAB SS) - Replaces bridge in the US for SEK 4.5bln. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.55% at 5,612, NDX -0.02% at 19,278, DJI +1.00% at 42,002, RUT -0.56% at 2,012.

SECTORS: Consumer Staples +1.63%, Financials +1.25%, Utilities +1.07%, Materials +1.07%, Energy +1.07%, Health +0.90%, Real Estate +0.88%, Industrials +0.64%, Communication Services +0.24%, Technology +0.03%, Consumer Discretionary -0.18%.

Boeing (BA) - Co. slows the production of 737 Max to 31 craft per month (current 38) to keep from derailing the assembly line, via Air Current; further slowing wing production. (Newswires)

Chips Act - US Commerce Secretary Howard Lutnick is considering withholding promised grants under the Chips Act unless semiconductor companies significantly expand their US investments, Bloomberg reports. Lutnick aims to secure billions in additional private investment without increasing federal subsidies, following Taiwan Semiconductor Manufacturing Co.'s (TSM) USD 100bln investment pledge for US plants.

PVH Corp (PVH) - Shares surged 16% afterhours following a Q4 EPS and revenue beat, and while its Q1 guidance was a little light, it topped FY earnings expectations. It reported Q4 adj. EPS of 3.27 (exp. 3.21), Q4 revenue of USD 2.37bln (exp. 2.33bln); Q4 gross margin 58.2% (exp. 58.5%), Q4 inventory +6% (exp. +3.81%). Q4 Tommy Hilfiger international revenue USD 880.8mln (exp. 877.2mln), North America revenue USD 401.3mln (exp. 388.4mln), total revenue USD 1.28bln (exp. 1.27bln); Q4 Calvin Klein international revenue USD 675.2mln (exp. 647.6mln), North America revenue USD 370.5mln (exp. 355.8mln), and total revenue USD 1.05bln (exp. 1.01bln). PVH Corp. plans a USD 500mln accelerated share repurchase programme in April, under its USD 5bln buyback authorisation; as of February 2nd, USD 1.8bln was available for repurchases. Sees Q1 adj. EPS between 2.10-2.25 (exp. 2.26), and sees FY26 adj. EPS between 12.40-12.75 (exp. 11.58). PVH sees FY25 sales growth to be flat or slightly positive (exp. -0.5%; in December, execs saw "modest growth" in FY25 sales).

Signet Jewelers (SIG) - CEO James Symancyk purchased 15K shares on March 31st for a total USD 861.7k.

Intel (INTC) - Intel CEO Lip-Bu Tan announced plans to spin off non-core assets, but did not specify which units would be divested. He also announced plans to develop custom semiconductors. Speaking at Intel Vision 2025, he emphasised talent acquisition, balance sheet improvement, and manufacturing optimisation.

OpenAI - OpenAI closed a record USD 40bln funding round, valuing it at USD 300bln, CNBC reports. SoftBank (SFTBY) led with USD 30bln, joined by Microsoft (MSFT) and others. The deal hinges on OpenAI's for-profit restructuring by year-end. Funds will support AI research, compute infrastructure, and the Stargate initiative. ChatGPT now has 500mln weekly users. Separately, Sam Altman announced that OpenAI will release an open-weight AI model this summer, responding to DeepSeek’s success and competition from Meta Platforms (META). OpenAI has invited developers for early access and plans to host events showcasing prototype versions.

01 Apr 2025 - 06:48- Research Sheet- Source: Newsquawk