[MARKET ANALYSIS] European bourses trade mixed, Compass raises its FY guidance; US equity futures muted

European bourses (STOXX 600 U/C) trade mixed to start the week, despite the surge in energy prices. Over the weekend, US President Trump rejected Iran’s response to the peace plan and called it totally unacceptable. Within the proposal, Iran was said to have stressed the need for the US to pay compensation for war damages and emphasised Iran’s sovereignty over the Strait of Hormuz. The FTSE 100 outperforms its peers while the CAC 40 lags.
Sectors point to a mixed picture. Telecoms top the sector pile, followed by Banks amid the higher yield environment. Consumer Products & Services underperforms, with luxury names such as LVMH, Hermes and Kering falling by various degrees (0.8-2.5%).
Key movers include Compass, after the Co. raised its FY profit guidance to “above” 11% from “around” 10%; Delivery Hero, with Prosus selling a 5% stake in the Co. to Aspex Management at EUR 22/shr; NatWest, upgraded to Outperform from Neutral at BNP Paribas. Additionally, European tech names continue to gain (STMicroelectronics +2.4%, SAP +0.9%) amid AI optimism.
US equity futures are indicative of a muted open, with ES rebounding with around the U/C mark. For the tech-heavy NQ, it trades with modest losses on the day and YTD gains of 14%. Despite the impressive gains, it pales in comparison to the YTD KOSPI strength of over 80%.