[MARKET ANALYSIS] European equities broadly lower as Airbus misses on 2026 aircraft deliveries; US equity futures modestly paring back Wednesday's gains

• European bourses (STOXX 600 -0.3%) are mostly in the red, ex. SMI (+0.2%), as markets pull back from Wednesday's gains. The FTSE MIB (-0.9%), DAX (-0.7%) and CAC 40 (-0.6%) are the clear underperformers after a flurry of corporate news (see more details below).
• Sectors are mixed, with a slight tilt to the downside. Food, Beverage and Tobacco (+0.8%) is outperforming following earnings by Nestle (+3.1%), which announced that it is in advanced negotiations to sell its remaining Froneri stake. At the bottom sits Basic Resources (-2.6%), Autos and Parts (-1.9%) and Utilities (-1.5%). Basic Resources continues to have a choppy week, this time catalysed by Rio Tinto (-3.3%) as FY profit failed to grow and a drag on its iron ore unit in China. For the latter, Italian utilities (A2A -3.3%, Enel -2.9%, Italgas -1.0%) have been hit after Italy approved a 2bp hike in its IRAP corporate tax. Renault (-4.9%) has been weighing on the Autos sector after posting a net loss worse than expected.
• Key movers include Fincantieri (-9.1%) and Airbus (-7.0%). For Italian Fincantieri, the Co. announced a placement of new shares which would amount up to 10% of its capital. Shares were sold at EUR 15.32/shr, which was 7% lower than Wednesday's closing price. Airbus has been hitting major indices this morning after a mixed earnings report and 2026 aircraft deliveries missing estimates.
• US equity futures (NQ -0.3%, ES -0.4%, RTY -0.4%) are coming under modest pressure, following their European counterparts.

European equities are declining, largely influenced by disappointing earnings from Airbus, which has missed its aircraft delivery estimates for 2026, triggering a downturn in sentiment. This performance reflects broader sector struggles, particularly in Autos and Basic Resources, thereby indicating potential caution among investors ahead of upcoming earnings releases. The slight pullback in US equity futures suggests a further consolidation in risk sentiment following the overnight declines in European markets.