EUROPEAN OPEN: ABN NA raises FY NII outlook; HNR1 GY Q2 beat, confirms guidance; TKMS GY raises sales and margin outlook; BNR GY raises FY26 operating EBITDA guidance; EOAN GY confirms FY26 guidance after H1 growth

EUROPEAN OPEN:

• European equities have opened mixed. Tech is being supported by earnings, though a lack of clarity on a US-Iran deal is keeping traders cautious ahead of US CPI data due later in the session. Asian stocks and US equity futures advanced on strong tech earnings; South Korea’s KOSPI gained overnight, with Samsung and SK Hynix higher after a report that Temasek plans direct investments in both companies. Stateside, CoreWeave surged in extended trading after its earnings report, where quarterly earnings and revenue beat, and it raised its FY outlook, supported by accelerating AI infrastructure demand, a growing backlog and strong pricing for newer Nvidia systems. In European pre-markets, Foxconn has reported a solid quarter.
• Crude has advanced for a sixth session as traders remain sceptical that a Hormuz deal would quickly restore energy flows. Brent trades just below USD 90/bbl, having risen by around 12% over the last five sessions. Pakistan on Tuesday said that the US and Iran were close to an “arrangement,” though President Trump later voiced distrust of Tehran. Meanwhile, an Iranian official said the Straits would not open until the US accepts Iran’s conditions.
• Still, gold rose above USD 4,400/oz as traders weighed prospects for reopening the Strait of Hormuz and ahead of US inflation data later today (full preview below). Headline US CPI is expected to rise 0.1% M/M in July, rebounding from the -0.4% decline in June, while the annual rate is expected to ease to 3.4% Y/Y from 3.5%; core CPI is expected to rise 0.2% M/M (prev. 0.0%), with the annual rate of core inflation seen cooling to 2.5% Y/Y (from 2.6%). The data will be key in shaping expectations for the September FOMC meeting; markets see roughly even odds of a 25bps Fed rate rise at the September FOMC meeting.
• Ahead, highlights include US CPI for July, the IEA’s OMR and OPEC’s MOMR; supply comes from the UK, Germany and the US.

STOCK SPECIFICS:

