Newsquawk Daily European Equity Opening News - 9th April 2025

ASIA

APAC stocks were mostly lower following the dead cat bounce on Wall St and as reciprocal tariffs took effect overnight including a total 104% tariff on China. ASX 200 was dragged lower by underperformance in health care and miners with the former pressured after US President Trump stated that he will be announcing tariffs on pharmaceuticals soon. Nikkei 225 spearheaded the declines in Asia and fell beneath the USD 32,000 level amid currency strength and ongoing tariff woes with a report noting that tariffs could potentially reduce Japanese companies' earnings by up to 10%. Hang Seng and Shanghai Comp were mixed as the Hong Kong benchmark conformed to the losses in the region, while the mainland traded indecisively and was somewhat cushioned following recent stabilisation measures and expected policy support.

Japan - Japan's BoJ, MOF, FSA hold meeting to discuss international financial markets at 08:00BST

TSMC (2330 TT) - Co. could face a USD 1bln or more fine from the US probe of Huawei AI chip. (Newswires)

China - Goldman Sachs says continued tariff escalation between US and China presents a downside risk to current 2025 full-year real GDP forecast of 4.5% for China. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +2.36% at 20,256, FTSE 100: +2.71% at 7,911, CAC 40: +2.50% at 7,100, Euro Stoxx 50: +2.86% at 4,789, AEX: +2.82% at 824, IBEX 35: +2.38% at 12,067, FTSE MIB: +2.44% at 33,657, SMI: +3.12% at 11,389, PSI: +2.80% at 6,438

SECTORS: Industrials 3.54%, Consumer Disc 2.80%, Consumer Stpl 2.74%, Healthcare 2.53%, Materials 2.45%, Utilities 1.63%, Energy 0.87%, Financials 0.00%, IT 0.00%, Telecoms 0.00%                         

FTSE 100

Anglo American (AAL LN), Peabody Energy Corp (BTU) - Peabody Energy is reviewing its USD 3.78bln acquisition of Anglo American’s Australian coal assets following an underground fire at the Moranbah North mine, Reuters reports. The deal, signed in 2024, was due to close mid-2025. Peabody remains in talks with Anglo and potential investors while preserving its contractual rights. Elsewhere, Anglo American Chile CEO said Chile needs to speed up its permitting processes to expand copper mining ahead of an impending supply gap. (Reuters)

Shell (SHEL LN) / BP (BP/ LN) - Trinidad and Tobago's PM says US licenses for gas projects with Venezuela were revoked, while the PM is requesting meetings with the US government to discuss licenses and tariffs. (Newswires)

UK Tariffs / Businesses - UK Chancellor Reeves is to hold talks with the bosses of several financial companies to discuss the fallout of US President Trump's tariffs; bosses from Hargreaves Lansdown (HL/ LN), Legal & General (LGEN LN), Lloyds (LLOY LN) and M&G (MNG LN) are amongst those attending.

OTHER UK COMPANIES

BROKER MOVES

Airtel Africa (AAF LN) upgraded to Overweight from Neutral at JP Morgan

Rio Tinto (RIO LN) downgraded to Equal Weight from Overweight at Morgan Stanley

Schroders (SDR LN) downgraded to Underweight from Equal Weight at Morgan Stanley

DAX

German politics - Germany's CDU/CSU and SPD parties reach agreement on coalition, via NTV. (NTV)

OTHER GERMAN COMPANIES

BROKER MOVES

Adidas (ADS GY) upgraded to Buy from Hold at HSBC

K+S (SDF GY) initiated with Neutral at BNP Paribas

CAC

Technip Energies (TE FP) - Co. awarded major contract for Blue Point Number One ATR; contract represents above EUR 1bln of revenue. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Trade - US tariffs take effect today (Apr 9) including a total 104% tariff on China. US Treasury Secretary Bessent says on trade negotiations: Already had 70 inquiries, believes there is going to be more, Trump would like to hold off longer, but they have had so many responses about trade that they are starting negotiations right now. US President Trump says they are taking USD 2bln in a day from tariffs, doing well on tailored tariff deals, Japan is flying to the US to make a deal, so is South Korea; reiterates tariffs are on. Says at NRCC dinner we have a lot of countries coming to see us wanting to make a deal, adds tariff situation is a good situation and it is very important to pass the big beautiful bill. Says China is manipulating its currency in offset against tariffs, adds we will be announcing tariffs on pharmaceuticals soon. US President Trump's reciprocal tariffs on dozens of countries take effect. (Newswires)

Chip names - ASML (ASML NA) shares are indicated lower by 7% in pre-market trade.

Eni (ENI IM) - Mozambique government approves Eni's second floating LNG platform. (Newswires)

Mining / Copper - Goldman Sachs expects copper to drop to a monthly average low of USD 8.3k/T in Q3-2025. Forecast a 100k/T surplus in 2025 (prev. exp. 180k/T deficit). Forecasts skewed to downside given risks to demand. (Newswires)

Pharma - US President Trump said he will be announcing tariffs on pharmaceuticals soon. (Newswires) 

Santander (SAN SM) - Co. is considering options for the potential sale of its Polish unit which is worth roughly USD 8bln, according to Bloomberg citing sources. (Bloomberg)

WDP (WDP PP) - Launched over EUR 100mln of new pre-let development projects. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Castellum (CAST SS) - CEO Sjoberg has informed the Board that he wishes to step down in 2026. (Newswires)

EQT AB (EQT SS), KKR & Co. (KKR) - KKR is nearing a deal to acquire Swedish consumer-health firm Karo Healthcare from EQT AB for over EUR 2.5bln, after outbidding rival private equity firms, Bloomberg reports. Terms are being finalised, with an announcement expected this week, sources said. (Bloomberg)

Nokia (NOKIA FH) - Co. has sued Acer (2353 TT) and Asus (2357 TT) in the US over video streaming patent disputes. (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.57% at 4,983, NDX -1.95% at 17,090, DJI -0.84% at 37,646, RUT -2.57% at 1,764.

SECTORS: Materials -2.96%, Consumer Discretionary -2.54%, Energy -2.48%, Real Estate -2.46%, Technology -2.17%, Consumer Staples -1.35%, Communication Services -1.25%, Health -1.06%, Industrials -0.89%, Utilities -0.48%, Financials -0.41%.

09 Apr 2025 - 06:44- Research Sheet- Source: Newsquawk