Newsquawk Daily European Equity Opening News - 5th June 2025

ASIA

APAC stocks were mixed after the choppy performance in US where markets digested disappointing data and a drop in yields. ASX 200 struggled for direction following mixed data including the latest trade figures and household spending for Australia. Nikkei 225 retreated amid headwinds from recent currency strength and following softer-than-expected Labour Earnings. Hang Seng and Shanghai Comp were somewhat varied as tech and property names led the outperformance in Hong Kong, while the mainland was contained following mixed Caixin PMI data and as participants wait and see if a Trump-Xi call will materialise this week.

China Autos - China is drafting mandatory national safety rules for driver assistance systems after a fatal Xiaomi (XIACY) SU7 accident, aiming to tighten regulations on the rapidly evolving technology, BBG reports. The China Automotive Technology & Research Centre (CATARC), Dongfeng Motor Group (DNFGY), and Huawei are involved in the rule-making process. (Bloomberg)

Chinese Data - Chinese Caixin Composite PMI (May) 49.6 (Prev. 51.1); Services PMI (May) 51.1 vs. Exp. 51.0 (Prev. 50.7)

Nintendo (7974 JT) - Nintendo Switch 2 has launched. The FT writes that it has sold out at global launch. (FT)

EUROPEAN CLOSES

CLOSES: DAX: +0.80 % at 24,276, FTSE 100: +0.14 % at 8,799, CAC 40: +0.53 % at 7,805, Euro Stoxx 50: +0.55 % at 5,405, AEX: +0.40 % at 924, IBEX 35: -0.21 % at 14,090, FTSE MIB: -0.08 % at 40,044, SMI: +0.47 % at 12,293, PSI: -0.49 % at 7,420

SECTORS: Healthcare 0.99%, Materials 0.98%, IT 0.91%, Industrials 0.88%, Consumer Stpl 0.74%, Telecoms 0.56%, Consumer Disc 0.49%, Utilities 0.12%, Financials -0.16%, Energy -1.43%

FTSE 100

Deliveroo (ROO LN) - Deliveroo has launched an autonomous drone food delivery service in Dublin through a partnership with Irish firm Manna Drones. The service will initially test drone deliveries in some west Dublin suburban areas to evaluate its effectiveness in serving these locations. (Newswires)

Glencore (GLEN LN) - Cobalt Holdings, backed by Glencore, has cancelled its planned USD 230mln IPO in London, which was set for June 5th. The IPO aimed to raise funds for an initial cobalt purchase from Glencore and cover storage costs. (Newswires)

UK Pensions - UK is to unveil pension reform aimed at boosting retirement savings with the parliamentary bill to be presented on Thursday set to include a reserve power that could force schemes to invest more in Britain, according to FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

Ferguson (FERG LN) downgraded to Hold from Buy at Berenberg

DAX

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Received an order for 56 MW from UMAAG for a repowering project in Germany. (Newswires)

ThyssenKrupp (TKA GY) - Board member says it will spin off 49% of defence division TKMS to shareholders. (Newswires)

BROKER MOVES

Bayer (BAYN GY) upgraded to Buy from Neutral at Goldman Sachs Shares +2.8% in pre-market trade

CAC

L'Oreal (OR FP) - Co. reportedly set to seal a EUR 1bln deal for Skincare brand Medik8, via FT. (FT)

STMicroelectronics (STM FP) - Italy plans to strengthen semiconductor company STMicroelectronics rather than break it up, Industry Minister Adolfo Urso said. The government aims to support STMicro on the international stage amid ongoing global chip industry challenges.

OTHER FRENCH COMPANIES

SES (SESG FP) - Co. won unconditional EU antitrust approval for a USD 3.1bln Intelsat deal, via Reuters citing sources. (Reuters)

BROKER MOVES

Air France (AIR FP) downgraded to Neutral from Buy at Citi

PAN EUROPE

Bper Banca (BPE IM) - Morningstar DBRS upgrades bank's long-term issuer rating to BBB (High); changes trend to Stable. (Newswires)

European Financials - A group of European countries, led by France and Spain, is launching the "Finance Europe" label to channel more retail investor savings into European capital markets, Bloomberg writes. The initiative aims to deepen integration and accelerate progress in Europe’s capital market union by certifying certain financial products, boosting investor confidence and cross-border investment.

