Newsquawk Daily European Equity Opening News - 25th August 2026

APAC stocks were mixed following the subdued lead from Wall Street, where most major indices declined amid tech weakness and headwinds from Economic D-Day sanctions on Iran and the US-Canada trade war. ASX 200 traded higher amid strength in the domestic tech, healthcare and financial sectors, while participants digested a plethora of earnings and somewhat balanced RBA August Meeting Minutes. Nikkei 225 saw two-way price action and gradually clawed back initial losses to move into the green, with recent reports noting that Japan is considering exempting gains from non-core business sales from corporate tax if companies reinvest the proceeds in acquisitions. KOSPI underperformed amid recent tech headwinds and with SK Hynix shares also pressured after union members narrowly rejected the tentative wage agreement through a 50.1% vote against. Hang Seng and Shanghai Comp were subdued amid earnings releases and cautiousness as US sanctions on Iran and warnings against countries with economic ties to Iran, increase risks of stoking US-China frictions, while the US is also mulling 7.5% overcapacity tariffs on China.

BHP (BHP AT) - Negotiations between BHP and port unions are ongoing, following recent strike actions. BHP said negotiations over key issues that were raised by Australian workers are progressing, with a resolution likely. (Newswires)

SK Hynix (000660 KS) - Union members reject tentative wage agreement with 50.1% voting against it. (Newswires)

Samsung Electronics (005930 KS / SSNLF), SK Hynix (000660 KS / SKHY) - Samsung and SK Hynix are accelerating equipment spending at their NAND flash manufacturing facilities in China through 2027, upgrading existing production lines despite growing uncertainty over future access to Western chipmaking tools, Digitimes reports. (Digitimes)

TSMC (2330 TT) / Nichias (5393 JT) - Nichias is to build plant for key chipmaking 'tubes' in Taiwan, according to Nikkei. (Nikkei)

CLOSES: Euro Stoxx 50 -0.26% at 8,453, Dax 40 -0.07% at 26,119, FTSE 100 -0.26% at 10,854, CAC 40 -0.37% at 8,453, FTSE MIB -0.24% at 52,542, IBEX 35 +0.69% at 20,099, PSI +0.40% at 9,392, SMI -0.07% at 14,447, AEX +0.36% at 1,110.

Prudential (PRU LN) - Prudential Life Insurance Japan reportedly flags a new fraud case within the region, during its sales pause, Bloomberg reports. (Bloomberg)

NatWest (NWG LN) - Co. is reportedly planning to expand into the US market, aiming to benefit from looser rules on UK banks' overseas activities, the FT reports. (FT)

Shell (SHEL LN) - Co. has postponed the Aphrodite offshore gas project in Trinidad due to disagreements over commercial terms with Trinidad's National Gas Company, Reuters reports. (Reuters)

UK Budget - UK PM Burnham says regarding Ukraine that we're not a fair weather friend and we're here for the long haul, while he ruled out a general election this year, but won't rule out tax increases in the Budget, according to an interview with ITV. (ITV)

UK Housing - UK PM Burnham is reportedly set to unveil plans to boost national house-building, though critics believe it already disappoints on previously made promises, Playbook writes. (Playbook)

OTHER UK COMPANIES

BROKER MOVES

Drax (DRX LN) upgraded to Neutral from Sell at UBS

Next (NXT LN) upgraded to Buy from Neutral at Citi

German Sugar Tax - Bild reports that the government is planning a sugar tax on "far more" drinks that was previously assumed; increases of up to 36% are seen. (Bild)

Volkswagen (VOW3 GY) - Volkswagen CEO Blume and VW brand chief Schafer are due to present their restructuring plan to workers at the Wolfsburg factory on Tuesday, the first of a series of townhall meetings across Germany. The plan could eliminate as many as 100,000 jobs. The IG Metall chief Benner has already said the cost-cutting targets and margin goal of 9% as unrealistic, and some union members have warned of potential strikes if Blume does not walk back his plans. (Bloomberg)

