Indices and Companies

• The session in Europe is running fairly quietly, characterized by cosmetic reshuffling between key markets and sectors.
• Futures on the broad Stoxx 50 (EU50) gain 0.2%. Futures on the German DAX (DE40), Dutch AEX (NED25), and Spanish IBEX 35 (SPA35) are trading flat. Losses are more visible in France (FRA40: -0.15%) and Switzerland (SUI20: -0.35%). The WIG20 is down about 0.9%.
• Friday’s Anthropic results (a 14-fold jump in quarterly revenue) are driving gains in the semiconductor sector (ASML: +2.7%, STMicro: +3.9%, Infineon: +0.8%, Soitec: +2.7%). Meanwhile, capital is mainly flowing out of software (SAP: -0.8%) and consumer goods (Tesco: -2%, Nestle: -2%, L’Oréal: -1%).
• AstraZeneca halted clinical trials of the lung cancer drug volrustomig because it did not prove more effective than existing therapies. Despite this, the company’s shares are gaining about 0.8% thanks to positive test results for the drugs Tagrisso and Enhertu. The firm plans further studies on volrustomig in the treatment of other cancers.
• Argenx shares jumped 11% following positive Phase 3 trial results for VYVGART Hytrulo in myositis. The drug met its primary endpoint in patients with IMNM, enabling a regulatory submission. Although statistical significance was not reached in the dermatomyositis (DM) subgroup, analysts view the results as very promising.

Volatility in the Stoxx 50 is concentrated in the technology sector. Source: XTB Research, xStation5 data

The Stoxx 50 contract paused near record highs, constrained by a nearly overbought RSI. Source: xStation5

🌍 Economy and Geopolitics

• Sources close to media outlet Al Arabiya indicate the possibility of extending the 60-day agreement between Iran and the US. Furthermore, the Iranian Ministry of Foreign Affairs reported talks with Qatar, which is expected to play a key role in de-escalation efforts. Meanwhile, Donald Trump emphasized that the primary goal for the US is to strip Iran of any chance of acquiring a nuclear weapon.

💱 Currencies, Commodities, and Cryptocurrencies

• The US dollar maintains its losses from the Asian session (USDIDX: -0.15%), while Antipodean currencies continue to gain the most from rising risk appetite (AUDUSD: +0.7%; NZDUSD: +0.75%). EURUSD briefly crossed the psychological 1.1600 level, but is currently trading just below this resistance (+0.3%).
• Crude oil futures returned to gains (OIL: +0.6% to $89.20 per barrel), while European natural gas futures trimmed their bullish opening slightly (NATGAS.EU: +1.6%; previously +2%).
• Precious metals accelerate thanks to sustained dollar weakness. Gold (GOLD) gains 0.6% to $4,400 per ounce, while silver (SILVER) adds 1.5% to $65.70 per ounce. Platinum and palladium futures also remain in the green.
• Bitcoin gains 1.15% to $63,680, and Ethereum adds 1.7% to $1,908.

The P/E ratio between the European Stoxx 50 and the US S&P 500 jumped during the ongoing earnings season. Source: XTB Research