Newsquawk Daily European Equity Opening News - 21st May 2025

ASIA

APAC stocks traded with a mild positive bias as the region mostly shrugged off the lacklustre lead from Wall St but with the gains capped in the absence of any major fresh macro drivers and tier-1 data releases. ASX 200 was led by strength in utilities and the commodity-related stocks with gold miners lifted by recent gains in the precious metal. Nikkei 225 faded its opening gains with headwinds from a firmer currency and after mixed Japanese trade data. Hang Seng and Shanghai Comp conformed to the predominantly upbeat mood in the region but with the upside limited in the mainland as frictions lingered after China renewed its criticism against the US for its chip controls and urged the US to immediately correct its erroneous practices.

China Critical Minerals Smuggling - Chinese authorities have questioned executives from leading metals merchants and producers amid a crackdown on critical-minerals smuggling, Bloomberg reports. The investigation targets companies producing and trading minor and strategic metals used in military and high-tech applications.

Chinese Growth - Morgan Stanley raises China 2025 GDP growth forecast to 4.5%. (Newswires)

US-China Trade - China Commerce Ministry says US measures on China's advanced chips are typical of unilateral bullying and protectionism. Says: US chip measures seriously undermine the stability of the global semiconductor industry chain and supply chain. The US abuses export controls to contain and suppress China, violating international law and basic norms. China suspects US measures constitute discriminatory restrictive measures against Chinese companies. Any organisation or individual that implements or assists in the implementation of US measures shall bear corresponding legal liabilities. China urges the US to immediately correct its erroneous practices. China urges the US to abide by international economic and trade rules and respect other countries' rights to scientific and technological development.

EUROPEAN CLOSES

CLOSES: DAX: +0.34 % at 24,017, FTSE 100: +0.94 % at 8,781, CAC 40: +0.75 % at 7,942, Euro Stoxx 50: +0.54 % at 5,457, AEX: +0.16 % at 931, IBEX 35: +1.59 % at 14,323, FTSE MIB: +0.89 % at 40,522, SMI: +0.51 % at 12,420, PSI: +1.75 % at 7,377

SECTORS: Utilities 1.92%, Telecoms 1.50%, Healthcare 1.42%, Consumer Stpl 0.97%, Materials 0.67%, Consumer Disc 0.66%, Industrials 0.60%, Financials 0.51%, Energy 0.39%, IT -0.05%

FTSE 100

Antofagasta (ANTO LN) - Flat treatment charges are reportedly possible as Antofagasta and Chinese smelters prepare for mid-year contract talks, according to Reuters citing sources. (Reuters)

Drax (DRX LN) - Offer Update: Bidco confirms there has been no increase for Heit at 88p/shr. Offer and scheme expected to lapse on 29 May 2025. (Newswires)

Diageo (DGE LN) - CFO says will look to sell assets that are not core to the business but Guinness and its stake in LVMH's (MC FP) Moet Hennessy are not for sale. (Newswires)

Rio Tinto (RIO LN) - Rio Tinto defended Australia’s Pilbara iron ore hub after Fortescue founder Andrew Forrest warned its prospects are at risk without more green investment; Forrest noted China’s potential shift from coal-powered blast furnaces could favour Brazil and Africa, which have higher grade ore better suited for greener steel production. Rio Tinto reaffirmed its long-term commitment to the Pilbara, highlighting an USD 18bln Brockman mine development, and efforts to reduce carbon emissions and improve efficiency amid the shift to greener steel production. (BBG)

US-UK - UK Chancellor Rachel Reeves will meet US Treasury Secretary Scott Bessent this week at the G7 finance ministers’ meeting in Canada to finalise details of a trade deal aimed at reducing tariffs imposed by the Trump administration. It will be their first in-person discussion since announcing the deal outline. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

Land (LAND SS) upgraded to Buy from Hold at Kepler Cheuvreux

Phoenix (PHNX LN) upgraded to Buy from Neutral at Citi

DAX

Infineon (IFX GY) - Co. is to work with NVIDIA (NVIDIA) to develop chips for new power delivery systems inside AI data centres. (Newswires) Shares +2.4% in pre-market trade

OTHER GERMAN COMPANIES

BROKER MOVES

Henkel (HEN3 GY) upgraded to Buy from Hold at Deutsche Bank

CAC

Kering (KER FP) - Kering Eyewear partners with Google for the development of AI-powered glasses with Android XR. (Newswires)

Vinci (DG FP) - April 2025: Airport Passenger Traffic +9.4% Y/Y. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Sartorius Stedim Biotech (DIM FP) downgraded to Sector Perform from Outperform at RBC

PAN EUROPE

Cyber Security Names - Palo Alto Networks (PANW) - Shares fell almost 4% afterhours despite a top- and bottom-line beat for the quarter, and constructive guidance, with reports citing a miss on remaining performance obligations. Details in the US section below

European Energy - Goldman Sachs warned that Europe can secure enough LNG to refill storage for next winter at current prices, but if prices fall further, other global buyers could compete for supply. Prices must stay at or above current levels to suppress LNG demand outside Europe.

