Newsquawk Daily European Equity Opening News - 27th May 2025

ASIA

APAC stocks traded mixed with price action relatively rangebound amid a lack of major fresh catalysts and in the absence of a lead from Wall St owing to Memorial Day. ASX 200 edged marginally higher as strength in tech, energy and financials atoned for the underperformance in the mining and resources sectors. Nikkei 225 was subdued amid a firmer currency and after BoJ Governor Ueda reiterated the central bank's policy normalisation rhetoric, although the downside was stemmed following a lack of deviation in Services PPI data, which matched the prior reading, and as long-end JGB yields declined. Hang Seng and Shanghai Comp were lacklustre with price action in Hong Kong choppy and with the mainland constrained as focus turned to earnings releases and despite a slight acceleration in Chinese Industrial Profits, while a firm PBoC liquidity operation also failed to inspire.

EUROPEAN CLOSES

CLOSES: DAX 40 +1.7%, Euro Stoxx 50 +1.3%, CAC 40 +1.2%, AEX +0.8%, FTSE 100 Closed

SECTORS: Industrials 1.40%, Healthcare 1.29%, IT 1.24%, Materials 1.02%, Consumer Disc 0.97%, Financials 0.80%, Energy 0.76%, Telecoms 0.74%, Utilities 0.46%, Consumer Stpl 0.33%

FTSE 100

UK Markets were shut on Monday, on account of Spring Bank Holiday

HSBC (HSBA LN) - Co. cuts dozens of analysts including expert Steven Major, via Bloomberg. (Bloomberg)

Rio Tinto (RIO LN) - Chile's ENAMI Vice President says it will start lithium production with Rio Tinto in 2032. (Newswires)

UK BRC - UK BRC Shop Price Index YY (May) -0.1% (Prev. -0.1%)

UK Budget - UK government is shifting to shorter term borrowing to lower its interest bill as a global debt sell-off adds to the pressure on its tax and spending plans, according to FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

Burberry (BRBY LN) upgraded to Equal Weight from Underweight at Barclays

DAX

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Received orders for 65 MW in France. (Newswires)

BROKER MOVES

CAC

BNP Paribas (BNP FP) - Head of Italian Unit has "categorically" ruled out that the bank could leave the Italian market. (Newswires)

Sanofi (SAN FP) - Completed acquisition of DR-0201, a new autoimmune disease treatment; USD 600mln upfront and USD 1.3bln in milestones. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Trade - European Trade Commissioner Sefcovic said he had a good call with US Commerce Secretary Lutnick on Monday and that the European Commission remains fully committed to constructive and focused efforts at pace towards an EU-US deal, while he added that they continue to stay in constant contact. (Newswires)

Capgemini (CAP FP) / SAP (SAP GY) / Mistral AI - Cos announce expansion of strategic partnership as it aims to help drive growth utilising AI. (Newswires)

BMPS (BMPS IM) - CEO says a deal with Mediobanca (MB IM) could a stepping stone for further banking consolidation in Italy. (Newswires)

European Car Sales - European car sales fell 0.3% Y/Y in April (prev. +2.8% Y/Y) to 1.08mln units, with major markets including Germany, France and the UK declining amid weak economic growth and trade-related uncertainty. Tesla's (TSLA) European auto sales dropped 49% Y/Y in April despite a 27.8% rise in battery EV sales overall, as the Model Y upgrade failed to lift the brand’s struggling image in the region. (Newswires)

Insurance/Financial Names - EU regulators intend to look into the impact of a potential market crisis on the wider financial system, via FT citing sources, including insurance names and pension funds. Officials are reportedly optimistic that the wider stress tests could begin in 2026. (FT)

Intesa Sanpaolo (ISP IM) - Co. initiates EUR 2bln buyback programme. (Newswires)

NN (NN NA) - Financial Targets for 2028: FCF target above EUR 1.8bln. Committed to capital return policy progressive dividend per share and annual share buyback of at least EUR 300mln. (Newswires)

Talgo (TLGO SM) - Q1 (EUR): Revenue 154mln (exp. 152mln), EBITDA 13.6mln (exp. 17mln). Sees FY25 guidance "on hold". (Newswires)

UniCredit (UCG IM) / Intesa (ISP IM) - Intesa CEO said he would advise UniCredit against a move on Generali (G IM). (Newswires)

BROKER MOVES

SMI

Clariant (CLN SW) - Co. rejects OMV's (OMV AV) allegations against four companies related to 2020 competition law infringement. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Volvo (VOLVB SS) - Volvo will cut around 3,000 jobs, mainly office roles in Sweden, as part of a cost-cutting plan targeting SEK 18bln in savings amid a tough global auto market, WSJ reports. (WSJ)

BROKER MOVES

Assa Abloy (ASSAB SS) upgraded to Buy from Hold at Jefferies

US

US Markets were shut on Monday, on account of Memorial Day Holiday

27 May 2025 - 06:42- Research Sheet- Source: Newsquawk