Newsquawk Daily European Equity Opening News - 18th September 2026

APAC stocks were mostly higher as the region took impetus from the gains on Wall Street, where markets reversed the post-FOMC moves amid a Fed credibility boost and lower oil prices. ASX 200 lagged with the index range-bound trade as gains in tech and miners were counterbalanced by weakness in defensives, telecoms, energy and financials, while there were comments from RBA Governor Bullock that lowering inflation is essential and that the key question is whether the tightening in monetary policy to date will be sufficient to bring inflation back to the target in a reasonable time. Nikkei 225 rallied following the BoJ announcement to hike rates by 25bps, as widely expected, with the decision made by a 7-2 vote as Takaichi-appointed board members Asada and Sato dissented. The language from the central bank reaffirmed a hiking bias but didn't signal any major urgency, noting it will conduct monetary policy as appropriate from the perspective of sustainably and stably achieving the inflation target, while the latest inflation data from Japan printed softer-than-expected on all key metrics of the report. KOSPI advanced with tech stocks buoyed following the outperformance in the Nasdaq stateside, while South Korean President Lee ruled out sending troops to the Strait of Hormuz. Hang Seng and Shanghai Comp conformed to the broad positive mood, with reports noting that the US is expected to delay announcing excess manufacturing capacity tariffs till after the Trump-Xi summit, while MOFCOM said Chinese and US trade teams remain in close contact over negotiations on mutual tariff reductions covering USD 30bln. In addition, the PBoC conducted 7-day and 14-day reverse repo operations ahead of the National Day holidays in early October.

BoJ Policy Announcement - The BoJ hiked rates by 25bps to 1.25%, as expected, with the decision made by 7-2 vote as newly appointed board members Asada and Sato dissented. Although the statement pointed to further hikes, it was little changed from the prior statement, adding to the dovish reaction with markets possibly looking for more hawkish language. In an immediate reaction: USD/JPY rose 100 pips and has regained the 157.00 handle, JGBs saw two-way price action, Nikkei 225 gapped higher at the re-open and trades with gains of 1.7%.

Japanese Inflation - CPI (Aug YY) 1.9% vs. Exp. 2.0% (Prev. 1.9%); Core CPI (Aug YY) 1.7% vs. Exp. 1.8% (Prev. 1.8%); CPI Ex-Food and Energy (Aug YY) 1.9% vs. Exp. 2.0% (Prev. 1.9%).

CLOSES: Euro Stoxx 50 +0.94% at 6,325, DAX +0.77% at 25,733, CAC 40 +0.57% at 8,187, FTSE 100 +1.19% at 10,816, SMI +0.57% at 13,947, IBEX 35 +1.00% at 19,832, PSI +1.37% at 9,671, AEX +0.43% at 1,101.

Airtel Africa (AAF LN) - Co.'s Airtel Money is reportedly raising at least USD 800mln in the IPO, less than the previous target size of between USD 1.5-2bln, Bloomberg reports. (Bloomberg)

BP (BP/ LN) - Co. says it met with USW Local 7-1 reps and that while the Company and USW Local 7-1's elected leadership are still working on several key issues, conversations were constructive and the parties have agreed to meet again next Tuesday. (BP)

Shell (SHEL LN) - Co.-led LNG Canada Partners could reportedly approve an expansion of Canada’s first major LNG export terminal as early as October, Reuters reports. The project would double LNG Canada’s capacity to 28mln tonnes per year, the report added. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

OTHER GERMAN COMPANIES

Lufthansa (LHA GY) - Co. reappoints Grazia Vittadini, Dr. Till Streichert, and Dieter Vranckx to the Supervisory Board. (Lufthansa)

BROKER MOVES

Renk (R3NK GY) upgraded to Buy from Neutral at Goldman Sachs

Eiffage (FGR FP) - Co. wins a second contract, as part of the NSORe joint venture, for an offshore converter station in Germany. (Eiffage)

OTHER FRENCH COMPANIES

Vallourec (VK FP) - Co. announces that it has been selected by EnEarth to supply premium tubular solutions for the first phase of the Prinos CO(2) Carbon Storage project in Greece; no terms disclosed. (Vallourec)

BROKER MOVES

Orange (ORA FP) downgraded to Underweight from Equal Weight at Morgan Stanley

Soitec (SOI FP) upgraded to Overweight from Equal Weight at Barclays

BMPS (BMPS IM), Generali (G IM) - The two Cos have reportedly begun discussions on a possible insurance agreement, according to Il Sole 24 Ore. (Il Sole 24 Ore)

