Newsquawk Daily European Equity Opening News - 22nd May 2026

ASIA

APAC stocks were mostly higher following the positive handover from Wall Street, where all major indices gained and the Dow notched a record close on what was a choppy session, amid cautious optimism due to contradicting geopolitical headlines. ASX 200 gained with outperformance in the mining, materials and resources sectors, although the upside in the broader market was capped by weakness in telecoms, real estate and defensives. Nikkei 225 rallied amid continued tech strength, with SoftBank shares adding to the recent advances with another double-digit percentage gain, while the latest inflation data was softer-than-expected and could compel policymakers to think twice about a June rate hike. Hang Seng and Shanghai Comp were in the green with the Hong Kong benchmark led higher by tech stocks, including Lenovo and NetEase, as the former was boosted by its earnings results, which showed record FY revenue, while the mainland kept afloat after the PBoC upped liquidity efforts for a third day.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.20% at 5,964, Dax 40 -0.33% at 24,657, FTSE 100 +0.11% at 10,443, CAC 40 -0.39% at 8,086, FTSE MIB -0.03% at 49,169, IBEX 35 -0.42% at 17,975, PSI -0.22% at 9,228, SMI +0.35% at 13,446, AEX +0.12% at 1,035.

SECTORS: Materials 1.37%, Utilities 0.95%, Healthcare 0.41%, IT 0.34%, Energy 0.23%, Consumer Stpl 0.01%, Financials -0.29%, Industrials -0.31%, Consumer Disc -0.36%, Telecoms -0.87%

FTSE 100

Shell (SHEL LN) - Shell faces a hearing at the Dutch Supreme Court, brought by climate group Milieudefensie, seeking a legally enforceable obligation to cut CO2 emissions 45% below 2019 levels by 2030, Bloomberg reports. A 2021 lower court ruling ordering the reduction was overturned on appeal, as judges could not specify a precise target. An advisory opinion is expected later in 2026, with a formal decision anticipated in early 2027. (Bloomberg)

Smiths Group (SMIN LN) - Co. cuts FY26 organic revenue growth to "around" 2% (prev. guided 3-4%), driven by Middle East disruption in John Crane. Expects Q4 Middle East revenue disruption in John Crance to be around USD 10mln. (Newswires)

UK Consumers - Gfk Consumer Confidence (May) -23 vs. Exp. -28 (Prev. -25, Low. -30, High. -25).

UK Defence - UK officials are discussing fresh aid cuts to help fund increased defence spending, according to FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

Evonik (EVK GY) downgraded to Underweight from Neutral at JPMorgan; sees limited upside following recent strength in shares.

Lanxess (LXS GY) downgraded to Sell from Neutral at Goldman Sachs; sees structural and cyclical headwinds, whilst Middle East related tailwinds may begin to subside.

CAC

Michelin (ML FP) - Reports April global original equipment tire market -6% Y/Y; Global replacement tire market +3% Y/Y. (Michelin)

Renault (RNO FP) - Co. sold JPY 159bln in Yen-denominated bonds, with JPY 100bln targeted retail investors, according to Bloomberg sources. (Bloomberg)

OTHER FRENCH COMPANIES

Vallourec (VK FP) - Co. signs a MoU with Syngular Solutions to collaborate on carbon capture and geological storage initiatives in Brazil. (Vallourec)

BROKER MOVES

Arkema (AKE FP) downgraded to Underweight from Neutral at JPMorgan; Middle East related tailwinds may begin fading.

PAN EUROPE

ASML (ASML NA) - CEO Fouquet says that the EU is risking pushing AI companies out of the region, POLITICO reports. (POLITICO)

InPost (INPST NA) - Advent and FedEx-led group have formally launched an all-cash offer for the Co. at EUR 15.6/shr, valuing the deal at around EUR 7.8bln. (Newswires)

Randstad (RAND NA) - Co. and LTM announce an intended strategic partnership, in which LTM offers to acquire Randstad’s Technology and Consulting Services business in Europe and Australia. (Randstad)

Recordati (REC IM) - A consortium of funds led by CVC Fund IX and Groupe Bruxelles Lambert SA, have entered into binding agreements for the launch, of a voluntary cash tender offer for all outstanding ordinary shares of Recordati at an offer price of EUR 51.29/shr aimed at obtaining the delisting from Euronext Milan. (Recordati) Recordati last closed at EUR 51.70/shr

Puig (PUIG SM), Estee Lauder (EL) - Puig Brands and Estee Lauder ended talks over a proposed multibillion-dollar combination after tensions over makeup artist Charlotte Tilbury’s compensation demands in the deal, Bloomberg reports. The companies had held discussions since March, and issued statements saying talks had ended, without giving a reason. (Bloomberg)

BROKER MOVES

Generali (G IM) upgraded to Neutral from Underperform at Oddo Securities

IMCD (IMCD NA) downgraded to Underweight from Neutral at JPMorgan

SMI

Richemont (CFR SW) - FY 2026 (EUR): Sales 22.4bln (exp. 22.3bln), Sales at constant FX +11% (exp. 9.78%), Net income 3.48bln (prev. 2.75bln Y/Y), announces share buyback of up to 10mln shares. Sales growth across all business areas, regions and distribution channels at constant rates; sustained double-digit performance at Jewellery Maisons and in the Americas throughout the year. Looking ahead, uncertainty is likely to persist, not least in relation to developments in the Middle East. By Region: All regions contributed to growth, led by double-digit performance at constant rates in the Americas throughout the year. In Europe and Japan, sales grew by high single digits at constant rates against elevated comparatives in the prior year. Asia Pacific also grew by high single digits, including slight growth in China, Hong Kong and Macau combined, as sales improved from the summer.

