[MARKET ANALYSIS] European bourses are mostly firmer, though the FTSE 100 underperforms, dragged by BP

• European bourses are trading mostly firmer: DAX (+0.3%), CAC40 (+0.4%) and Euro Stoxx (+0.3%). The CAC 40 slightly outperforms on the back of gains in Kering (+10.8%), where results were not as bad as feared, and highlighted it expects to return to growth and improve margins in 2026. The FTSE 100 has been pressured by losses in oil giant BP after the Co. halted its share buyback and announced cost cutting measures amid profit shortfall in Q4 earnings. Furthermore, Barclays is now paring back some earlier gains; headline metrics were strong, though inner metrics such as NII and IB Fees missed expectations.
• European sectors are mixed. Leading sectors are Chemicals (+2.1%), Consumer Products & Services (+1.6%) and Autos (+1.3%). Broker upgrade for Symrise (+6.4%), boosting the Co.’s shares has contributed to an uplift in sentiment for the Chemical sector. Consumer products & services has been buoyed by post-earning strength in Kering. At the bottom, Insurance (-1.3%), Travel & Leisure (-1.0%) and Energy (-0.8%) are lagging. Crude prices easing, following gains yesterday, combined with losses in BP’s shares has dampened sentiment for the Energy sector, whilst losses in TUI (-6.5%) after the Co. warned of risk in winter and summer bookings, despite Q1 revenue and profit beating expectations has weighed on sentiment in the Travel sector. However, newsflow has been light for insurance, although Allianz (-1.8%) has seen its shares slide with no clear catalyst, likely dragging down optimism in the insurance sector
• Movers this morning include Phillips (+6.8%) with the Co. shares gaining after reporting strong Q4 earnings. Bellway (+3.3%) is also firmer after the Co. announced a strong H1 trading update. On the downside Standard chartered is lower
• US equity futures are slightly firmer: ES (+0.2%), NQ (+0.2%), YM (+0.1%) and RTY (+0.2%). Not much of a macro newsflow or stock specific thus far this morning or overnight. However, looking ahead, US Weekly ADP and Retail Sales data is due. Speakers include Fed’s Hammack and Logan. Earnings from Coca-Cola, S&P, Gilead, Robinhood, Ford, AIG, and Spotify are also due later. 

European markets are mostly higher, with the DAX, CAC40, and Euro Stoxx showing gains, driven by sectors like Chemicals and Consumer Products, particularly buoyed by Kering's better-than-expected results. However, the FTSE 100 lags due to a sharp decline in BP after it halted its buyback and announced cost cuts, highlighting concerns in the energy sector. Overall, this mixed performance suggests a cautious sentiment ahead of key US data releases and earnings reports later today.