Newsquawk Daily European Equity Opening News - 20th March 2026

APAC stocks were mostly subdued but with downside limited as the region reacted to the recent oil swings, deluge of central bank meetings and mixed geopolitical headlines, while conditions were thinned with the absence of Japanese participants due to the Vernal Equinox holiday. ASX 200 was dragged lower by weakness in the materials and commodity-related sectors, but with losses cushioned by strength in telecoms and defensives, while there were few fresh drivers overnight. Hang Seng and Shanghai Comp were following disappointing earnings results from the likes of Alibaba and CK Hutchison, with the former posting a 67% drop in Q3 net, which also weighed on other tech names. Furthermore, the PBoC's reiteration to continue implementing a moderately accommodative monetary policy and to use RRR and MLF to ensure sufficient stability did little to inspire, while China's Loan Prime Rate were unsurprisingly kept unchanged for the 10th consecutive month.

CLOSES: Euro Stoxx 50 -2.10% at 5,616, Dax 40 -2.84% at 22,860, FTSE 100 -2.43% at 10,055, CAC 40 -2.03% at 7,808, FTSE MIB -2.42% at 43,661, IBEX 35 -2.38% at 16,887, PSI -2.06% at 8,947, SMI -2.39% at 12,454, AEX -2.24% at 978

SECTORS: Energy 2.77%, Utilities -1.53%, Telecoms -1.67%, Healthcare -1.91%, Consumer Stpl -2.19%, IT -2.27%, Financials -2.78%, Industrials -3.64%, Consumer Disc -3.65%, Materials -3.78%

BAE (BA/ LN) - The UK MoD is planning to push back major shipbuilding programs to make GBP 10bln worth of savings, the Times reports citing sources. A replacement program for six "Type-45" destroyers will be deferred by years, according to the report. (The Times)

BoE - Goldman Sachs now expects BoE to remain on hold throughout 2026 vs. prior forecast of quarterly cuts from July.

BP (BP/ LN) - On the Whiting refiner outlook, the Co. does not foresee impacts on operations or production. Adds, they remain willing to dialogue in good faith with union representatives to achieve sustainable agreements. (BP)

Rio Tinto (RIO LN) - Rio Tinto temporarily shut its Amrun and Andoom bauxite mines in Northern Queensland as tropical cyclone Narelle hit northeast Australia, affecting operations that produce about 30mln tons annually, Reuters reports. (Reuters)

Standard Chartered (STAN LN) - Standard Chartered and BSI Bank failed in Singapore High Court bids to join winding-up applications linked to 1MDB. Judge ruled that the banks could not intervene in the applications brought by four offshore companies because they did not meet the criteria as contingent creditors, Bloomberg reports. (Bloomberg)

Unilever (ULVR LN) - Unilever is in talks to separate its food business and combine it with McCormick (MKC) in an all-stock deal that could come within weeks, according to the WSJ. The remaining Unilever would focus on beauty, personal-care products and home. A deal could be reached by the end of the month, and would be structured as a Reverse Morris Trust (a tax-efficient M&A structure allowing a parent company to divest a subsidiary or business unit without triggering federal corporate taxes on the gains). (WSJ)

OTHER UK COMPANIES

BROKER MOVES

Bunzl (BNZL LN) downgraded to Equal Weight from Overweight at Barclays

Deutsche Bank (DBK GY) - Co. appoints Fabrizio Campelli as President. (Deutsche Bank)

OTHER GERMAN COMPANIES

BROKER MOVES

Lufthansa (LHA GY) downgraded to Sell from Neutral at Goldman Sachs

OTHER FRENCH COMPANIES

BROKER MOVES

ADP (ADP FP) upgraded to Buy from Neutral at UBS

Kering (KER FP) upgraded to Outperform from Underperform at Avior Capital Markets

ECB - Barclays forecasts the ECB to hike rates by 25bps each in April and June vs. previous hold outlook. Additionally, JPMorgan now expects the Bank to hike interest rates in April and July, versus a previous forecast of holding rates unchanged throughout the year.

European Banks - The ECB is looking for details of banks that lend to buyers to Significant Risks Transfers (SRTs), Bloomberg reports citing sources. This comes are part of an effort by the ECB to understand who is holding the risk of the instruments. (Bloomberg)

EU-India - India is considering real-time EUR foreign-exchange settlement at its international financial hub as EU-India trade talks advance. The International Financial Services Centres Authority has approached the government to allow use of the EUR alongside the USD for such settlements, according to Bloomberg. (Bloomberg)

BROKER MOVES

Novartis (NOVN SW) - Co. agrees with Synnovation Therapeutics to acquire SNV4818, a pan-mutant-selective PI3Kα inhibitor, exploring a next-gen approach for the treatment of patients with HR+/HER2- breast cancer and potentially other solid tumour indications. Deal would be USD 2bln upfront and up to USD 1bln in milestones, with it expected to close in H1'26. (Novartis)

OTHER SWISS COMPANIES

BROKER MOVES

Galderma (GALD SW) initiated with Outperform at Oddo Securities

Novo Nordisk (NOVOB DC) - The US FDA approved a higher dose of the Co.'s Wegovy injection, for weight loss and long-term maintenance of weight loss for certain adult patients. (FDA)

Skanska (SKAB SS) - Co. has signed a contract with Texas A&M to construct a new building on campus, worth about SEK 1.5bln. (Skanska)

Zealand Pharma (ZEAL DC) - Co. increases its share capital as a consequence of the exercise of warrants granted under one of Zealand Pharma's employee warrant programs. (Zealand Pharma)

BROKER MOVES

Neste (NESTE FH) upgraded to Buy from Accumulate at OP Corporate Bank

OMV (OMV AV) downgraded to Hold from Buy at Jefferies

CLOSES: SPX -0.27% at 6,607, NDX -0.29% at 24,355, DJI -0.44% at 46,022, RUT +0.65% at 2,495

SECTORS: Materials -1.55%, Consumer Discretionary -0.87%, Consumer Staples -0.84%, Industrials -0.67%, Communication Services -0.58%, Utilities -0.47%, Health -0.39%, Real Estate -0.23%, Technology unch, Financials +0.02%, Energy +1.48%.

Eli Lilly (LLY) - England’s drug price regulator must reconsider its decision not to recommend Eli Lilly’s Alzheimer’s drug donanemab for NHS use after Lilly won an appeal, Bloomberg reports. NICE will review its initial guidance that said the benefits of Kisunla did not justify the cost for the public health service. The drug is authorised in the UK and currently available only privately. (Bloomberg)

Super Micro Computer (SMCI), Nvidia (NVDA) - US prosecutors charged Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang and Ting-Wei “Willy” Sun with conspiring to divert US-assembled high-performance servers with Nvidia GPUs to China in violation of export controls. Liaw and Sun were arrested, while Chang remains a fugitive. The indictment identifies Liaw as a Super Micro Computer co-founder and executive. Super Micro said it is not named as a defendant in the export-control indictment involving Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang and Ting-Wei “Willy” Sun. The company placed the two employees on administrative leave, ended its relationship with the contractor, said the alleged conduct violated its policies, and stated it is cooperating with the government investigation.

US Weapons, RTX (RTX), Lockheed Martin (LMT) - The US will fast-track up to USD 16.5bln of weapons sales to Middle East allies by bypassing Congress. The State Department approved an USD 8.0bln radar sale to Kuwait, and about USD 8.5bln of F-16 munitions, THAAD air defences and anti-drone FS-LIDS systems for the UAE.