MARKET WRAPS
Stocks:
European shares were up Thursday as investors hope for a resolution to the U.S.-Iran conflict in the near term.
Banking, retail and software stocks rallied, while travel and leisure stocks also gained. Tech stocks slipped however, after Broadcom's earnings paused a global surge in the sector.
Israel and Lebanon agreed to renew their ceasefire, contingent on Iran-backed Hezbollah halting attacks. President Trump said Wednesday the U.S. could reach a deal with Iran this weekend after earlier claiming Iran had agreed not to develop a nuclear weapon.
Financial market sentiment seems to continue to be driven by the hope that, in case of doubt, an agreement between the U.S. and Iran is always only a few days away, LBBW said. The repeated disappointments do not seem to have done any real harm for now.
Investors are now also turning their attention to next week's European Central Bank meeting . Markets almost fully price a 25-basis point interest-rate hike at the June 11 policy meeting, according to LSEG data.
"The quiet period has now kicked in with a hike next week fully baked in, " KBC Bank said. ECB President Christine Lagarde speaks Thursday but the rules don't allow her to touch on monetary policy.
Stocks to watch
Remy Cointreau earnings landed slightly ahead of consensus but the focus is on the company's transformation plan that points to a gross 100 million euro EBIT uplift by fiscal full-year 2029, Jefferies said.
Partners Group
investor-sentiment is unlikely to turn positive in the short term, as Wednesday's significant share price decline could further concern private clients invested in the evergreen fund, Vontobel said.
Rio Tinto has a great opportunity to pocket a large cash payout by selling off a portion of its future royalty rights from its 66% stake in Mongolia's Oyu Tolgoi mine, Berenberg said.
U.S. Markets:
Stock futures were mixed with the S&P 500 eyeing a second day of losses as the technology sector shows patches of weakness following a couple of poorly-received earnings reports.
Meanwhile, stronger-than-expected U.S. ADP private payrolls and ISM services data boosted expectations the Federal Reserve could raise interest rates.
Forex:
The euro rose. The currency could come under renewed pressure against the dollar ahead of the ECB's June 11 decision, ING said.
The dollar eased after reaching a near two-month high against a basket of currencies on Wednesday.
Bonds:
Eurozone government bond yields fell slightly in opening trade, with markets likely taking a calmer path in the days ahead until the ECB's policy meeting next Thursday.
Gross government bond supply in the eurozone is expected to decline in June from May but net flow will increase, ING said.
The downward potential for oil prices, even in a more benign outcome, remains limited in the near term, offering little tightening possibility for eurozone government bond yield spreads , the bank said.
Treasury yields were little changed in early trading, with investors continuing to expect a U.S.-Iran deal. "The war in the Middle East continues to dominate the global bond markets," with little room for a relief in the short term, Danske Bank said.
Energy:
Oil prices slipped. In early European trading, Brent crude was down 0.8%, while WTI futures fell 1%.
"Without a normalisation of regional oil flows, the market is increasingly exposed to sharp upward swings as inventories continue to thin," ING said.
Metals:
Gold prices ticked higher as traders reassess expectations for a U.S.-Iran peace deal after Israel and Lebanon agreed to a conditional ceasefire.
"Overall, gold remains rangebound, with steady central bank demand being offset by ETF outflows and short-term momentum traders positioning for a deeper correction," Saxo Bank said.
Copper
Copper edged lower in early trade. Recent copper-price strength appears to be U.S. "tariff-driven more than positioning-driven," said Sucden Financial.
Iron
Iron ore prices were lower in early trading. Prices were under pressure due to a sudden surge in exports from Guinea's Simandou iron ore project, according to ANZ research.
EMEA HEADLINES
Universal Music Shares Fall After Ackman Fund Offloads $1.5 Billion Stake
Universal Music Group shares fell after Bill Ackman's Pershing Square sold its stake valued at more than $1.5 billion, exiting the world's biggest music company five years after its initial investment.
Shares in Universal Music were down as much as 7.6% at 17.74 euros in European early morning trading Thursday, deepening their year-to-date loss to nearly 20%.
Commerzbank Asks German Regulator to Review UniCredit Offer Support Levels
Commerzbank said it asked Germany's financial watchdog to review the support levels for UniCredit's takeover offer after the Italian bank said it secured commitments to raise its stake in its German rival above 30%.
