Newsquawk Daily European Equity Opening News - 29th August 2025

ASIA

APAC stocks were ultimately mixed heading into month-end and as participants digested a slew of data and earnings. ASX 200 traded rangebound as strength in tech and energy was offset by losses in real estate, healthcare, industrials and financials, while stock headlines in Australia continued to be dominated by a busy earnings slate. Nikkei 225 weakened after a slew of data releases, which were ultimately mixed, although Industrial Production and Retail Sales disappointed. Hang Seng and Shanghai Comp gained following another substantial liquidity injection by the PBoC of around CNY 783bln and with Beijing authorities recently vowing support measures, while the spotlight is also on incoming earnings including from Alibaba and Chinese banks.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.11% at 5,399, Dax 40 -0.01% at 24,044, FTSE 100 -0.44% at 9,215, CAC 40 +0.24% at 7,763, FTSE MIB +0.22% at 42,443, IBEX 35 +0.38% at 15,078, PSI -0.17% at 7,803, SMI -0.03% at 12,212, AEX -0.47% at 903

SECTORS: Consumer Disc 0.54%, Materials 0.31%, Industrials 0.31%, IT -0.09%, Financials -0.19%, Consumer Stpl -0.22%, Energy -0.28%, Utilities -0.57%, Healthcare -0.70%, Telecoms -1.03%

FTSE 100

BAE Systems (BA/ LN) - BAE Systems was awarded a USD 1.74bln Navy contract to produce and deliver up to 55,000 Advanced Precision Kill Weapon System II Full Rate Production Lots 13-17, supporting semi-active laser guided upgrades to the 2.75-inch Rocket System for the Navy, Army, and FMS customers. (Newswires)

Shell (SHEL LN) - Manufacturing centre in Corunna (85k BPD) reports operational issue resulting in increased flaring. (Newswires)

Weir (WEIR LN) - Completed acquisition of Townley. (Newswires)

UK Supermarkets - Aldi workers received a second pay rise in two months. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Softcat (SCT LN) upgraded to Overweight from Neutral at Cantor Fitzgerald

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Vinci (DG FP) - July airport passengers +3.6%, commercial movements +4.4%. (Newswires)

OTHER FRENCH COMPANIES

Remy Cointreau (RCO FP) - Provides guidance: Cuts FY25 net overall impact of tariffs on Current Op. Profit to EUR 30mln (prev. guided EUR 45mln). US tariff impact revised to EUR 20mln. Now anticipates an organic decline in Current Op. Profit of mid-single digit in 2025-26. (Newswires)

BROKER MOVES

Schneider Electric (SU FP) downgraded to Neutral from Overweight at JPMorgan

PAN EUROPE

Battery Names - CATL (300750 CH) shares soared 10.6% overnight after the Co. indicated a strong outlook for sales. (Newswires)

Brunello Cucinelli (BCU IM) - H1 (EUR): EBIT 113.8bln, +8.8% Y/Y, net profit 76.7mln, +16% Y/Y, revenue 684.1mln, +10.2% Y/Y. (Newswires)

UniCredit (UCG IM) - Co. subscribes to additional instruments relating to Alpha Bank shares for around 5%, bringing aggregate position to approximately 26%. UniCredit says 26% stake impacts CET1 ratio by 65 basis points, with return on investment of around 20%. UniCredit says conversion in physical shares of stake exceeding 9.9% and equity consolidation to occur after completing regulatory authorisation processes. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

ABB (ABBN SW) assumed with Neutral at JPMorgan

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Denmark reportedly has cuts its 2025 economic growth outlook to 1.4% (prev. 3%), citing weaker prospects for Novo Nordisk. (Bloomberg)

Skanska (SKAB SS) - Co. invests SEK 540mln in Czech Republic project. (Newswires)

BROKER MOVES

Stora Enso (STERV FH) initiated with Hold at Berenberg

UPM (UPM FH) initiated with Sell at Berenberg

US

CLOSES: SPX +0.32% at 6,502, NDX +0.58% at 23,703, DJI +0.16% at 45,637, RUT +0.19% at 2,378

SECTORS: Utilities -0.87%, Consumer Staples -0.46%, Health -0.42%, Real Estate -0.26%, Materials +0.01%, Industrials +0.17%, Financials +0.18%, Consumer Discretionary +0.28%, Technology +0.66%, Energy +0.68%, Communication Services +0.94%.

Affirm (AFRM) - Rose by 17% in extended trading after it reported Q4 operating income profitability, with earnings and revenue topping estimates by a wide margin. Q4 EPS 0.20 (exp. 0.10), revenue USD 876mln (exp. 838mln). Sees Q1 revenue between USD 855-885mln (exp. 858.4mln), Q1 GMV between 10.1-10.4bln. Sees FY EPS between 23.85-24.30 (exp. 23.31), and FY revenue between 12.0-12.1bln (exp. 11.67bln).

