Oct 12 ,2026
Synopsis:
European equity markets closed higher Monday, just off afternoon highs. Follows mixed performance last week as France, Germany and Italy lagged while UK and Swiss markets outperformed. Financials, utilities and food&beverage were the outperforming sectors whilst telecom, technology and chemicals lagged.
Risk sentiment holding up despite ramp in Middle East hostilities over the weekend and tech weakness in Korea overnight. When it comes to the energy, some focus on continued flow normalization and Trump's claim of an energy ceasefire between Russia and Ukraine (though neither side has confirmed) and Russia reportedly struck Ukrainian power plants post Trump truce announcement. Lot of attention on Houthi attacks on Saudi Arabia risking widening of conflict. Also some attention on reports of commercial tanker attacks in Gulf of Oman and SoH over the weekend.
Focus remains on fiscal pressure, though bond market stabilization that kicked off toward latter half of last week extending into Monday's session. Not a lot new out of France over the weekend other than MEP Glucksmann winning French center-left primary, raising odds of further political fragmentation ahead of 2027 presidential election. Trade developments in the spotlight as EU and China avoided a trade confrontation as Beijing agreed to halve hybrid car exports over four years and offered rare earths "green channel".
In the UK, focus on Chancellor Healey's October Budget with think tank noting ~£35B funding gap issues. Fiscal concerns remain broader issue in the EU as Ireland's scaled-back 2028-2034 budget proposal faces opposition from several member states.
On the reporting front, few trading updates out this morning, including Nordex (NDX1.GR), Hays (HAS.LN) and Vår Energi (VAR.NO). Also in the Nordics, Telia Co. (TELIA.SS) proposed further localization of operations and targets SEK 1B in annual gross savings. Of note, shares in Philips (PHIA.NA) are trading modestly lower after the FDA issued early alert on recall of Philips Lumify Ultrasound system.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Banks +1.50%, Utilities +1.32%, Food & Beverage +1.01%, Persnl & HHold Goods +0.89%, Insurance +0.79%, Ind Goods & Svcs +0.76%, Construct & Mtls +0.74%, Health Care +0.69%
Underperformers
Telecom (0.54%), Technology (0.41%), Chemicals (0.25%), Travel & Leisure +0.08%, Autos & Parts +0.12%, Basic Resources +0.35%, Media +0.38%, Financial Svcs +0.47%, Real Estate +0.51%, Retail +0.54%, Oil & Gas +0.65%
Macro:
Geopolitics:
UK, Germany and Poland reaffirm full support for Zelenskyy after Trump call for new Ukrainian leader (Politico)
Poland's Sikorski warns NATO must prepare for possible deadly Russian hybrid attack (FT)
China and EU agree to discuss inverter import restrictions after hybrid vehicle deal (Bloomberg)
EU to cap hybrid vehicle imports at 350,000 a year from December under deal with China (Bloomberg)
IEA urges members to accelerate diesel releases as global markets tighten (Bloomberg)
France:
Germany:
German CDU/CSU to press von der Leyen with 27-point plan for EU competitiveness and cheaper power for firms (Handelsblatt)
Bundesbank's Theurer warns risks of European sovereign debt crisis have risen significantly (Handelsblatt)
