[MARKET ANALYSIS] Global bourses pare Monday's gains after renewed US strikes on Iranian sites, Ferrari stalls following EV launch

European bourses (STOXX 600 -0.2%) trade mixed, as indices that were closed for holidays on Monday catch up to the broad gains on optimism of an end to the US-Iran conflict. However, overnight, the US conducted strikes on Iranian missile launch sites and mine-laying boats in southern Iran overnight, with US CENTCOM citing self-defence. To add, US Secretary of State Rubio tempered expectations, saying a deal could take a few days and warned that the Strait of Hormuz would be opened "one way or the other." This has resulted in a pullback across the equity space.
Sectors lack a clear directional bias. Basic Resources (+1.3%) is the clear sector outperformer, helped by UK miners (Glencore, Rio Tinto). To the downside lies Technology (-1.3%) and Autos (-1.4%). Morgan Stanley gave an update for the airline industry, downgrading Lufthansa (-1.3%) to underweight while upgrading Air France-KLM (+1.2%) to Overweight. IAG (+2.7%) was given the title of top pick.
Plenty of single-stock drivers: Ferrari (-6.0%), unveiled its first fully electric car despite competitors scaling back EV ambitions due to weak demand; Melrose Industries (-5.0%), as an overheating chemical tank triggered an emergency response at its GKN's Garden Grove facility; Kingfisher (+3.0%), Q1 revenue grew Y/Y and affirmed guidance.
US equity futures point to modest gains, giving back Monday's futures gains amid the renewed strikes on Iranian sites. ES +0.5%.