OTHER SWISS COMPANIES

Julius Baer (BAER SW) - 4-Month Statement: AUM CHF 528bln, +1% Y/Y; guides H1'26 IFRS net profit "substantially higher" than in H1'25. (Julius Baer)

Sandoz (SDZ SW) - Co. is calling the EU Commission to investigate alleged dumping by China of key ingredients, according to the FT. (FT)

BROKER MOVES

Clariant (CLN SW) upgraded to Overweight from Neutral at JPMorgan

SCANDINAVIA

Electrolux Group (ELUXB SS) - Co. announces terms for the fully underwritten rights issue of SEK 9.06bln. (Electrolux)

Frontline (FRO NO) - Q1 2026 (USD): Revenue 714.2mln (exp. 579.6mln). Commentary: “Tanker markets are said to thrive in unstable conditions, and the effective closure of the Strait of Hormuz led to rapid shifts in trading patterns and owners’ behaviour”. “We are increasingly constructive on the longer-term outlook”. (Frontline)

Skanska (SKAB SS) - Co. selects as the Master Developer for New York Penn Station transformation project. (Skanska)

Sobi (SOBI SS) - Positive topline results from the pivotal Phase 3 REDUCE 2 study of pozdeutinurad in gout. Both doses of once-daily pozdeutinurad (AR882) met the primary efficacy endpoint of sUA reduction at month 6 vs placebo. (Sobi)

BROKER MOVES

Sandvik (SAND SS) downgraded to Sell from Hold at Nordea

US

CLOSES: SPX +0.17% at 7,446, NDX +0.20% at 29,357, DJI +0.55% at 50,291, RUT +0.93% at 2,843

SECTORS: Consumer Staples -1.63%, Energy -1.01%, Industrials -0.12%, Communication Services +0.01%, Real Estate +0.12%, Financials +0.21%, Technology +0.28%, Health +0.64%, Materials +0.73%, Consumer Discretionary +0.77%, Utilities +1.03%.

AMD (AMD) - AMD CEO Lisa Su said it is working with Taiwan partners to increase production capacity as stronger-than-expected demand tightens the global CPU market. Su said supply should rise each quarter this year, with significantly more planned for 2027 and beyond. AMD growth is being driven by AI inferencing and agentic AI, while China remains about 20% of its revenue, she added.

Deckers Outdoor (DECK) - Shares rose 5% in extended US trading after a Q4 beat and initial guidance for FY27. Q4 EPS 0.96 (exp. 0.83), Q4 revenue USD 1.12bln (exp. 1.09bln). CEO said earnings growth was powered by continued momentum at HOKA and enduring strength at UGG, while brand building, product innovation, category leadership and marketplace execution continue to drive full-price demand across a growing global audience. Increased its stock repurchase authorisation by USD 3.5bln, bringing total outstanding authorisation to about USD 5.0bln. Sees FY27 EPS between 7.30-7.45 (exp. 7.33), sees FY27 revenue between USD 5.86-5.91bln (exp. 5.82bln), with HOKA expected to rise by a low-double-digit percentage, and UGG by a mid-single-digit percentage; gross margin seen at about 56.5%, SG&A at about 35% of net sales, and an operating margin of about 21.5%.

JPMorgan (JPM) - JPMorgan is in talks with investors to offload risk tied to more than USD 4bln in NAV loans to private equity funds, the FT reports. The structure would keep the loans on JPMorgan’s balance sheet while shifting up to 12.5% of potential first losses to investors for a low-teens return. (FT)

SpaceX (SPCX) - SpaceX postponed a Starship launch due to a malfunctioning hydraulic pin on the launch tower, with a further attempt planned for 22:30GMT on 22nd May, BBC reports. The delay comes as the company pursues a Nasdaq IPO in June. (BBC)

Take-Two (TTWO) - Take-Two shares rose 7% in extended trading after a Q4 beat, despite weaker guidance for the next quarter and upcoming financial year, as it reiterated a 19th November release date for its key GTA6 game. Q4 EPS -0.32 (exp. -0.57), Q4 revenue USD 1.68bln (exp. 1.55bln). Q4 net bookings were USD 1.58bln (exp. 1.55bln). CEO said FY27 should establish new record levels of operating performance, driven by the 19th November launch of 'Grand Theft Auto VI'; expects to sustain a higher level of scale, generate strong cash flows and deliver long-term shareholder value as it releases its development pipeline, optimises live services and pursues new opportunities. Sees Q1 EPS between -0.23 and -0.15, sees Q1 net bookings between USD 1.32-1.37bln (exp. 1.5bln). Sees FY27 EPS between 0.55-0.75, sees FY27 net bookings between USD 8.0-8.2bln (exp. 9.3bln).