Newsquawk Daily European Equity Opening News - 2nd July 2025

2nd July 2025

ASIA

APAC stocks were mixed following a similar handover from the US, where participants digested data, trade commentary and a slew of central bank rhetoric. ASX 200 gained as strength in the mining, materials and real estate sectors offset the losses in tech and financials, but with further upside contained by disappointing Australian Retail Sales and Building Approvals data. Nikkei 225 declined amid trade uncertainty after President Trump noted doubts about a deal with Japan and suggested Japan could pay 30% or 35% tariffs. Hang Seng and Shanghai Comp traded mixed with the Hong Kong benchmark underpinned on return from the holiday closure as gambling stocks surged owing to the jump in Macau gaming revenue for June, while the mainland was contained after the PBoC's open market operations resulted in a net CNY 266.8bln drain.

Alibaba (9988 HK) - Alibaba is offering RMB 50bln in subsidies over the next 12 months to support food deliveries and online retail, aiming to boost its instant commerce business in China amid rising competition. (Newswires)

SoftBank (9984 JT) - Co's Ampere deal faces a more in-depth review by the US Federal Trade Commission, according to Bloomberg. (Bloomberg)

US-Japan - US President Trump suggests Japan could pay 30% or 35% tariffs. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.80 % at 23,717, FTSE 100: +0.28 % at 8,785, CAC 40: -0.04 % at 7,663, Euro Stoxx 50: -0.47 % at 5,279, AEX: -0.45 % at 909, IBEX 35: -0.03 % at 13,987, FTSE MIB: -0.58 % at 39,561, SMI: +0.22 % at 11,947, PSI: +1.85 % at 7,594.

SECTORS: Consumer Disc 1.36%, Consumer Stpl 1.08%, Healthcare 1.08%, Utilities 1.00%, Energy 0.58%, Telecoms 0.47%, Materials 0.26%, Financials -0.90%, IT -1.15%, Industrials -1.62%

FTSE 100

St James’s Place (STJ LN) - Co. is to reportedly introduce new fees next month; the CEO said the clearer fees should help customers "compare and contrast" STJ products with competitors. (FT)

Standard Chartered (STAN LN) - Co. says emphatically rejects claims made by shell companies in response to media reports on legal case concerning alleged 1MDB fraud and says consider claims are without merit and Standard Chartered will defend them. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Admiral Group (ADM LN) upgraded to Buy from Sell at Goldman Sachs

Legal & General (LGEN LN) downgraded to Neutral from Buy at Goldman Sachs

Hiscox (HSX LN) upgraded to Buy from Neutral at Goldman Sachs

DAX

Deutsche Bank (DBK GY) - Co. reportedly faces a bigger-than-expected capital hit from Basel IV rules, according to FT. (FT)

Thyssenkrupp (TKA GY) - The German government is not currently holding talks on the possibility of purchasing a stake in Thyssenkrupp's Defence division, according to Handelsblatt. (Handelsblatt)

OTHER GERMAN COMPANIES

BROKER MOVES

Munich Re (MUV2 GY) upgraded to Overweight from Neutral at JPMorgan - shares seen opening +1.7%

Qiagen (QIA GY) downgraded to Peer Perform from Outperform at Wolfe Research

CAC

Airbus (AIR FP) - Co. delivered roughly 60 aircraft in June, according to Bloomberg. (Bloomberg)

OTHER FRENCH COMPANIES

BROKER MOVES

STMicroelectronics (STM FP) upgraded to Outperform from Neutral at Oddo Securities

PAN EUROPE

Diageo (DGE LN), Heineken (HEIA NA), AB InBev (ABI BB), Pernod Ricard (RI FP) - US-listed Constellation Brands (STZ) shares dipped 0.8% in after-hours trading following a Q1 profit miss, and softer margins due to trade policies. Q1 adj. EPS 3.22 (exp. 3.31), Q1 revenue USD 2.515bln (exp. 2.554bln). Beer depletion volumes fell 2.6% Y/Y amid softer demand. Exec noted ongoing soft consumer demand, attributing it to likely non-structural socioeconomic factors, but affirmed confidence in its 2026–2028 outlook; exec highlighted leading dollar share gains in US beer, successful Wine and Spirits portfolio repositioning, and consistent execution of capital allocation priorities. Sees FY adj. EPS between 12.60-12.90 (exp. 12.69). Sees FY26 capex at USD 1.2bln. (Newswires)

EU-UK - EU reportedly blocks Britain's attempts to join the pan-European trading bloc, according to the FT. (FT)

EU-China - EU Trade Commissioner Sefcovic is to visit China in August, via SCMP, citing sources. His team is reportedly compiling a list of specific "asks" that would seek from China; in turn, Sefcovic has been asked to be more specific with his requests. Potential areas for discussion include Chinese investment in Europe, as many capitals are keen to lure electric vehicles and hi-tech battery plants, sources added. (SCMP)

