Newsquawk Daily European Equity Opening News - 5th September 2025

ASIA

APAC stocks mostly took their cues from the gains on Wall Street where participants digested soft labour metrics and dovish Fed speak ahead of today's NFP report. ASX 200 was led higher by outperformance in real estate, tech and consumer discretionary, although gains were capped with the commodity-related sectors, consumer staples and utilities at the other end of the spectrum. Nikkei 225 rallied at the open and briefly returned to above the 43,000 level after US President Trump signed an Executive Order to officially implement the US-Japan trade deal in which the US will apply a baseline 15% tariff on nearly all Japanese imports, although some of the gains were pared amid a firmer yen and an acceleration in Labour Cash Earnings. Hang Seng and Shanghai Comp conformed to the constructive mood following recent tech-related support pledges by Beijing and with DeepSeek targeting an AI agent release by year-end, while reports also noted the PBoC may inject reasonably ample liquidity this month and that cities in China are said to examine new tactics to buy unsold homes.

Chinese chips - Anthropic is to stop selling AI services to majority Chinese-owned groups and is trying to limit the ability of Beijing to use its technology to benefit China’s military and intelligence services, according to FT. (FT)

US-Japan - White House says Japan is working toward expedited implementation of a 75% increase of US rice procurements; US will apply baseline 15% tariff on nearly all Japanese imports

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.37% at 5,345, Dax 40 +0.81% at 23,787, FTSE 100 +0.42% at 9,217, CAC 40 -0.27% at 7,699, FTSE MIB +0.49% at 41,990, IBEX 35 +0.87% at 14,918, PSI +1.32% at 7,749, SMI +1.54% at 12,388, AEX +1.34% at 900.

SECTORS: Telecoms 1.76%, IT 1.74%, Financials 1.10%, Consumer Stpl 0.97%, Industrials 0.46%, Utilities 0.41%, Healthcare 0.11%, Energy 0.06%, Materials -0.01%, Consumer Disc -0.45%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Admiral (ADM LN) downgraded to Sell from Reduce at Peel Hunt

DAX

BMW (BMW GY) - CEO speaking on sales, said, "we are ahead of last year’s numbers as of August" and noted of growth particularly in Europe. Elsewhere, he called the EU's 2035 combustion engine ban as a "big mistake". (Newswires)

Commerzbank (CBK GY) - Co. says Morgan Stanley holds 5.19% (prev. 2.89%) total voting rights in Commerzbank as of Sept 1. (Newswires)

OTHER GERMAN COMPANIES

E.ON (EOAN GY) - Co. to sell Czech Gas Distribution Network to GasNet; no terms. (Newswires)

BROKER MOVES

HelloFresh (HFG GY) resumed with Hold at Stifel

CAC

Kering (KER FP) - Francois-Henri Pinault will step down as CEO of Gucci owner Kering SA, handing control to Luca de Meo, a former automotive executive, on September 15th, Bloomberg reports. Pinault remains chairman and will guide strategy but has pledged not to interfere with the new CEO. (Bloomberg)

Safran (SAF FP) - Co. is said to be mulling selling a "large portion" of aircraft interiors business for as much as EUR 1.5bln, via FT; though sources added that its cabin seat business was not for sale. (FT)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

BROKER MOVES

ASML (ASML NA) upgraded to Buy from Neutral at UBS; PT of EUR 750 (prev. EUR 660); analysts cite recent underperformance, and notes that the "overhang" from China is well understood by investors.

