Newsquawk Daily European Equity Opening News - 3rd June 2025

ASIA

APAC stocks traded mostly higher as the region took impetus from the rebound on Wall St but with gains capped following disappointing Chinese Caixin Manufacturing data and as trade uncertainty lingered. ASX 200 edged higher amid strength in mining stocks but with further upside limited as defensives lagged and after mixed data releases including a surprise contraction in net exports contribution to GDP. Nikkei 225 kept afloat but lacked firm conviction after recent currency fluctuations and after a deluge of comments from BoJ Governor Ueda who reiterated they will continue to raise interest rates if the economy and prices move in line with forecasts, but also noted there was no preset plan for rate hikes and that they will raise interest rates only if the economy and prices turn up again and outlooks are likely to be realised. Hang Seng and Shanghai Comp were underpinned after the US reportedly extended the tariff pause on some Chinese goods to August 31st, while the White House Press Secretary stated that US President Trump and Chinese President Xi will likely talk this week, although the upside was restricted in the mainland given the lack of confirmation by Beijing regarding Trump-Xi talks and as participants also digested disappointing Caixin Manufacturing PMI data which showed its first contraction in eight months and printed its weakest since September 2022.

Chinese data - Chinese Caixin Manufacturing PMI Final (May) 48.3 vs. Exp. 50.6 (Prev. 50.4). (Newswires)

EUROPEAN CLOSES

BOURSES: DAX: -0.21 % at 23,946, FTSE 100: +0.02 % at 8,774, CAC 40: -0.19 % at 7,737, Euro Stoxx 50: -0.26 % at 5,353, AEX: -0.50 % at 918, IBEX 35: +0.36 % at 14,203, FTSE MIB: -0.26 % at 39,984, SMI: -0.10 % at 12,215, PSI: +0.50 % at 7,426.

SECTORS: Energy 1.32%, Healthcare 0.38%, Financials 0.19%, Materials 0.11%, Utilities 0.08%, Industrials -0.35%, Telecoms -0.44%, Consumer Stpl -0.59%, IT -0.89%, Consumer Disc -0.94%

FTSE 100

Telecoms - The FT reports that TalkTalk has been making late payments to BT's Openreach (BT/ LN) and CityFibre in the past few months, in amounts worth millions. (FT)

OTHER UK COMPANIES

Spirent (SPT LN) - According to a filing, the US requires Keysight (KEYS) to divest its tech assets and resolve antitrust concerns before it purchases Spirent. (Newswires)

BROKER MOVES

easyJet (EZJ LN) upgraded to Outperform from Sector Perform at RBC

GSK (GSK LN) downgraded to Hold from Buy at Berenberg

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

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Air Liquide (AI FP) - Signs a long term gas supply agreement with VSMC to support Singapore's semiconductor industry; will invest around EUR 70mln. (Newswires)

Airbus (AIR FP) - Reuters sources suggest that Airbus delivered 51 airplanes in May, -4% Y/Y. This would bring total deliveries this year to around 243 aircrafts, -5% Y/Y. (Newswires)

Legrand (LR FP) - Acquires Linkk Busway Systems to strengthen data centre in Asia; no terms. (Newswires)

Sanofi (SAN FP) - Rilzabrutinib has been granted orphan drug designation within the US for sickle cell disease. (Newswires)

Vinci (DG FP) - Co. acquired Peter Bros in Canada. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Trade - US President Trump's administration wants countries' "best offer" by Wednesday in tariff talks, according to Reuters. Elsewhere, White House Press Secretary said US President Trump and Chinese President Xi will likely talk this week. (Newswires)

Arcadis (ARCAD NA) - Won digital asset management contract. (Newswires)

Bpost (BPOST BB) - FY Outlook (EUR): adj. EBIT 150-180mln. 2027: EBIT recovery to above 275mln. Intends to pursue a progressive dividend policy. Near-term, debt reduction has priority over M&A. (Newswires)

Confinimmo (COFB BB) - Agrees to merge with Aedifica (AED BB). Combination will be through exchange offer by Aedifica at an exchange ratio of 1.185 new Aedifica shares for each Confinimmo share. (Newswires)

EU-China - China Chamber of Commerce to the EU warned that the EU’s restrictions on Chinese medical device makers' access to government contracts will damage trade relations, Bloomberg reports. The group expressed "profound disappointment" over the EU's use of trade tools to limit Chinese companies' participation in public procurement. (Newswires)

