Market Wrap: Hopes for a resumption of U.S.-Iran talks are boosting sentiment ⚡

The European session is seeing mostly slight gains today: the STOXX 600 is up about 0.1%, the DE40 is up 0.42%, the EU50 is up 0.29%, the FRA40 is up 0.27%, the IBEX 35 is up 0.70%, and the FTSE 100 is up 0.13%, while the ITA40 and SUI20 are edging lower. The main factor supporting sentiment remains hopes for the resumption of U.S.-Iran talks and a possible extension of the ceasefire, which is sustaining risk appetite after a weaker start to the week. However, investors are not pricing in a full de-escalation scenario, as the ceasefire’s expiration date approaches and the risk of oil supply disruptions continues to weigh, particularly on Europe’s more energy-intensive economies.

That is why today’s rebound is rather moderate and resembles selective unwinding of bearish positions more than a strong risk-on move. In the currency market, the dollar is strengthening slightly, with the USDIDX index up 0.25%, while EURUSD is down 0.23%, indicating that some capital remains on the defensive side of the market. Oil is holding up relatively well, with Brent and WTI prices rising by 1.08% and 0.99%, respectively, though the broader narrative continues to revolve around possible progress in peace talks. The best performers today are technology, utilities, energy, and financials, which are up 0.96%, 0.91%, 0.61%, and 0.59%, respectively.

Słabiej wyglądają consumer staples, healthcare i communication services.

Sector-specific changes in Europe regarding intraday returns. Source: Bloomberg Financial Lp

Company information:

• Royal Unibrew is seeing sharp losses—more than 20%—following news that its license to bottle PepsiCo products in Denmark, Finland, and the Baltic states will expire at the end of 2028, a business that accounts for approximately 13% of the group’s net revenue.

• Thales is under pressure following the release of its first-quarter results because, despite a 27% organic increase in defense orders to a total of €4.65 billion, the market noted that total orders fell short of the consensus estimate of nearly €4.85 billion. At the same time, Thales confirmed its full-year guidance, and sales rose to €5.32 billion, exceeding analysts’ expectations; thus, the market reaction appears to be more a case of profit-taking following the sector’s strong rally than a shift in the long-term trend.

• Puig also remains in the spotlight following reports that Estée Lauder is working with JPMorgan on a financing package worth around €5 billion for a potential bid to acquire the Spanish group.

• In London, Associated British Foods is also attracting attention after deciding to spin off Primark from its food business and list both companies separately on the London Stock Exchange.

Volatility in other major instruments. Source: xStation