European indices have opened Thursday’s session firmly in positive territory, continuing yesterday’s rebound despite tensions in the Middle East. Eurostoxx50 futures are up by over 1 per cent, the DAX is up by 0.50 per cent, the FTSE 100 by 0.99 per cent, whilst the Spanish IBEX (SPA35) and the Italian FTSE MIB are up by between 1.1 and 1.6 per cent Futures on Wall Street are also up – the US500 is up 0.78%, whilst the US100 tech index is up as much as 1.53% The main driver of the gains is a strong quarterly earnings season in Europe, which is overshadowing concerns about an escalation of the US-Iran conflict following fresh US air strikes on targets in Iran Sentiment is also being buoyed by better-than-expected German GDP figures for the second quarter (+0.2% q/q) and an upward revision of the first-quarter reading to 0.4%, which prompted Commerzbank to raise its growth forecast for Germany from 0.6% to 1.0% for this year Investors are also keeping a close eye on yesterday’s decision by the Fed to keep interest rates unchanged and today’s decision by the Bank of England, which, by a vote of 6 to 3, left rates at 3.75 per cent, although three MPC members voted in favour of a rate rise due to the inflationary risks arising from the conflict in the Middle East WTI crude is down by around 0.7–0.9 per cent and is trading at around $84–87 per barrel, despite the ongoing risk of supply disruptions through the Strait of Hormuz The dollar remains stable, the USDIDX index is down slightly (-0.05 per cent), whilst the pound is rising following the BoE’s decision, trading at close to 1.34 against the dollar

The luxury goods, industrial and financial sectors are performing best, thanks to strong results from companies such as Schneider Electric, Ferrari and BBVA, whilst consumer goods (Adidas) and the pharmaceuticals and automotive sectors (Sanofi, Stellantis) remain under pressure The technology sector is mixed – ASML and Infineon are rising, whilst SAP is falling.

Company Information

The key movements today are driven by second-quarter results, which are triggering widely varying reactions from investors across different sectors.

• Ferrari (RACE.IT) has raised its full-year forecasts following better-than-expected second-quarter results, raising its EBITDA target to at least €2.97 billion; its shares are up by more than 4 per cent
• Adidas is heading for a record one-day fall – its shares are down by nearly 18–20 per cent despite an upward revision to its full-year sales forecast, suggesting that investors are disappointed by other aspects of the results
• Sanofi has raised its full-year sales growth forecast to 10 per cent thanks to record sales of Dupixent (+38 per cent year-on-year to €5.15 billion), but its shares are down by around 4.8 per cent following the decision to discontinue the development of three experimental drugs and the lack of a ‘breakthrough’ strategy from new CEO Belen Garijo
• Stellantis (STLAM.IT) has disappointed with an EBIT figure below expectations, despite a 13 per cent rise in revenue, and its shares are falling by as much as 8 per cent in response to doubts about the pace of its recovery under CEO Antonio Filosa
• Schneider Electric leads the Eurostoxx50 index gainers with a rise of +8.12% following an upward revision to its annual forecast, whilst BBVA is rising after the Spanish bank raised its return on total equity (ROTE) targets for 2026, thanks to strong results in Mexico and South America
• British American Tobacco has raised its full-year earnings per share growth forecast to the mid-point of the 5–8 per cent range, thanks to rising demand for Velo nicotine pouches and strong results in the US, which offset a marked decline in sales in Asia; the group reported adjusted earnings per share of 164 pence for the first half of the year (+7.9% y/y), above the consensus estimate of 158.5 pence, whilst revenue from new categories (vaping, heated tobacco products, modern oral) accelerated to 18% growth in constant currencies; However, shares fell by as much as 3% at the open, despite the positive earnings surprise
• L’Oréal is up by almost 3 per cent following better-than-expected second-quarter sales, whilst LSEG is down despite narrowing its revenue forecast, as the new growth range remains below analysts’ expectations