Newsquawk Daily European Equity Opening News - 3rd August 2026

ASIA

APAC stocks were mostly lower despite the geopolitical relief from Trump's cancellation of Iran strikes, with a mixed performance in the tech sector, while markets also digested weak Chinese PMI data and confirmation of joint US-Japan intervention on the yen. ASX 200 was ultimately flat, with underperformance in energy, real estate and financials offset by resilience in defensives. Nikkei 225 retreated amid increased rate hike bets following last week's hawkish comments from BoJ Governor Ueda at the post-meeting press conference, while there were also headwinds from a firmer currency after the US and Japan confirmed they jointly intervened to support the yen on Friday. KOSPI underperformed amid weakness in its tech heavyweights and with participants digesting earnings. Hang Seng and Shanghai Comp were mixed amid divergences in the tech sector as hyperscalers advanced with Alibaba shares among today's best performers after launching its Qwen 3.8 Max AI model, while chipmakers were pressured. Meanwhile, the mainland was subdued following disappointing Chinese RatingDog Manufacturing PMI data and as US-China frictions lingered, with MOFCOM criticising the US addition of Chinese companies to its forced labour entities list.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.34% at 6,366, Dax 40 +0.07% at 25,631, FTSE 100 -0.27% at 10,868, CAC 40 +0.28% at 8,510, FTSE MIB +0.13% at 52,173, IBEX 35 +0.13% at 19,783, PSI -0.33% at 9,116, SMI -0.32% at 14,346, AEX -0.50% at 1,099

SECTORS: Energy 1.33%, Utilities 0.49%, Industrials 0.29%, IT 0.28%, Financials 0.16%, Materials -0.40%, Consumer Disc -0.67%, Consumer Stpl -0.94%, Healthcare -1.03%, Telecoms -2.61%

FTSE 100

AstraZeneca (AZN LN), Bristol Myers Squibb (BMY) - The two Cos have reportedly held talks about a potential merger in recent months, the FT reports. Any deal would face significant antitrust scrutiny given overlapping cancer portfolios, including competing lung cancer treatments Opdivo and Imfinzi, the report says, adding that talks may be delayed or fall apart. (FT)

OTHER UK COMPANIES

BROKER MOVES

Fresnillo (FRES LN) initiated with Hold at Jefferies

JD Sports Fashion (JD/ LN) downgraded to Sector Perform from Outperform at RBC

Pan African Resources (PAF LN) initiated with Buy at Jefferies

Severn Trent (SVT LN) downgraded to Hold from Buy at Jefferies, citing the stock's 10% outperformance since January.

Unite Group (UTG LN) downgraded to Neutral from Buy at Citi

DAX

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Co. receives an order from OX2 for the supply and installation of 11 N175/6.X turbines in Romania. (EQS)

BROKER MOVES

E.ON (EOAN GY) upgraded to Buy from Hold at Jefferies, with analysts stating that the market underestimates E.ON's potential to accelerate grid capex into Germany's network plan in 2026.

CAC

Investment - The French Government says that non-European investors looking for a 10% or more stake in a French company operating in a critical sector and listed in France or on a foreign market must get approval by the French Finance Ministry. The threshold is being lowered "to guard against opportunistic, non-European equity acquisitions in French companies listed outside ⁠the EU that could pose threats to national security" (Bloomberg)

OTHER FRENCH COMPANIES

Worldline (WLN FP) - Co. announces it has completed the sale of its Indian payment activities to BillDesk for an estimated equity value of c. EUR 60mln. (Worldline)

BROKER MOVES

Elis (ELIS FP) upgraded to Outperform from Sector Perform at RBC

Gaztransport Et Technigaz (GTT FP) upgraded to Buy from Neutral at UBS

Ipsen (IPN FP) downgraded to Underperform from Hold at Jefferies, citing competitor Camurus' CAM2029 having a reasonable likelihood to show superiority to Ipsen's Somatuline in late 2026 or early 2027.

Klepierre (LI FP) downgraded to Hold from Buy at Jefferies, citing a less compelling valuation following the stock's recent rally.

Thales (HO FP) upgraded to Equal Weight from Underweight at Barclays

PAN EUROPE

Ageas (AGS BB) - Malayan Banking is reportedly close to buying Ageas' minority stake in Etiqa, valuing the deal at c. USD 1.2bln, Bloomberg reports. (Bloomberg)

BMPS (BMPS IM) - Italy is reportedly planning to sell its remaining 4.9% stake in BMPS by the end of September, La Stampa reports. (La Stampa)

BMPS (BMPS IM), Banco BPM (BAMI IM), Intesa Sanpaolo (ISP IM) - BMPS is reportedly considering the acquisition of Banco BPM as an alternative to fend off Intesa's hostile takeover, the FT reports. (FT)

Prysmian (PRY IM), Atkore (ATKR) - Atkore confirms that Prysmian is to acquire the Co. for USD 95/shr in cash, giving an enterprise value of USD 3.8bln. (Atkore)

BROKER MOVES

SMI

Holcim (HOLN SW) - Co. says it is planning to sell its Philippines business to Huaxin Building Materials (600801 CN) for at least USD 807mln. (Holcim)

Novartis (NOVN SW) - Novartis announces that the US FDA approved Pluvicto in combination with an ARPI for patients with PSMA-positive metastatic androgen pathway modulation-naive/sensitive prostate cancer. (Novartis)

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Co. says they have entered into a settlement agreement with US states regarding the alleged anti-competitive conduct in the US market for generic medicines. Sandoz US is to pay a total of USD 400mln over 7 years, starting 2027. These settlements do not affect full-year 2026 guidance or the Sandoz mid-term outlook. (Sandoz)

BROKER MOVES

SCANDINAVIA

SOBI (SOBI SS) - Co. CEO is to step down at the end of January 2027. The Board of Directors will immediately begin a process to secure a structured transition and to appoint a new CEO. (SOBI)

BROKER MOVES

Evolution (EVO SS) upgraded to Neutral from Sell at UBS

Pandora (PNDORA DC) PT raised to DKK 800 from DKK 575 at Nordea

Telenor (TEL NO) upgraded to Equal Weight from Underweight at Barclays

US

CLOSES: SPX +0.70% at 7,490, NDX +0.60% at 28,274, DJI +0.53% at 52,491, RUT -0.50% at 2,931

SECTORS: Materials -2.71%, Utilities -0.74%, Real Estate -0.68%, Health -0.55%, Technology -0.54%, Consumer Staples -0.37%, Financials -0.13%, Industrials +0.79%, Energy +0.79%, Communication Services +4.60%, Consumer Discretionary +6.07%.

S&P 500 Index (SPX) - Ferguson (FERG) will join the S&P 500, effective prior to the open on 5th August, replacing Electronic Arts (EA), which is being removed following its pending acquisition by a consortium.