Newsquawk Daily European Equity Opening News - 4th June 2025

ASIA

APAC stocks traded mostly higher following the gains on Wall St where sentiment was lifted by better-than-expected JOLTS data and with some slight optimism with US President Trump and Chinese President Xi reportedly set to speak this Friday. ASX 200 was led higher by outperformance in the energy sector and with participants unfazed by recent data releases including the miss on Q1 GDP. Nikkei 225 advanced at the open following recent currency weakness but with further upside capped by a lack of drivers. KOSPI outperformed and is on course for a bull market following the Presidential Election which was won by the DP's Lee Jae-Myung who was later sworn in. Hang Seng and Shanghai Comp conformed to the positive mood but with gains capped as China remained quiet regarding a potential Trump-Xi call.

EUROPEAN CLOSES

CLOSES: DAX: +0.64 % at 24,083, Euro Stoxx 50: +0.34 % at 5,374, FTSE 100: +0.15 % at 8,787, CAC 40: +0.34 % at 7,764, IBEX 35: -0.52 % at 14,128, PSI: +0.41 % at 7,456, FTSE MIB: +0.23 % at 40,074,  SMI: +0.31 % at 12,236.

SECTORS: IT 1.45%, Energy 1.22%, Industrials 0.75%, Financials 0.05%, Consumer Stpl 0.00%, Telecoms -0.23%, Consumer Disc -0.25%, Healthcare -0.38%, Utilities -0.45%, Materials -0.62%

FTSE 100

Rolls Royce (RR/ LN) - USD 24mln investment in Mankato and Minnesota that will more than double production and create jobs. (Newswires)

Reckitt (RKT LN) - Co. reportedly eyes new options to advance essential home assets sale; some bids for Home Care unit were below expectations of over GBP 4bln, via Reuters citing sources. Reckitt still plans to pursue sale of essential home. (Reuters)

Lloyds (LLOY LN) - Co. executive, Jo Harris, who was in charge of garnering "mass affluent" customers, has left the bank. (FT)

OTHER UK COMPANIES

BROKER MOVES

IG (IGG LN) downgraded to Neutral from Buy at UBS

DAX

Bayer (BAYN GY) - Bayer received FDA approval for Nubeqa to treat metastatic and non-metastatic castration-sensitive prostate cancer, supported by Phase 3 trial results which showed a 46% reduction in risk of progression or death. Elsewhere, FDA approved Darolutamide for metastatic castration-sensitive prostate cancer. (Newswires)

German Autos - Germany's VDA says China's rare earth curbs could halt auto output, cause production delays and outages. (Newswires)

German Tax - Germany is said to be seeking to pass a package of EUR 46bln in corporate tax breaks, according to FT. (FT)

OTHER GERMAN COMPANIES

Thyssekrupp (NCH2 GY) - Co. signs feed study for a 600 MW green hydrogen project in Europe. (Newswires)

BROKER MOVES

DHL (DHL GY) upgraded to Buy from Neutral at Citi; bank says the market underestimates the EBIT margin opportunity as volumes recover.

Gerresheimer (GXI GY) downgraded to Hold from Buy at Berenberg

CAC

Airbus (AIR FP) - China is said to be mulling ordering hundreds of Airbus jets in a major deal, according to Bloomberg sources; potentially up to 500 aircrafts. (Bloomberg)

Carrefour (CA FP) - Initiates sale of 7% of Carmila Capital via ABB. (Newswires)

Renault (RNO FP) - A Dutch car sharing Co. has added 500 Renault EVs to its fleet, via Reuters. (Reuters)

Remy Cointreau (RCO FP) - FY (EUR): Adj. EPS 2.49 (exp. 3.85), Revenue 984.6mln (prev. 1.19bln Y/Y); withdraws FY29/30 guidance citing tariffs and US market/macro context. To propose an ordinary dividend of EUR 1.50/shr. Guides initial FY25/26 revenue "return to mid-single-digit growth". (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

A2A (A2A IM) - Starts share buyback program of maximum EUR 10mln. (Newswires)

Defence Names - Trump expected to waive statutory requirements under defense production act to help boost domestic production critical minerals and weapons, according to Reuters citing a document Trump expected to waive requirement for congressional approval for projects above USD 50mln threshold. (Newswires)

