Newsquawk Daily European Equity Opening News - 26th May 2026

ASIA

APAC stocks were mixed as the recent optimism regarding a nearing US-Iran agreement was clouded by reports that the US launched 'self-defence' strikes in southern Iran against missile launch sites and Iranian boats attempting to lay mines, although the market reaction to the renewed attack was limited, with some reports downplaying the likelihood that it could derail peace talks. ASX 200 was subdued with the index led lower by utilities and energy, but with the downside limited amid a lack of data releases and following the mixed geopolitical signals. Nikkei 225 pulled back after printing a fresh record high and briefly returned to beneath the 65,000 level amid profit taking and as participants reflected on the latest geopolitical headlines, while there were comments from BoJ Deputy Governor Himino that they will continue to raise the policy rate, adjust the degree of monetary accommodation according to economic activity, prices and financial conditions. Hang Seng and Shanghai Comp were mixed with the mainland subdued alongside the geopolitical uncertainty, while the Hong Kong benchmark outperformed on return from the holiday closure as tech strength helped participants shrug off China's announcement late last week regarding a cross-border investment crackdown.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +1.87% at 6,132, Dax 40 +2.01% at 25,389, CAC 40 +1.76% at 8,258, FTSE MIB +1.43% at 50,220, IBEX 35 +2.24% at 18,387, PSI +0.62% at 9,223, SMI +0.42% at 13,503, AEX +0.79% at 1,053.

SECTORS: Industrials 1.90%, IT 1.47%, Consumer Disc 1.45%, Financials 1.45%, Materials 0.74%, Utilities 0.59%, Consumer Stpl 0.31%, Healthcare 0.22%, Telecoms 0.19%, Energy -0.49%

FTSE 100

BP (BP/ LN) - The Co. said that it had returned to the bargaining table with the United Steelworkers union, and provided them with a revised proposal. The new plan includes a 13% average pay increase, alongside other offers, Reuters reports. (Reuters) Note: Story from 23rd May, though markets were shut on Monday 25th for holiday.

Melrose Industries (MRO LN) - Orange County Fire Authority official says the threat of a catastrophic explosion at a Garden Grove aerospace plant is over, but an estimated 50,000 residents remained evacuated. (LA Times)

UK Investment - UK Chancellor Reeves has instructed cabinet colleagues to award government contracts in four critical industries directly to British companies; industries include shipbuilding, steelmaking, energy, and artificial intelligence, according to The Guardian.

UK Grocery - UK BRC Shop Price Inflation (May) 1.2% vs. Exp. 1.1% (Prev. 1.0%).

OTHER UK COMPANIES

BROKER MOVES

British Land (BLND LN) upgraded to Overweight from Equal Weight at Barclays

Mondi (MNDI LN) downgraded to Neutral from Outperform at Davy Research

DAX

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Co. has called for 'non-western' makers of wind turbines to be blocked from selling in the EU, the FT reports. (FT)

BROKER MOVES

Lufthansa (LHA GY) downgraded to Underweight from Equal Weight at Morgan Stanley

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

Air France-KLM (AF FP) upgraded to Overweight from Equal Weight at Morgan Stanley

PAN EUROPE

EDP (EDP PL) - Co. announces a purchase and sale agreement signed for a 100 MWac solar project in the US. (EDP)

Eni (ENI IM) - Co.'s COO says they will look to accelerate is USD 4bln expansion of its offshore JV with Vitol Group in the Ivory Coast. The Co. is aiming to increase the project's oil production to 150k BPD (prev. 60k BPD) and raise its gas output, Bloomberg reports. (Bloomberg)

EU Investment - EU Commissioner for Startups Research and Innovation says the UK could join a EUR 4bln EU startup fund this year, according to FT. (FT)

BROKER MOVES

SMI

Novartis (NOVN SW) - New Novartis data at ERA 2026 advance scientific understanding of kidney disease and reinforce portfolio strength. Late-breaking Phase III IgAN data for Vanrafia ALIGN and Fabhalta APPLAUSE-IgAN studies to be presented. (Novartis)

OTHER SWISS COMPANIES

BROKER MOVES

Julius Baer (BAER SW) upgraded to buy from Neutral at Citi

Ypsomed (YPSN SW) initiated with Underperform at Jefferies

SCANDINAVIA

Orkla (ORK NO) - Co. discloses continued ownership following Caroline Marie Hagen Kjos control. Canica is to manage voting rights. (Orkla)

Orsted A/S (ORSTED DC) - Orsted is exploring a sale of its US onshore renewables portfolio, which could fetch more than USD 1bln, Bloomberg reports. Co. is working with advisers on the potential divestment as it refocuses on European offshore wind. It separately agreed in February to sell part of its European onshore business to Copenhagen Infrastructure Partners for EUR 1.4bln. (Bloomberg) Note: Story from 25th May, where the index was shut for holiday

Valmet (VALMT FH) - Co. is collaborating with Linde (LIN) to advance electricity driven carbon dioxide capture solutions for pulp and paper industry. (Valmet)

BROKER MOVES

Frontline (FRO NO) downgraded to Hold from Buy at Pareto Securities

Outokumpu (OUT1V FH) upgraded to Outperform from Neutral at Oddo Securities

US

CLOSES: SPX +0.37% at 7,473, NDX +0.42% at 29,482, DJI +0.58% at 50,585, RUT +0.91% at 2,869

SECTORS: Communication Services -0.68%, Consumer Staples -0.09%, Real Estate +0.10%, Consumer Discretionary +0.20%, Financials +0.33%, Materials +0.35%, Energy +0.44%, Technology +0.52%, Industrials +0.68%, Utilities +0.80%, Health +1.19%.

Disney (DIS) - The Mandalorian and Grogu led the US and Canada box office over the four-day holiday weekend with USD 102mln in ticket sales (exp. 100mln), Variety reports. The first Star Wars film in seven years met estimates of at least USD 100mln, but was among the franchise's lowest debuts since Disney acquired Lucasfilm in 2012. (Variety) Note: Story from 25th May, where the index was shut for holiday

Google (GOOGL) - The EU plans to fine the Co. a high triple-digit million Euro amount due to its antitrust investigation, according to Handelsblatt. (Handelsblatt)

SpaceX (SCPX) - Co.'s upgraded Starship has successfully deployed mock satellites and returned largely unscathed. (Bloomberg) Note: Story from 25th May, where the index was shut for holiday