Newsquawk Daily European Equity Opening News - 5th May 2025

ASIA

APAC stocks were ultimately mixed in holiday-thinned trade with most major markets in the region shut including in Japan, South Korea, China and Hong Kong, while tariff concerns lingered after 25% tariffs on auto parts took effect on Saturday and President Trump announced a 100% tariff for foreign films but had also noted a willingness to lower tariffs on China at some point because the levies now are so high that the world's two largest economies have essentially stopped doing business with each other. ASX 200 was led lower by weakness in the energy sector following a decline in oil prices due to the OPEC+ decision for another accelerated oil output increase, and with the top-weighted financial sector also hit post-Westpac's earnings, while the landslide victory by Australian PM Albanese's Labor party had little impact. TAIEX retreated with Taiwan-listed US Treasury ETFs heavily pressured amid headwinds from the recent surge in the local currency.

BHP Group (BHP AT) - BHP's JV partner Lundin Mining announced that the Filo del Sol copper project in South America is the largest copper discovery in 30 years, containing at least 13mln tons of copper, along with significant gold and silver. Drilling continues, and the deposit's size is expected to grow. (Newswires)

Chinese Trade - Beijing weighs fentanyl offer to US to start trade talks, according to WSJ sources. US President Trump said he is willing to lower tariffs on China at some point because the levies now are so high that the world's two largest economies have essentially stopped doing business with each other, although he also noted that he would need to keep at least some tariffs on foreign goods in place to convince businesses to move production to the US, according to Bloomberg and Axios citing an interview with NBC News. (WSJ / NBC News)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +2.39% at 5,284, DAX +2.49% at 23,057, CAC 40 +2.33% at 7,770, FTSE 100 +1.17% at 8,596, SMI +1.18% at 12,260, FTSE MIB +1.92% at 38,328, IBEX 35 +1.20% at 13,447, PSI -0.38% at 6,966, AEX +2.25% at 898

SECTORS: IT 3.78%, Industrials 3.10%, Consumer Disc 1.93%, Materials 1.63%, Financials 1.62%, Healthcare 1.55%, Consumer Stpl 0.62%, Energy 0.49%, Telecoms 0.11%, Utilities -0.84%

FTSE 100 - CLOSED

Drax (DRX LN) - Co. invested about USD 130mln in its North American operations. (Newswires)

Shell (SHEL LN) / BP (BP/ LN) - Shell Plc is evaluating a potential acquisition of BP, and is working with advisers to assess the deal’s feasibility, Bloomberg reports. However, Shell is waiting for further declines in stock and oil prices before deciding whether to proceed with a bid, according to sources. Talks are at an early stage, and Shell may decide to go for share buybacks and bolt-on acquisitions instead. The Bloomberg report suggests that talks have been more serious in recent weeks than it had been before. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

DAX

BMW (BMW GY) - The Guardian writes that the Co. has ended 180 agency staff contracts at its Mini factory in the UK, amid global economic uncertainty. (The Guardian)

OTHER GERMAN COMPANIES

BROKER MOVES

Adidas (ADS GY) initiated with Overweight at Piper Sandler

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Autos & Parts - US President Trump’s 25% tariffs on engines, transmissions and other key auto parts took effect on Saturday. (Newswires)

Trade - US President Trump answered no but China and our people are talking about different things when asked if he plans to speak with Chinese President Xi this week, while he replied could well be when asked if any trade deals are coming this week. Says: He wants a fair trade deal with China. Meeting with many countries, including China, on trade deals.

Italian Car Sales - April Italian new car sales rose 2.71% M/M; Stellantis (STLAM IM/STLAP FP) -0.12% Y/Y. (Reuters)

Media names - US President Trump posted that he is "authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands". (Newswires)

Oil Prices - WTI crude down around 4% following the OPEC+ decision to raise output over the weekend and with warnings of further supply. (Newswires)

Sports Retailers - Nike, Adidas, Skechers and others urged President Trump to exempt footwear from new tariffs, warning they threaten the industry’s viability, risk inventory shortages, and will not bring manufacturing back to the US, CNBC reports. (CNBC)

BROKER MOVES

Adyen (ADYEN NA) reiterated with Buy at Goldman Sachs

SMI

OTHER SWISS COMPANIES

SoftwareOne (SWON SW) - Announced two days remaining in final offer period under recommended voluntary share and cash offer for Crayon. (Newswires)

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - US FDA accepts application for Novo-Nordisk's oral Semaglutide 25mg, which if approved, would be the first oral GLP-1 treatment for obesity. (Newswires)

Ratos (RATOB SS) - Q1 (SEK): Adj. EBITDA 474mln (exp. 486mln). (Newswires)

Skanska (SKAB SS) - Secures a SEK 880mln contract in Sweden. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.43% at 5,684, NDX +1.60% at 20,103, DJI +1.39% at 41,319, RUT +2.18% at 2,019

SECTORS: Communication Services +2.35%, Financials +2.17%, Industrials +1.83%, Materials +1.68%, Health +1.45%, Energy +1.42%, Real Estate +1.25%, Technology +1.18%, Consumer Discretionary +1.18%, Utilities +0.75%, Consumer Staples +0.61%.

Big Banks - Fed supervision chief nominee Michelle Bowman plans to review confidential ratings after criticising the Fed for labelling two-thirds of major banks unsatisfactory in 2024, despite their financial strength, WSJ reports; she is expected to favour lighter regulation if confirmed as Vice Chair for Supervision. (WSJ)

Berkshire Hathaway (BRK.B) - Warren Buffett will step down as Berkshire Hathaway CEO at year-end and recommend Greg Abel as successor, telling shareholders he will retain all his shares as he believes the company’s prospects are stronger under Abel’s leadership. Meanwhile, the firm reported Q1 operating earnings USD 9.64bln (vs 11.22bln Y/Y), Q1 revenue USD 89.73bln (vs 89.87bln Y/Y). Q1 net profit fell 63% Y/Y to USD 4.67bln, with EPS of USD 2.13 (exp. 4.72). Cash holdings rose to USD 347.68bln. Insurance investment income rose +11% despite wildfire losses; Geico pre-tax profit rose 13%. Berkshire warned it cannot reliably predict the impact of 2025’s shifting tariffs and trade policies, citing potential adverse effects on most operating businesses and equity investments due to rising costs and uncertain demand. (Newswires)

05 May 2025 - 06:42- EquitiesResearch Sheet- Source: Newsquawk