EUROPEAN OPEN: Tech stocks slide; BNZL LN upgrades revenue outlook on North America volumes; P911 GY streamlines lineup, to deepen VOW3 GY cooperation; RWE GY raises EUR 4bln for Amprion stake; SAN FP’s Wayrilz approved in Japan

EUROPEAN OPEN: 

• European stocks start on the back foot; sentiment has been knocked as global stocks fell with investors rotating out of high-performing tech shares; US index futures are also lower, and the megacap tech selloff also hit Asia. A gauge of Asian tech stocks dropped nearly 5%, snapping an eight-day winning run. South Korean stocks fell from record highs as investors sold chip heavyweights, with the KOSPI index extended losses to over 8%, triggering a trading halt, closing with losses of around 10%; SK Hynix fell more than 11% and Samsung Electronics lost more than 8%, while foreign investors sold more than KRW 4tln of KOSPI shares by midday. Attention is turning towards Micron’s (MU) quarterly results, due Wednesday, as a test of the AI investment rally.
• Oil extended declines as progress towards a US-Iran agreement included a 60-day US waiver allowing some Iranian crude and fuel sales. Brent slipped below USD 77/bbl, and WTI slipped beneath USD 73/bbl. Iranian Deputy Foreign Minister Gharibabadi said four working groups were agreed following quadripartite consultations between Iran and the US held in Switzerland, according to Press TV; the groups will address sanctions relief, nuclear settlement, reconstruction and economic development, and monitoring.
• Gold fell as inflation concerns outweighed early optimism on US-Iran peace talks; Bullion dropped towards USD 4,100/oz; Deutsche Bank cut its gold forecasts by over 20%, and now sees bullion at USD 4,300/oz in Q3, and USD 4,800/oz in Q4, citing Fed repricing, resilient US data and weak investment demand. Aluminium touched a three-month low as progress in Middle East peace talks raised expectations of returning supply.
• In FX, Japan’s FinMin Katayama confirmed she held a roughly hour-long phone call with US Treasury Secretary Bessent on Monday, a follow-up to last week’s G7 meeting, which gave the JPY a brief boost as it traded near a 40yr low. Katayama said Japan and the US maintain an unchanged understanding that “bold action should be taken if necessary,” adding that bilateral cooperation has strengthened.
• In UK politics, Andy Burnham will use a speech next week to pledge to grow the UK economy and commit to Labour’s fiscal rules as he prepares to take power, The Times reports; Burnham is considering Ed Miliband, Wes Streeting and Shabana Mahmood for Chancellor role, reports suggests.
• Ahead, the data docket features global flash composite and manufacturing PMI data for June, weekly US ADP employment figures, BCB meeting minutes and an NBH policy announcement. Iran’s President will visit Pakistan today.

STOCK SPECIFICS:

