EUROPEAN OPEN: STMPA FP raises data centre view; HPE shares surge on beat & raise; GOOG to raise USD 80bln for AI infrastructure; BATS LN raises growth forecast; BARN SW sees mid-term profit growth & volume gains; ABVX FP Ph.3 trial meets endpoint

EUROPEAN OPEN:

• European equities have opened on the front foot. Global equities have held near record highs, with the MSCI All Country World Index edging up as AI-linked shares recovered from earlier losses. Stateside, the S&P 500 notched its eighth consecutive advance on Monday, its longest winning streak since May 2025, and the Philadelphia Semiconductor Index is on pace for its best quarter ever, having risen approximately 70% over the last two months.
• APAC stocks were mixed however; Nikkei 225 slipped after printing a new all-time high at the open with very few fresh catalysts; Hang Seng and Shanghai Comp conformed to the mixed picture with the mainland flat, while the Hong Kong benchmark was led higher by strength in the big tech names. The PBoC cut daily 7-day reverse repos to record-low CNY 200mln, draining a net CNY 248.8bln, while the yuan hit its strongest basket level since September 2022, according to Bloomberg. Elsewhere, Japanese FinMin Katayama said authorities stand ready to take appropriate action on FX at any time; the comments follow data last week showing Japan spent JPY 11.73tln in a record month-long intervention to support the JPY. RBA’s Harper said higher rates may be needed if inflation expectations unanchor; elsewhere, Australia raised the minimum wage +4.75% to AUD 26.44/hour from 1st July, affecting 2.8mln workers.
• President Trump said US-Iran talks were continuing rapidly, expected a ceasefire extension and Strait of Hormuz reopening within the next week, while downplaying suspended talks with Iran and higher oil prices. Reports this morning stated that Iran’s final text on a possible US agreement remains under discussion, with no response sent, and officials want to see real benefits.
• Brent is trading above USD 94/bbl after seeing its biggest single-session gain in approximately a month on Monday, following reports that Tehran was halting talks with Washington over Israel’s actions in Lebanon, before paring gains after Trump said negotiations were continuing.
• Gold held above USD 4,500/oz after falling on Monday, amid conflicting US and Iranian signals clouded prospects for a diplomatic resolution. Aluminium rose for a fourth day to its highest since 2022, as Iran’s suspension of negotiations threatened US efforts to extend a ceasefire and reopen the Strait of Hormuz.
• In trade news, the US cut agricultural equipment tariffs to 15% from 25%, with a 10% rate for qualifying US metal content, effective 8th June through to the end of 2027. The European Commission is considering allowing EU states to spend around 0.3% of GDP on energy costs outside fiscal rules to cushion Iran War-related price pressures. The USTR proposed 25% Section 301 tariffs on Brazilian goods, citing trade practices including anti-corruption enforcement, intellectual property protection, ethanol access and deforestation.
• Traders will be watching Eurozone inflation data due this morning, where the headline and core HICP rates are expected to rise. Stateside, US JOLTs data is due before this week’s official jobs data on Friday. On the trade front, US and Canadian officials will meet today. Traders will continue to eye geopolitical developments.

STOCK SPECIFICS:

• ENERGY: The European Commission is weighing plans to allow EU member states to spend around 0.3% of GDP on energy-related costs outside the EU’s fiscal framework; the proposal would function as an escape clause similar to the defence carve-out previously granted to member states, and is aimed at cushioning the impact of high energy costs stemming from the Iran War; details remain fluid, and a final decision has not yet been taken.
• INDUSTRIALS: Siemens Energy (ENR GY) is to acquire Camlin Group, which will be wholly owned but independently managed; terms were not disclosed; closing is expected before end-2026.
• TECH: Hewlett Packard Enterprises (HPE) shares rose 28% in extended US trading after the company beat expectations, lifted its profit outlook and highlighted strong server demand tied to AI infrastructure growth. STMicroelectronics (STMPA FP) raised its data centre revenue ambitions, citing continued strong AI infrastructure demand and progress on capacity ramp-up; data centre revenue is now expected at about USD 1bln in 2026 (vs a prior view of USD 500mln+), and it said this could double in 2027 if current dynamics and engagements continue. Anthropic confidentially submitted IPO paperwork to the SEC; it last week raised USD 65bln at a USD 965bln valuation.
• COMMUNICATIONS: Alphabet (GOOG) plans to raise USD 80bln through equity offerings to fund AI infrastructure; Berkshire Hathaway (BRK.B) will invest USD 10bln via private placement, while Alphabet plans USD 30bln of public offerings and a USD 40bln at-the-market programme; it said AI demand is exceeding available supply.
• HEALTHCARE: AstraZeneca (AZN LN) received a positive CHMP recommendation in Europe for camizestrant, and said camizestrant is advancing globally, with the company also in discussions with the US FDA on the path forward. Roche (ROP SW) said the FDA accepted its New Drug Application for giredestrant in ER-positive early-stage breast cancer. Hikma (HIK LN) plans to invest USD 267mln across manufacturing facilities in Ohio; the expansion will create 350 new jobs and reinforce Hikma’s generic medication manufacturing and Ohio’s pharmaceutical and biomanufacturing industry. Abivax (ABVX FP) Phase 3 ABTECT maintenance trial met the primary endpoint at Week 44, with once-daily obefazimod 25mg and 50mg showing placebo-adjusted clinical remission rates of 39.3% and 40.3%, respectively.
• CONSUMER: British American Tobacco (BATS LN) raised its annual new-category revenue growth forecast to the mid-teens (vs low double digits), driven by robust demand for vapes and nicotine pouches, and expectations that easing FDA enforcement will support its US market share. Barry Callebaut (BARN SW) expects recurring operating profit to grow by a mid- to high-single-digit percentage in local currencies over the medium term, and forecast medium-term sales volume growth of 2-4%; it backed current guidance for volumes to fall 1-3% in the year. Of note for Luxury Stocks, Savills found European luxury brands increased US store openings and fashion shows, with North America representing about 27% of 2025 global openings (vs Europe’s 26% and China’s 19%).

DAY AHEAD:

• EVENTS: Canada-US Trade Minister LeBlanc and Chief Negotiator Charette are scheduled to meet USTR Greer in Washington. The Computex conference takes place between 2-5th June.
• DATA: In Europe, Eurozone flash inflation for May is expected to see the headline rise to 3.4% Y/Y (prev. 3.0%), while core inflation is seen at 2.3% Y/Y (from 2.2%). BoE mortgage approvals, consumer credit and net lending data is due today. Stateside, JOLTs job openings data for April is the highlight (exp. 6.8mln vs a prior 6.866mln; last time out, the quits rate rose to 2.0% from 1.9%, while the vacancy rate eased to 4.1% from 4.2%). The RCM/TIPP economic optimism index is also due for release today.
• CENTRAL BANKS: Poland’s central bank is expected to keep rates unchanged at 3.75%.
• SPEAKERS: Fed’s Hammack (2026 voter). ECB’s Vujcic. BoE’s Bailey (neutral) gives oral evidence to the Lords Economic Affairs Committee; BoE’s Greene (hawk) speaks on assessing inflation risks from the recent energy shock (text expected).
• SUPPLY: UK auctions GBP 3.25bln of 2037 Green Gilts. Germany auctions EUR 6bln of 2028 Schatz.
• ENERGY: After the US close, API will publish its weekly energy inventories data.
• EARNINGS: Notable corporates publishing earnings today include: Palo Alto Networks (PANW), Dollar General (DG), Ulta Beauty (ULTA), Signet Jewelers (SIG).