[MARKET ANALYSIS] European bourses are modestly firmer; SHEL LN -1.7% post-earnings

European bourses are broadly modestly firmer, attempting to build on the hefty gains seen in the prior session. Geopolitics remains the key focus this morning, with Iran expected to provide its reply to the US proposal for ending the war to mediators on Thursday, CNN reported. Sentiment in early morning trade was lifted after Al Arabiya reported that "the coming hours will witness a breakthrough for the situation of the ships stuck in the strait".
European sectors are mixed. Travel & Leisure takes the top spot, joined closely by Consumer Products and then Autos. Sectors which have broadly benefited from the risk-tone and/or lower energy prices. Elsewhere, Utilities is found right at the foot of the pile, joined closely by Telecoms.
In terms of key movers: Henkel (+3.9%, sales topped exp.), Rheinmetall (-3.1%, missed on Q1 EPS, but reaffirmed outlook), Telecom Italia (+3.2%, revenue +1.4% amidst strong Brazil growth), Shell (-1.7%, EPS and Rev. topped expectations whilst announcing a USD 3bln buyback), Flutter (-3.6%, cut guidance despite reporting higher Q1 revenue).
US equity futures are all trading modestly firmer this morning, with gains of circa. 0.2%. As for pre-market movers: Arm (-5.2%, weaker-than-expected royalty revenue and rising operating expenses offset enthusiasm for its AI server opportunities). Snap (-9.8%, issued cautious guidance, the end of its Perplexity partnership, and uncertainty from Middle East headwinds).