Fincantieri (FCT IM) - Co. is reportedly planning to hire "hundreds" of employees to expand its US shipbuilding, according to reports. (Newswires)

Santander (SAN SM) - Santander agrees to pay GBP 2.65bln for Sabadell's (SAB SM) TSB unit. Santander Chair says the UK is one of their core markets and the [TSB] deal highlights confidence in this market. (Newswires)

Stellantis (STLAP FP/STLAM IM) - Stellantis’ FCA US total US sales fell 10% Y/Y in Q2 to 309,973 vehicles. Jeep and Ram brands showed growth. (Newswires)

US Tariff Deadline - US President Trump, on July 9th, says not thinking about extending. (Newswires)

BROKER MOVES

SMI

UBS (UBSG SW) - Co. hires Taylor Henricks as head of M&A in Americas. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Zurich Insurance (ZURN SW) downgraded to Sell from Neutral at Goldman Sachs

SCANDINAVIA

Novo Nordisk (NOVOB DC) - WeightWatchers expands collaboration with Novo Nordisk to increase access to FDA-approved Wegovy injections through its clinic. The partnership simplifies prescriptions via NovoCare Pharmacy with home delivery by CenterWell Pharmacy. A limited-time offer reduces the Wegovy price to USD 299 for eligible members through the end of July. (Newswires)

BROKER MOVES

Equinor (EQNR NO) downgraded to Sell from Neutral at UBS

Sampo (SAMAS FH) resumed with Buy at Berenberg

Swedbank (SWEDA SS) downgraded to Hold from Buy at Deutsche Bank

US

CLOSES: SPX -0.11% at 6,198, NDX -0.89% at 22,478, DJI +0.91% at 44,495, RUT +0.94% at 2,195

SECTORS: Materials +2.28%, Health +1.39%, Energy +0.80%, Consumer Staples +0.76%, Real Estate +0.58%, Financials +0.54%, Utilities +0.34%, Industrials +0.30%, Consumer Discretionary +0.18%, Technology -1.13%, Communication Services -1.19%.

Amazon (AMZN) - Founder Bezos reports open market sale of 3.1mln shares of Amazon's common stock at a price range between USD 221.11 and USD 222.75 per share on June 27th. (Newswires)

Centene (CNC) - Centene shares fell 23% in extended trading after it withdrew its 2025 GAAP and adj. EPS guidance due to weaker-than-expected Marketplace growth and higher morbidity, leading to a preliminary USD 1.8bln reduction in net risk adjustment revenue transfer, and a USD 2.75/shr adj. EPS impact. It said Medicaid costs are rising, though Medicare Advantage performance was strong. Centene is due to publish its Q2 results on July 25th. (Newswires)

Tesla (TSLA) - Tesla will today publish its quarterly sales figures, where sales are expected to decline about 12% Y/Y in Q2 to around 389,400 vehicles, according to Bloomberg's consensus view, following a 13% drop in Q1, despite the recent launch of a limited driverless robotaxi service. JPMorgan said Tesla demand weakness likely continued in Q2 and sees “material risk” to FY delivery targets, with current H2 expectations requiring an unusually sharp rebound. Affordability issues and potential EV credit cuts add pressure, and as a result, and while we are doubtful to get any guidance on Wednesday; JPMorgan also cut its 2025 EPS forecast for Tesla to USD 1.75/shr (prev. USD 2.07) and 2026 to USD 2.40 (prev. USD 2.85), expecting the downtrend in estimates to continue. Meanwhile, the Tesla watcher “Troy Teslike” has been continually revising his forecast lower over the quarter, having started at 412k and now revised it down to 355k. (Newswires)

US Bank Dividends/Buybacks - After passing Fed stress tests, some major US banks lifted their shareholder payouts and buyback authorisations. JPMorgan (JPM) lifted its quarterly dividend to USD 1.50/shr (prev. 1.40), and authorised a USD 50bln share repurchase programme. Morgan Stanley (MS) will increase its quarterly dividend to USD 1.00/shr (prev. 0.92), and also authorised buyback of up to USD 20bln. Goldman Sachs (GS) plans to raise its quarterly dividend 33% to USD 4.00/shr. Bank of America (BAC) plans to hike its quarterly dividend +8 8% to 0.28/shr. Citigroup (C) dividend will be boosted to 0.60/shr (prev. 0.56). Wells Fargo (WFC) lifts its quarterly payout by +12.5% to 0.45/shr. State Street (STT) plans an 11% dividend increase to USD 0.84/shr. BNY (BK) raises dividend by +13% to USD 0.53/shr. American Express (AXP) raised its quarterly dividend +17% to USD 0.82/shr. (Newswires)

Warner Music Group (WMG) - Warner Music plans to cut jobs and restructure operations to reduce costs by USD 300mln annually by end-2026, with USD 170mln from headcount reductions and USD 30mln from overheads, aiming to reinvest in music and drive long-term growth, WSJ reports. (Newswires)

02 Jul 2025 - 06:59- Research Sheet- Source: Newsquawk