Newsquawk Daily European Equity Opening News - 8th April 2025

ASIA

APAC stocks were mostly positive as markets regained some composure and bounced back from the recent tariff turmoil. ASX 200 advanced with tech and energy leading the broad-based gains across sectors which helped participants shrug off the weaker-than-previous consumer sentiment and business confidence surveys. Nikkei 225 surged at the open and reclaimed the 33,000 level after the recent aggressive selling and with Japan said to get priority in trade talks following a call between Japanese PM Ishiba and US President Trump. Hang Seng and Shanghai Comp conformed to the improved risk appetite as Chinese state-owned funds and regulators announced efforts to stabilise markets, although gains were capped after US President Trump threatened an additional 50% tariff on China if it doesn't withdraw its 34% tariff increase against the US by today.

China Equities - China Chengtong, a state investment firm, announced plans to buy CNY 80bln worth of stocks and ETFs to support market stability. The firm aims to increase its holdings in state-owned and tech companies, expressing strong optimism about the future growth prospects of China’s capital market. Similarly, China Guoxin, another state holding company, will also invest CNY 80bln in stocks and ETFs. State fund Huijin affirmed its role as a market stabiliser, and said it was ready to act when necessary; it noted China A-shares' low valuations and attractive core assets, and intends to increase its allocation in Chinese stocks.

Samsung Electronics (005930 KS) - Prelim. Q1 (KRW) oper. profit 6.6tln (exp. 5.1tln), rev. 79tln (exp. 76.7tln). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -4.26% at 19,762, FTSE 100: -4.38% at 7,702, CAC 40: -4.78% at 6,927, Euro Stoxx 50: -4.31% at 4,668, AEX: -4.76% at 801, IBEX 35: -5.14% at 11,783, FTSE MIB: -5.18% at 32,854, SMI: -4.95% at 11,039, PSI: -5.63% at 6,262

SECTORS: IT -3.86%, Consumer Stpl -4.04%, Telecoms -4.28%, Consumer Disc -4.46%, Financials -4.46%, Industrials -4.52%, Healthcare -4.56%, Materials -4.63%, Energy -5.43%, Utilities -5.76%

FTSE 100

Glencore (GLEN LN) - After reaching an agreement with the Government, indigenous groups in Peru have stopped their blockade of Glencore's Antapaccay copper mine. (Newswires)

Hiscox (HSX LN) - Sky News reports that the Co. has narrowed its search for a new Chairman candidate, including TP ICAP's (TCAP LN) Berliand. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

Hays (HAS LN) upgraded to Equal Weight from Underweight at Morgan Stanley

DAX

Infineon (IFX GY) - Infineon will acquire Marvell’s (MRVL) automotive ethernet unit for USD 2.5bln in cash, aiming to expand its microcontroller segment, Reuters reports. The unit is expected to generate USD 225–250mln revenue in 2025, with around 60% gross margin. Infineon will finance the deal with new debt. Closing is expected this year. (Newswires) Infineon (IFX GY) +4.3% in pre-market trade

OTHER GERMAN COMPANIES

Hugo Boss (BOSS GY) - Frasers (FRAS LN) holds 49.79% (prev. 39.84%) total voting rights in Hugo Boss. (Newswires)

Traton (8TRA GY) - Co. warns that it expects the North American truck market to shrink by around 10% amid the recent US tariff proposals; this would take it to lower end of its FY forecasted range, via Reuters citing an analyst note. (Reuters)

BROKER MOVES

CAC

Vinci (DG FP) - Signs first PPP contract for electricity transmission in Australia; project to deliver 4.5 GW capacity by 2028. (Newswires)

OTHER FRENCH COMPANIES

Vallourec (VK FP) - Received a major OCTG notice of award from Sonatrach in Algeria; expected to result in greater than USD 250mln in revenues. (Newswires)

