Shares of Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery maker, surged over 18% in their trading debut on the Hong Kong stock exchange on Tuesday, showing strong investor confidence in the company’s global growth prospects amid a booming electric vehicle (EV) market.

CATL shares were last trading at 308 Hong Kong dollars, significantly higher than their initial public offering price of HK$263 per share.

The listing raised HK$35.7 billion ($4.6 billion), making it the largest global IPO of 2025 so far, according to a company filing.

The buoyant debut in Hong Kong came even as CATL’s shares on the Shenzhen stock exchange initially opened lower.

However, those shares later rebounded, closing 1.5% higher at 264 yuan.

Market analysts said the strong performance of the Hong Kong shares is likely to provide support to the company’s domestic valuation.

“For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors,” said Neil Beveridge, senior research analyst at Bernstein, speaking to CNBC.

“I think that as the H shares continue to perform strongly, that will pull up the A shares.”

Focus shifts to Europe amid slowing Chinese growth

CATL said in its filing that 90% of the IPO proceeds would be directed toward its planned manufacturing facility in Hungary.

The factory is expected to supply major European carmakers such as Stellantis, BMW, and Volkswagen in a strategic pivot towards international markets.

“Europe is an exceptionally important market for CATL,” Beveridge added.

“While growth in China is starting to level off due to high market penetration, Europe is still in early stages, with only 20-25% EV sales penetration. That leaves considerable room for expansion.”

This international push aligns with broader trends among leading Chinese EV companies like BYD, which are also seeking to expand abroad.

However, the path has not been without hurdles.

CATL’s global ambitions have faced pressure from geopolitical tensions, including trade restrictions imposed by the US and EU and its inclusion on a Pentagon watchlist earlier this year—allegations the company denies.

CATL a key company in global EV investment

Despite a 9.7% dip in annual revenue in 2024 due to intense domestic competition, CATL managed to post a 15% increase in net profit year over year.

EV sales in China surged to 11 million units last year, growing 40% from 2023, buoyed by state incentives and subsidies.

Brendan Ahern, chief investment officer at KraneShares, said CATL remains a cornerstone in global EV investment strategies.

“We’re a big believer and investor in CATL in our global EV strategy. It’s just phenomenal, it’s a ‘must own company,’ in my opinion, along with BYD for investors in the space,” Ahern said.

Bank of America, CICC, Goldman Sachs, Morgan Stanley, and JPMorgan Chase served as joint lead managers for the Hong Kong IPO.

Speaking on CNBC’s Squawk Box Asia, Andy Maynard of China Renaissance noted that CATL’s IPO underscores continued investor appetite for high-quality Chinese firms, even amid persistent trade tensions between Beijing and Washington.

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A growing chorus of Wall Street strategists is forecasting a banner year for European stocks, predicting they could achieve their most significant outperformance relative to their US counterparts in at least two decades.

This optimistic outlook is largely fueled by an improving economic landscape in Europe and a recalibration of corporate earnings expectations.

The Stoxx Europe 600 Index is anticipated to conclude the year around the 554-point mark, according to the average forecast from a Bloomberg poll of 20 strategists.

This projection suggests a potential gain of approximately 1% from its closing level on Friday.

Among the most bullish are JPMorgan Chase & Co., which has set one of the highest targets in the survey at 580 points, and Citigroup Inc., which predicts a more substantial 4% rally to 570 points.

This optimism is partly driven by analysts dialing back their earlier pessimism surrounding European corporate earnings.

In a striking contrast, both banking giants expect the US equity benchmark, the S&P 500, to decline through the remainder of the year.

The disparity in these forecasts is notable: JPMorgan’s targets for European and US markets suggest the Stoxx 600 could outperform the S&P 500 Index by a remarkable 25 percentage points in 2025 – a margin that would be the largest on record.

Citigroup’s projections, meanwhile, would mark the best relative performance for European stocks since 2005.

“If we have already moved past peak earnings uncertainty, this could set the stage for additional upside and potential multiple re-rating, especially among more beaten-up cyclical sectors,” commented Citigroup strategist Beata Manthey regarding European stocks, as quoted by Bloomberg.

