EUROPEAN OPEN: NVDA lower after earnings; SSNLF reaches tentative deal with union; EZJ LN posts wider H1 loss, flags headwinds; G IM Q1 net profit beats expectations; UBI FP delays profitability targets after wider loss

EUROPEAN OPEN:

European equities have opened cautiously, despite a firmer overnight APAC handover after Wall Street gains, as global risk sentiment was supported by lower oil prices on increased optimism over a potential Middle East resolution. President Trump said talks with Iran were in the “final stages”, though both sides continued to exchange threats.
Oil later ticked higher, with the WSJ citing a possible technical correction after the recent decline. Brent entered the European session around USD 106/bbl. Pakistan’s Army Chief will visit Iran today to announce a final draft agreement, while the US reportedly sent Iran a text via a Pakistani mediator after receiving Iran’s 14-point text days earlier.
Nvidia (NVDA) shares edged lower despite beating expectations and issuing upbeat guidance, as lofty investor expectations, AI chip competition and uncertainty over China imports weighed. South Korea’s KOSPI jumped and Samsung (005930 KS) rallied after it reached a tentative labour-union deal, averting an imminent strike; the Korea Exchange briefly halted programme trading on the KOSPI and KOSDAQ after futures surged.
Gold has edged lower, near USD 4,520/oz; base metals traded in narrow ranges overnight, while copper continued to retreat from last week’s record highs. Iron ore posted a sixth straight losing session, with rising global seaborne shipments and slowing Chinese steel sales cited as near-term headwinds.
In trade data releases, Japan posted an unadjusted April trade surplus of JPY 301.9bln (vs an expected JPY 44.5bln deficit), helped by strong exports and lower energy imports; South Korea’s adjusted exports rose 52.6% in early May, led by chips and computers, while unadjusted shipments rose 64.8%, leading to a USD 11bln surplus. In other data, Australia’s unemployment rate rose to 4.5% in April (exp. 4.3%, prev. 4.3%), the highest since November 2021, while employment fell by -18,600 (exp. +15,000), marking the biggest miss since June last year. Traders pared expectations for further RBA rate hikes, with AUD and 3yr government bond yields falling.
In central bank speak, BoJ’s Koeda signalled support for continued rate hikes, citing the risk that underlying inflation could exceed 2% ahead. Bloomberg also reported that the BoJ is consulting investors on bond-purchase tapering before its 15-16th June review. After Wednesday’s European close, FOMC April minutes showed most officials viewed rate hikes as likely if inflation stayed above 2%, with the minutes seen as hawkish.
In the UK, Chancellor Reeves is expected to announce agrifood tariff cuts, free summer bus travel for children and GBP 400mln in motorist support, while energy bill support is set to begin in October.

STOCK SPECIFICS:

TECH: Nvidia (NVDA) shares edged lower in extended US trading, despite beating expectations and giving upbeat guidance, amid lofty investor expectations; some suggested the tech giants' sales guidance was disappointing, citing mounting competition from rival chipmakers in the AI space, while others pointed to NVDA’s remarks that uncertainty remains over whether any imports will be allowed into China. Samsung (005930 KS) shares rose overnight, and the KOSPI index jumped, as Samsung’s largest union suspended a planned strike after reaching a tentative pay agreement, with members to vote on the deal between 22-27th May.
COMMUNICATIONS: BT Group (BT/ LN) reported FY2025/26 adj. revenue of GBP 19.65bln (prev. 20.37bln) and pre-tax profit of GBP 1.44bln (prev. 1.33bln); reiterated guidance of sustained growth, and sees FY27 adj. revenue between GBP 19-19.5bln and adj. EBITDA between GBP 8.2-8.3bln. Ubisoft (UBI FP) delayed its profitability and free cash flow targets by one year, now targeting a return to positive operating profit and free cash flow in FY28; Q4 FY26 net bookings were EUR 415mln (exp. 386.9mln); FY net loss widened to EUR 1.48bln (prev. EUR 243.5mln loss), with operating loss expanding to EUR 1.04bln. FY27 net bookings are guided to fall by a high single-digit percentage.
FINANCIALS: Generali (G IM) reported Q1 net profit of EUR 1.17bln (exp. 1.095bln; prev. 1.195bln), with operating profit rising 8.1% and gross written premiums up 6.8%. The decline in net profit was attributed to market volatility weighing on investment values.
INDUSTRIALS: easyJet (EZJ LN) posted H1 2026 revenue of GBP 3.95bln (exp. 3.94bln), and a loss before tax of GBP 552mln (prev. GBP 394mln; in line with its April guidance of GBP 540-560mln); it flagged H2 headwinds from higher fuel costs and softer bookings due to the Middle East conflict, with summer bookings behind the prior year’s pace despite continued positive late booking trends. SpaceX (SPCX) filed for a Nasdaq IPO, targeting 12th June, seeking USD 75bln at a USD 1.75tln valuation.
MATERIALS: KGHM Polska Miedz (PGH PW) CEO said the company wants to strengthen its position in Europe and Africa while monitoring takeover targets in the Americas to grow its business.
ENERGY: Aker BP (AKRBP NO) and Equinor (EQNR NO) have entered a strategic collaboration to increase production and value creation across selected parts of their respective Norwegian Continental Shelf portfolios, valued at approximately USD 23mln.

DAY AHEAD:

EVENTS: Pakistani Army Chief will visit Iran today to announce the achievement of a final draft agreement, reports suggest. White House’s AI and cybersecurity order will task national security and civilian agencies with scrutinising advanced AI models, possibly from Thursday. UK Chancellor Reeves will announce cost of living measures at 11:00BST.
DATA: In Europe, flash PMIs sweep across the region: Eurozone composite exp. 48.8 (prev. 48.8), services (exp. 47.7 (prev. 47.6) and manufacturing exp. 51.8 (prev. 52.2); Germany composite exp. 48.4 (prev. 48.4); France composite exp. 47.7 (prev. 47.6); UK composite exp. 51.6 (prev. 52.6) and services exp. 51.7 (prev. 52.7); Eurozone flash consumer confidence for May exp. -20.8 (prev. -20.6). In North America, US flash PMIs: composite exp. 51.5 (prev. 51.7), services exp. 51.1 (prev. 51.0), manufacturing exp. 53.8 (prev. 54.5); weekly initial jobless claims exp. at 210K from 211K, continuing claims at 1,779K from 1,782K; US housing starts exp. 1.41mln (prev. 1.502mln) and Philly Fed Manufacturing is also due (prev. 26.7).
CENTRAL BANKS: Banxico May minutes released.
SPEAKERS: Fed’s Barkin (2027 voter, neutral) speaks on the economic outlook. BoE Governor Bailey (neutral) speaks at Cutler’s Feast (text is expected), BoE’s Taylor (dove) speaks at a Market News event. ECB’s Elderson (neutral) lectures at Oxford University (text expected). Norges Bank Governor Bache gives remarks.
SUPPLY: US sells USD 19bln of 10-year TIPS. UK auctions GBP 4bln of 2036 gilts. Spain sells between EUR 5.5–6.5bln across 2031, 2033 and 2050 lines. France sells EUR 1.25–1.75bln of OATei and OATi linkers.
ENERGY: Weekly EIA natural gas storage change data are due; the consensus looks for a build of 96bcf (prev. 85bcf).
EARNINGS: Notable earnings releases today include: Walmart (WMT), Ross Stores (ROST), Workday (WDAY), Deere (DE), Copart (CPRT), Take-Two (TTWO), Ralph Lauren (RL), Deckers (DECK), Zoom (ZM), NIO (NIO).