Newsquawk Daily European Equity Opening News - 30th May 2025

ASIA

APAC stocks were subdued heading into month-end as participants digested a slew of data and amid trade uncertainty. ASX 200 traded rangebound amid a lack of conviction after soft data releases including a contraction in Retail Sales. Nikkei 225 underperformed with the index back beneath the 38,000 level amid recent currency strength and after the latest Tokyo CPI data mostly topped forecasts, while trade remained in focus following Japanese PM Ishiba's call with US President Trump and as top trade negotiator Akazawa plans to meet with US Treasury Secretary Bessent for trade talks later today. Hang Seng and Shanghai Comp conformed to the downbeat mood ahead of an extended weekend and with PMI data scheduled on Saturday, while US Treasury Secretary Bessent commented that China talks are a bit stalled but believes they will have more talks in a few weeks.

EUROPEAN CLOSES

BOURSES: DAX: -0.29 % at 23,968, FTSE 100: -0.06 % at 8,721, CAC 40: -0.11 % at 7,780, Euro Stoxx 50: -0.13 % at 5,371, AEX: -0.02 % at 924, IBEX 35: +0.29 % at 14,141, FTSE MIB: -0.36 % at 39,983, SMI: -1.04 % at 12,197, PSI: +0.20 % at 7,376.

SECTORS: Utilities -0.80%, Telecoms -0.73%, Industrials -0.64%, Energy -0.50%, Consumer Stpl -0.38%, Healthcare -0.16%, Consumer Disc -0.14%, Materials -0.06%, Financials 0.14%, IT 0.23%.

FTSE 100

Unilever (ULVR LN) - The independent board of Ben & Jerry's has labelled the ongoing conflict in Gaza as genocide. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Beazley (BEZ LN) reinstated coverage with Buy

DAX

Volkswagen (VOW3 GY) - CEO Blume says they are holding fair and constructive talks with the US on tariffs and they intend to invest further in the US. (SZ)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Danone (BN FP) - Shane Grant, the Deputy CEO and Americas CEO is to leave on June 13th. (Newswires)

Sanofi (SAN FP) - Itepekimab met the primary endpoint in one of two COPD Phase 3 studies. Aerify-2 did not meet the primary endpoint. Co. and Regeneron (REGN) are assessing the data. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Energy Names - Chevron (CVX) - Chevron plans to cut 200 jobs in the Permian Basin, significantly fewer than the 800 initially reported by the Texas Workforce Commission, which the company said mistakenly published the higher figure, Bloomberg reports. (Newswires)

Luxury Names - Watch buyers significantly increased purchases of used Rolex and Patek Philippe watches at the end of April, with trading on the Subdial platform rising 160% above normal post-payday levels, driven by anticipation of possible tariffs from US President Trump, Bloomberg reports. (Bloomberg)

Metal/Mining Names - The world’s largest stainless steel and nickel producer, Tsingshan Holding Group, has suspended some stainless steel production lines at its Indonesian Morowali Industrial Park to support prices amid weak demand and trade uncertainty, after both stainless steel and nickel markets hit 5yr lows in April, BBG reports. (Bloomberg)

Ryanair (RYA ID) - CEO O'Leary has hit a pre-COVID share option target. Shares have been above EUR 21/shr for 28 consecutive days, as such he will be granted the option to buy 10mln shares at EUR 11.12/shr vs the EUR 23.74 close. (Newswires)

Safilo (SFL IM) - Renewed the supply agreement with Kering (KER FP) Eyewear until end-2029. (Newswires)

Snam (SRG IM) - Begun accelerated bookbuilding for the option rights with reference to the Italgas (IG IM) capital increase. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - Fenebrutinib maintains the near-complete suppression of disease activity and disability progression for as much as two years in those with relapsing MS. 99 patients entered OLE and 93 remained in it after 96 weeks. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.40% at 5,912, NDX +0.21% at 21,364, DJI +0.28% at 21,216, RUT +0.34% at 2,075

SECTORS: Communication Services -0.35%, Industrials +0.08%, Consumer Discretionary +0.21%, Consumer Staples +0.27%, Materials +0.31%, Financials +0.49%, Technology +0.59%, Energy +0.67%, Utilities +0.69%, Health +0.74%, Real Estate +0.95%.

Cadence Design (CDNS) - Cadence said the US BIS now requires a licence to export certain EDA software to China or Chinese military end users, citing military use risk. Cadence is seeking clarification and assessing the impact, but noted strong global demand continues to support business momentum.

Costco Wholesale (COST) - Q3 EPS 4.28 (exp. 4.25), Q3 revenue USD 61.9bln (exp. 63.13bln). Q3 total Comp sales +5.7% (+8% on adjusted basis), and US comp sales +6.6% (+7.9% on adjusted basis). Gross margin expanded to 11.25% from 10.84%, led by fresh department; SG&A rose +20bps on wage investments. USD FX impact was -1.2%. Memberships rose +6.8% Y/Y. Cited slight tariff-related pull-forward, logistics-driven gains in big/bulky market share.

Dell Technologies (DELL) - Dell shares rose in after hours trading as it rose its FY26 EPS outlook driven by strong AI server demand. Q1 adj. EPS 1.55 (exp. 1.69), Q1 revenue USD 23.38bln (exp. 23.14bln). Said it is experiencing unprecedented demand for its AI-optimised servers; generated 12.1bln in AI orders this quarter. Sees Q2 adj. EPS midpoint at 2.25 (exp. 2.09), and sees Q2 revenue between USD 28.5-29.5bln (exp. 25.05bln). For the FY, sees adj. EPS midpoint at 9.40 (exp. 9.20), and maintained its FY revenue view between USD 101.0-105.0bln (exp. 102.82bln).

Gap (GAP) - Shares tumbled by 15% in extended trading, with reports citing potential tariff impact, which could hit GAP by between USD 100-150mln. Q1 EPS 0.51 (exp. 0.45), Q1 revenue USD 3.46bln (exp. 3.42bln); Q1 SSS rose +2%. CEO highlighted continued market share gains, positive comps at Gap and Old Navy, and gross and operating margin expansion. Sees Q2 revenue approximately flat Y/Y (exp. 3.73bln); gross margin similar to Q1. Sees FY25 revenue growth of +1-2% (exp. 15.28bln; vs USD 15.1bln Y/Y), operating income growth +8-10%. FY25 CapEx seen at USD 600mln with ~35 net store closures. FY25 outlook excludes tariffs; net impact estimated at USD -100mln to -150mln.

Microsoft (MSFT) - Microsoft highlighted strong AI momentum at an internal town hall, revealing Barclays (BCS) bought 100,000 Copilot licences. Dozens of other clients including Accenture (ACN), Toyota (TM), Volkswagen (VWAGY) and Siemens (SIEGY) each have over 100,000 users, according to Microsoft's Chief Commercial Officer.

Synopsys (SNPS) suspends sales and services in China, and stops taking new orders, according to a letter cited by Reuters; notes it will impact all customers

30 May 2025 - 06:50- Data- Source: Newsquawk