[MARKET ANALYSIS] Global equities set to end the week with gains, PUIG SM hit as mergers talks collapse

European bourses (STOXX 600 +0.6%) start the final day of the week entirely in the green, heading into an extended weekend for UK and US assets. This follows comments by US Secretary of State Rubio, via the FT, noting "some good signs" in the US-Iran talks, while Reuters reported, citing an Iranian official, that "gaps have been narrowed". More recently, Al Arabiya released the text of the anticipated US-Iran agreement, which includes an immediate and unconditional ceasefire. However, commentary out of Iran earlier in the morning continues to downplay negotiations, with the Iranian Foreign Ministry saying that everything that has been circulated about the status of negotiations is inaccurate.
Sectors highlight the positive bias. Technology (+2.1%) leads, closely followed by Telecoms (+1.3%) and Industrial Goods & Services (+0.9%). To the downside lie Real Estate (-0.5%) and Energy (-0.5%). Chemicals (+0.5%) are eking out mild gains despite a flurry of downgrades within the sector (IMCD/Arkema/Evonik to underweight by JPMorgan).
Key movers include: Richemont (-2.1%), despite beating sales at constant FX estimates while announcing a 10mln share buyback; Julius Baer (-9.3%), missed net new money inflow estimates (CHF 3.0bln vs exp. 5.7bln); Puig (-13.8%), merger talks with Estee Lauder break down; BT (+2.9%), Bharti Enterprises reportedly mulling increasing its stake to just under 30% (currently 24.95%).
US equity futures follow the positivity seen in European and Asian equities, with the ES (+0.3%) looking set for an 8th consecutive week of gains. The rebound from the week's earlier losses has been supported by the pullback in bond volatility.