The move escalates a tussle between Commerzbank and its largest shareholder, with less than two weeks left for UniCredit's roughly 24 billion-euro ($27.83 billion) offer to buy the stake in the German bank it doesn't already own.
Remy Cointreau Expects Return to Sustainable Organic Sales Growth in Year Ahead
Remy Cointreau expects a return to sustainable organic sales growth and an improved margin in the year ahead as it continues to cut costs and seeks to boost momentum across its drinks portfolio.
The maker of Remy Martin and Louis XIII cognac said Thursday that despite a challenging macroeconomic and geopolitical environment it managed to stabilize the business in its fiscal full-year that runs to the end of March, preserving profitability and improving cash flow.
Comcast NBCUniversal to Invest Over $6.7 Billion in U.K. to Open Its First European Theme Park
Comcast NBCUniversal has pledged to invest over 5 billion pounds ($6.71 billion) in the U.K.'s Bedfordshire region to develop Universal's first theme park in Europe, a move expected to boost the country's economy.
The U.K. Department for Culture, Media and Sport said the investment would be followed by an additional 1 billion pounds in capital funding over the first 10 years of operation, after an estimated five-year construction period.
Partners Group Warns Evergreen Funds Will Slow Assets Under Management Growth
Partners Group said it expects its overall assets under management growth to slow in the second half of the year and in 2027, dragged by demand from investors to get their money back from a flagship private markets platform.
The Swiss private-equity company said it anticipates inflows in evergreen funds, which offer wealthy investors access to assets such as private equity and private credit, to exceed outflows in the first half of this year. However, the firm said its evergreen platform could slow overall net assets under management growth by 1% to 2% in the second half of this year, with a similar impact anticipated for the whole of 2027.
GLOBAL NEWS
U.S.-Iran Skirmish Spurs Deadly Drone Attack on Kuwait Airport
The Gulf kingdom of Kuwait came under a barrage of ballistic missiles and drones on Wednesday that shut its international airport, killed one person and injured dozens more, as Iran launched its largest salvo of the near two-month ceasefire.
The U.S. and Iran had exchanged heavy fire the evening before, after the U.S. struck an empty oil tanker it said was attempting to breach its blockade. That set off a string of attacks by both sides, with Iran firing ballistic missiles at U.S. bases in Kuwait and Bahrain.
How single-stock turbulence presents 'asymmetric' downside risk for a rather calm S&P 500
Calm markets don't tend to stay that way for long if turbulence beneath the surface is increasing.
Wednesday's market action, in which both the S&P 500 and market breadth were weak, for a change, gave investors a little taste of how that calm could end.
A Short Seller's Fraud Conviction Is Spooking Wall Street
Many of the loudest voices on Wall Street belong to investors who talk their own books. An unexpected trial verdict could keep many of them quiet.
Short seller Andrew Left's conviction this week on securities-fraud charges has shocked an influential niche of the stock market whose calling card is its ability to affect stock prices. Activist short sellers release reports on companies that they say are overvalued or hiding information from shareholders, then cash in on the selloffs their ideas sometimes induce.
Trump Tells Aides He Won't Resume All-Out War With Iran Unless U.S. Troops Are Killed
President Trump has told aides privately that he would consider ending the ceasefire with Iran if Tehran kills American troops, U.S. officials said, insisting that the weekslong pause in airstrikes remains intact despite a steady stream of violent skirmishes.
The president's reluctance to reignite the war suggests he might be willing to withstand smaller flare-ups for weeks-or even months-to avoid a broader conflict in the Middle East.
GOP-Led House Votes to Limit Trump's Iran War Powers
WASHINGTON-The GOP-led House voted to restrict President Trump's ability to continue the war against Iran without congressional approval, a rebuke to the White House and the latest sign that Republican lawmakers' support for the war is eroding on Capitol Hill.
The measure passed 215-208, with four Republicans joining Democrats in support. The resolution, which is unlikely to become law, directs the president to remove U.S. armed forces from hostilities against Iran unless explicitly authorized by Congress, other than to defend America, an ally or partner from "imminent attack."
Top AI CEOs Call for Law Protecting Against Biological Weapons
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06-04-26 0513ET
