Sep 09 ,2026
Synopsis:
European equity markets finished lower. Retail, industrials, personal/household goods alongside pro-cyclical sectors the biggest laggards. Energy and utilities the relative outperformers. US equities lower in midday trading, extending Tuesday's declines. Breadth negative with most sectors lower. Treasuries little changed to a touch weaker; yields up 1-2 bp at the front of the curve. Gilt yields up 3 bps, while Bund 4 bps firmer at 3.42%. Dollar index down 0.1%. Yen higher. Gold up 0.5%. Silver up 2%. Bitcoin futures up 1%. WTI crude up 3%.
Risk-off tone once again chalked up to continued escalation in kinetic activity in the Middle East (and no diplomatic off-ramps in sight) that has pushed Brent back above $100 a barrel. Comes as CENTOM says US struck more Iranian oil tankers near Kharg Island in response to latest IRGC missile attack on US naval warship. Crude strength underpinned on Tuesday on news that Houthis launched multi-pronged attack on Saudi cities that also dealt damage to oil facilities. Tit-for-tat cycle raising concerns about a wider escalation while Iran pressing ahead with efforts to extend its claims over Strait of Hormuz.
Quiet macro calendar in Europe ahead of tomorrow's ECB decision. French industrial production missed expectations in July. UK Chancellor Healey said borrowing is too high in comments to lawmakers on Tuesday, easing fears of more expansionary fiscal policy ahead of the October budget. BoE Governor Bailey and other policymakers warned of upside inflation risks. Meanwhile, the UK's Food and Drinks Federation said food inflation to peak above 6% next year due to Iran war, drought and regulatory costs. Elsewhere, German finance ministry is planning to tax crypto assets from 2027.
In corporate news, Inditex (ITX.SM) delivered solid H1 results broadly in line with expectations, with strong recent trading momentum and confidence reflected in a stable margin outlook and continued capex investment. In the UK, Victrex (VCT.LN) raised its FY profit guidance on the back of strong momentum across Aerospace, Electronics and Value Added Resellers; completed cost-cutting initiatives and appointes new interim CFO. Energean (ENOG.LN) reaffirmed FY guidance and highlighted strong production recovery post-period, alongside continued strategic progress on refinancing, new gas developments, and exploration opportunities in the EMEA region. In France, Antin Infrastructure Partners (ANTIN.FP) posted a softer H1 with lower fee-paying AUM but maintained its dividend distribution outlook for the year, signalling confidence despite near-term pressure.
In M&A, Goodwin (GDWN.LN) reached agreement to sell substantial part of its Mechanical Engineering division to an affiliate of Cerberus Capital Management, L.P for a headline cash consideration of up to ~ £1.1B. SThree plc (STEM.LN) confirms that it has received an approach from Circle8 Group Inc (CIRC). Harworth Group (HWG.LN) board unanimously rejects Peel Pepper 172.5p/sh cash offer as it fundamentally undervalues the company's near- and longer-term prospects. Mutares (MUX.GR) completes sale of NEM Energy Group to Hyundai Heavy Industries Power Systems.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Oil & Gas +0.22%, Utilities +0.04%, Telecom (0.69%), Health Care (0.95%), Travel & Leisure (1.02%), Basic Resources (1.32%), Insurance (1.43%), Banks (1.44%)
Underperformers:
Retail (2.55%), Construct & Mtls (2.54%), Ind Goods & Svcs (2.37%), Persnl & HHold Goods (2.32%), Food & Beverage (2.08%), Financial Svcs (1.69%), Chemicals (1.67%), Technology (1.57%), Autos & Parts (1.54%), Media (1.54%), Real Estate (1.51%)
Macro:
Central Banks:
BoE Governor Bailey warns of upside inflation risk (Independent)
EU:
UK:
Police launch criminal investigation into Reform UK donations (BBC )
UK Chancellor Healey says UK borrowing too high (Bloomberg)
FDF says food inflation set to peak at 6.4% next year (London Times)
UK appoints Canada statistician to fix its faulty economic data (Bloomberg)
Germany:
Merz's SPD partners rebel after far-right rout (Politico)
Finance Ministry planning to tax crypto assets from 2027 (Handelsblatt)
France:
