Newsquawk Daily European Equity Opening News - 20th May 2025

ASIA

APAC stocks were marginally higher as the region took impetus from the rebound stateside where the major indices gradually recouped the losses triggered by the US rating downgrade, and both the S&P 500 and the Dow notched six-day win streaks. ASX 200 was led by outperformance in tech and financials, while the attention was on the RBA which delivered a widely expected rate cut. Nikkei 225 rallied at the open in tandem with a surge in USD/JPY but then gave back the majority of the spoils amid currency fluctuations and with little in the way of fresh catalysts for Japan. Hang Seng and Shanghai Comp were kept afloat after China's largest banks cut deposit rates and slashed the benchmark Loan Prime Rates by 10bps as guided by PBoC Governor Pan, while sentiment was also underpinned by a jump in CATL shares on its Hong Kong debut.

Chinese LPR - Chinese Loan Prime Rate 5Y (May) 3.50% vs. Exp. 3.50% (Prev. 3.60%); Loan Prime Rate 1Y (May) 3.00% vs. Exp. 3.00% (Prev. 3.10%)

US-Japan Trade - US and Japan are expected to hold talks this Friday, although US Treasury Secretary Bessent is not expected to attend the talks, according to Kyodo. (Kyodo)

US-India Trade - India is discussing a US trade deal structured in three tranches and expects to reach an interim agreement before July, according to Bloomberg. (Bloomberg)

EUROPEAN CLOSES

CLOSES: DAX: +0.58 % at 23,906, FTSE 100: +0.17 % at 8,699, CAC 40: -0.04 % at 7,884, Euro Stoxx 50: 0.00 % at 5,428, AEX: -0.15 % at 930, IBEX 35: +0.15 % at 14,086, FTSE MIB: -1.20 % at 40,167, SMI: +0.06 % at 12,342, PSI: +0.19 % at 7,250

SECTORS: Telecoms 0.98%, Consumer Stpl 0.65%, Utilities 0.62%, Industrials 0.52%, Healthcare 0.39%, Financials 0.11%, Materials -0.40%, IT -0.56%, Consumer Disc -0.59%, Energy -1.11%

FTSE 100

AstraZeneca (AZN LN) - Statistically significant and clinically meaningful BATURA Phase III trial results provide new evidence for Airsupra as standard of care for as-needed rescue treatment in asthma. (Newswires)

Rio Tinto (RIO LN) - Co. and Codelco agree to Lithium agreement. To invest USD 350mln in initial funding and USD 500mln in construction costs. (Newswires)

HSBC (HSBA LN) - Chesnara (CSN LN) is looking at the potential acquisition of HSBC's life insurance business in the UK, according to Bloomberg citing sources. Report suggests that the unit could be valued at "several hundred million dollars". (Bloomberg)

OTHER UK COMPANIES

Big Yellow (BYG LN) - FY (GBP): Revenue 204.5mln (exp. 199.1mln), Adj. Pretax Profit 115.6mln (exp. 121.9mln). (Newswires)

BROKER MOVES

Kingfisher (KGF LN) downgraded to Underweight from Equal Weight at Barclays

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

Allianz (ALV GY) downgraded to Neutral from Buy at Goldman Sachs

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

CAC

Kering (KER FP) - Pierpaolo Piccioli appointed new creative director of Balenciaga. (Newswires)

Total Energies (TTE FP) - Co. signs agreement with KSI Lisims LNG to purchase 2 MTPA of LNG for 20yrs from the future plant located in Western Canada; Total also takes 5% stake in Western LNG Western LNG is the developer, shareholder and future operator of the KSI Lisims LNG project. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Ukraine-Russia - US President Trump posted on Truth that he had just completed a two-hour call with Russian President Putin which he believes went very well, while Russia and Ukraine are to immediately begin negotiations on a ceasefire and for an end to the war. Trump said the conditions for that will be negotiated between the two parties, while he added the tone and spirit of the conversation were excellent and that Russia wants to do large-scale trade with the US when this catastrophic “bloodbath” is over, which Trump agrees to and he also stated that progress was made during the call with Putin. Kremlin spokesman says US President Trump and Russian President Putin talked about a direct conversation between Putin and Ukrainian President Zelensky. (Newswires)

NN (NN NA) - Appointed Bosch as CEO as of 1 Aug 2025. (Newswires)

BROKER MOVES

Aedifica (AED BB) upgraded to Overweight from Underweight at Barclays

Eni (ENI IM) downgraded to Hold from Buy at Kepler

Repsol (REP SM) downgraded to Hold from Buy at Kepler

SMI

Swiss Life (SLHN SW) - Q1 (CHF): Net Fee & Commission Income 659mln (prev. 639mln Y/Y). (Newswires)

UBS (UBSG SW) - Co. set to lose first round in fight against Swiss Capital hike; Swiss government to propose full capital backing for UBS foreign subsidiaries, according to Bloomberg. (Bloomberg)

OTHER SWISS COMPANIES

VAT (VACN SW) - Cuts its FY27 Revenue target to CHF 1.5-1.7bln (prev. guided 1.8-2.2bln), citing lower market and FX changes. (Newswires)

BROKER MOVES

SoftwareONE (SWON SW) upgraded to Buy from Hold at Kepler

SCANDINAVIA

Equinor (EQNR NO) - Stop work order lifted, and Empire wind project has resumed construction; aims for planned commercial operation date in 2027. (Newswires)

Skanska (SKAB SS) - Signs contract in US for USD 66mln. (Newswires)

BROKER MOVES

Equinor (EQNR NO) downgraded to Hold from Buy at Berenberg

Equinor (EQNR NO) downgraded to Reduce from Hold at Kepler

US

CLOSES: SPX +0.09% at 5,964, NDX +0.09% at 21,447, DJI +0.32% at 42,792, RUT -0.42% at 2,104

SECTORS: Health Care +0.96%, Consumer Staples +0.42%, Industrials +0.38%, Materials +0.35%, Utilities +0.34%, Real Estate +0.21%, Communication Services +0.15%, Financials -0.01%, Technology -0.05%, Consumer Discretionary -0.27%, Energy -1.55%

20 May 2025 - 06:45- Research Sheet- Source: Newsquawk