SMI

Roche (ROG SW) - New data for Roche's Vabysmo reinforce its efficacy, safety and durability in neovascular or “wet” age-related macular degeneration (nAMD). Elsewhere, Roche receives CE IVDR approval for HER2 (4B5) companion diagnostic test to identify HER2-ultralow breast cancer and biliary tract cancer patients. (Globe Newswire / Newswires)

Temenos (TEMN SW) - Jean-Pierre Brulard will be stepping down from their role of CEO, effective immediately; Takis Spiliopoulos, the current CFO, will become an interim CEO. (Newswires)

Citigroup (C), UBS Group (UBSG SW) - Units of Citigroup and UBS agreed to pay USD 8.3mln to settle CFTC claims over compliance violations, including recordkeeping and reporting lapses. The penalties are part of the regulator’s “enforcement sprint” initiative, aimed at quickly resolving cases that do not involve market abuse or customer harm. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Hexagon (HEXAB SS) - Co. agrees the sale of its Design & Engineering business to Cadence (CDNS) for EUR 2.7bln; deal is expected to close in Q1'26. (Newswires)

Storebrand (SKT NO) - Appointed new CFO as of 17th Sept. (Newswires)

Orsted (ORSTED DC) - Cuts midpoint FY25 adj. EBITDA DKK 24-27bln (prev. saw 25-28bln, exp. 26.07bln). Co. cites lower-than-normal offshore wind speeds during July and August; does not expect to impact Orsted's medium-term targets. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.83% at 6,502, NDX +0.93% at 23,633, DJI +0.77% at 45,621, RUT +1.26% at 2,380.

SECTORS: Consumer Discretionary +2.25%, Communication Services +1.12%, Industrials +1.09%, Financials +1.00%, Real Estate +0.64%, Energy +0.60%, Technology +0.55%, Health +0.36%, Materials +0.23%, Consumer Staples +0.09%, Utilities -0.16%

Broadcom (AVGO) - Broadcom’s shares rose 6% in afterhours trading after it issued Q4 revenue guidance above expectations, and announced a new large AI customer, while CEO Hock Tan confirmed he will remain in the role until at least 2030. Q3 adj. EPS 1.69 (exp. 1.66), revenue USD 15.95bln (exp. 15.82bln). Q3 AI revenue +63% Y/Y at USD 5.2bln; adj. EBITDA +30% Y/Y at USD 10.7bln, free cash flow USD 7.02bln. Q3 semiconductor solutions revenue USD 9.17bln (exp. 9.1bln), Q3 semiconductor revenue USD 5.2bln (exp. 5.1bln). Returned USD 2.8bln to shareholders via dividends. Broadcom will help OpenAI design and produce AI accelerators from 2026; the firms plan to ship the first chips next year, initially for OpenAI’s internal use, marking a direct challenge to Nvidia’s (NVDA) dominance in the AI chip market. Sees Q4 revenue around USD 17.4bln (exp. 17.01bln), Q4 adj. EBITDA at around 67% of revenue, and Q4 AI semiconductor revenue at USD 6.2bln (exp. 5.82bln). CEO Tan confirmed tenure through 2030 and expects stronger AI sales in FY26.

Lululemon (LULU) - Lululemon shares plunged more than 16.5% in afterhours trading after the company issued full-year guidance well below expectations, citing a $240 million tariff impact and the removal of the de minimis exemption. Q2 EPS 3.10 (exp. 2.90), Q2 revenue USD 2.50bln (exp. 2.55bln), Q2 comp sales +1%. Exec said it was navigating industry-wide challenges, including higher tariff rates. CEO said that while it reported strong international momentum in Q2, it underperformed in the US, due to product execution issues; added that management is addressing merchandise mix and operational improvements, and expressed confidence in long-term growth prospects, and the steps underway to accelerate business performance. Sees Q3 EPS USD 2.18-2.23 (exp. 2.86) and sees Q3 revenue between USD 2.47bln-2.50bln (exp. 2.55bln). Lowers FY EPS guidance to between USD 12.77-12.97 (exp. 14.65, prev. saw 14.58-14.78) and sees FY revenue between USD 10.85bln-11.0bln (exp. 11.22bln, prev. saw 11.15-11.3bln).

Microsoft (MSFT) - CEO Satya Nadella sold 149.2K shares on September 3rd for a total USD 75.3mln.

05 Sep 2025 - 06:50- Research Sheet- Source: Newsquawk