Energy names - WTI and Brent are currently higher by around 1.5% amid Israel-Iran reporting; New intelligence suggests Israel is preparing possible strike on Iranian nuclear facilities, according to US officials cited by CNN although it was not clear whether Israeli leaders have made a final decision. (Newswires)

BROKER MOVES

ABN AMRO (AMRO NA) upgraded to Equal Weight from Underweight at Morgan Stanley

SMI

Logitech (LOGN SW) - Proposed FY25 dividend increase of CHF 0.10/shr to CHF 1.26/shr. (Newswires)

Nestle (NESN SW) - CEO says in an interview we're not selling the water business, but possibly a stake in it, adds US market is under pressure, there is uncertainty and consumers feel economy weakening. Says: Nestlé is winning back market share in the US. Nestlé will do what’s necessary to protect margins without driving consumers away, when asked about raising Nespresso prices in the US. Uncertainty is mainly due to indirect effects of tariffs, including consumer sentiment, commodity prices, and the dollar impact. CEO is willing to lead the company beyond the age of 65. (Newswires)

Roche (ROG SW) - Co. plans to invest up to MXN 4bln in a clinical investigation in Mexico. In other news, Roche provides update on FDA advisory committee meeting on Columvi combination for people with relapsed or refractory diffuse large B-cell lymphoma. FDA's evaluation of this Columvi combination for R/R DLBCL is ongoing and a decision on approval is expected by 20 July 2025. Elsewhere, FDA advisers voted 8-1 that Roche needs more US patient data for its blood cancer drug before expanding its use, as only 9% of trial participants were American. Roche said it will continue working with the FDA on a regulatory path forward. (Newswires)

OTHER SWISS COMPANIES

Julius Baer (BAER SW) - Co. says continued client momentum with solid net money inflows of CHF 4.2bln, despite ongoing de-risking of the client book. Co. on track to achieve CHF 110mln in additional costs savings. Co. flags CHF 130mln credit portfolio charge. Expects H1'25 Revenue to be less than the prior year. Bartholet is to retire and Ivanic will replace him as Chief Risk Officer. (Newswires)

SoftwareONE (SWON SW) - Q1 (CHF): Adj. EBITDA 46mln (prev. 45.4mln Y/Y), Revenue 232.2mln (prev. 246.9mln Y/Y). Guides Q2 Revenue "similar as Q1". Affirms FY guidance. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

SEB (SEBA SS) downgraded to Hold from Buy at Kepler Cheuvreux

Nordea (NDA SS) downgraded to Reduce from Buy at Kepler Cheuvreux

US

CLOSES: SPX -0.39% at 5,940, NDX -0.37% at 21,367, DJI -0.27% at 42,677, RUT +0.05% at 2,106

SECTORS: Energy -0.99%, Communication Services -0.77%, Consumer Discretionary -0.59%, Financials -0.55%, Real Estate -0.55%, Technology -0.45%, Industrials -0.37%, Materials -0.18%, Consumer Staples +0.24%, Health +0.27%, Utilities +0.29%.

Apple (AAPL) - Co. to open AI models to developers in bid to spur new apps, plan will let developers tap into large language models; will unveil new strategy at WWDC event on 9th June, according to Bloomberg. (Bloomberg)

Nvidia (NVDA), Broadcom (AVGO) - Nvidia CEO said it is open to collaborating with Broadcom on NVLink Fusion. Nvidia estimates the global AI market at USD 50bln next year. Said China market share fell from 95% to 50% since Biden’s term started, adding that US AI chip export controls to China deemed a failure. (Newswires)

Palo Alto Networks (PANW) - Shares fell almost 4% afterhours despite a top- and bottom-line beat for the quarter, and constructive guidance, with reports citing a miss on remaining performance obligations (USD 13.5bln in Q3, vs an expected 13.54bln), as well as a gross margin miss (Q3 gross margin 76% vs an exp. 77.2%). It reported Q3 adj. EPS of 0.80 (exp. 0.77), Q3 revenue of USD 2.29bln (exp. 2.28bln). Sees Q4 adj. EPS between 0.87-0.89 (exp. 0.87), and sees Q4 revenue between USD 2.49-2.51bln (exp. 2.50bln). For the FY, sees adj. EPS between 3.26-3.28 (exp. 3.22), and revenue between USD 9.17-9.19bln (exp. 9.17bln). (Newswires)

Take-Two Interactive (TTWO) - Take-Two announced a USD 1bln common stock offering, selling 4.75mln shares at USD 225.00, the low end of its USD 225.00–232.00 indicated range. Proceeds will be used for general corporate purposes, including debt repayment and acquisitions. (Newswires)

Tesla (TSLA), Uber (UBER) - Elon Musk said there is 'no need' for Tesla to buy Uber, as Tesla plans to launch an autonomous robotaxi fleet starting in Austin next month, Business Insider reports. Tesla owners may add their vehicles to the fleet to earn income. Musk expects the service to scale to 1,000 vehicles within months. (Newswires)

21 May 2025 - 06:51- MetalsResearch Sheet- Source: Newsquawk