Metal Names - Alleima (ALLEI SS) says it will not absorb costs from US tariffs and plans to raise prices instead, targeting specific industries, Bloomberg reports. (Newswires)

STOXX 600 - Composition Changes (June 2, 2025). Additions: Babcock (BAB LN), Lottomatica (LTMC IM), Indra (IDR SM), Lion Finance (BGEO LN), Bilfinger (GBF GY), Fresnillo (FRES LN), mBank (MBK PW), Ayvens (AYV FP), Mobimo (MOBN SW). Deletions: GN Store Nord (GN DC), Comet (COTN SW), Elekta (EKTAB SS), Safestore (SAFE LN), TietoEvery (TIETO FH), Husqvarna (HUSQB SS), Electrolux (ELUXB SS), Fugro (FUR BB), PlayTech (PTEC LN). (STOXX).

BROKER MOVES

ASML (ASML NA) downgraded to Equal Weight from Overweight at Barclays; PT cut to EUR 650 (prev. 700).

ASM International (ASM NA) upgraded to Overweight from Equal Weight at Barclays

SMI

ABB (ABBN SW) - Co. acquires Bel Products in North America; no terms. (Newswires)

Julius Baer (BAER SW) - Medium-term targets (2028): net money improvement of 4-8%, return on adj. CET1 of at least 30%; adj. cost/income ratio improving to under 67%. To implement further efficiency measures, totalling as much as CHF 130mln. Extended gross savings target. (Newswires)

Roche (ROG SW) - Genentech reported positive Phase III IMforte results showing Tecentriq plus lurbinectedin cut progression or death risk by 46% and death risk by 27% versus Tecentriq alone in first-line maintenance for extensive-stage small cell lung cancer; safety profile consistent with known data. (Roche)

Sika (SIKA SW) - Co. and Sulzer (SUN SW) have signed an MoU to establish a JV; each to hold 50% stake in the Co. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

UBS (UBSG SW) upgraded to Buy from Hold at Jefferies

SCANDINAVIA

Genmab (GMAB DC) - New data showed that rinatabart sesutecan (Rina-S®) 100 mg/m2 led to a confirmed objective response rate (ORR) of 50.0 percent, including two complete responses (CR), and median duration of response (mDOR) was not reached after a median follow-up of 7.7 months. (Genmab)

BROKER MOVES

US

CLOSES: SPX +0.41% at 5,936, NDX +0.71% at 21,492, DJI +0.08% at 42,305, RUT +0.19% at 2,070.

SECTORS: Energy +1.15%, Technology +0.89%, Communication Services +0.61%, Materials +0.48%, Consumer Staples +0.19%, Utilities +0.18%, Consumer Discretionary +0.15%, Financials +0.08%, Real Estate +0.07%, Health +0.01%, Industrials -0.24%

Alaska Air (ALK) - Alaska Air CEO expects weak domestic fares to persist into Q3 due to industry-wide excess capacity, which is depressing ticket prices and yields. Despite this, Alaska anticipates being solidly profitable in 2025.

US-Iran - The US nuclear deal proposal allows limited low-level uranium enrichment for a set period, contradicting earlier demands for full dismantlement, Axios reports. It includes strict monitoring, halting new facilities and centrifuge research. Sanctions relief depends on compliance. Iran is reviewing the offer, which risks opposition from Israel and some US lawmakers, the report said. However, US President Trump stated on Truth Social that under the proposed agreement, the US "will not allow any enrichment of uranium" by Iran, emphasising a hard stance despite reports suggesting limited enrichment might be permitted in the deal.

Merck (MRK) - Merck made a nonbinding offer to acquire Swiss biotech MoonLake for over USD 3bln, aiming to strengthen its pipeline ahead of Keytruda’s patent expiry, FT reports. The approach was rejected, but talks may resume the report adds. MoonLake’s lead drug is in phase-three trials.

Philip Morris (PM) - Ahead of its presentation at Deutsche Bank today, PM backed its FY adj. EPS view between USD 7.36-7.49, and GAAP EPS between 7.01-7.14, reaffirming its announcement made in April.

Uber Technologies (UBER) - Uber promoted Andrew Macdonald to president and COO, its first COO since 2019, following the departure of delivery head Pierre-Dimitri Gore-Coty, Bloomberg reports. Macdonald will now oversee both mobility and delivery units, as well as advertising, customer support, and autonomous vehicle strategy.

03 Jun 2025 - 06:56- Data- Source: Newsquawk