Newsquawk Daily European Equity Opening News - 3rd July 2025

ASIA

APAC stocks failed to sustain the mostly constructive handover from Wall St counterparts with sentiment in the region cautious as participants braced for the key US jobs data and digested Chinese Caixin Services and Composite PMIs. ASX 200 marginally declined amid weakness in telecoms, financials and the consumer sectors, while trade data showed a monthly contraction in Australian exports. Nikkei 225 lacked conviction in the absence of tier-1 data from Japan and following mixed rhetoric from BoJ's Takata, while US-Japan trade uncertainty lingered and trade negotiator Akazawa recently reiterated that an agreement which would hurt Japan's national interests for the sake of timing should not be made. Hang Seng and Shanghai Comp were ultimately mixed following Chinese PMI data in which Caixin Services PMI missed expectations but Caixin Composite PMI accelerated and returned to expansionary territory.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.72% at 5,321, Dax 40 +0.32% at 23,794, FTSE 100 -0.18% at 8,770, CAC 40 +0.99% at 7,738, FTSE MIB +0.53% at 39,771, IBEX 35 +0.33% at 14,037, PSI +0.51% at 7,633, SMI +0.26% at 11,979, AEX +0.15% at 911.

SECTORS: Materials 1.52%, Energy 1.40%, Consumer Disc 0.72%, Industrials 0.55%, IT 0.39%, Financials 0.15%, Healthcare -0.05%, Consumer Stpl -0.46%, Telecoms -0.52%, Utilities -1.34%.

FTSE 100

Barclays (BARC LN) - Richhard Satchwell appointed head of capital markets financing in APAC. (Newswires)

Glencore (GLEN LN) - Intends to enact a USD 1bln buyback plan after closing the Bunge/Viterra merger. (Newswires)

Standard Chartered (STAN LN) - Co. and Audax Financial Technology outline a strategic partnership, to generate USD 100mln in revenue over the next three years. (Newswires)

UK Stocks - UK PM Starmer said Rachel Reeves will be the Chancellor for years to come and will be the Chancellor at the next election. (BBC)

OTHER UK COMPANIES

Wood Group (WG/ LN) - Selected by MNREC to provide a feasibility study for the Khalza Buregtei Ree project within Mongolia. (Newswires)

BROKER MOVES

Rio Tinto (RIO LN) downgraded to Hold from Buy at Berenberg

DAX

Adidas (ADS GY)/Puma (PUM GY) - US-Vietnam final deal is still being worked on and is to be sealed "within coming weeks" with no numbers included on final tariff rates, while Vietnam will spend USD 8bln to purchase 50 Boeing (BA) aircraft and will buy USD 2.9bln in agriculture goods, according to Politico. (Politico)

Continental (CON GY) - Expects Q2 sales within the tyre division to fall slightly, adj. EBIT margin at the low-end of the FY guide. Lower top-line in the auto unit for Q2, adj. EBIT margin at the upper-end for FY. LVP has been less affected by tariffs than expected. Limited impact on tariffs on auto parts due to high share of compliant imports. China LVP seen higher by high single-digit in Q2, better than forecast. (Newswires)

E.ON (EOAN GY)/RWE (RWE GY) - German Chancellor Merz’s coalition rejected expanding discounted electricity tax relief to households and more companies, citing the need for "financial leeway." The 2025 budget draft eases levies only for larger manufacturers, farmers, and forestry, despite earlier pledges to cut electricity taxes to the European minimum for all consumers, Bloomberg reports. (Bloomberg)

Siemens (SIE GY) - Recently been notified by the US Commerce Department that export control restrictions on EDA Software & Technology to customers within China are no longer in place. (Newswires) Also lifted restrictions for Synopsys (SNPS), and Cadence (CDNS)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - To sell more A330neo jets to Malaysia airlines, via Reuters citing sources. Elsewhere, Airasia is nearing a deal for long-range narrowbody jets, via Bloomberg. (Newswires)

Air France KLM (AF FP) - KLM has made a wage proposal to all unions, a one-off EUR 1k payment in 2025 and a structural increase of up to 2.5% as of July 2026. Depends on FY25 results. Collective bargaining talks will continue on July 10th. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Bper Banca (BPE IM) - AGCM has authorised the acquisition of BP Sondrio, contingent on the sale of six branches within 10 months. (Newswires)

European Firms - ECB officials question whether the euro has strengthened too much as policymakers at the central bank fret that a surging currency increases the risk of inflation undershooting, according to FT. Elsewhere, European Commission President von der Leyen is to face a European Parliament vote of no confidence on Thursday, although the vote is mainly symbolic as the majority of political groups have already signalled that they will vote against the motion of no confidence, according to officials cited by Politico. Separately, CEO's of large European firms have sent an open letter to the European Commission calling for them to halt its landmark AI act and enact a two-year pause, via FT. (FT/Politico)

Tariffs - Most investors expect bargain hunters to buy dips around the July 9th US tariff deadline, with nearly two-thirds of 168 survey respondents believing this will be profitable. Just over half anticipate President Trump will postpone the tariff increases again, easing market concerns, the latest Markets Pulse survey showed. (Bloomberg)

BROKER MOVES

BE Semiconductor (BESI NA) downgraded to Equalweight from Overweight at Barclays

Endesa (ELE SM) downgraded to Underperform from Neutral at BNP Paribas

Enel (ENEL IM) downgraded to Neutral from Outperform at BNP Paribas

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novartis (NOVN SW) - Phase III GCAPTAIN study of Cosentyx in giant cell arteritis did not meet the primary endpoint of sustained remission at week 52 versus placebo. Novartis will complete a full data evaluation and share results at a later date. (Novartis)

BROKER MOVES

US

CLOSES: SPX +0.47% at 6,227, NDX +0.73% at 22,642, DJI -0.02% at 44,484, RUT +1.31% at 2,226

SECTORS: Energy +1.70%, Materials +1.33%, Technology +1.30%, Consumer Discretionary +0.76%, Real Estate +0.16%, Industrials +0.10%, Communication Services +0.07%, Consumer Staples -0.01%, Financials -0.10%, Utilities -0.87%, Health -0.97%.

S&P 500 (SPX) - Following Hewlett Packard Enterprise’s (HPE) acquisition of Juniper Networks (JNPR) on July 2nd, Datadog (DDOG) will join the S&P 500, replacing Juniper, effective before market open on July 9th.

Elevance Health (ELV) - Shares of Elevance Health fell 11.5% Wednesday after peer Centene (CNC) pulled its own guidance, but rose over 2% in extended trading following the announcement of Q2 results release on July 17th, with a management outlook call.

03 Jul 2025 - 06:45- Data- Source: Newsquawk