Despite strong results from the banking sector, many European indices are in the red today. The pan-European Euro Stoxx 50 (-0.3%) is primarily hindered by unconvincing sales recovery for Hermès in China. Rising energy commodity prices may also weigh on indices. Brent crude oil is currently trading at approximately 90 dollars per barrel.
Figure 1: Dashboard for the Euro Stoxx 50 (29.07.2026)
Source: XTB Research, 29.07.2026
Companies
Figure 2: Winners and Losers in the Euro Stoxx 50 (29.07.2026)
Source: XTB Research, 29.07.2026
Hermès
Despite publishing solid financial results, Hermès shares recorded a sharp decline today (-11.6%), leading to a temporary suspension of trading.
In the second quarter, the French fashion house generated 4.1 billion euros in revenue (a 7% year-on-year increase, in line with analyst expectations), and recurring operating profit for the first half of the year stood at 3.4 billion euros, with a high margin of 41%.
However, double-digit sales growth in Japanese and American markets and strong demand for leather goods (a 10.2% increase) were overshadowed by investor concerns regarding the company's high valuation, given the ongoing slowdown in the key Chinese market and declines in the Middle East.
Additional concerns were raised by a 9.5% drop in revenue in the perfumes and cosmetics segment, although company management remains confident about long-term development, announcing, among other things, the presentation of its first haute couture collection in 2027.
Banking sector
European banking giants, UBS and Deutsche Bank, recorded strong profit growth in the second quarter, driven primarily by a recovery in investment banking and increased trading activity.
- UBS net profit rose by 17% to 2.8 billion dollars, supported by record revenue from equity trading and a significant inflow of new assets (36 billion USD) in the wealth management division.
- Meanwhile, Deutsche Bank generated a net profit of 1.9 billion euros (a 10% increase), mainly due to higher revenue from trading debt instruments and interest rates.
These excellent results align with a broader global trend recently observed on Wall Street, where market volatility and the boom in AI-related stocks have significantly boosted trading profits.
Indices
Among the biggest losers, apart from the French CAC 40 (-0.7%) and the pan-European Euro Stoxx 50 (-0.4%), which are weighed down by the declines at Hermès, we find the Spanish Ibex 35. The sharp decline of CaixaBank (-6.2%) is a significant factor here. Investors appear to be selling off shares for two main reasons:
- The bank's management decided to maintain conservative guidance for the rest of the year and did not raise forecasts, which the market quietly expected following such strong first-half results.
- Net interest income (NII) was slightly lower than the market expected, and the bank's provisions increased by nearly 40%.
Other large companies also fell, including airport operator Aena (-2.2%), which also published results today.
Double-digit gains after earnings in Europe: Electrolux, Alten, Hexagon
SK Hynix earnings: Did market over-sold?
Morning Wrap: Asia dips on SK Hynix earnings and Iranian attacks! Dollar stalls before Fed (29.07.2026)
Daily Summary: Markets limit the pullback while awaiting the Fed
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