From underdogs to frontrunners

This bullish outlook represents a significant turnaround from the sentiment prevailing at the beginning of the year, when strategists widely expected European stocks to lag considerably behind the US market.

However, the European benchmark has since rallied, propelled by historic fiscal reforms in Germany and surprisingly resilient corporate earnings.

These factors have attracted investors seeking alternatives to US assets, which have been caught in the crosscurrents of ongoing trade wars.

Evidence of this shifting sentiment was clear in a Bank of America Corp. survey published a week ago, which found that a net 35% of global fund managers are now overweight European stocks.

Conversely, net exposure to US stocks has reportedly dwindled to its smallest level in two years.

Further bolstering the case for Europe, MSCI Europe constituents posted a 5.3% increase in first-quarter earnings, significantly outperforming the 1.5% decline anticipated by analysts, according to data compiled by Bloomberg Intelligence.

Additionally, a Citigroup index indicates that fewer analysts have downgraded European earnings estimates in recent weeks.

In the US, the picture is far less optimistic.

A separate Bloomberg poll found that forecasters expect the S&P 500 to end the year at an average of 6,001 points, roughly unchanged from its recent closing levels.

Valuation considerations and lingering cautions

To be sure, this year’s 8.3% rally in the Stoxx 600 has brought valuations into sharper focus.

The benchmark now trades at approximately 14.6 times earnings, a figure higher than its 20-year median of 13.5, as per Bloomberg data.

However, this is still considerably lower than the S&P 500’s price-to-earnings ratio, which stands at nearly 22.

Goldman Sachs Group Inc. strategist Sharon Bell expressed her expectation that investors will continue to reallocate capital to the European region, citing its lower relative valuations and the high concentration risk in the US market.

“We also note that inflation should moderate further in Europe this year and there is a close relationship between lower inflation and higher average valuations,” she wrote in a recent note.

Despite the overall optimism, not all strategists are uniformly bullish.

Bloomberg’s poll revealed that only six firms—Bank of America, Deka Bank, ING, Panmure Liberum, Societe Generale SA, and TFS Derivatives—expect the Stoxx 600 to decline by more than 2% from Friday’s close.

Societe Generale strategist Roland Kaloyan indicated he needs to see stronger earnings trends and a further reduction in tariff-related risks before betting on a significant rally in the Stoxx 600.

His year-end target of 530 implies a potential 3.5% drop.

“The uncertainty surrounding tariffs further complicates the outlook, as many firms are reluctant to provide clear guidance, indicating that the full impact of these tariffs may not yet be captured in earnings forecasts,” Kaloyan stated.

Echoing a note of caution, UBS Group AG strategist Gerry Fowler acknowledged that valuations have increased as anticipated amid forecasts of stronger economic growth over the next two years.

However, he added, “For further gains, we must get through a period of regime uncertainty that will probably keep EPS growth at zero or modestly lower this year.”

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European stock markets commenced Tuesday’s trading session with a cautiously optimistic tone, as major indices posted modest gains.

This positive sentiment was primarily fueled by an anticipated rate cut from China, aimed at bolstering its economy, and tentative hopes surrounding potential peace talks to resolve the long-standing conflict in Ukraine.

Approximately 19 minutes after the opening bell, the pan-European Stoxx 600 index was trading up by 0.2%.

Sector performance was mixed, though regional utilities stocks notably led the gains. At 03:05 ET (07:05 GMT), specific national bourses reflected this gentle upward trend: Germany’s DAX index climbed 0.2%, France’s CAC 40 also gained 0.2%, and in the UK, the FTSE 100 rose by 0.3%.

Later readings showed London’s FTSE 100 maintaining a 0.2% gain, with the French CAC 40 up 0.1% and the DAX little changed, indicating a slight moderation in early momentum.

Monetary easing and inflationary calm

European stock indices found a solid lead from positive trading in Asia overnight.

A key driver was the decision by the People’s Bank of China to cut its benchmark loan prime rate, pushing it further into record low territory.

This move signaled Beijing’s willingness to deploy further monetary stimulus to support the world’s second-largest economy, which also serves as a crucial export market for many prominent European companies.

