EUROPEAN OPEN: HEIA NA CEO to step down in May

EUROPEAN OPEN: HEIA NA CEO to step down in May; Stellantis (STLAM IM) said to scrap Jeep SUV and Chrysler Minvan due to slowing EV sales; Deutsche Bank (DBK GY) USD 2.5bln India unit draws interest; Eli Lilly (LLY) reportedly still in for ABVX FP

• European equities opened lower amid political tensions involving the US Federal Reserve.
• The USD weakened significantly, impacting commodities like gold and silver, which reached record highs.
• Key corporate developments include Stellantis halting certain EV models and Deutsche Bank's asset sale in India attracting interest.

European markets opened on a downbeat note, reflecting investor concerns over political developments in the United States. The US Department of Justice's issuance of subpoenas to Federal Reserve Chair Jerome Powell has stirred apprehension about potential political interference in monetary policy. This move, described by Powell as "unprecedented political pressure," has led to a notable decline in the USD, which fell the most in nearly three weeks. The currency's weakness has bolstered commodities, with gold and silver reaching record highs, driven by increased haven demand amid geopolitical tensions and domestic protests in Iran.

In the commodities sector, iron ore prices have surged, supported by pre-holiday restocking by Chinese steel mills and increased hot-metal output. This has pushed futures in Singapore towards their highest close since October 2024. Copper prices have also climbed, buoyed by supply concerns and the weaker USD, which typically makes dollar-denominated commodities cheaper for holders of other currencies.

The energy market remains stable, with oil prices holding onto their largest two-day gain since October. Brent crude is trading above USD 63 per barrel, while WTI is slightly above USD 59 per barrel. The market is closely monitoring escalating protests in Iran, which could threaten supply from OPEC's fourth-largest producer.

In corporate news, Stellantis has decided to discontinue its plug-in hybrid electric Jeep SUV and Chrysler Minivan, citing slowing EV sales. This decision highlights the challenges automakers face in the evolving electric vehicle market. Meanwhile, Deutsche Bank's India retail and wealth management assets, valued at approximately USD 2.5 billion, have attracted binding bids from Kotak Mahindra Bank and Federal Bank, indicating strong interest in the region's financial sector.

In the healthcare sector, Eli Lilly remains in the running to acquire Abivax for up to EUR 15 billion, although the deal's completion may hinge on antitrust considerations. Sanofi has received EU approval for its diabetes treatment Teizeild, based on promising phase 2 study results.

The upcoming week is set to be eventful, with the start of the US earnings season, key economic data releases, and geopolitical developments likely to influence market sentiment. Financials will be in focus as major banks, including JPMorgan Chase, Bank of America, and Wells Fargo, report their earnings.

Trader Insight:

• Some traders may consider monitoring the USD's movements, particularly in relation to commodities like gold and silver, which have reached record highs.
• Market participants are watching Stellantis (STLAM IM/STLAP FP) for further developments in its EV strategy.
• Investors could assess Deutsche Bank (DBK GY) as its asset sale in India progresses, potentially impacting its stock performance.
• Energy traders are closely observing WTI crude and Brent crude prices amid geopolitical tensions in Iran.

Disclaimer: This is not trading advice. For informational purposes only.