Aug 07 ,2026
Synopsis:
European equity markets closed higher, off best levels. Technology, Health Care, Media lead; Energy and Travel & Leisure lag. Follows slightly firmer performance on Thursday. Stoxx 600 up over 2% on the week - biggest weekly rise since June. FTSE also fourth week of gains.
Oil stable as Strait of Hormuz headlines turn more cautious. Risk sentiment this week helped by progress towards a deal reopening Strait of Hormuz, though latest reports highlighted maximalist Iranian demands on transit control and fees that may hinder US acceptance. Shipping industry skeptical about proposed route due to US sanctions. Red Sea tensions also elevated amid Saudi-Houthi military clashes in Yemen. Uncertainty tempered by another busy night of earnings with well-received results out of the software space, where corporates spent a lot of time talking about AI as a tailwind. European sentiment supported by strongest earnings growth since Q3 2022. July NFP a focal point today and CPI next Wednesday.
On macro data front, German industrial production sees modest expansion, as expected. German trade surplus narrows due to big jump in imports. French ILO unemployment rate comes in on the firmer side of expectations in Q2. UK Lloyds house price index misses expectations, leaving largely flat annual growth rate. Overseas, US NFP weaker-than-expected in July; first jobs decline since February. Unemployment rate came down amid another decrease in labor-force participation. Cooler average hourly earnings also in focus China export growth narrowed from prior month's sharp increase.
In other news, FT reported that the ECB was not informed of US sales of euros to prop of the yen in its recent intervention. Bloomberg report, citing economists, critiqued BoE for lack of communication from deputy governor Lombardelli, who is the most senior official after Bailey in setting monetary policy.
On a busy earnings calendar, insurances names in focus, with Allianz (ALV.GR), Generali (G.IM), Unipol (UNI.IM) and Munich Re (MUV2.GR) posting H1/Q2 numbers; in the DACH region, Daimler Truck Holding (DTG.GR), Lanxess (LXS.GR), (Oesterreichische Post (POST.AV) and Porsche Automobil Holding SE (PAH3.GR) were among few other names updating investors, with Brenntag (BNR.GR) raising its FY guidance. Elsewhere, Monte dei Paschi di Siena (BMPS.IM), Eutelsat Communications (ETL.FP) and CSG NV (CSG.NA) posted their most recent earnings whilst.
On the M&A front, Avolta (AVOL.SW) acquired majority of Penha Duty Free Group and DNO (DNO.NO) launched an unsolicited £202M takeover approach for Genel Energy (GENL.LN).
Looking ahead to Monday's calendar (see - Europe Week Ahead: 10-Aug to 14-Aug attached) Lakefront Biotherapeutics (LKFT.NA), Aryzta (ARYN.SW), GEA Group (G1A.GR), Patrizia (PAT.GR), Hypoport (HYQ.GR), NTG Nordic Transport Group (NTG.DC), Ilkka (ILKKA.FH), Plus500 (PLUS.LN), HgCapital Trust (HGT.LN) and Done.ai Group (DONE.SS) will be amongst other names to update investors, whilst the macro-calendar releases will include Eurozone Aug economic index - Sentix, Norway Jul CPI, PPI, Sweden Jun industrial production, Finland Jun industrial production, Denmark Jul CPI, Jun traded balance, Netherlands Jun manufacturing production, Austria Jun industrial production, Greece Jun industrial production.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Technology +1.90%, Health Care +1.16%, Media +0.88%, Financial Svcs +0.82%, Autos & Parts +0.60%, Food, Beverage and Tobacco +0.51%, Real Estate +0.35%,
Underperformers:
Energy(0.58%), Travel & Leisure (0.45%), Telecom (0.40%), Consumer Products and Services (0.36%), Personal Care Drug and Grocery Stores (0.35%), Insurance (0.17%), Chemicals (0.15%), Banks (0.09%), Retail +0.02%, Construct & Mtls +0.13%, Utilities +0.20%, Ind Goods & Svcs +0.31%,
Macro/Peripheral markets:
Geopolitics
Global food prices at three-year high as heatwaves and wars push up crop costs - The Guardian
Russia could attack Nato within weeks, US intelligence warns - The Telegraph
Iran Debates Hormuz Wording as Trump Says Deal's 'Moving Along' - Bloomberg
EU
Germany, France, Spain Balk at Yuan Bond Sales After Bank Talks - Bloomberg
UK
UK house prices flat in July, says Lloyds, as buyers struggle with affordability - The Guardian
Steep Rise in UK Immigration Raids Hits Delivery, Construction - Bloomberg
Britain curbs power exports to Europe to preserve supplies - FT
UK manages record share of assets on behalf of overseas clients - FT
France
France's increasingly costly debt threatened by snowball effect - Le Monde