EU-UK Trade - UK Chancellor Healey is to urge Brussels on Friday to include the UK in ‘Made in Europe’ policy and will indicate that London is willing to negotiate to reach a ‘reset’ deal, according to FT. (FT)

Stellantis (STLAM IM/STLAP FP) - Unifor National President says strike action remains a possibility as Stellantis tells workers at its Toronto factory that it sees no long-term business case for making vehicles there. (Bloomberg)

BROKER MOVES

Nestle (NESN SW) - Co. notes Russia's presidential decree that places Nestlé Russia under temporary external administration. The Co. is assessing the situation and its options, while stating that they are committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees. (Nestle)

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Co. announces that Health Canada has granted marketing authorisation for Sandoz Semaglutide, a GLP-1 receptor agonist injection and a generic version of Ozempic. In other news, the Co. announces collaboration with mAbxience to expand patient access to life-enhancing biosimilar medicines; no terms disclosed. (Sandoz)

BROKER MOVES

Adecco (ADEN SW) upgraded to Neutral from Underperform at BofA

Straumann Holding (STMN SW) reinitiated with Buy at Berenberg

Novo Nordisk (NOVOB DC) - Novo entered a multi-target drug-discovery partnership with AI-focused Orbis Medicines worth up to USD 1.4bln to develop oral treatments for cardiometabolic diseases, Axios reports. The article states that the deal reflects broader pharmaceutical efforts to convert biologic medicines that typically require injections or infusions into more convenient and potentially lower-cost oral therapies. (Axios)

BROKER MOVES

Equinor (EQNR NO) upgraded to Buy from Neutral at BofA

Nokia (NOKIA FH) initiated with Buy at B. Riley Securities

CLOSES: SPX +1.14% at 7,638, NDX +1.73% at 29,447, DJI +0.61% at 51,783, RUT +0.55% at 2,875

SECTORS: Technology +2.20%, Consumer Discretionary +1.43%, Utilities +0.86%, Health +0.64%, Materials +0.62%, Communication Services +0.60%, Energy +0.55%, Real Estate +0.33%, Industrials +0.21%, Consumer Staples -0.01%, Financials -0.10%

Nucor (NUE) - Nucor shares fell 1.6% in extended trading after its Q3 earnings outlook came in below expectations, with higher costs, weaker raw materials earnings and the absence of prior-quarter one-off benefits weighing on the forecast. Sees Q3 EPS between 5.55-5.65 (exp. 6.20); expects Q3 earnings to rise sequentially in the steel mills and steel products segments, driven by higher average selling prices and stable or higher volumes, partly offset by higher costs. Raw materials earnings are expected to decline on lower pricing and shipments. Nucor noted Q2 steel mills earnings included USD 130mln of cash refunds related to prior raw material procurement costs, with no similar benefit expected in Q3. Corporate and eliminations expense is also expected to increase, reflecting the absence of the Helion valuation adjustment and intersegment profit eliminations broadly in line with Q2.

The dominant event in this wrap is the BoJ's expected 25bp hike with a dovish market read, a familiar pattern in gradual normalisation cycles: when a fully telegraphed move lands with an unchanged statement, the reaction runs through the currency rather than the rates market, and a stronger USD/JPY alongside a firmer Nikkei is the standard signature of a hike that delivered less hawkish language than positioning had priced. The two dissents from newly appointed board members are worth noting qualitatively, since on past occasions at this bank the composition and direction of dissents has been an early tell for the pace of the following meetings rather than for the immediate one. The softer-than-expected inflation prints across all key metrics, arriving alongside the hike, sharpen the question of whether the reaffirmed hiking bias survives the next few data rounds, and historically it is the governor's press conference framing and subsequent board commentary that have resolved that ambiguity. The wider session follows the usual post-FOMC sequence, with APAC taking its cue from a Wall Street reversal, tech-led gains in the KOSPI tracking the Nasdaq, and the ASX lagging on RBA rhetoric that keeps the sufficient-restriction question open. The follow-ons that matter are the BoJ press conference nuance, any shift in JGB front-end pricing once the initial two-way action settles, and whether the reported delay of US excess-capacity tariffs until after the Trump-Xi summit holds, since tariff timing has repeatedly dictated the tone in Chinese indices around these negotiations.