[MARKET ANALYSIS] Kospi slump drags global indices lower into Micron earnings, due on Wednesday

Large losses in Kospi (-9.9%) crept through to Europe (STOXX 600 --1.3%) with EU tech leading the losses. No specific headline driver for overnight losses in a typical non-conflict risk-off move (stocks/oil down, fixed/havens bid). As you would expect, South Korean heavyweights Samsung and SK Hynix (which account for over 50% of the index) led the declines, both falling 12%. Some analysts point out the mechanical rebalancing from leveraged ETFs exacerbated losses with a large share of the vehicle used to gain Kospi exposure coming as leveraged ETFs. Others point out positioning into Micron earnings due after the close on Wednesday.
Given the above, Tech is the worst sectoral performer (bar Basic Resources), the sector posting losses in excess of 3%. The highest weighted chip constituents ASML -5% (Highest weighted in Europe+Tech Sector), Prosus -2% and STMicroelectronics -7%. For Basic resources, the sector has been dragged lower by declines in metals (Gold -2.5%, Silver -5.5%).
In terms of individual movers, Bunzl +1.4%: Upgrades 2026 outlook, Michelin -2.8%: Says Global OEM Tire Market -8% Y/Y, Hermes -2.8%: Downgraded to Hold from Buy at HSBC
US equity futures are also downbeat and conforming to losses seen across the pond. Nasdaq leads declines given tech losses, ES and RTY post similar losses, faring better than the tech heavy index.