Apr 07 ,2025
Synopsis
European equity markets indicated to open lower, extending last week's heavy losses that saw STOXX Europe 600 slump (8.4%) as markets reacted negatively to US President Trump's "Liberation Day" reciprocal tariffs. In the US, it was also the worst week for the S&P 500, Nasdaq, and Russell 2000 since Mar-20. S&P 500 and Nasdaq futures down another 3-4%.
Asian equities seeing steep losses Monday. Hang Seng (11.8%) leading heavy declines across China markets with tech sector down (16%). Taiwan also in bear market with TSMC limit down. Nikkei circuit breaker triggered before open, though off worst levels. ASX and Kospi also down sharply. Recall there was a flurry of China announcements in response to last week's reciprocal tariffs. Main headline was a 34% tariff on US imports effective 10-Apr with no exemptions. China stimulus expectations rise with tariffs weighing on growth and earnings outlook.
Trade war fears continue to overhang markets. No signs of de-escalation from weekend tariff headlines with Trump and White House officials dismissing market volatility. Multiple countries voicing willingness to talk with some offering trade concessions. However, unclear whether it will be enough with Trump again talking about tariffs as structural measure to rebalance trade and provide new source of government funding.
European macro data releases out today include Germany Feb trade balance, Norway Feb manufacturing production, UK Mar house price index - Halifax, Eurozone Apr investor confidence - Sentix, Feb retail sales
In central banks, Bank of Italy's Scotti speech at 9:50CET at the conf (through Tue) on "The interplay between tax and financial regulations in a new digital environment", panellists include ECB's Cipollone at 11:45. In politics, meeting of EU Foreign Council on Trade. Polish President Duda pays 3-day visit to Estonia (through Wed). Norway's minister of defense Sandvik has a bilateral meeting with Iceland's minister of foreign affairs Gunnarsdóttir. In UK, MPs hold a general debate on road maintenance, whilst committee topics include work of the Dept. for Business and Trade at 15:00BST. EU's Kallas begins a 2-day trip in Montenegro, then too Albania, Bosnia and Herzegovina on Tue. With six weeks to go until Portugal's general election, tv debates kick-off on TVI at 21:00CET (Montenegro (AD) x Raimundo (CDU)) and RTP3 at 22:00 (Ventura (Chega) x Real (PAN)).
Politics/Macro/World News
Trump tariffs risk large euro-area 'demand shock', central banker warns -- FT
France suggests targeting Big Tech's data use in response to US tariffs -- POLITICO
Starmer Vows Steps to Bolster UK Business Against Tariff Threat -- Bloomberg
ECB's Schnabel Says Trump's Onslaught May Mark End of Free Trade -- Bloomberg
China Discusses Accelerating Stimulus to Counter Trump Tariffs -- Bloomberg
Bill Ackman warns Trump is losing business leaders' confidence -- Reuters
EV targets watered down to help tariff-hit UK car industry -- FT
Top company news
Earnings/updates
AKRBP.NO (Aker BP) -- reports Q1 net production 441.4 mboepd vs quarter-ago 449.2
LSG.NO (Lerøy Seafood Group) -- issues Q1 trading update; total harvest volume of salmon and trout (ex-Scottish Seafarm, GWT) 38.2K vs year-ago 26.4K
HAUTO.NO (Höegh Autoliners) -- March trading update: transported 1.3M cbm of cargo on prorated basis
CLAS.B.SS (Clas Ohlson) -- reports Mar sales +17% to SEK814M; +19% organic
AV.IM (Antares Vision) -- presents 2025-27 business plan; targets adj. EBITDA margin between 20-21% in 2027
Also reporting today
