[MARKET ANALYSIS] European bourses softer amid renewed geopolitical tensions, Tech slumps as SK Hynix has its worst trading day

Newsquawk Staff · 13 Jul 2026, 08:54 UTC

European bourses (STOXX 600 -0.2%) start the week on the back foot but off worst levels, with price action being primarily driven by energy prices and the re-escalation of US-Iran tensions. Over the weekend, US forces struck 140 Iranian military targets on Saturday and took further action on Sunday, while Iran attacked US bases in the Gulf and announced that the Strait of Hormuz is closed.
However, geopols is not the only driver. Shares of SK Hynix slumped overnight, with losses of over 15%. Downside was driven by 2 factors: 1) a positive US ADR listing, and 2) reports that some Korean desks think Q2 operating profit may miss estimates. European semis, as a result, were hit at the start of trade.
Sectors have improved at the open, now printing a mixed picture. Telecoms (+1.7%) top the sector pile, followed by Energy (+1.1%) and Media (+0.5%). To the downside are Travel & Leisure (-0.8%), Construction (-0.9%) and Tech (-1.0%).
UK homebuilders (Taylor Wimpey +2.6%, Barratt Redrow +2.3%) are benefiting this morning after the Telegraph reported over the weekend that Andy Burnham is to review plans to bring the Help to Buy scheme back when he becomes PM.
Key movers include: Akzo Nobel (+1.7%), confirms the EUR 7.5bln offer from Nippon Paint for Dulux; Kongsberg Gruppen (-7.2%), despite beating revenue estimates; AstraZeneca (-0.7%), downgraded to hold at HSBC.
US equity futures have come off worst levels, with the majority of indices flat outside of the NQ (-1.0%), given the slump in tech names overnight. SK Hynix's US-ADR is indicated lower by 10%, as it narrows the premium from its domestic listing, which reached as much as 25% overnight.

What our latest note said

US Market Open, 21 Oct, 10:29 UTC · what it led with

Pakistan Army Chief Munir brought the "final warning" from the United States to Iranian officials, which called on Iran to submit to the US demands for concessions on the nuclear issue before taking any other steps.
The UK government has approved the Jackdaw North Sea gas field.

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Iran and US talks continue, and reports that the deal is close are wrong.
WTI crude+1.5%
Mediation efforts said that "Qatar and Pakistan presented a 'compromise proposal' that meets the demands of both the American and Iranian sides", Al Araby Al Jadeed reports citing sources.
WTI crude−4.6%
"A breakthrough is expected to be announced this week to halt the escalation between Washington and Tehran", Al Araby Al Jadeed reports citing a source.
WTI crude−1.1%

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