BROKER MOVES

PAN EUROPE

Trade - Treasury Secretary Scott Bessent says they are at a maximum tariff level; Through good negotiations all they will see is tariffs come down, via FBN's Lawrence. US Treasury Secretary Bessent says he has not seen a trade offer from Japan; expects Japan to get priority in negotiations because they came forward early, via FBN Interview. US President Trump says virtually every country wants to negotiate on tariffs. US President Trump says they are making tremendous progress with a lot of countries on tariffs. US President Trump says EU brought their car tariffs essentially off; very hard to compete against countries lowering currency. EU Commission proposes 25% tariff on US goods to take effect from May 16th, according to Reuters citing a document.  It also removes US bourbon from its list of goods to face counter-tariffs. China MOFCOM says China strongly opposes 50% additional tariffs and urges resolution of disputes with United States via dialogue. (Newswires / Reuters)

Argenx (ARGX BB) - argenx highlights VYVGART data at AAN 2025 setting new standard in sustained efficacy and improved quality of life measures for patients living with gMG and CIDP. (argenx)

Eni (ENI IM) - Co. says group looking at potential new sales of upstream assets after recent deal with Vitol, recent sale of assets in Ivory Coast and Congo has drawn interest from many investors. (Newswires)

Repsol (REP SM) - Q1 estimated production 540k bpd. (Newswires)

OMV (OMV AV) - Q1 refining indicator margin in Europe at USD 6.65/bbl. Total hydrocarbon production 310 boepd (exp. 304k boepd). (Newswires)

Stellantis (STLAM IM/STLAP FP) - Co. says it has briefed suppliers on tariff-cost assistance plan and is to offer to help suppliers pay tariff costs, via Bloomberg. (Bloomberg)

SNAM (SRG IM) - Signs agreement to acquire 24.99% of Open Grid Europe; deal has an equity value of EUR 920 and is expected to be completed by Q3'25. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Amrize completed a USD 3.4bln bond offering ahead of its planned North American spin-off. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Skanska (SKAB SS) - Improves State road in San Diego for USD 102mln. (Newswires)

BROKER MOVES

Pandora (PNDORA DC) downgraded to Neutral from Overweight at JP Morgan

US

CLOSES: SPX -0.23% at 5,062, NDX +0.19% at 17,431, DJI -0.91% at 37,666, RUT -0.92% at 1,810

SECTORS: Real Estate -2.4%, Materials -1.66%, Utilities -1.53%, Consumer Staples -1.18%, Energy -0.94%, Health -0.6%, Consumer Discretionary -0.54%, Industrials -0.44%, Financials -0.15%, Technology +0.32%, Communication Services +1.03%.

Apple (AAPL) - Reportedly plans to send more iPhones to the U.S. from India to offset the high cost of China tariffs, via WSJ citing sources. (WSJ)

Broadcom (AVGO) - Broadcom's Board authorised a USD 10bln share repurchase programme, effective through December 31st. Shares rose 3.2% in afterhours trading.

GameStop (GME) - GameStop CEO Ryan Cohen purchased 500K shares on April 3rd for a total USD 10.8mln. (Newswires)

Levi Strauss (LEVI) - Levi Strauss shares rose +7.4% in extended trading after it reported a Q1 earnings beat, and affirmed its guidance. Q1 adj. EPS 0.38 (exp. 0.28), Q1 revenue USD 1.53bln (exp. 1.54bln); Q1 DTC revenue +9% reported (+12% organic), e-commerce +13% reported (+16% organic), wholesale -3% reported (+5% organic). By region, DTC growth in the US was +8%, Europe +11%, Asia +14%. Execs cite strong margin expansion, e-commerce momentum. Exec said it was operating in an uncertain environment, but its global footprint, strong margin structure, agile supply chain positions it to navigate the balance of the year and beyond. Exec said customers were gravitating toward more premium products, and its efforts to accelerate performance in e-commerce was working. It said that its strong momentum continued through March. Sees Q2 EPS between 0.11–0.13 (exp. 0.17), and sees Q2 organic revenue growth between +3.5–4.5%. Reaffirms FY25 EPS outlook at between 1.20–1.25 (exp. 1.25) and revenue growth view of +3.5–4.5%. Guidance excludes any impact from the recent tariff announcements. (Newswires)

08 Apr 2025 - 06:49- EquitiesResearch Sheet- Source: Newsquawk