Market Wrap: Airlines Under Pressure, Europe Resists Expensive Oil

The European market significantly reduces volatility at the start of the week. Investors in Europe can be expected to hold back on market decisions until clearer signals emerge regarding the situation in the Middle East. The ECB press conference on Thursday will also be absolutely crucial.

Despite another fairly large exchange of fire between the US and Iran, the European market is showing small but still positive gains overall.

From a sector perspective, improved sentiment toward technology is supporting European semiconductor companies, while Ryanair’s results and concerns about air traffic in the Middle East are putting pressure on European airlines.

Company news:

• Ryanair: The airline published its Q2 2026 results. Expectations were low, so a nearly one-third decline in profit and revenue below target were already largely priced in. However, the weak results confirm that the negative scenario for airlines is playing out. Ryanair is down another 5%, followed by Air France, Wizz, and Lufthansa, falling by around 1–3%.
• Thales: Just ahead of its results, the company confirmed orders for new military helicopters and radars. The order is expected to be worth around one billion euros. The shares are reacting with a slight increase.
• Thule: The outdoor equipment supplier published its results. Despite solid sales growth and a record margin, the shares fell by around 3%. This can be interpreted as likely profit-taking after strong results.
• Crane Ware: The British company providing software for the US healthcare system fell victim to a hacking attack and a data leak. The shares are down around 8%.

Macro: 

• The PPI in Germany was lower than expected, which may indicate weakening inflationary pressures, but also slower economic growth.

Forex

• Antipodean currencies continue their strong gains against the US dollar. AUD and NZD are up more than 0.5% versus USD on the back of shifting interest-rate expectations.

Commodities

• Among agricultural commodities, a drop in cocoa of more than 3% stands out. This is likely a correction driven by profit-taking after sharp price increases.
• Brent crude briefly returns above USD 90; energy commodities are rising amid the ongoing escalation of the conflict in the Middle East and fading prospects for a quick end to the conflict.

Crypto

• Sentiment toward cryptocurrencies is balanced in Monday’s session ahead of the US stock market open. Bitcoin remains rangebound, slightly below USD 65,000, while Solana and Ethereum are up just under 1%.