EU-China - EU Trade Chief and China counterpart are to hold a fourth round of trade talks in June ahead of the July EU-China summit. Elsewhere, EU Chamber of Commerce in China held several meetings with China's Commerce Ministry, reportedly "senses Beijing is overwhelmed with applications to export the minerals vital for many hi-tech goods", via SCMP citing the Chamber's secretary general Dunnet "Emergency meetings" were held in recent days, after expressions of anxiety across European industry. (Newswires/SCMP)

Mediobanca (MB IM) - One of the largest investors, Caltagirone, urges bank's board to postpone June 16 shareholders meeting. (Newswires)

Snam (SNAM IM) - Co. extends MoU with Slovakian operator to enhance security of natural gas supplies. Focuses on energy access, regasification, storage capacity in Italy, and transport capacity from Italy to Slovakia via Austria's Tarvisio exit point. (Newswires)

Steel Names - US President Trump's order to increase steel and aluminium tariffs to 50% has taken effect, aside from the UK. (Newswires)

Voestalpine (VOE AV) - FY24/25 (EUR): Revenue 15.7bln (prev. 16.7bln Y/Y), EBITDA 1.3bln (prev. 1.7bln Y/Y).

BROKER MOVES

ASR Nederland (ASRNL NA) downgraded to Neutral from Overweight at JPMorgan

NN (NN NA) upgraded to Overweight from Neutral at JPMorgan

SMI

Roche (ROG SW) - EU approves Co's room-temp Evrysdi tablet for SMA. (Newswires)

SGS (SGSN SW) - Acquires H2Safety; no terms disclosed. (Newswires)

Sika (SIKA SW) - Invests in Giatec Scientific, a leader in AI-driven digital concrete technology. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Equinor (EQNR NO) - Several companies have filed a lawsuit against Trump's latest decision to allow construction to resume on Empire Wind. Reminder: Equinor is developing this project.

BROKER MOVES

US

CLOSES: SPX +0.59% at 5,970, NDX +0.80% at 21,662, DJI +0.51% at 42,519, RUT +1.58% at 2,102.

SECTORS: Technology +1.48%, Energy +1.11%, Materials +0.97%, Industrials +0.76%, Consumer Discretionary +0.31%, Utilities +0.22%, Health +0.19%, Financials +0.18%, Consumer Staples -0.15%, Real Estate -0.39%, Communication Services -0.75%.

US-China - US President Trump is reportedly set to speak with Chinese President Xi on Friday, according to sources. It was also reported that White House Press Secretary said the Trump-Xi call will be held very soon. (Newswires)

Boeing (BA) - The Pentagon plans to prioritise the Air Force’s F-47 stealth fighter programme over the Navy’s next-generation jet, citing risks of delays if both proceed simultaneously. It requested Congress to reallocate USD 500mln to the F-47, awarded to Boeing in March, from the Navy’s accelerated stealth fighter development budget.

CrowdStrike (CRWD) - CrowdStrike shares fell 6.5% in extended trading after issuing weaker-than-expected revenue guidance. Q2 adj. EPS 0.73 (exp. 0.65), Q2 revenue USD 1.10bln (exp. 1.10bln). Announced a share repurchase authorisation of up to USD 1bln. Sees Q2 adj. EPS between 0.82-0.84 (exp. 0.82), and Q2 revenue between USD 1.14-1.15bln (exp 1.16bln). Raises its FY26 EPS outlook to between 3.44-3.56 (prev. saw 3.33-3.45; exp. 3.44), and affirms its FY26 revenue view between USD 4.74-4.81bln (exp. 4.78bln).

Hewlett Packard Enterprise (HPE) - Shares gained 4.6% in extended trading after it reported top- and bottom-line beats, and solid guidance. Q2 adj. EPS 0.38 (exp. 0.32), Q2 revenue USD 7.63bln (exp. 7.44bln). The company noted strong sales growth and expects reduced tariff impact for the rest of the year. Sees Q3 revenue between 8.2-8.5bln (exp. 8.2bln), and sees Q3 adj. EPS between 0.40-0.45 (exp. 0.41).

S&P 500 target - Barclays lifts its S&P 500 end-2025 price target to 6050 (prev. 5900)

04 Jun 2025 - 06:57- Geopolitical- Source: Newsquawk