Newsquawk Daily European Equity Opening News - 26th June 2025

ASIA

APAC stocks traded mixed in choppy fashion following a similar session on Wall Street, with overnight newsflow relatively light as Israel and Iran seemingly continued to observe the ceasefire. ASX 200 was weighed on by the tech sector despite outperformance in the space stateside. ASX-listed software giant Xero fell over 7% after announcing its intention to purchase payments provider Melio for around USD 3bln. Nikkei 225 outperformed and topped the 39k mark for the first time in over a month, led by strong gains in the industrial sector. This came despite a firmer JPY, with market focus turning to the upcoming US-Japan trade talks after local media flagged Japanese Economy Minister Akazawa’s planned visit to Washington as early as June 26th. Hang Seng and Shanghai Comp were mixed, while Chinese Premier Li said authorities will take forceful steps to boost consumption. Thereafter, bourses drifter higher as a Chinese state planner official said that with policy implementation and introduction, "we are confident and capable of minimizing the adverse impacts from external shock."

Chinese GDP - Citi raises China 2025 GDP growth outlook to 5.0% (prev. 4.7%). (Newswires)

Chinese Commentary - China state planner official says with policy implementation and introduction, "we are confident and capable to minimize the adverse impacts from external shock”. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.57 % at 23,508, FTSE 100: -0.46 % at 8,719, CAC 40: -0.76 % at 7,558, Euro Stoxx 50: -0.87 % at 5,251, AEX: -0.73 % at 918, IBEX 35: -1.54 % at 13,819, FTSE MIB: -0.39 % at 39,319, SMI: -1.06 % at 11,862, PSI: -0.77 % at 7,395.

FTSE 100

Ex-dividends - British American Tobacco (BATS LN) and IAG (IAG LN) will trade without entitlement to their latest dividend payout. (Newswires)

Shell (SHEL LN) - Co. is in early talks to acquire BP (BP/ LN), WSJ reports. BP could be split in sale and unlikely to be bought entirely, according to CNBC citing sources. Shell spokesperson says, in regard to market speculation about Shell considering buying BP, that no talks are taking place. (WSJ / CNBC / Newswires) BP's US ADR jumped around 9% on the WSJ report, before almost entirely paring the entire move after Shell's push back.

UK Inflation Expectations - Citi/YouGov: UK public inflation expectations for 5-10 years ahead 4.3% in June (prev. 4.2% in May). (Newswires)

OTHER UK COMPANIES

BROKER MOVES

BT (BT/ LN) reinstated with Buy at Berenberg

Rolls Royce (RR/ LN) downgraded to Hold from Buy at Kepler Cheuvreux

Melrose (MRO LN) downgraded to Hold from Buy at Kepler Cheuvreux

Vodafone (VOD LN) resumed with Hold at Berenberg

DAX

DHL (DHL GY) - Unifor and DHL reached a tentative agreement, ending Canada-wide strike. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Continental (CON GY) downgraded to Equal Weight from Overweight at Morgan Stanley

CAC

Danone (BN FP) - Announced acquisition of Akkermasia. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

SES (SESG FP) initiated with Buy at Berenberg

PAN EUROPE

Vaccine names - US CDC Vaccine Advisory Meeting: Forming a working group, which will reevaluate earlier recommendation concerning combined MMRV vaccine for one year old children. Vote on RSV therapies postpones until Thursday. (Newswires)

BROKER MOVES

ASML (ASML NA) downgraded to Hold from Buy at Jefferies

Cellnex (CLNX SM) reinstated with Buy at Berenberg

Telefonica (TEF SM) initiated with Hold at Berenberg

SMI

Sika (SIKA SW) - US Judge has dismissed claims that the Co. (and six others) have conspired to drive up prices of concrete and cement additives. (Newswires)

Nestle (NESN SW) - Nestle USA to phase out the use of synthetic food colours by mid-2026. (Newswires)

OTHER SWISS COMPANIES

Avolta (AVOL SW) - Reaffirms 2027 medium tm outlook. (Newswires)

BROKER MOVES

SCANDINAVIA

Maersk (MAERSKB DC) - Co. files lawsuit in Brazil seeking new rules for record auction of new Santos port terminal MSC Group also considering lawsuit over USD 1bln Brazil Port auction if federal audit court does not change. (Newswires)

Storebrand (STB NO) - Completed share buyback programme. Buys back 5.84mln shares at NOK 128.31/shr. (Newswires)

BROKER MOVES

Telia (TELIA SS) resumed with Hold at Berenberg

Telenor (TEL NO) resumed with Hold at Berenberg

US

CLOSES: SPX +0.00% at 6,092, NDX +0.21% at 22,238, DJI -0.25% at 42,982, RUT -1.16% at 2,136

SECTORS: Real Estate -2.46%, Consumer Staples -1.39%, Utilities -1.37%, Consumer Discretionary -1.13%, Industrials -0.93%, Materials -0.79%, Energy -0.43%, Financials -0.38%, Health +0.09%, Communication Services +0.51%, Technology +1.18%.

Fed - US President Trump may speed up naming a successor to Fed Chair Powell, either this summer, September or October, according to WSJ sources; could allow the chair-in-waiting to influence investor expectations ahead of the end of Powell's term.

Fed SLR - The Fed is advancing a proposal to ease bank leverage rules by adjusting its supplementary leverage ratio, aiming to reduce constraints on Treasury market trading. The plan may revise the enhanced SLR formula, or exempt Treasuries entirely. Critics warned it could increase systemic risk, while Vice Chair Bowman signalled broader deregulatory plans.

Jefferies (JEF) - Jefferies shares fell 2.5% after hours, after it reported that Q2 profit fell, as geopolitical and economic uncertainty weighed on investment banking and capital markets; revenue was down 1.3% Y/Y, net income down nearly 40%, with sharp drops in equity and debt underwriting, with the former almost halving in the quarter. Advisory rose 61%. Q2 EPS came in at 0.40 (exp. 0.46), Q2 revenue at USD 1.63bln (exp. 1.56bln). Is increasingly optimistic about H2 2025, and expects margins to normalise as business environment improves and operating leverage takes effect. It sees improving sentiment, and expects recovering deal activity in H2.

Micron (MU) - Micron beat Q3 estimates and issued an above expected outlook for Q4; shares rose as much as 7% in wake of its publication, but gains were trimmed post the earnings call, with investors deeming its outlook insufficient to sustain its 2025 rally, according to Bloomberg, and its share price closed extended trading up 0.9%. It reported Q3 adj. EPS of 1.91 (exp. 1.60), Q3 revenue of USD 9.3bln (exp. 8.81bln), with Q3 adj. net income at USD 2.2bln (exp. 1.8bln). It saw record DRAM and data centre revenue, while HBM revenue was up around 50% Q/Q. Execs said the company was shifting more resources to AI-focused opportunities across the portfolio. Sees Q4 adj. EPS between 2.35-2.65 (exp. 1.97), and Q4 revenue between USD 10.4-11bln (exp. 9.89bln). In data centre, it expects FY server market to grow mid-single digits % in units, largely driven by growth in AI services. Added that any impacts that may occur due to potential new tariffs are not included in outlook. Micron expects its HBM share to align with overall DRAM share by H2 2025; HBM4 sampling is underway, with volume ramp seen in 2026. Forecasts PC and smartphone unit growth in low single digits for 2025, and sees industry DRAM bit demand growth in high-teens percentage range for calendar 2025.

26 Jun 2025 - 06:41- Fixed IncomeResearch Sheet- Source: Newsquawk