OTHER GERMAN COMPANIES

BROKER MOVES

Eiffage (FGR FP) - Co. has been awarded in consortium the contract to build two waste-to-energy plants in Limoges and Grenoble in a deal worth close to EUR 162mln. (Eiffage)

OTHER FRENCH COMPANIES

BROKER MOVES

Air France (AF FP) upgraded to Hold from Reduce at Kepler Cheuvreux

BMPS (BMPS IM) - ISS Proxy Advisor confirmed its recommendation for a vote in favour of Intesa's (ISP IM) capital increase to aide in the acquisition of BMPS. (Newswires)

CD Projekt (CDR PW) - Co. is targeting a 2028 release of "The Witcher IV". (The Witcher)

WeBuild (WBD IM) - In relation to the recent voluntary tender offer launched by WeBuild for all ordinary shares in Trevi-Finanziaria: CONSOB requested the submission of supplement information and suspended the offer document review period, for up to 15 days. (WeBuild)

BROKER MOVES

OTHER SWISS COMPANIES

BROKER MOVES

DKSH (DKSH SW) downgraded to Hold from Buy at Berenberg

Salmar (SALM NO) - Q2 (NOK): Op. EBIT 1.24bln (exp. 1.45bln), Revenue 7.61bln (exp. 7.68bln). Co. to buy back shares for NOK 65mln. (Salmar)

BROKER MOVES

Yara (YAR NO) upgraded to Buy from Hold at Arctic Securities

CLOSES: SPX -0.28% at 7,653, NDX -0.98% at 29,024, DJI +0.26% at 53,417, RUT -0.70% at 2,997.

SECTORS: Consumer Staples +1.76%, Financials +1.24%, Utilities +1.04%, Communication Services +1.01%, Real Estate +0.59%, Materials +0.30%, Consumer Discretionary +0.29%, Health +0.04%, Industrials -0.69%, Energy -0.76%, Technology -1.59%.

Apple (AAPL) - Apple is preparing to launch a new Mac mini as soon as the coming days, ahead of a September iPhone event likely to be held on 9th September, Bloomberg reports. The updated machine will introduce Apple’s first foldable smartphone and the iPhone 18 Pro line, with new AirPods 5 and Apple Watch Series 12 also expected at the event. The Mac mini launch will likely be the last new product under CEO Tim Cook, who hands over to John Ternus on 1st September.

Meta (META) - Co. plans to launch AI agent platform named Hatch in the coming weeks, according to The Information. (The Information)

US-Canada - Canada is reportedly to announce retaliatory tariffs against the US on Tuesday, according to an AP source. (AP)

The overnight tape carries the familiar signature of a sanctions-and-tariffs tape rather than a data-driven one: tech under pressure, defensives bid, and regional divergence that tracks exposure to the geopolitical headline rather than to fundamentals. In past episodes where US action on Iran has been paired with secondary-sanctions warnings against trading partners, the transmission has run through crude and freight premia first and through US-China sentiment second, with Chinese indices tending to lag the region until the scope of any overcapacity tariffs is clarified. The US-Canada retaliation cycle follows the established sequence of these disputes, an announcement met by countermeasures, with the tell being whether the measures are targeted or broad-based and whether negotiating channels stay open alongside them. The VW townhalls are the domestic European story with the widest precedent: large-scale German industrial restructurings of this kind have historically been negotiated down from initial headline job figures, with IG Metall's early rhetoric and strike warnings forming part of the opening position rather than the endgame, and the stock typically trading the margin trajectory rather than the headcount number. The UK fiscal signal, tax rises not ruled out ahead of the Budget, has in comparable pre-Budget periods steepened gilt sensitivity to any hint on the revenue side and weighed on domestic-facing equities ahead of the statement itself. Follow-ons of note are the Canada tariff announcement, the terms of any VW worker council response, and whether the Iran measures expand to named third-country entities.