FINWIRES · TerminalLIVE
FINWIRES

European Stocks Tracking Lower in Friday Trading; Lack of US-China Trade Deal Hits Tech Shares

By

The European stock markets were tracking lower in Friday trading as investors parse the results - or lack thereof - of President Trump's summit with Chinese leader Xi Jinping.

The Stoxx Europe was falling 1.56, Germany's DAX was dropping 2%, the FTSE 100 was down 1.9%, France's CAC was losing 1.6%, and the Swiss Market Index was heading marginally lower.

Technology stocks, particularly within the semiconductor sector, were falling sharply after Trump left China without sealing a deal regarding tech imports and exports. Semiconductor companies STMicroelectronics and Infineon were falling 4.9% and 4.4% on the CAC and DAX respectively, while ASML and BE Semiconductor Industries were declining 4.7% and 3.7% respectively in Amsterdam.

In corporate news, HSBC has yet to deploy the $4 billion it previously committed to its private credit strategy, with no current timeline for the planned investment, the Financial Times reported Friday, citing two sources familiar with the decision-making process.

The London-listed lender announced plans last June to invest in its asset manager's private credit funds to expand in alternative lending, but the move has since been paused amid concerns over US private credit valuations and borrower risks, according to the report.

"We are committed to our asset management's offering in private credit funds," a HSBC spokesperson toldin an emailed statement.

Shares of the British bank were down 2.5% in London.

BP is contemplating selling certain natural gas assets in Egypt, Reuters reported Friday, citing sources familiar with the matter.

The British oil and gas giant has yet to make a final decision regarding the move, according to the report.

The company didn't immediately respond to' request for comment.

Shares of BP were up 1.6% in London.

Stellantis signed an agreement with Dongfeng Group to jointly manufacture Peugeot and Jeep vehicles in China, subject to customary conditions and approvals, the automaker said Friday.

The joint venture will assemble two Peugeot new energy vehicles and two Jeep off-road models at a Wuhan plant starting in 2027, the company said.

Shares of the automaker were falling 3.6% in Paris.

Diageo will integrate its Africa and Europe operations into a single division amid an overhaul including major leadership changes, Bloomberg News reported Friday, citing an unnamed person familiar with the matter.

Diageo did not immediately respond to' request for a comment.

Shares of the alcoholic beverage company were up 2% in London.

Endava said Friday it formed a strategic partnership with Tyl by NatWest to help modernize and expand the payments platform for Tyl customers.

The company said the partnership would provide businesses with a more integrated payments experience by combining Endava's AI-based delivery tools and payments technology with Tyl's merchant services platform.

Shares of the software firm were dropping more than 5% in Frankfurt.

Related Articles

Asia Markets

European Equities Traded in the US as American Depositary Receipts Down Sharply in Friday Trading

European equities traded in the US as American depositary receipts were sharply lower late Friday morning, falling 1.90% to 1,808.55 on the S&P Europe Select ADR Index, which is down 1.6% for the week so far.From continental Europe, the gainers were led by software firm SAP (SAP) and biopharmaceutical company Cellectis (CLLS), which were up 2.2% and 2.1% respectively. They were followed by internet advertising firm Criteo (CRTO) and accommodations booking site trivago (TRVG), which increased 1.6% and 1% respectively.The decliners from continental Europe were led by semiconductor company Sequans Communications (SQNS) and telecommunications company Nokia (NOK), which fell 5.2% and 4.7% respectively. They were followed by 3D printer company Materialise (MTLS) and pharmaceutical company Novo Nordisk (NVO), which lost 2.6% and 2.1% respectively.The gainers from the UK were led by biopharmaceutical company NuCana (NCNA) and software firm Endava (DAVA), which advanced 12.1% and 3.9% respectively. They were followed by biotech firm Trinity Biotech (TRIB) and oil and gas company BP (BP), which rose 3.4% and 1% respectively.The decliners from the UK and Ireland were led by pharmaceutical company Silence Therapeutics (SLN) and utilities company National Grid (NGG), which dropped 8.8% and 7.9% respectively. They were followed by mining company BHP Group (BHP) and biopharmaceutical company Biodexa Pharmaceuticals (BDRX), which were down 5.1% and 2.7% respectively.

