Newsquawk Daily European Equity Opening News - 26th August 2025

ASIA

APAC stocks traded mostly lower after global markets faded last Friday's post-Powell dovish reaction, while Trump also moved to fire Fed Governor Cook and threatened to impose substantial additional tariffs on countries that do not remove digital taxes and regulations against US tech companies. ASX 200 retreated amid a continued deluge of earnings releases including from the likes of Coles and Fortescue. Nikkei 225 underperformed with notable weakness seen in power names including TEPCO, and with Nissan pressured as Mercedes-Benz is to offload its 3.8% stake in the Japanese automaker, while participants also digested Services PPI data and Japan's top tariff negotiator is set to travel to the US as early as this week. Hang Seng and Shanghai Comp pared early losses and returned to flat territory with some resilience seen after another firm liquidity operation by the PBoC, while it was also reported that China's top trade negotiator Li Chenggang is set to head to the US and will meet with US Trade Representative Greer and senior officials at the Department of the Treasury later this week.

China-US Trade - Chinese top trade negotiator Li Chenggang is set to head to the US as talks resume and will meet with US Trade Representative Greer and senior officials at the Department of Treasury later this week, according to WSJ. (WSJ)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.93% at 5,437, Dax 40 -0.42% at 24,262, CAC 40 -1.59% at 7,843, FTSE MIB -0.19% at 43,228, IBEX 35 -0.85% at 15,266, PSI -0.79% at 7,917, SMI -0.51% at 12,202, AEX -0.20% at 911.

SECTORS: IT -0.07%, Healthcare -0.09%, Telecoms -0.10%, Energy -0.18%, Consumer Stpl -0.22%, Consumer Disc -0.51%, Financials -0.53%, Materials -0.56%, Industrials -0.79%, Utilities -1.11%

FTSE 100

Anglo American (AAL LN) - The American Iron and Steel Institute has requested US government intervention in a USD 500mln deal in Brazil, where Anglo American plans to sell nickel mines to MMG Ltd., controlled by China Minmetals Corp., raising concerns over increased Chinese influence on global nickel reserves.

BP (BP/ LN) - BP Whiting, Indiana refinery (440k BPD) is expected to be fully operational in the next 24-48 hours, IIR says

UK BRC - UK BRC Shop Price Index YY (Aug) 0.9% vs Exp. 0.9% (Prev. 0.7%). (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Associated British Foods (ABF LN) downgraded to Sell from Hold at Deutsche Bank

Kingfisher (KGF LN) downgraded to Hold from Buy at Deutsche Bank

DAX

Infineon (IFX GY) - Co. to enable humanoid robots, powered by NVIDIA (NVDA) tech. (Newswires)

OTHER GERMAN COMPANIES

Thyssenkrupp (TKA GY) - Bloomberg reports that Canadian PM Carney is to visit Thyssenkrupp Marine Systems, as the country aims to spend billions on a submarine fleet. (Bloomberg)

BROKER MOVES

CAC

Capgemini (CAP FP) - Acquired Cloud4C; no terms. (Newswires)

French Politics - French socialist party leader Faure on TF1 TV says French socialists will not vote PM Bayrou confidence motion. French Socialist Party Leader says it is inconceivable that the socialists would vote in favour of French PM Bayrou's confidence motion, via Le Monde newspaper. (Newswires)

OTHER FRENCH COMPANIES

Eiffage (FGR FP) - Acquires three energy services companies in Spain. (Newswires)

Spie (SPIE FP) - Buys Voets & Donkers and VND Technical Services. (Newswires)

BROKER MOVES

Bouygues (EN FP) upgraded to Overweight from Neutral at JPMorgan

BioMerieux (BIM FP) downgraded to Equal Weight from Overweight at Morgan Stanley

PAN EUROPE

US-EU - US President Trump administration reportedly weighs visa sanctions for EU and EU member state officials over bloc's digital services act, according to Reuters citing sources. (Reuters)

BROKER MOVES

DiaSorin (DIA IM) upgraded to Overweight from Equal Weight at Morgan Stanley

SMI

Novartis (NOVN SW) - Bioarctic and Novartis sign option, collaboration and license agreement, using BrainTransporter for an upfront payment of USD 30mln plus milestones. If Novartis exercises their option, Bioarctic will be eligible to receive additional payments of up to USD 772mln. (Newswires)

OTHER SWISS COMPANIES

Flughafen Zuerich (FHZN SW) - H1 (CHF): Net Income 161.3mln (exp. 148mln), Revenue 640.7mlm (exp. 641mln). (Newswires)

BROKER MOVES

SCANDINAVIA

Bakkafrost (BAKKA NO) - Q2 (DKK): Op. Revenue 1.57bln, Op. EBIT 65mln. (Newswires)

Skanska (SKAB SS) - Co. divests elderly care home in Sweden for SEK 330mln. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.42% at 6,439, NDX -0.31% at 23,426, DJI -0.77% at 45,283, RUT -1.05% at 2,337.

SECTORS: Energy +0.26%, Communication Services +0.44%, Technology -0.09%, Consumer Discretionary -0.13%, Materials -0.62%, Financials -0.58%, Real Estate -0.53%, Industrials -1.02%, Utilities -1.16%, Health -1.44%, Consumer Staples -1.62%.

Alphabet (GOOGL), Fox (FOX) - YouTube said its agreement with Fox is nearing renewal, with active negotiations ongoing as Fox demands significantly higher payments than peers. If no deal is reached by August 27th, Fox channels will be dropped. Subscribers would receive a USD 10 credit if content remains unavailable.

Boeing (BA), GE Aerospace (GE) - Korean Air agreed a USD 36bln deal with Boeing for 103 aircraft, including 737, 777 and 787 jets, alongside a USD 13.7bln GE Aerospace engine contract, during Trump–Lee trade talks. The order, supporting 135,000 US jobs, follows South Korea’s wider pledges on shipbuilding and Hyundai’s USD 5bln US investment expansion.

Fed - US President Trump posts on Truth Social a letter removing Fed's Cook from her position with immediate effect. Fed's Cook (Voter) says no cause exists for her to be fired and she will not resign, adds President Trump has no authority to fire her and she will continue to carry out her duties. (Newswires)

Mining - USGS reportedly proposes potash and copper among critical minerals, according to Bloomberg. (Bloomberg)

S&P 500 (SPX) - Interactive Brokers (IBKR) will join the S&P 500, replacing Walgreens Boots Alliance (WBA), which is being acquired by Sycamore Partners. Talen Energy (TLN) will replace Interactive Brokers in the S&P MidCap 400. Kinetik Holdings (KNTK) will join the S&P SmallCap 600, replacing Pacific Premier Bancorp (PPBI), which is being acquired by Columbia Banking System.

Wind Power - The Trump administration is seeking to halt the USD 6bln Maryland Offshore Wind Project, developed by US Wind, by moving to vacate its federal permit, according to a court filing. The 114-turbine project, approved under Biden in 2024, had been scheduled to begin construction next year.

26 Aug 2025 - 06:55- Research Sheet- Source: Newsquawk