Newsquawk Daily European Equity Opening News - 31st March 2025

ASIA

APAC stocks were pressured heading into month- and quarter-end amid tariff concerns as Trump's April 2nd Liberation Day drew closer, while geopolitical risks lingered after US President Trump voiced anger towards Russian President Putin for comments about Ukrainian President Zelensky and Trump also threatened to bomb Iran if a nuclear deal can't be reached. ASX 200 declined with all sectors in the red and underperformance in the mining, resources and materials sectors, while participants also await tomorrow's RBA rate decision where the central bank is widely expected to remain on hold and with the focus to turn to if there is any change to the cautious message regarding future rate cuts. Nikkei 225 suffered heavy losses and slipped beneath the 36,000 level amid the tariff concerns and with notable weakness seen in tech stocks, while the selling is also exacerbated heading into fiscal year-end and amid yen strength. Hang Seng and Shanghai Comp conformed to the downbeat risk tone after failing to sustain the early resilience seen in the mainland following encouraging Chinese PMI data and reports that China's Finance Ministry is to inject USD 69bln into four large Chinese banks, while there was also a slew of earnings releases including from most of the big 4 banks.

TSMC (2330 TT) - Co. reportedly engages the US over tariffs and aims for a 'win-win' solution, while it seeks to start construction on its third fab in Arizona ASAP. (Focus Taiwan)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.87% at 5,334, DAX -0.98% at 22,456, CAC 40 -0.93% at 7,916, FTSE 100 -0.08% at 8,659, SMI -0.08% at 12,847, FTSE MIB -0.92% at 38,739, IBEX 35 -0.84% at 13,309, AEX -0.79% at 907

SECTORS: Utilities 1.80%, Telecoms 0.91%, Consumer Stpl 0.74%, Healthcare 0.28%, Materials -1.10%, Consumer Disc -1.12%, Financials -1.24%, Energy -1.64%, Industrials -1.67%, IT -1.78%

FTSE 100

Aviva (AV/ LN) - Co. is said to have revived "controversial plans" to cancel some GBP 450mln of its preference shares, a move initially attempted in 2018 but led to major backlash, according to The Times. The preference shares were marketed as "irredeemable," which has led to criticism from financial advisers, as Aviva is now proposing to forcibly buy back these shares. To address the backlash, Aviva is offering a premium above the par price and allowing shareholders to vote on the cancellation. (The Times)

Finance Names - A UK Supreme Court hearing, on an appeal against the judgement which ruled that some commission paid to motor dealerships by finance providers was unlawful, commences on Tuesday. (Newswires)

Smiths Group (SMIN LN) - CEO Carter said they have been moving the construction of their semiconductor "sockets", which are used in the testing of new chips, to Texas from China. (FT)

UK-US Relations - UK PM Starmer spoke with US President Trump on Sunday evening, during which they discussed productive negotiations between their respective teams on a UK-US economic prosperity deal and agreed that these will continue at pace this week. It was also reported that UK Home Secretary Cooper refused to rule out retaliating to US tariffs on cars and steel, according to Bloomberg. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

Bunzl (BNZL LN) upgraded to Overweight from Equal Weight at Barclays

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

Gerresheimer (GXI GY) downgraded to Sector Weight from Overweight at KeyBanc. Shares seen opening -2.4%

Hochtief (HOT GY) downgraded to Hold from Buy at Jefferies. Shares seen opening -4%

SMA Solar (S92 GY) downgraded to Hold from Buy at Jefferies. Shares seen opening -3%

CAC

Airbus (AIR FP) - BOC Aviation has placed a significant order for 120 single-aisle jets, comprising 70 Airbus A320Neo family aircraft and 50 Boeing (BA) 737-8s, Bloomberg reports. The purchase is part of its strategy to expand the company's fleet to 1,000 aircraft by 2030. (Newswires)

Sanofi (SAN FP) - Alnylam’s Qfitlia, an RNAi therapeutic for haemophilia A or B, has received FDA approval for routine prophylaxis in patients aged 12 and older. Sanofi holds global rights to develop and commercialise Qfitlia, while Alnylam will receive tiered royalties of 15-30% on global net sales. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

AI-related Stocks - Some large cloud customers are reportedly slowing down their spending on AI services through cloud providers such as Microsoft (MSFT), Google (GOOG) and Amazon (AMZN) as prices of AI drop, according to The Information. (The Information)

Airbus (AIR FP)/ Thales (HO FP)/ Leonardo (LDO IM) - Co. reportedly in talks with EU antitrust regulators over possible space business JV ahead of request for approval of the deal, according to Reuters citing sources. Talks are in the preliminary "pre-notification phase". (Newswires)

Auto Tariffs - US President Trumpʼs Trade Adviser Navarro said auto tariffs will raise about USD 100bln, and the other tariffs are to raise about USD 600bln a year, according to a Fox interview. US President Trumpʼs recent 25% auto tariff announcement made no mention of USMCA trade deal side letters shielding Canada and Mexico from potential auto tariffs which showed Canada and Mexico were each granted annual duty-free import quotas of 2.6mln cars and unlimited light trucks if Trump imposed global tariffs. Furthermore, Canada said it fully expects the US to honour the 2018 tariff pledges and it reserves the right to take retaliatory measures, while Mexico is evaluating the legal implications of the agreement on Trumpʼs ‘Section 232ʼ auto tariff probe.