• CONSUMER: ACEA data showed total car registrations in Europe rose 3.6% Y/Y to 1,152,523 vehicles in May, a fourth straight month of growth driven by affordable electric and hybrid models; registrations were up 4.5% in the first five months of the year compared with the same period last year; battery and plug-in hybrid cars rose to make up 34% of registrations, while petrol and diesel sales each fell 19%. Porsche (P911 GY) plans to streamline its model lineup and deepen Volkswagen (VOW3 GY) cooperation as margins face US tariffs and weak Chinese demand; CEO said the US will remain its most important market, while China’s weakness reflects a structural shift rather than short-term downturn. Danone (BN FP) is reportedly mulling more acquisitions in Australia and New Zealand, according to the AFR. Heineken (HEIA NA) nominated Rafael Oliveira as Executive Board Chair and CEO for four years, effective 1 October 2026, pending shareholder approval on 5th August. Bunzl (BNZL LN) H1 2026 revenue rose 4%, and it upgraded its 2026 outlook; now expects constant-currency revenue growth to be driven by modest underlying growth, supported by some inflation and a small acquisition benefit; operating margin guidance was left unchanged (slightly down Y/Y).
• UTILITIES: RWE (RWE GY) raised EUR 4bln through capital measures to increase its stake in Amprion; the company said new shares and treasury shares were placed at EUR 54.00/shr.
• HEALTHCARE: Sanofi (SAN FP) said Wayrilz was approved in Japan for immune thrombocytopenia after LUNA 3 Phase 3 data showed durable platelet response at week 25.
• ENERGY: TotalEnergies (TTE FP) said the restart of its Port Arthur refinery (capacity of 238K BPD) has been delayed by operating issues.
• INDUSTRIALS: Signify (LIGHT NA) introduced a strategy to create a more focused, better-performing company; its 2029 medium-term objectives include comparable sales growth of 0-1%, adjusted EBITA margin of around 10%, and free cash flow generation of 7-8% of sales. Signify also updated its dividend policy to a 40-50% pay-out ratio of continuing net income.
• MATERIALS: BHP Group (BHP AT) and Rio Tinto (RIO LN) are trialling Caterpillar (CAT) battery-electric haul trucks at Jimblebar to cut emissions; a three-month initial trial of two XE Early Learner trucks has shown “meaningful progress,” the companies said.
• NOTABLE BROKER UPDATES: Flutter Entertainment (FLTR LN) was initiated with a Hold rating at Freedom Capital; TotalEnergies (TTE FP) was initiated with Outperform at CICC. Kone (KNEBV FH) upgraded at Kepler Cheuvreux; Standard Chartered (STAN LN) upgraded at Deutsche Bank; Fevertree (FEVR LN) upgraded at Peel Hunt; Morgan Stanley upgraded GEA (G1A GY) and Qiagen (QIA GY), downgraded BioMerieux (BIM FP). L’Oreal (OR FP) downgraded at Deutsche Bank; Hermes (RMS FP) downgraded at HSBC; Barclays downgraded Telenor (TEL NO), upgraded Telia (TELIA SS); Yara International (YAR NO) downgraded at Jefferies.

DAY AHEAD:

• EVENTS: Iranian President Pezeshkian will visit Pakistan, to discuss trade, energy, border security and connectivity.
• DATA: In Europe, flash composite PMIs for France (exp. 46.0, prev. 45.1) and manufacturing (exp. 50.0, prev. 49.7), Germany composite PMI (exp. 49.9, prev. 48.8) and manufacturing (exp. 50.5, prev. 50.1), Eurozone composite PMI (exp. 49.1, prev. 48.5) and manufacturing PMI (exp. 51.6, prev. 51.6), UK composite PMI (exp. 50.6, prev. 49.7) and manufacturing PMI (exp. 53.8, prev. 53.9). UK CBI industrial trends orders for June (prev. -41). In North America, US flash composite PMI (exp. 50.6, prev. 51.5), manufacturing (exp. 54.8, prev. 55.1) and services (exp. 51.0, prev. 50.7); Richmond Fed manufacturing index for June (prev. 13); ADP’s weekly employment gauge is also due (prev. was at 25,500).
• CENTRAL BANKS: ECB’s Lane (dovish) speaks at a macroeconomic hearing (text release expected); ECB’s Vujcic (neutral) speaks on monetary policy (slide release); ECB’s Elderson (neutral) speaks on financing the future (no text); BoE’s Taylor (dove) speaks on monetary policy (text release); BoE’s Dhingra (dove) speaks on “Brexit ten years on”; ECB Economic Bulletin pre-releases on the Survey of Monetary Analysts and state aid in the EU; Brazil BCB minutes published; National Bank of Hungary policy announcement (exp. 6.00%, prev. 6.25%).
• SUPPLY: US auctions USD 69bln of 2-year notes; Germany auctions EUR 5.0bln of 2028 Schatz; Netherlands auctions EUR 1-2bln of 2056 DSLs.
• EARNINGS: Notable US corporates reporting today includes: FedEx (FDX), Carnival (CCL).
• ENERGY: API weekly energy inventories due after hours.