Newsquawk Daily European Equity Opening News - 20th August 2025

ASIA

APAC stocks traded mixed after a lacklustre performance stateside, where mega-cap tech led the declines amid AI-related concerns, while the region digested earnings and central bank updates including the RBNZ's dovish rate cut. ASX 200 was led higher by outperformance in the top-weighted financials sector and with strength also seen in defensives, while participants also reflected on a slew of earnings updates. Nikkei 225 retreated beneath the 43,000 level amid continued profit taking from recent record highs and after mixed data in which Machinery Tools topped forecasts but trade data mostly disappointed and showed Japanese Exports suffered the largest decline in four years. Hang Seng and Shanghai Comp were varied as participants digested earnings releases including from Xiaomi and XPeng, while there was a lack of surprises from China's benchmark Loan Prime Rates which were maintained at the current levels, although the PBoC continued with its firm liquidity efforts via 7-day reverse repo operations.

China LPR - Chinese Loan Prime Rate 1Y (Aug) 3.00% vs. Exp. 3.00% (Prev. 3.00%); 5Y (Aug) 3.50% vs. Exp. 3.50% (Prev. 3.50%). (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.87% at 5,482, Dax 40 +0.50% at 24,436, FTSE 100 +0.34% at 9,189, CAC 40 +1.21% at 7,979, FTSE MIB +0.89% at 43,021, IBEX 35 +0.34% at 15,304, PSI +1.05% at 7,963, SMI +1.19% at 12,216, AEX +0.56% at 902.

SECTORS: Consumer Disc 1.88%, Materials 1.53%, Consumer Stpl 1.09%, Energy 0.74%, Healthcare 0.69%, IT 0.63%, Financials 0.54%, Telecoms 0.34%, Utilities 0.32%, Industrials 0.30%

FTSE 100

BP (BP/ LN) - Co. said Whiting refinery (400k bpd) operations were hit by flooding. (Newswires)

Rio Tinto (RIO LN) / BHP (BHP AT) - CEOs of Rio Tinto and BHP met President Trump to discuss the Resolution copper project in Arizona, which could supply the US with around a quarter of its copper demand for decades, according to a LinkedIn post by Rio Tinto CEO Jakob Stausholm. (FT)

OTHER UK COMPANIES

BROKER MOVES

Abrdn (ABDN LN) upgraded to Sector Perform from Underweight at RBC

United Utilities (UU/ LN) upgraded to Overweight from Equal Weight at Barclays

DAX

OTHER GERMAN COMPANIES

K+S (SDF GY) downgraded to Sell from Buy at Berenberg Shares -4% in pre-market trade

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

LVMH (MC FP) downgraded to Market Perform from Outperform at CICC

PAN EUROPE

ASR Nederland (ASRNL NA) - H1 (EUR): Op. Result 826mln, +22% Y/Y. Organic Capital Creation 721mln (exp. 696mln). Solvency II Ratio 203% (exp. 197%). Interim dividend increased to EUR 1.27/shr, +9.5% Y/Y. Remains on track to achieve medium term targets. (Newswires)

BROKER MOVES

SMI

Alcon (ALC SW) - Q2 (USD): Sales 2.57bln (exp. 2.63bln), Adj. EPS 0.76 (exp. 0.72). 2025: Sees Net Sales 10.3-10.4bln. Expects a FY gross tariff impact of approx. USD 100mln which is exp. to pressure cost of net sales. (Newswires)

Geberit (GEBN SW) - H1 (CHF) Final: Revenue 786.5mln (exp. 802.4mln), Net Sales 1.66bln, +1.7% Y/Y. Notes that impact of US tariffs is not material. 2025: Expects growth in net sales in local currencies of around 4% and an EBITDA margin of around 29%. In Europe, a slight decline in new construction activity is exp. to continue in H2. (Newswires)

Zurich Insurance (ZURN SW) - CEO says US private capital groups such as Apollo and KKR may find it challenging should they seek to expand into the European insurance sector; Europe has more stringent regulatory controls, he says to the FT. (FT)

