Newsquawk Daily European Equity Opening News - 8th July 2025

ASIA

APAC stocks mostly traded with cautious gains as participants digested the latest trade-related developments including US President Trump's tariff letters to 14 countries so far including Japan, South Korea, South Africa, and Thailand with tariff rates ranging between 25%-40% and warnings against retaliation, although he also signed an Executive Order to delay the tariff deadline to August 1st. ASX 200 was indecisive as strength in tech and gold producers offset the losses in defensives, while an improvement in NAB Business Confidence was met with little fanfare as participants awaited the RBA rate decision which ultimately disappointed as the central bank defied the broad consensus for the first back-to-back cut since the pandemic, and instead decided to pause on rates through a 6-3 majority vote. Nikkei 225 recouped initial losses as recent currency weakness helped investors shrug off the tariff-related news with Japan facing a 25% tariff which is slightly higher than the 24% rate announced on Liberation Day. Hang Seng and Shanghai Comp were underpinned with the PBoC to support more onshore investors to invest in offshore bonds, while it will also expand the Bond Connect to include Chinese brokers, funds, wealth managers and insurers.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +1.03% at 5,343, Dax 40 +1.06% at 24,041, FTSE 100 -0.19% at 8,807, CAC 40 +0.35% at 7,723, FTSE MIB +0.74% at 39,914, IBEX 35 +0.62% at 14,059, PSI -0.57% at 7,733, SMI -0.17% at 11,953, AEX +0.61% at 914

SECTORS: Financials 1.43%, IT 1.43%, Industrials 1.03%, Consumer Disc 0.68%, Materials 0.17%, Telecoms 0.12%, Consumer Stpl -0.21%, Healthcare -0.76%, Utilities -0.86%, Energy -1.90%.

FTSE 100

Carnival (CCL LN) - Upsizing and pricing of a USD 3bln note offering. (Newswires)

Rio Tinto (RIO LN) - Final CEO candidates are to present to the board in London this week, should be "open to big M&A deals and cost cuts", via Reuters citing sources. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Flutter (FLTR LN) resumed with Buy at Jefferies

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

BNP Paribas (BNP FP) - Co. is adapting its governance in order to strengthen its integrated model and the cross-functionality between its businesses in the perspective of its future strategic plan. (Newswires)

Carrefour (CA FP) - Co. and Cooperative U unveil Concordis, a new buying alliance within Europe. To increase the purchasing competitiveness of partners by pooling volumes, to the benefit of customers. (Newswires)

LVMH (MC FP) - Co. is selling El Encanto, California. Its only US hotel. Sales is for USD 82mln. (Newswires)

OTHER FRENCH COMPANIES

Alstom (ALO FP) - Secured a EUR 2bln deal for the supply of 316 rail cars to NYC. Option for an additional 242 cars, valued at EUR 1.3bln. (Newswires)

Air France (AF FP) - KLM is to lend five full-time pilots as reservists to the Dutch Air Force to fly F-35 fighter jets, increasing cooperation with the defense ministry after criticism over poaching military aviators. (Bloomberg)

Ipsos (IPS FP) - Acquired Inmoment's healthcare division within Germany. (Newswires)

BROKER MOVES

PAN EUROPE

Auto Names - EU is looking into a possible deal on cars to offset US car exports against imports, according to Reuters citing EU sources. (Newswires)

Bper Banca (BPE IM) - CEO says Q2 and H1 results will be very positive, confirm FY guidance. Confident the 50% take-up threshold will be attained in the Pop Sondrio bid, via MF. (Newswires)

Energy Names - Exxon (XOM) expects Q2 earnings to be negatively impacted by USD 0.8-1.2bln from lower liquids prices and USD 0.3-0.7bln from lower gas prices vs Q1. The estimates reflect market dynamics and are not a comprehensive forecast of Q2 results, it said. Separately, Exxon Mobil made a second gas discovery in Cyprus’s offshore Block 10, boosting hopes for larger reserves as the country seeks to export gas to Egypt. (Newswires)

EU-China - A European business group in China criticised Beijing’s new restrictions on EU medical device makers, calling the measures retaliatory and escalating trade tensions. Jens Eskelund, president of the European Chamber, said the move undermines hopes for resolving longstanding issues and deepening EU-China economic ties. (Newswires)

Galp Energia (GALP PL) - Q2 Update: sales of oil products 1.9mln/T, +14% Q/Q; natgas sales 3.9TWh, -17% Q/Q; refining margin USD 6.10/bbl, +10% Q/Q. (Newswires)

Renewable Energy - US President Trump ordered stricter enforcement of clean energy tax rules, directing the Treasury to tighten definitions of project start dates and limit tax credit claims to projects with substantial construction underway, following cuts to solar and wind incentives in his USD 3.4tln budget bill. (Newswires)

Trade - US President Trump sent tariff letters to 14 countries, including Japan, South Korea, South Africa, and Thailand, with tariff rates ranging between 25%-40%. Trump also warned against retaliation, although he also delayed the tariff deadline to August 1st - leaving room for negotiation. It was separately reported that the EU will not be receiving a letter setting out higher tariffs from the US, according to Reuters citing EU sources. Additionally, the US reportedly offered the EU a 10% tariff deal with caveats, although negotiations are still fluid, with any trade agreement subject to final approval by US President Trump, according to POLITICO. (Newswires/Politico)

BROKER MOVES

SMI

Novartis (NOVN SW) - Received approval for Coartem as the first malaria treatment specifically for newborns and young infants. (Newswires)

UBS (UBSG SW) - Co. has granted "goodwill payments" to clients who have been hit by Trump trading losses, via FT. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.79% at 6,230, NDX -0.79% at 22,686, DJI -0.94% at 44,406, RUT -1.55% at 2,214

SECTORS: Consumer Discretionary -1.26%, Materials -1.04%, Energy -1.00%, Financials -0.95%, Health -0.87%, Communication Services -0.89%, Real Estate -0.81%, Technology -0.81%, Industrials -0.34%, Utilities +0.17%, Consumer Staples +0.11%

Figma IPO - Figma’s expected US IPO is attracting strong interest due to its 46% Y/Y Q1 revenue growth, high customer retention, and strong gross margins, Bloomberg reports. Analysts anticipate it will be valued among the top enterprise software companies, marking a rare software listing in a slow IPO market.

Samsung Electronics (SSNLF) - Samsung’s Q2 operating profit fell 56%, its first Y/Y decline since 2023, due to AI chip inventory write-downs linked to US export curbs to China. Samsung reported preliminary Q2 operating profit of KRW 4.6tln (exp. 6.2tln), Q2 preliminary revenue KRW 74.0tln (exp. 75.8tln). Its results highlight market share losses in memory amid AI disruption. It also announced a KRW 3.9tln share buyback alongside the report. Samsung said H1 earnings were hit by low utilisation in its non-memory chip business, US curbs on advanced AI chip sales to China, and inventory value adjustments; it expects H2 losses to narrow on improved non-memory chip demand. It added that customers are currently evaluating and receiving upgraded HBM chips.

08 Jul 2025 - 06:55- Research Sheet- Source: Newsquawk