Adding to the global easing theme, the Reserve Bank of Australia also cut interest rates earlier on Tuesday, citing increasing risks to the Australian economy stemming from global trade uncertainty.

Market participants are now looking ahead to the European Central Bank’s next meeting in June, where it is widely anticipated to cut interest rates once more.

The ECB has already eased monetary policy seven times over the past year. Inflation does not currently appear to be a significant impediment to further easing, particularly if German factory prices offer any indication.

Data released earlier on Tuesday showed that the German producer price index fell by 0.6% month-on-month in April, resulting in an annual decrease of 0.9%.

Glimmers of hope for Ukraine peace?

A significant geopolitical development contributing to market sentiment is the growing hope for a potential peace agreement between Ukraine and Russia, which could bring an end to the conflict that has persisted for over three years.

Ukrainian President Volodymyr Zelenskiy stated on Monday that Kyiv and its international partners were considering arranging a high-level meeting involving Ukraine, Russia, the United States, European Union countries, and Britain, as part of a concerted push to end the war.

Adding a layer of intrigue, US President Donald Trump announced via a Truth Social post following his call with Russian President Vladimir Putin on Monday that “Negotiations between Russia and Ukraine will begin immediately.”

This comes after delegates from the warring nations met in Istanbul last week for the first time since 2022, though that encounter did not result in a truce agreement.

Sterling rises, Vodafone navigates headwinds

In currency markets, the British pound extended its recent gains against the US dollar, trading 0.2% higher at $1.338 as of 6:29 a.m. in London on Tuesday.

This followed a 0.6% rise for sterling against the greenback on Monday, buoyed by the UK and the EU reaching a landmark agreement to reset their post-Brexit relations.

On the corporate front, telecom giant Vodafone reported a full-year operating loss of 411 million euros ($462.7 million) on Tuesday.

The company attributed this loss primarily to impairment charges related to its operations in Germany and Romania, which amounted to 4.5 billion euros.

Despite the loss, Vodafone announced a 2% jump in full-year revenue, with total revenue reaching 37.4 billion euros.

This figure was slightly below analysts’ expectations of 38.1 billion euros, according to LSEG data.

Vodafone shares were trading 0.3% higher at 8:22 a.m. in London, recovering from some initial losses seen immediately after the market opened.

Looking ahead to 2026, Vodafone acknowledged that its financial performance could be impacted by “significant uncertainties” in the current macroeconomic climate, particularly concerning trade and foreign exchange rates.

The company expects its adjusted EBITDAaL (earnings before interest, taxes, depreciation and amortization and after lease expenses) to fall within the range of 11 billion euros to 13 billion euros.

For the full-year 2025, Vodafone’s adjusted EBITDAaL came in at 11 billion euros, consistent with its guidance.

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Vodafone share price rose in London on Tuesday after the company published encouraging results and launched its buyback program. VOD stock soared to a high of 72.5p, up by 15% from its lowest point this year.

Vodafone share price rises after share buyback launch

Vodafone’s share price jumped after the company released its financial results for the 2025 financial year on Tuesday.

A key part of its numbers is that the company launched a plan to repurchase shares worth €2 billion, a sizable amount for a company valued at around $24 billion or £17 billion.

Share repurchases benefit investors by reducing the number of shares in circulation, which in turn leads to a higher earnings per share (EPS). In this, investors will typically receive more money when a company pays its dividends.

Vodafone’s revenues rose by 2% in the last financial year to €37.4 billion as its turnaround efforts continued to work. Its service revenue rose by 2.8% to €30.7 billion, while the other segment deteriorated to €6.69 billion.

The company also received €13.3 billion in proceeds after selling its Italian and Spanish businesses. It also continued disposing of its stake in Vantage, the publicly traded cell tower company it spun out a few years ago. In a statement, CEO Margherita Della Valle said:

“Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year. This is reflected in our guidance for profit and cash flow growth for the year ahead.”

Read more: Top FTSE 100 shares to watch: Vodafone, ICG, BT Group, EasyJet

Germany business to resume its growth

The company now expects that its crucial German business will return to growth this year after its revenue fell by 5% in FY25. This slowdown happened because of the MDU TV switching law that gave tenants in multiple dwelling units to choose their own TV and broadband providers. 