Broader Tariffs - US President Trump said he will hit essentially all countries that they're talking about with tariffs this week and commented that there will be a deal on TikTok before the deadline, according to Reuters. US President Trump is said to be pushing senior advisers to go bigger on tariff policy as they prepare for ‘Liberation Dayʼ on April 2nd and reportedly revived the idea of a flat universal tariff single rate on most imports, according to Washington Post. It was also noted that the option viewed as most likely, publicly outlined by Treasury Secretary Bessent this month, would set tariffs on products from the 15% of countries the administration deems the worst US trading partners which account for almost 90% of imports. US President Trumpʼs closest allies including Vice President Vance, Chief of Staff Wiles, and cabinet officials, have privately indicated they are unsure exactly what President Trump will do during the April 2nd announcement of global tariffs, according to Politico. (Reuters/WaPo/Politico)

China-Exposed Stocks - Chinese NBS Manufacturing PMI (Mar) 50.5 vs. Exp. 50.5 (Prev. 50.2); Non-Mfg PMI (Mar) 50.8 vs. Exp. 50.5 (Prev. 50.4); Composite PMI (Mar) 51.4 (Prev. 51.1).

Defence Names - Portugal's Finance Minister Sarmento is cautious on defence spending, remarking that it must not threaten the surplus or add to the debt burden. (FT)

Deliveroo (ROO LN)/ Just Eat Takeaway (TKWY NA)/ Uber (UBER) - The UK Home Office has said bosses hiring in the "gig economy" could face up to five years in prison if they fail to check if their employees can legally work in the UK. (Sky News)

European Gas - The European gas sector is entering a critical period, with storage facilities emerging from winter two-thirds empty, Bloomberg notes. Traders typically help refill inventories in the summer when prices are lower, preparing for the next heating season's demand. The period is key for ensuring sufficient gas supplies. (Bloomberg)

Eni SpA (ENI SM) - The US has revoked Italy’s Eni permit to receive payments for gas produced in Venezuela, as part of sanctions on the country, Bloomberg reports. Eni said it is engaging with US authorities to explore ways to ensure non-sanctioned gas supplies can still be paid for. (Bloomberg)

European Defence - Dutch pension funds are set to invest EUR 100bln into risky assets, boosting Europeʼs defence efforts, according to FT citing APG Asset Management chief executive. (FT)

MedioBanca (MB IM) - Co. has reported Delfin and Caltagirone to the ECB over concern that they could have control of the Co., BMPS (BMPS IM) and Generali (G IM) without regulatory approval, via FT citing sources. (FT)

Oil Stocks - US President Trump said they are not putting oil sanctions right now and making progress on Russia and Ukraine, while he added going to make a decision on secondary tariffs on Iran. (Newswires)

Saipem (SPM IM) - Saipem has received from Stockholm Exergi, the district of Stockholm’s energy company, a full notice to proceed with a large-scale CO2 capture project at Stockholm Exergi’s existing bio-cogeneration plant in Sweden, after the successful financial closure of the project. The contract is worth approximately EUR 600mln. (Saipem)

Stellantis (STLAM IM/STLAP FP) - Stellantis will purchase CO2 credits from a Tesla-led pool in 2025 to meet EU emissions regulations, Reuters reports. The company is aiming to reduce its carbon footprint amid challenges in increasing its electric vehicle sales, which currently stand at 14% of its European sales, below the EU target of 21%. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Novo Nordisk’s STRIDE trial found Ozempic (1 mg) improved maximum walking distance by 13% in adults with type 2 diabetes and symptomatic PAD over 52 weeks. It outperformed the placebo on all key measures. Serious adverse events were comparable between groups, with no treatment-related deaths. Findings were presented at ACC and published in The Lancet. (The Lancet)

Volvo Cars (VOLCARB SS) - Volvo Cars has appointed Hakan Samuelsson as CEO and President for a two-year term, starting April 1st. Samuelsson, who served as CEO from 2012-2022, helped reposition Volvo as a global premium brand and oversaw its public listing. He was also Chairperson of Polestar until 2024. (Newswires)

Wartsila (WRT1V FH) - Co. separates its Energy segment into two reporting segments: Energy and Energy Storage, and introduces new financial targets. "Effective from 1 April 2025, Wärtsilä will have three reporting segments: Wärtsilä Marine, Wärtsilä Energy, and Wärtsilä Energy Storage." (Wartsila)

BROKER MOVES

US

CLOSES: SPX -1.96% at 5,581, NDX -2.61% at 19,281, DJI -1.69% at 41,584, RUT -2.05% at 2,024.

SECTORS: Communication Services -3.81%, Consumer Discretionary -3.27%, Technology -2.43%, Industrials -2.04%, Financials -1.94%, Materials -1.73%, Consumer Staples -0.46%, Energy -0.44%, Health -0.28%, Real Estate -0.01%, Utilities +0.76%.

Apple (AAPL), SpaceX - Apple and SpaceX are in a clash over satellite communication services, WSJ reports. Apple is pushing forward with its satellite-based service to ensure connectivity in areas lacking traditional wireless signals, while SpaceX’s Starlink already operates over 550 satellites for cellphone connectivity. The rivalry has intensified as Musk has lobbied for delays in Apple’s expansion efforts, particularly around spectrum rights, despite both companies relying on satellite technology for future goals, the report adds. (WSJ)

31 Mar 2025 - 06:49- Geopolitical- Source: Newsquawk