European Equity Early Indications: earnings dominate, particularly from the DAX 40 (+0.3%)
Q2 Earnings:
- HSBC (HSBA LN), +1%: PBT and Net beat, approves a 2nd USD 0.10/shr interim dividend, up to USD 1bln buyback. FY NII guidance upgraded, confident in other targets.
- Bayer (BAYN GY), +2%: Revenue and adj. EBITDA beat. Confirms outlook.
- Continental (CON GY): Revenue in-line, adj. EBIT margin beat. FY guidance below-exp. Expects raw material costs to be “substantially” higher in H2.
- Fresenius Medical (FME GY), -7%: Revenue beat, confirms guidance; seemingly hit by weak US performance.
- Lufthansa (LHA GY), -5%: Revenue beat, adj. EBIT & Net miss, margins weak. FY guidance at the lower end of the range.
- Zalando (ZAL GY) -10%; Revenue miss. FY Guidance at the lower end of the range, narrows EBIT guide.
- Evonik (EVK GY): revenue beat. Raises FY guidance.
- ams-OSRAM (AMS SW), +6%: Revenue beat, adj. EBITDA higher. Guidance maintained. Key milestones in smart glasses.
- BP (BP/ LN), +1%: Revenue beat, adj. net beat. announcing intention to sell Archaea, biogas business in the US.
- Smith+Nephew (SN/ LN), -5%: Revenue & operating profit higher Y/Y. FY26 revenue growth guidance cut, following a soft H1.
M&A
- Segro (SGRO LN): To be acquired by Prologis (PLD) for just under USD 19bln.
% following the name/ticker is the pre-market indication for that stock, via Tradegate.
A dense earnings morning skewed to the DAX, and the pattern in the pre-market indications is the familiar one for this stage of a reporting season: guidance misses are punished asymmetrically harder than beats are rewarded, with the double-digit reaction reserved for the revenue miss rather than the cleanest beat. The split worth noting is between top-line beats that nonetheless sold off (Fresenius Medical, Lufthansa) and the names where the beat travelled with the outlook (HSBC's upgraded NII guidance, Evonik's raised FY). In past seasons, margin and raw-material commentary of the Continental kind has tended to be the tell for how the second half guidance round goes across the autos and industrials complex. The Prologis bid for Segro is the standout corporate event: large cross-border logistics real estate consolidation of this size has historically drawn scrutiny on valuation and financing terms, and the read-across typically extends to listed logistics and warehouse peers. Caveats apply to Tradegate indications themselves: thin pre-market prints have frequently faded or reversed once the cash open brings real volume, so the opening auction rather than these marks is the first reliable signal. Follow-ons are the DAX heavyweight calls through the morning and whether the US session takes the same view on the transatlantic names.