[MARKET ANALYSIS] Global equities rebound on positive US-Iran commentary, Banks benefit the most, NKE hit after weak China guidance

European bourses (STOXX 600 +2.1%) continue to rebound, printing a third straight day of gains thus far. The positive was helped following reports that Iranian officials are leaning towards dialogue, while President Trump said that the war is coming to an end. Banking-heavy FTSE MIB and IBEX 35 outperform while the AEX lags. EZ final manufacturing PMIs failed to spur any reaction, despite printing a tick higher than its prelim. figure. Germany continued to print strong, however S&P notes that signs of stress are seen across supply chains.
Sectors are entirely in the green, ex. Energy. Banks and Travel and Leisure top the sector pile. Oil prices have been the main driver for airlines, with the drop in energy prices making jet fuel cheaper. Banks have been hit throughout the Iran war, so the prospects of it coming to an end have boosted the sector. To add, HSBC was added to Goldman Sachs' European conviction list.
Key movers include Berkeley, Heineken and Airbus. Berkeley shares have plummeted this morning after the Co. forecasted softer earnings in the medium term while halting buying land "due to the continuous increase in the tax and regulatory burden on residential development." For Heineken, the Co. was upgraded at HSBC to Buy from Hold while Airbus, despite gaining thus far, was removed from Goldman Sachs' European conviction list.
US equity futures are gaining pre-market, with ES regaining the 6,600 handle. Despite the positiveness, Nike shares have fallen pre-market after noting persistent weakness in China. However, the Co. did beat on its top- and bottom- line metrics.