Trading Update: Repsol (REP.SM), Shell (SHEL.LN)
CMD/events: ACOMO (ACOMO.NA), Ion Beam Applications (IBAB.BB)
M&A
SRT3.GR (Sartorius) -- Sartorius to acquire microtissue business MatTek from BICO AB for $80M (~€72M)
ENGI.FP (ENGIE) -- EVSE to acquire Engie's EV fast-charging business in Australia and New Zealand - Australian Financial PSM.GR (ProSiebenSat.1 Media) -- ProSiebenSat.1 lines up defence advisers amid takeover bid from MFE-MediaForEurope - Reuters
AZE.BB (Azelis Group) -- acquires 100% of shares of Solchem Nature S.L. in Spain; terms undisclosed
BSGR.NA (B&S Group) -- divests Lagaay Medical Group and non-strategic liquor activities (
ANIM.IM (Anima Holding SpA) -- Banco BPM offer for Anima Holding SpA reaches 89.94%
DEZ.GR (Deutz AG) -- to acquire UMS; terms not disclosed
DLAR.LN (De La Rue) -- close to concluding £300M sale of authentication arm to Crane NXT - Sky News
BICO.SS (BICO Group) -- BICO to divest MatTek to Sartorius for $80M
Multiple factors behind negative sentiment in data centre space - The Australian
Healthcare
BAYN.GR (Bayer AG) -- announces filing of petition to US Supreme Court for review of Durnell Roundup case
RYTM (Rhythm Pharmaceuticals) -- to host call on 7-Mon at 8:00 ET; announce topline results from pivotal Phase 3 TRANSCEND trial evaluating setmelanotide in patients with acquired hypothalamic obesity
BIM.FP (bioMerieux) -- obtains CE-marking of LUMED APSS, an advanced clinical decision support system designed to enhance antimicrobial stewardship programs and improve patient outcomes
YPSN.SW (Ypsomed Holding) -- Ypsomed and Sidekick Health launch a collaborative digital health solution for obesity management
Other
ERIC.B.SS (Telefonaktiebolaget LM Ericsson) -- SEC filing: SCHEDULE 13D/A (Filed by INVESTOR AB)
AIR.FP (Airbus SE) -- EVA Airways places firm order for six A350-1000s, three A321neos
RWE.GR (RWE) -- won government development consent for 1.2GW Rampion 2 wind project off UK coast
TKA.GR (ThyssenKrupp) -- s to terminate the supply contract with Hüttenwerke Krupp Mannesmann
ABF.LN (Associated British Foods) -- Issues at Primark could lead to spinoff from Associated British Foods - Mail on Sunday
SREN.SW (Swiss Re) -- to be appointed as co-investment manager of GAM's catastrophe bond and ILS fund range
G.IM (Assicurazioni Generali) -- ISS recommends Generali investors vote to give CEO Philippe Donnet another term at 24-Apr general meeting - Reuters
TGS.NO (TGS-NOPEC Geophysical Co.) -- secures OBN 3D contract offshore Trinidad
Estimated weekend box office revenues in US, Canada $195.8M, +128.9% y/y - Box Office Mojo
Executive compensation and living wages at UK retailers targets of recent shareholder resolutions (4-Apr)
Howmet Aerospace declares force majeure; may halt shipments due to Trump tariffs - Reuters
Large institutional investors evaluating options to discard stakes in illiquid private equity funds following market rout - FT
Key rating changes
Upgrades
SAVE.SS (Nordnet) -- to buy from hold at Pareto
Downgrades
AUTO.NO (AutoStore Holdings) -- to neutral from buy at Citi
NOD.NO (Nordic Semiconductor) -- to hold from buy at Pareto
TEL.NO (Telenor) -- to hold from buy at Pareto
BNP Paribas Exane downgrades ACX.SM, APAM.NA
Both
Barclays upgrades MNDI.LN; downgrades HOLM.B.SS, STERV.FH
Data
Nikkei (6.76%) to 31497.98
Hang Seng (11.83%) to 20147.15
Shanghai Composite (7.08%) to 3105.47
S&P futures (178.0) vs prior close of 5110.3
€-$ +0.0124 or +1.14% to 1.1010
$-¥ +0.25 or +0.17% to 145.73
€-¥ +2.11 or +1.33% to 160.44
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