Luxury - PVH (PVH) shares fell 7.4% in extended trading after it lowered guidance. See US section below for details.

Santander (SAN SM) - Co. appointed Manuel Preto as new Chief Accounting Officer. (Reuters)

Poste Italiane (PST IM) - Co. begins fourth tranche of share buyback of up to EUR 56mln. (Newswires)

US-EU Trade - US President Trump is to meet with German Chancellor Merz at 11:45EDT/16:45BST this Thursday. (Newswires)

UniCredit (UCG IM) - Co. says that the European Commission authorises under foreign subsidies regulation UniCredit's bid for Banco BPM (BAMI IM). (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.01% at 5,970, NDQ +0.27% at 21,722, DJI -0.22% at 42,427, RUT -0.21% at 2,098

SECTORS: Communication Services +1.36%, Materials +0.35%, Real Estate +0.34%, Technology +0.23%, Health +0.22%, Industrials +0.09%, Consumer Discretionary -0.23%, Financials -0.56%, Consumer Staples -0.59%, Utilities -1.70%, Energy -1.89%

Amazon (AMZN) - Amazon is developing AI software for humanoid robots that could replace delivery workers, according to The Information. It is building a test facility in San Francisco and plans to use third-party hardware in trials. The initiative is part of broader AI-driven logistics upgrades.

Apple (AAPL) - Apple lost a US appeals court bid to pause a judge’s order requiring it to allow more App Store competition, Reuters reports. The court upheld an April ruling that Apple violated a prior injunction, including imposing a 27% fee on external purchases. Epic’s CEO called it the end of the "Apple tax." (Reuters)

Boeing (BA) - Boeing entered a Non-Prosecution Agreement with the DOJ on May 29th, resolving issues from a 2021 Deferred Prosecution Agreement breach. Boeing faces a USD 487.2mln criminal penalty, including USD 444.5mln compensation to victims’ families, must invest USD 455mln in compliance and safety, retain an independent compliance consultant, and maintain enhanced internal controls. The two-year NPA protects Boeing from further prosecution if obligations are met.

Costco (COST) - Costco May sales results showed comparable (ending June 1st) ex-gas/FX were +5.5% in the US (prev. 7.1%), +6.3% in Canada (prev. 5.0%), +8.4% international (prev. 6.5%), for a total +6.0% (prev. 6.7%).

Citigroup (C) - Citi will cut 3,500 tech jobs in China by Q4 as part of a global restructuring to streamline tech operations and improve risk and data management, Reuters reports. Some roles will shift to other locations. Citi will retain around 2,000 staff in China post-cuts and continues efforts to build a local securities unit.

DoorDash (DASH), Grubhub (GRUB), Uber (UBER) - Uber Eats, DoorDash, and Grubhub agreed to settle their 2021 lawsuit against New York City over restaurant delivery fee caps. The companies will drop the case once NYC finalises legal adjustments, with terms due by December 31st, according to a filing.

PVH Corp. (PVH) - Shares fell 7.4% in extended trading after it lowered guidance. Q1 adj. EPS 2.30 (exp. 2.25), Q1 revenue USD 1.984bln (exp. 1.93bln). Sees Q2 adj. EPS 1.85-2.00 (exp. 2.46), with revenue growth in low single digits. Cut FY25 EPS view to 10.75-11.00 (exp. 12.52; prev. saw 12.40-12.75), but backed FY25 revenue view of flat to slightly up. Exec said its updated outlook includes a net negative impact from current US tariffs, with an unmitigated hit of around USD 1.05/share, partially offset by mitigation efforts, and a positive USD 0.10/share benefit from FX translation. (Newswires)

Nvidia (NVDA) - Nvidia director Mark Stevens has sold over 1mln shares this week, raising nearly USD 150mln across two transactions on Monday and Tuesday, as the stock rebounds after a slow start to 2025, Bloomberg reports.

05 Jun 2025 - 07:01- Data- Source: Newsquawk