$BDRX$BHP$BP$CLLS$CRTO$DAVA$MTLS$NCNA$NGG$NOK$NVO$SAP$SLN$SQNS$TRIB$TRVG
Asia Markets

Asian Equities Traded in the US as American Depositary Receipts Fall Sharply in Friday Trading

Asian equities traded in the US as American depositary receipts were falling sharply Friday morning, shedding 1.58% to 2,858.67 on the S&P Asia 50 ADR Index, which is flat for the week so far.From North Asia, the gainers were led by biopharmaceutical company Zai Lab (ZLAB) and automotive company Honda Motor (HMC), which rose 3.3% and 1.5% respectively. They were followed by lender Mitsubishi UFJ Financial Group (MUFG), which was up 2.3%.The decliners from North Asia were led by real estate and digital security company Eason Technology (DXF) and video display maker LG Display (LPL), which tumbled 10% and 22% respectively. They were followed by semiconductor company Himax Technologies (HIMX) and brand platform Baozun (BZUN), which dropped 7.3% and 5.7% respectively.From South Asia, the gainers were led by IT firm Infosys (INFY) and fintech firm Trident Digital Tech (TDTH), which advanced 3.3% and 2.5% respectively. They were followed by IT firm Wipro (WIT) and pharmaceutical company Dr. Reddy's Laboratories (RDY), which increased 1.9% and 1.2% respectively.The decliners from South Asia were led by computer hardware maker Canaan (CAN) and IT company Sify Technologies (SIFY), which lost 8.1% and 3.4% respectively. They were followed by lenders HDFC Bank (HDB) and ICICI Bank (IBN), which were off 1.8% and 0.7% respectively.

$BZUN$CAN$DXF$GRVY$HDB$HIMX$HMC$IBN$INFY$LPL$MUFG$RDY$SIFY$TDTH$WIT$ZLAB
Asia Markets

US Equity Futures Fall Pre-Bell as US-China Summit Ends With No Significant Policy Developments

US equity futures were falling pre-bell Friday as traders noted that the summit between President Donald Trump and Chinese President Xi Jinping ended with no significant policy developments.Dow Jones Industrial Average futures were 0.9% lower, S&P 500 futures were down 1.2%, and Nasdaq futures were 1.7% lower.The two world leaders agreed that the Strait of Hormuz should remain open, according to a US readout from a White House official. Trump said that China agreed to 200 planes from Boeing (BA), with the promise to buy 750 "if they do a good job with the 200." Details of the agreement were not immediately available, including when and which type of jets would be delivered, but the initial figure was smaller than 500-plane package expected by investors.Traders also digested the latest round of earnings, with Applied Materials (AMAT) posting higher fiscal Q2 earnings and revenue late Thursday.Oil prices were higher, with front-month global benchmark North Sea Brent crude up 2.5% at $108.34 per barrel and US West Texas Intermediate crude 3.2% higher at $104.43 per barrel.The New York Federal Reserve's Empire State manufacturing index rose to 19.6 in May from 11.0 in April, compared with expectations of a decrease to a reading of 7.2 in a survey compiled by Bloomberg.The April industrial production report, due at 9:15 am ET, is forecast to show a 0.3% increase following a 0.5% decline in the prior month.In other world markets, Japan's Nikkei closed 2% lower, Hong Kong's Hang Seng ended 1.6% lower, and China's Shanghai Composite finished 1% lower. Meanwhile, the UK's FTSE 100 was down 2%, and Germany's DAX index was 2% lower in Europe's early afternoon session.In equities, Nvidia (NVDA), Micron Technology (MU), and Taiwan Semiconductor Manufacturing (TSM) were part of broader technology stock sell-offs as traders took profits after the group saw sharp gains of late. Nvidia shares were 3% lower, Micron stock was down 4.2%, and Taiwan Semiconductor shares fell 3%.On the winning side, Toyota Motor (TM) shares were up 1.7% after the company sought approval to build a new vehicle assembly line at its manufacturing plant in Texas as part of a $2 billion expansion, according to a Reuters report citing a filing. Figma (FIG) stock was up 7.2% after the company posted higher Q1 adjusted earnings and revenue that beat analysts' estimates. Magnum Ice Cream (MICC) shares rose over 11% after Reuters reported that Blackstone (BX) and Clayton, Dubilier & Rice are in the early stages of considering bids to acquire the company.

$^DJI$^IXIC$^SPX$AMAT$BA$BX$FIG$MICC$MU$NVDA$TM$TSM