French centrists struggle to find unity candidate as extremes surge in polls (Politico)
Peripheral markets:
Company news:
Notable Gainers
+15.3% VCT.LN (Victrex £10.02, +1.33) -- Pre-CloseTrading Update: now expects FY pretax income in range of £45 - 47M vs prior guidance £42 - 44M and FactSet £42.2M; appoints interim CFO
+15.2% FORTUM.FH (Fortum €24.62, +3.25) -- nuclear power purchase agreement with Google
+15.0% FDEV.LN (Frontier Developments £5.13, +0.67) -- FY EPS 70.0p vs FactSet 41.3p [4 est, 28.7-57.5p]
+10.7% STEM.LN (Sthree £3.05, +0.30) -- confirms that it has received an approach from Circle8 Group Inc (CIRC)
+8.0% ENOG.LN (Energean £8.57, +0.63) -- H1 EPS $0.90 vs year-ago $0.60; reaffirms FY guidance except for exploration and decommissioning expenditure
+6.2% GYM.LN (Gym Group £2.05, +0.12) -- H1 EPS 2.9p ex-items vs year-ago 2.4p
+6.0% DOCM.SW (DocMorris CHF10.64, +0.60) -- ~CHF100M senior unsecured bonds private placement
+5.9% LBIRD.FP (Lumibird €26.75, +1.50) -- signs share purchase agreement for sale of Lumibird Medical to IPG Photonics Corporation
+0.7% ITP.FP (Interparfums €28.20, +0.20) -- H1 Net Income €65.5M vs FactSet €58.5M
Notable Decliners
-18.7% MAB1.LN (Mortgage Advice Bureau £3.99, -0.92) -- H1 Trading Update: now expects to report adj pretax income £14.8M vs prior expectations for £14.6M
-5.1% ALBPS.FP (Biophytis €0.07, -0.00) -- expands OBA study to evaluate BIO101
-4.6% SAR.GA (GR Sarantis €12.92, -0.62) -- H1 adj net income €27.7M vs year-ago €29.2M (post EU close 8-Sep)
-4.3% GDWN.LN (Goodwin £147.80, -6.60) -- confirms advanced discussions regarding potential sale of substantial part of Mechanical Engineering division
-3.4% MOVE.SW (Medacta Group CHF118.40, -4.20) -- H1 adj. EBITDA €97.4M vs FactSet €101.4M [2 est, €100-102.8M]; reaffirms 2026 guidance and mid-term outlook
-3.4% ITX.SM (Inditex €54.58, -1.94) -- H1 net income attributable €2.98B vs StreetAccount €3.04B
-3.4% ORSTED.DC (Ørsted DKK137.45, -4.85) -- holder Andel a.m.b.a. places 22.8M shares at DKK135.5/sh
-3.2% OTOEL.GA (Autohellas €11.38, -0.38) -- Q2 net income €29.1M vs year-ago €31.5M
-2.9% CRE.LN (Conduit Holdings £4.35, -0.13) -- CEO Neil Eckert to step down; effective 1-Mar-27
-2.7% LHN.SW (Holcim CHF71.56, -1.98) -- invests in UK-based technology Cloud Cycle; financial details not provided
-2.4% TFIN.IM (Trevi-Finanziaria Industriale €4.65, -0.11) -- CONSOB resumes review of Webuild's offer document in connection with the acquisition of Trevi-Finanziaria Industriale
-2.3% EWG.LN (W.A.G. Payment Solutions £0.98, -0.02) -- H1 adj. EPS €0.03 vs FactSet €0.03 [2 est, €0.03-0.03]
-2.3% GIMB.BB (Gimv €44.55, -1.05) -- Anchor invests in Batenburg Techniek; terms undisclosed
-1.9% RUSTA.SS (Rusta SEK79.65, -1.55) -- Q1 EPS SEK1.40 vs FactSet SEK1.30 [4 est, SEK1.10-1.44]
-1.8% ANTIN.FP (Antin Infrastructure Partners €8.27, -0.15) -- H1 EPS €0.26 vs year-ago €0.31
-0.3% ABDN.LN (Aberdeen Group £2.47, -0.01) -- new Chair-designate
EU companies reporting tomorrow:
Earnings:
Benelux: Brederode (BREB.BB)
DACHs: BVZ Holding (BVZN.SW)
France: Savencia (SAVE.FP), Compagnie Chargeurs Invest (CRI.FP), Hoffmann Green Cement Technologies (ALHGR.FP)
Nordics: Puuilo (PUUILO.FH), ChemoMetec (CHEMM.DC), Biovica International (BIOVIC.B.SS)
Southern Europe: Avio (AVIO.IM), El.En. (ELN.IM), Orsero (ORS.IM), SYS-DAT (SYS.IM), FNM (FNM.IM)
UK: International Public Partnerships (INPP.LN), Genus (GNS.LN), Playtech (PTEC.LN), Oakley Capital Investments (OCI.LN), Fevertree Drinks (FEVR.LN)
Other: Glenveagh Properties (GVR.ID)
Trading Update: Associated British Foods (ABF.LN)
Traffic: Flughafen Zuerich (FHZN.SW)
Data:
Economics:
France Jul Industrial Production (0.4%) m/m vs consensus +0.3% and prior revised (0.1%) from +0.1%
Norway Aug PPI +30.1% y/y vs consensus +24.0% and prior +23.4%
Greece Aug CPI +3.8% y/y vs consensus +3.6% and prior +3.4%
EU Harmonised: +3.7% y/y vs consensus +2.9% and prior +2.7%
Markets:
WTI Crude (Oct 26): +$3.51 or +3.77% to $96.54
€-$ +0.0007 or +0.06% to 1.1631
£-$ +0.0010 or +0.07% to 1.3550
€-£ +0.0000 to 0.8585
S&P 500 (0.53%)
Performance year-to-date
FTSE 100: +7.44%
DAX: +4.43%
CAC: +0.09%
MIB: +15.42%
Stoxx 600: +8.14%
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