[MARKET ANALYSIS] European bourses opened higher but have since trundled lower, ASM International +8% after a strong Q1 and guidance

European bourses opened with very mild gains, but have slowly trundled lower as the morning progressed, alongside a slight pick-up in the energy complex. From an index stand-point, the IBEX 35 (-0.4%) lags vs peers, whilst the AEX (+0.6%) outperforms, lifted by post-earnings strength in ASM International (+8.5%). In brief, the Co. reported strong Q1 results, driven by AI demand and resilient Chinese sales; the Co. also provided upbeat guidance. Elsewhere, the FTSE 100 (U/C) has had the region’s inflation report to digest, whereby core metrics were cooler than expected, whilst the Services figures rose from the prior.
European sectors now display a mixed picture, after initially showing a positive bias. Unsurprisingly, Energy tops the pile given recent advances in the complex, followed closely by Basic Resources and Chemicals. Gains across underlying metals prices, alongside an upbeat update from Australia’s BHP has lifted sentiment across mining names – Fresnillo (+2%) also extends higher after a mixed production update. As for the Chemicals sector, Akzo Nobel (+5%) jumps after topping earnings forecasts, and lifting prices to counteract supply-side issues. To the bottom of the pile resides Travel & Leisure, Retail and Consumer Products & Services; the former has been dragged down by Evolution (-5%) after its Q1 revenue disappointed and amidst continued regulatory issues.
Other key movers: ABB (+3.5%) benefits after strong results and after it boosted its revenue guidance, Ferrexpo (-7%) slips after its proposed a minimum USD 100mln fund raise, Reckitt (-6%) extends lower after revenue fell, and Deutsche Telekom (-3.6%) falls amidst reports of a possible merger with T-Mobile US.
US equity futures are broadly firmer across the board, in contrast to the bias seen in Europe; the RTY (+0.6%) mildly leads vs the NQ (+0.5%), ES (+0.4%). In terms of pre-market movers, Adobe (+2.5%) gains after announcing a USD 25bln stock buyback, whilst United Airlines (+1.8%) benefits post-earnings, where it Q1 results topped expectations, but cut guidance citing jet fuel price rises.