Italy:
Italian economy held up to shocks but growth is weak says Meloni (ansa)
UK:
IFS says Chancellor Healey needs £36B in tax rises or cuts to offset inflation and fund defence pledge (Reuters, BBC, Telegraph)
Labour set to broaden definition of "British" defence company to include foreign-owned firms with UK presence (Telegraph)
Healey to emphasise budget discipline and resilience at IMF meetings in Bangkok (Reuters)
Company news:
Notable Gainers
+22.7% BOR.LN (Borders & Southern Petroleum £0.10, +0.02) -- £2 million fundraising
+16.9% AL2SI.FP (2CRSI €29.00, +4.20) -- preliminary sale agreement for Dumarey Powerglide industrial site
+9.1% ALVIO.FP (Valerio Therapeutics €0.45, +0.04) -- completes acquisition of Etherna Immunotherapies
+7.0% ALDVI.FP (Advicenne €0.71, +0.05) -- cash runway extended to 2028
+4.8% IDIA.SW (Idorsia CHF4.40, +0.20) -- new Aprocitentan data in patients with obesity and cardiometabolic disease
+4.8% FLS.DC (FLSmidth & Co. DKK594.00, +27.00) -- DKK225M order
+3.9% VK.FP (Vallourec €18.59, +0.70) -- major contract
+3.4% HTWS.LN (Helios Towers £2.23, +0.07)
+3.4% NDX1.GR (Nordex €36.62, +1.20) -- Q3 order intake
+3.0% KIN.BB (Kinepolis Group €51.50, +1.50) -- Estimated weekend box office revenues in US, Canada $84.4M, +20.2% y/y - Box Office Mojo
+2.7% CWK.LN (Cranswick £51.20, +1.35) -- Peel Hunt upgrade
+2.5% CARL.B.DC (Carlsberg DKK895.40, +21.60) -- Barclays upgrade
+2.2% INW.IM (Infrastrutture Wireless Italiane €7.18, +0.15) -- Leading shareholders in INWIT line up financing for possible take-private -- Reuters, citing sources (11-Oct)
+2.0% NEX.FP (Nexans €131.90, +2.60) -- Jefferies upgrade
+1.6% PARRO.FP (Parrot €7.69, +0.12) -- strengthens position in U.S. Army drone procurement programs
+1.4% ITM.LN (ITM Power £0.95, +0.01) -- subsidiary Hydropulse signs Heads of Terms for 150 MW project
+1.3% SDLF.LN (Standard Life £8.60, +0.11) -- RBC Capital Markets upgrade
Notable Decliners
-20.9% ACE.SS (Ascelia Pharma SEK0.68, -0.18) -- Orviglance update
-11.9% HAS.LN (Hays Plc £0.57, -0.08) -- Q1 update
-5.6% AT1.GR (Aroundtown €1.40, -0.08) -- Goldman Sachs downgrade
-2.5% AD.NA (Koninklijke Ahold Delhaize €31.46, -0.82) -- cybersecurity incident
-2.2% VBK.GR (Verbio €26.30, -0.60)
-2.2% POLR.LN (Polar Capital Holdings £7.87, -0.18) -- 3M AuM
EU companies reporting tomorrow:
Earnings:
Nordics: ABG Sundal Collier Holding (ABG.NO)
UK: Bellway (BWY.LN), Bytes Technology Group (BYIT.LN), YouGov (YOU.LN)
Trading Update:
DACHs: Givaudan (GIVN.SW), Sulzer (SUN.SW)
France: Ekinops (EKI.FP)
UK: BP (BP.LN), Greencore Group (GNC.LN), Rio Tinto (RIO.LN), Oxford Instruments (OXIG.LN), Ninety One (N91.LN), Integrafin Holdings (IHP.LN)
Sales: DFDS (DFDS.DC)
Traffic: Fraport AG Frankfurt Airport Services Worldwide (FRA.GR), Flughafen Wien (FLU.AV)
CMD/Events: Lonza (LONN.SW), Bayerische Motoren Werke (BMW.GR) pre-close call, Ahold (AD.NA) EGM
Data:
Economics:
None
Markets:
WTI Crude (Nov 26): +$1.85 or +2.01% to $93.70
€-$ (0.0027) or (0.24%) to 1.1164
£-$ (0.0020) or (0.15%) to 1.3210
€-£ (0.0007) to 0.8453
S&P 500 (0.03%)
Performance year-to-date
FTSE 100: +7.30%
DAX: +3.21%
CAC: (3.89%)
MIB: +11.33%
Stoxx 600: +7.34%
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