Germany
Union and SPD reject uniform VAT - Handelsblatt
Federal Chancellor discusses drone attack attempt with Security Council - Handelsblatt
Spain
Madrid threatens retaliation if Italy keeps border controls on travelers from Spain - Politico
Company news:
Trading Higher:
+35.6% BITTI.FH (Bittium €35.70, +10.05) -- Q2 earnings
+26.3% GENL.LN (Genel Energy £0.56, +0.13) -- DNO launches unsolicited £202M takeover approach for company at 69p Per Share
+16.9% KRX.ID (Kingspan Group €81.55, +13.80) -- H1 earnings
+10.6% GDWN.LN (Goodwin £214.00, +20.00) -- comments on recent press speculation regarding potential sale of parts of the Mechanical Engineering division; confirms it has commenced strategic review
+8.2% METSB.FH (Metsa Board €3.26, +0.25) -- Danske Bank upgrade
+7.0% HOC.LN (Hochschild Mining £4.91, +0.34) -- higher metal prices
+7.0% PAF.LN (Pan African Resources $1.05, +0.07) -- RBC Capital Markets upgrade
+6.5% GMAB.DC (Genmab DKK2,003.00, +122.00) -- Q2 earnings
+6.3% PHAR.LN (Pharos Energy £0.34, +0.02) -- receives increased cash takeover offer from Ratio of 28.8183p/sh plus 4.0p special dividend
+5.8% LOTB.BB (Lotus Bakeries €11,700.00, +660.00) -- H1 earnings
+5.7% SMHN.GR (SÜSS MicroTec €81.50, +4.50) -- Deutsche Bank upgrade
+5.3% FRES.LN (Fresnillo £28.12, +1.45) -- higher metal prices
+4.1% G24.GR (Scout24 €73.50, +2.95)
+3.9% NOVO.B.DC (Novo Nordisk DKK304.80, +11.50)
+3.7% NTG.DC (NTG Nordic Transport Group DKK271.50, +9.50) -- DNB Carnegie upgrade
+3.4% WAWI.NO (Wallenius Wilhelmsen NOK150.30, +4.90) -- Nordea price target upgrade
+3.1% CEVI.SS (CellaVision SEK151.20, +4.60)
+2.7% CICN.SW (Cicor Technologies CHF129.00, +3.40) -- agrees new CHF 425M unsecured term and revolving credit facilities
+2.4% DIM.FP (Sartorius Stedim Biotech €177.50, +4.10)
+2.1% BICO.SS (BICO Group SEK15.24, +0.32)
+1.9% RAY.B.SS (RaySearch Laboratories SEK180.70, +3.40) -- order
+1.8% ELN.IM (El.En. €16.39, +0.28) -- agrees to sell 80% of the Cutlite Penta business to TRUMPF group for ~€21M in cash
Trading Lower:
-19.0% SERI.IM (Seri Industrial €2.45, -0.56) -- shareholders to vote on 12-Nov on proposal to merge Seri Industrial into SE.R.I. S.p.A.
-15.1% OXB.LN (OXB £4.62, -0.89) -- H1 trading update
-10.2% BPOST.BB (bnode €1.39, -0.16) -- Q2 earnings
-7.2% TOKMAN.FH (Tokmanni Group €6.63, -0.52) -- Q2 earnings
-5.4% LXS.GR (Lanxess €16.54, -0.92) -- Q2 earnings
-4.6% POST.AV (Oesterreichische Post €31.70, -1.50) -- Q2 earnings
-4.5% ROS.AV (Rosenbauer International €63.40, -3.00) -- H1 earnings
-4.0% ETL.FP (Eutelsat Communications €2.03, -0.09) -- FY earnings
-3.3% NDA.GR (Aurubis €173.30, -6.00)
-3.2% WIIT.IM (WIIT €28.35, -0.90)
-2.5% OHB.GR (OHB SE €243.00, -6.00) -- initiated overweight at JPMorgan; initiated buy at Deutsche Bank
-2.2% SCMN.SW (Swisscom CHF631.50, -14.00)
-2.2% MXHN.GR (MAX Automation €3.70, -0.08)
-2.1% SQZ.LN (Serica Energy £2.27, -0.05) -- Pharos Energy receives increased cash takeover offer from Ratio of 28.8183p/sh plus 4.0p special dividend
-1.5% MUV2.GR (Munich Re €506.80, -7.80) -- Q2 earnings; cuts FY26 insurance revenue guidance
EU companies reporting Monday:
Earnings:
Benelux: Lakefront Biotherapeutics (LKFT.NA)
DACHs: Aryzta (ARYN.SW), GEA Group (G1A.GR), Patrizia (PAT.GR), Hypoport (HYQ.GR)
Nordics: NTG Nordic Transport Group (NTG.DC), Ilkka (ILKKA.FH)
UK: Plus500 (PLUS.LN)
Trading Update:
UK: HgCapital Trust (HGT.LN)
CMD/Events: Done.ai Group (DONE.SS) EGM vote on directed share issue as part of the consideration for acquisition
Data:
Economics:
Jun Manufacturing Production
Denmark +6.4% m/m vs consensus +1.9% and prior revised (3.5%) from (3.9%)
Norway (1.0%) m/m vs consensus (0.4%) and prior revised +0.8% from +0.7%
Jun Trade Balance
Germany €15.4B vs consensus €17.4B and prior revised €19.3B from €19.1B
France (€5.8B) vs consensus (€6.5B) and prior revised (€7.7B) from (€6.9B)
France Q2 Unemployment Rate 8.3% vs consensus 8.2% and prior 8.1%
UK Jul Lloyds (formerly Halifax) House Price Index +0.1% y/y vs consensus +0.4% and prior revised+0.7% from +0.6%
Switzerland Jul Consumer Sentiment (34.8) vs consensus (34) and prior (32.2)
Germany Jun Industrial Production +0.2% m/m vs consensus +0.1% and prior revised +0.7% from +0.9%
Greece Jul CPI +3.4% y/y vs consensus +3.5% and prior +4.4%
Markets:
WTI Crude (Sep 26): +$0.86 or +1.11% to $78.15
€-$ +0.0038 or +0.33% to 1.1561
£-$ +0.0047 or +0.35% to 1.3500
€-£ (0.0004) to 0.8564
S&P 500 +0.64%
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