OTHER SWISS COMPANIES

Bachem (BANB SW) - Names Hans Van Hees as COO, effective Sept 1st. (Newswires)

Gurit (GUR SW) - H1 (CHF): Op. Income -58.4mln (prev. +9.9mln Y/Y), Revenue 164.7mln (prev. 213.5mln Y/Y). (Newswires)

Implenia (IMPN SW) - H1 (CHF): EBIT 56.9mln (prev. 50.4mln Y/Y), Revenue 1.86bln (exp. 1.76bln). (Newswires)

BROKER MOVES

Swiss Life (SLHN SW) downgraded to Neutral from Outperform at Oddo

SCANDINAVIA

FLSmidth (FLS DC) - H1 (DKK): Profit 570mln (prev. 277mln Y/Y), Discontinued activities -674mln (prev. +104mln Y/Y), primarily due to impairment charges related to the divestment of the Cement business. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.57% at 6,412, NDX -1.39% at 23,385, DJI +0.02% at 44,922, RUT -0.77% at 2,277.

SECTORS: Real Estate +1.8%, Consumer Staples +0.99%, Utilities +0.99%, Materials +0.53%, Health +0.62%, Financials +0.17%, Industrials +0.19%, Consumer Discretionary -0.37%, Communication Services -1.16%, Technology -1.88%, Energy -0.19%.

ByteDance - The White House launched its own TikTok account, posting a video featuring President Trump, Vice President JD Vance, and Defense Secretary Pete Hegseth, signalling support as the administration continues to pursue a sale of TikTok’s US operations from Chinese company ByteDance.

US Semiconductors - US Commerce Secretary Lutnick is weighing non-voting equity stakes in Intel (INTC) as well as other chipmakers in exchange for CHIPS Act grants, with Trump backing the plan, Reuters reports. Treasury Secretary Bessent is also involved. Intel and TSMC (TSM) declined comment, while Taiwan’s economy minister said discussions would be required.

Keysight Technologies (KEYS) - Keysight Technologies posted Q3 results ahead of expectations, with revenue and profit beating Wall Street estimates, driven by strong demand across communications, automotive, and semiconductor end-markets. It reported Q3 EPS of 1.72 (exp. 1.67), and Q3 revenue of USD 1.35bln (exp. 1.32bln). CEO highlights strong execution and demand and raises FY outlook. Sees Q4 EPS 1.79-1.85 (exp. 1.80), revenue between USD 1.37-1.39bln (exp. 1.37bln). Guides FY25 EPS +13% and revenue +7% (exp. 5.29bln).

Meta (META) - Co. to downsize AI division and some executives expected to leave, via NYT. (NYT)

Microsoft (MSFT) - Activision, owned by Microsoft, announced that "Call of Duty: Black Ops 7" will release globally on November 14th, 2025. Separately, on Tuesday, current and former Microsoft workers and community members occupied a plaza at the company’s Redmond headquarters in protest of its Azure contract with the Israeli Defense Force, The Verge reports. They set up a negotiating table inviting executives to end the partnership and plan to remain until forcibly removed.

Tesla (TSLA) - A judge has allowed a class-action lawsuit against Tesla over claims it misled customers about its self-driving capabilities, Electrek reports. The suit covers California residents who purchased FSD packages from October 2016 to May 2017 and FSD owners who opted out of arbitration from 2017 to mid-2024. The case alleges false advertising, seeking damages and an injunction to stop Tesla from making similar claims.

WW International (WW) - WeightWatchers is focusing on in-person clinics and stronger member engagement to stay competitive amid the rise of GLP-1 drugs like Novo Nordisk’s (NVO) Wegovy and Eli Lilly’s (LLY) Zepbound. CEO highlighted the company’s community-driven approach following a major restructuring.

20 Aug 2025 - 06:51- Research Sheet- Source: Newsquawk