Autodesk (ADSK) - Shares rose over 10% in extended trading after a Q2 beat and raised guidance. Q2 adj. EPS 2.62 (exp. 2.46), Q2 revenue USD 1.76bln (exp. 1.73bln). CEO highlighted progress in generative AI, with industry-specific foundation models, while CFO noted Q2 strength in AECO from data centres, infrastructure, and industrial projects offsetting commercial softness. Stronger Autodesk Store, billings linearity, and FX tailwinds led to raised full-year guidance despite unchanged macro assumptions. Sees Q3 Adj. EPS between 2.48-2.51 (exp. 2.40) and sees Q3 revenue between USD 1.80bln-1.81bln (exp. 1.77bln). For the FY, sees adj. EPS between 9.80-9.98 (exp. 9.63), and sees FY revenue between USD 7.03bln-7.08bln (exp. 6.98bln).

Elastic (ESTC) - Elastic shares jumped by almost 20% in extended trading after Q1 earnings and guidance. Q1 EPS 0.60 (exp. 0.42), Q1 revenue USD 415mln (exp. 397.3mln). Q1 Net expansion rate 112%; Q1 subscription revenue up 20% Y/Y at USD 389mln. CEO highlights strong AI-driven demand, adding Gen AI use cases with over 2,200 Elastic Cloud customers. Sees Q2 EPS between 0.56-0.58 (exp. 0.60), Q2 revenue between USD 415-417mln; for the FY26, EPS is seen between 2.29-2.35 (exp. 2.28), and FY26 revenue between USD 1.679-1.689bln (exp. 1.67bln).

Dell Technologies (DELL) - Despite a Q2 beat, and raised FY guidance, Dell's shares fell 6% in extended trading, with desks citing weaker ISG margins, raises some suggest raises concerns over long-term AI server profitability. Q2 adj. EPS 2.32 (exp. 2.29), Q2 revenue USD 29.8bln (exp. 29.19bln). Sees Q3 EPS around 2.45 (exp. 2.55), and revenue between USD 26.5-27.5bln (exp. 26.31bln). Raises FY26 EPS outlook to around 9.55 (exp. 9.37) and FY revenue view to between USD 105-109bln (exp. 104.84bln); also lifts FY25 AI server shipment view to USD 20bln from 15bln.

Gap (GAP) - Gap shares closed extended trading with losses of around 1.6%, after it cut its margin outlook on tariffs. Q2 EPS 0.57 (exp. 0.55), revenue USD 3.73bln (exp. 3.73bln). Q2 SSS +1% (exp. 1.9%); Q2 Old Navy +2%, Gap +4%, Banana Republic +4%, Athleta -9%. Q2 Gross margin 41.2% (exp. 41.9%). Sees Q3 revenue growth +1.5%-2.5% (exp. 3.91bln). Guides FY25 revenue growth +1%-2% (exp. 15.33bln), cuts FY operating margin outlook to 6.7-7.0% (prev. saw 7.4%) on tariff costs, FY CapEx between USD 500-550mln, and sees around 35 net store closures.

Jonson & Johnson (JNJ) - J&J halts development of nipocalimab combined with anti-TNFalpha therapy for rheumatoid arthritis after Phase 2a DAISY study showed no significant benefit over anti-TNFalpha alone at 12 weeks. No new safety concerns were observed, and J&J will continue developing nipocalimab for other rheumatic, rare autoantibody, and maternal-fetal indications, citing USD 5bln+ potential.

Marvell (MRVL) - Marvell fell 10.9% as earnings met expectations, but guidance disappointed, and its data centre revenue rose less than expected. Q2 adj. EPS 0.67 (exp. 0.67), Q2 revenue USD 2.01bln (exp. 2.01bln). Q2 gross margin 50.4%; adj. gross margin 59.4%. CEO highlights strong AI demand for custom silicon and electro-optics, with over 50 new AI design opportunities. Sees Q3 data centre revenue flat sequentially, Q3 adj. EPS 0.69-0.79 (exp. 0.72), Q3 revenue USD 2.06bln +/-5%, gross margin between 51.5-52%, and adj. gross margin between 59.5-60%.

Ulta Beauty (ULTA) - Shares rose 3.7% in extended trading after it beat on Q2 metrics and raised its FY EPS guidance and SSS view. Q2 EPS 5.78 (exp. 5.04), Q2 revenue USD 2.79bln (exp. 2.67bln), Q2 SSS +6.7%. Raises FY25 EPS outlook to between 23.85-24.30 (exp. 23.59), lifts FY revenue outlook to between USD 12.0-12.1bln (exp. 11.72bln), and FY SSS view to +2.5%-3.5% (from 0.0-1.5%).

29 Aug 2025 - 06:58- Research Sheet- Source: Newsquawk