Jun 10 ,2026
Synopsis:
European equity markets closed mostly lower, but off worst levels. UK +0.3%, Switzerland +0.8% and Denmark +1.8% bucked the negative trend. Basic resources, industrials, autos and banks were the worst performers, while real estate, food&beverage and telecom outperformed. Follows Tuesday's softer close. Stoxx 600 down over 1% on the week, while FTSE near three-week lows.
US launched strikes against Iran in response to downing of Apache helicopter in Strait of Hormuz. IRGC retaliated with drones targeting US assets in region though US officials said most were intercepted. Still, wording from both sides signaled de-escalation with CENTCOM describing strikes as a proportional response that was now complete and IRGC saying further strikes would be in response to future US attacks. Very unclear path to peace despite week beginning with Trump suggesting deal could be reached in a couple of days.
Weakness in tech sector in US and Asia spilling into Europe. Overbought conditions and worries over Fed tightening and inflation risks in the spotlight.
Another quiet macro calendar in Europe. Germany's DIW cut its 2026 GDP forecast to 0.5% from 1%. Update from UK recruitment platform Indeed showed a 31% drop in summer job vacancies versus a year ago. Italian industrial production beat expectations. Norwegian inflation eases as expected. Swedish industrial production jumped in April. Meanwhile, UK Chancellor Reeves hinted that taxes may need to rise to help fund defense spending in the future.
In earnings news, Kongsberg Gruppen (KOG.NO) presented new ambitions for revenue growth and profitability ahead of the company's Capital Markets Day. In the UK, Pennon Group (PNN.LN), WH Smith (SMWH.LN), Motorpoint Group (MOTR.LN) and Tullow Oil (TLW.LN) update investors with their latest numbers. In Germany, Heidelberger Druckmaschinen (HDD.GR) reported FY earnings. On M&A newsflow, KKR and Energy Capital Partners have made a revised offer for DCC (DCC.LN) ahead of today's deadline.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Real Estate +1.51%, Food & Beverage +1.40%, Telecom +1.34%, Insurance +0.98%, Persnl & HHold Goods +0.75%, Health Care +0.57%, Travel & Leisure +0.38%, Oil & Gas +0.27%, Retail +0.12%, Utilities +0.01%
Underperformers:
Basic Resources (1.10%), Ind Goods & Svcs (1.06%), Autos & Parts (1.06%), Banks (0.77%), Technology (0.73%), Construct & Mtls (0.54%), Media (0.52%), Chemicals (0.17%), Financial Svcs (0.13%)
Macro:
Geopolitics:
UK:
UK summer job vacancies plunge 31% y/y as employers cut junior hiring (Reuters)
UK Treasury resists accelerating defense spending to 3% of GDP as 10-year military investment plan faces delays (Bloomberg)
Ex-NATO chief warns UK Labour of "pain and great difficulty" from deep public spending cuts needed to fund higher defense budget (Politico)
Lowe's hard-right Restore Britain has a plan to hammer Farage nationwide (Politico )
France:
French far-right leader Eric Zemmour embraces Trump and MAGA in Washington visit amid European nationalist rift (Politico)
Company news:
Notable Gainers
+27.0% ENQ.LN (EnQuest £0.24, +0.05) -- $833M acquisition of participating interests in PSCs offshore Malaysia