• TECH: Hon Hai (HNHPF) topped expectations in the quarter, with net profit up 35%, supported by sustained global demand for AI hardware; exec said that momentum remains robust, with July revenue surging 54%. Samsung Electronics (SSNLF) and SK Hynix (SKHY) gained overnight after a report that Temasek plans direct investments in both companies; Temasek was said to be considering timing. CoreWeave (CRWV) shares rose 15% in extended US trading after quarterly earnings and revenue beat expectations, and it raised its FY outlook, supported by accelerating AI infrastructure demand, a growing backlog and strong pricing for newer Nvidia (NVDA) systems. Oracle (ORCL) reportedly plans further job cuts this month, potentially reaching double-digit percentages on some teams, as it seeks to reduce payroll before 1st September, Business Insider reports. Super Micro (SMCI) rose 7.8% in extended trading after forecasting annual revenue well above expectations, supported by strong demand for AI-optimised servers and improving margins despite a quarterly revenue miss.
• FINANCIALS: China authorised Deutsche Bank (DBK GY) as the first non-Chinese lender to clear yuan transactions in Europe. ABN AMRO (ABN NA) Q2 profit EUR 780mln (exp. 660.1mln), supported by higher fees and lending income; net interest income +11% to EUR 1.7bln (exp. 1.53bln), fees +25% to EUR 617mln (exp. 492mln). Raised its FY commercial net interest income outlook to EUR 6.8bln (prev. saw 6.4bln). Hannover Re (HNR1 GY) Q2 net profit EUR 695.3mln (exp. 682mln), reinsurance revenue EUR 6.4bln (exp. 6.38bln), operating profit of EUR 961.3mln (exp. 946mln); confirmed FY26 guidance.
• INDUSTRIALS: Thyssenkrupp Marine Systems (TKMS GY) raised FY sales growth outlook to +10-12% (from 2-5%), and expects adj. operating margin of up to 6.5%. Q3 revenue EUR 5.82bln (exp. 5.98bln), net profit EUR 82.5mln (exp. 67mln), underlying EBIT 234mln (prev. 321mln Y/Y). Nine-month adj. EBIT rose to EUR 110mln (from EUR 98mln), helped by higher-margin submarine projects. The company also said that it was selected as preferred supplier for Canada’s new submarine fleet.
• CONSUMER CYCLICAL: TUI (TUI1 GY) Q3 revenue EUR 5.82bln (exp. 5.98bln), net profit EUR 82.5mln (exp. 67mln), underlying EBIT EUR 234mln (prev. 321mln); results included a EUR 20mln Iran-war impact. TUI maintained its FY26 outlook, citing encouraging recent bookings and expectations for strong Q4 Holiday Experience demand.
• MATERIALS: Brenntag (BNR GY) Q2 revenue EUR 4.26bln (exp. 4.02bln), operating EBITDA EUR 463mln (prev. 334mln), pretax profit EUR 262mln (prev. 82mln); raised FY26 operating EBITDA view to EUR 1.35-1.45bln, citing solid YTD performance and positive chemical pricing momentum. Rio Tinto (RIO LN), Norsk Hydro (NHY NO) and Gove Aluminium Finance are set to receive Australian federal and New South Wales government support for their Tomago aluminium smelter; an announcement is expected Thursday, Bloomberg reports.
• UTILITIES: E.ON (EOAN GY) H1 adj. EBITDA EUR 5.4bln (prev. 5.3bln), adj. net income EUR 1.9bln (prev. 1.8bln); confirmed FY26 guidance. Vestas Wind Systems (VWS DC) Q2 revenue EUR 4.7bln (exp. 4.56bln), adj. EBIT EUR 446mln (exp. 200.4mln); sees FY26 revenue between EUR 20-22bln (exp. 21.3bln), raised its adj. EBIT margin outlook to 7-9% (from 6-8%), and announced a EUR 400mln buyback.
• NOTABLE BROKER UPDATES: Hochtief (HOT GY) initiated with Hold rating at Deutsche Bank. Akzo Nobel (AKZA NA) upgraded at Barclays; Clariant (CLN SW) upgraded at Berenberg; Zehnder (ZAH SW) upgraded at Kepler Cheuvreux. Novo Nordisk (NOVOB DC) downgraded at Berenberg; Keefe Bruyette downgraded BBVA (BBVA SM) and CaixaBank (CABK SM); Tesco (TSCO LN) downgraded at Shore Capital.

DAY AHEAD:

• DATA: In North America, US July CPI is due (preview below). The monthly budget statement will be released later in the day (prev. USD -120bln). In Canada, building permits data will be released.
• SUPPLY: US sells USD 42bln of 10-year notes. UK auctions GBP 1.5bln of 2035 linkers. Germany auctions EUR 2.5bln of 2038 and 2053 debt.
• ENERGY: OPEC and IEA release their August oil market reports. Afterhours on Tuesday, API data reportedly showed headline US crude stocks posting a surprise build of +9.1mln bbls (exp. -0.5mln), Cushing inventories building by +1.6mln bbls, gasoline seeing a draw of -1.5mln bbls (exp. -1.6mln), while distillates posted a smaller than expected draw of -0.6mln bbls (exp. -1.6mln). DoE weekly inventory data is due later today.
• PREVIEW - US CPI (13:30BST/08:30EDT): Headline CPI is expected to rise 0.1% M/M in July, rebounding from the -0.4% decline in June, while the annual rate is expected to ease to 3.4% Y/Y from 3.5%. Core CPI is expected to rise 0.2% M/M (prev. 0.0%), with the annual rate of core inflation seen cooling to 2.5% Y/Y from 2.6%. The data will be key in shaping expectations for the September FOMC meeting; the weak July NFP report prompted participants to pare rate hike expectations, although the subsequent rebound in crude prices has helped push September pricing back towards a coin flip. CPI will therefore provide an important test of whether softer labour market data is enough to keep the Fed sidelined or whether persistent inflation pressures maintain the case for further tightening. Newsquawk’s full preview is available on the headline feed.