Other parts of Vodafone’s business did well in the last financial year. The UK organic service revenue rose by 1.9%, a trend that may continue this year following its merger with Three. Vodafone’s revenue grew in other parts of Europe and in Africa. 

The management hopes that its business will continue growing this year. For example, the guidance is that its adjusted EBITDAaL will be between €11 billion and €11.3 billion, a slight increase from the €11 billion it made last year. 

The company also sees its adjusted free cash flow being between €2.6 and €2.8 billion, higher than the previous €2.5 billion.

Vodafone’s management hopes that the turnaround efforts made in the last two years will pay off. These strategies have involved laying off 10,000 workers and selling its business in key countries like Spain and Italy.

The company also hopes that these efforts will make its dividend more stable and attractive. It has a dividend yield of about 7.50%, much higher than that of other companies in the FTSE 100 Index.

Read more: Vodafone share price rally has stalled: buy, sell, or hold?

Vodafone stock price technical analysis

The weekly chart shows that the VOD share price has remained in a tight range in the past few months. It has formed a symmetrical triangle pattern whose two lines are about to converge. A bullish or bearish breakdown typically happens when this convergence nears.

The MACD indicator has moved above the zero line, while the Relative Strength Index (RSI) has moved above the neutral point at 50. 

Therefore, the Vodafone share price will likely have a bullish breakout as investors target the key resistance point at 80.95p, the highest swing on May 2nd 2023. A move below the support at 67p will invalidate the bullish outlook.

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Rolls-Royce share price surged to a record high this week as the momentum that started in 2020 gained steam. It jumped to a high of 820p on Tuesday, bringing the year-to-date gains to 45%. It has soared by 2,287% from its lowest level in 2020, making it one of the best-performing FTSE 100 companies. 

Rolls-Royce share price analysis

The daily chart shows that the Rolls-Royce stock price is gaining momentum, raising the possibility that it will jump to 1,000p, as we predicted here. 

The stock has recently crossed the important resistance level at 809p, the highest swing in March this year. 

Moving above that level was important as the stock invalidated the risky double-top pattern, whose neckline was at 557p, the lowest swing in April as global stocks crashed following Trump’s Liberation Day speech in which he announced large tariffs, 

A double-top is one of the most bearish chart patterns in technical analysis as it shows that bulls are afraid of opening trades above that price.

Therefore, moving above the double-top point is a sign that the Vodafone share price has invalidated the bearish outlook.

Read more: Will the Rolls-Royce share price hit 1,000p after its earnings?

The stock remains above all moving averages, and oscillators are highly bullish. For example, while the Average Directional Index (ADX) has dropped lately, it is showing signs of a reversal. 

The Relative Strength Index (RSI) and the MACD indicators continued rising this week, which is a sign that it is gaining momentum. 

Therefore, the most likely scenario is where the Rolls-Royce stock price makes a strong bullish breakout and hits the resistance point at 1000p. This target is established by first measuring the distance between the double-top and the neckline, which is about 30%. 

After this, we measured the same distance from the double-top level, bringing the price target to 1,065p. 

Top catalysts for the Rolls-Royce stock

There are a few key catalysts for the Rolls-Royce share price this year. First, the UK and the US have reached a trade agreement, removing most of the tariffs that the Trump administration put in place. Ending these tariffs would be beneficial since Rolls-Royce has many American clients. 

Second, the European Union and the UK progressed in trade relations this week. The two sides agreed to end most of the red tape that have existed in the past. 

These agreements are important because, while Rolls-Royce is a British company, it makes most of its money from other countries. 

Further, Rolls-Royce business is doing well as demand for planes remains high. For example, Boeing received jet orders worth billions last week during Trump’s trip there. While most of these planes will use General Electric engines, Rolls-Royce will benefit from the sector’s growth.

The most recent results showed that the company’s business is doing well and is on track to hit its guidance. It will make between £2.7 billion and £2.9 billion in operating profit this year and between £2.7 billion and £2.9 billion in cash flow. 

It has achieved these numbers ahead of schedule as all segments of its business remains strong. Its civil aviation business is thriving, while the power segment is seeing higher data center demand.

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