+14.0% FSTA.LN (Fuller, Smith & Turner £7.48, +0.92) -- FY earnings
+8.8% TLW.LN (Tullow Oil £0.16, +0.01) -- AGM trading update
+8.4% ALCLS.FP (Cellectis SA €2.72, +0.21) -- FDA RMAT designation for lasme-cel CAR-T therapy in trial for patients with r/r B-ALL
+8.1% SYSR.SS (Systemair SEK80.50, +6.00) -- Q4 revenue
+7.7% SCST.SS (Scandi Standard SEK153.40, +11.00) -- initiated buy at Sparebank 1 Markets
+6.1% FIE.GR (Fielmann Group €44.05, +2.55) -- initiated buy at Deutsche Bank
+6.0% HDD.GR (Heidelberger Druckmaschinen €1.44, +0.08) -- FY earnings
+3.4% CAML.LN (Central Asia Metals £1.36, +0.04) -- 5M trading update
+3.1% ENOG.LN (Energean £7.43, +0.23)
+1.8% SOLB.BB (Solvay €26.22, +0.46) -- Deutsche Bank upgrade
+1.1% ENDUR.NO (Endur ASA NOK114.80, +1.20) -- completes acquisition of Enviro Entreprenør AS
Notable Decliners
-45.6% VOLO.SS (Volati SEK36.45, -30.55) -- first day trading ex-right
-16.2% SMWH.LN (WH Smith £4.13, -0.80) -- trading update; places 25.0M new ordinary shares at a price of 410p/share
-10.9% PDL.LN (Petra Diamonds £0.08, -0.01) -- Finsch business rescue process update
-10.6% SOI.FP (SOITEC €125.35, -14.80) -- Jefferies downgrade
-7.4% ITM.LN (ITM Power £1.21, -0.10)
-6.2% CWR.LN (Ceres Power Holdings £5.72, -0.38) -- £103M capital raise
-5.9% VIRI.FP (Viridien €103.10, -6.50) -- strategic partnership with Aker BP
-5.0% KOG.NO (Kongsberg Gruppen NOK298.00, -15.80) -- CMD update
-4.6% ELK.NO (Elkem NOK31.72, -1.54)
-3.7% CRNA.NO (Circio Holding NOK8.03, -0.31) -- NOK300M fundraising
-2.9% LPK.GR (LPKF Laser & Electronics €18.70, -0.55)
-2.1% TKA.GR (ThyssenKrupp €10.65, -0.23) -- Hungary business restructuring
-2.0% CBK.GR (Commerzbank €36.22, -0.75) -- raises further concerns over continued unusual tender behaviour in connection with UniCredit offer
EU companies reporting tomorrow:
Earnings:
DACHs: AT & S Austria Technologie & Systemtechnik (ATS.AV)
Nordics: Roblon (RBLN.B.DC)
UK: Halma (HLMA.LN), Safestore Holdings (SAFE.LN), Wizz Air Holdings (WIZZ.LN), NCC Group (NCC.LN), RWS Holdings (RWS.LN), PayPoint (PAY.LN), Norcros (NXR.LN)
Trading Update:
Nordics: Puuilo (PUUILO.FH)
Other: Origin Enterprises (OIZ.ID)
Traffic: DFDS (DFDS.DC), Heathrow Airport Holdings (+HTR.LN), Aeroflot-Russian Airlines (AFLT.RU)
CMD/Events: Grafton Group (GFRU.LN), hVIVO (HVO.LN)
Data:
Economics:
Apr Industrial Production
Austria +0.6% y/y vs cons +1.4% and prior +1.7%
Italy +1.3% y/y vs cons +1.1% and prior revised +1.4% from +1.5%; +0.5% m/m vs cons (0.1%) and prior revised +0.6% from +0.7%
Finland +1.9% y/y vs cons +5.9% and prior revised +7.1% from +7.3%
Sweden +7.1% y/y vs cons +2.6% and prior +3.0%
May CPI
Denmark +1.9% y/y vs cons +1.7% and prior +1.4%
Norway +3.1% y/y vs cons +3.1% and prior +3.4%
Netherlands Apr Manufacturing Production +1.4% m/m vs cons (0.6%) and prior +2.8%
Markets:
WTI Crude (Jul 26): +$1.34 or +1.52% to $89.54
€-$ +0.0011 or +0.10% to 1.1554
£-$ +0.0014 or +0.10% to 1.3392
€-£ +0.0000 to 0.8628
S&P 500 (0.86%)
Performance year-to-date
FTSE 100: +3.26%
DAX: (1.20%)
CAC: +0.15%
MIB: +11.31%
Stoxx 600: +4.39%
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