Latest news with #STOXXEurope600
Yahoo
an hour ago
- Business
- Yahoo
Europe surrenders to Trump (and thus secures victory by the back door)
S&P 500 futures traded up this morning on news that the U.S. and the EU, America's largest trading partner, have struck a deal that imposes 15% tariffs on imported goods. The U.S. markets love that certainty. But the devil is in the details—which is why European stocks are rising faster than U.S. futures this morning. Stocks are up this morning on the certainty of a new trade deal between the U.S. and the EU. American businesses and consumers will now face a 15% tariff on all imports from Europe, while President Trump confirmed the EU tariff level has been reduced to zero. Previously, the tariff level on both sides was just under 3%. President Trump, visiting his golf courses in Scotland, is positioning the deal as a win. The agreement includes a large amount of direct investment into the U.S. by Europe, such as $750 billion in energy purchases, $600 billion in extra direct investment, and the purchase of 'a vast amount of military equipment,' the president said. S&P 500 futures moved up 0.27% this morning, but the STOXX Europe 600 rose by more than double that in early trading. Why are investors in Europe so happy about Trump's great victory over them? The devil is in the details, and the pact seems to contain several advantages for the EU. The auto tariffs, for instance, now benefit European manufacturers over North American competitors. The 15% level is lower than that faced by Canada and Mexico, which are much nearer to the U.S. auto market. 'How can the administration square a 15% tariff on cars from Europe and Japan, while manufacturers in the U.S., Canada, and Mexico are laboring under 25% tariffs?' Patrick Anderson, CEO of the Anderson Economic Group, told the New York Times. The deal does not require the EU to alter its digital services tax on large tech companies. There is also no current change in drug pricing rules. The pharma industry is one of Europe's biggest, and Trump has long complained that Europeans get drugs cheap because companies inflate pricing in the U.S. Meanwhile the 'new' direct investment and military purchases may likely have happened anyway—Europe is fighting a war against Russia on its Eastern flank, after all. 'Europe is already the largest foreign investor in the U.S., with European direct investment increasing by roughly $200 billion from 2023 to 2024. Three times that over an undefined period is hardly a great coup,' the Wall Street Journal's editorial board noted. Simon Nixon, who writes the Wealth of Nations Substack, said: 'The real win from the EU's perspective is that it has successfully fended off Trump's demands that it rewrite its regulatory rulebook to benefit U.S. companies. In particular, Trump had been demanding changes to EU digital services rules, agricultural rules, and pharmaceutical pricing. 'The irony is that this is the one thing that U.S. companies would have most wanted out of any trade deal. Instead, they have been hit with a massive hike in tariffs on imports … without any increase in EU market access.' In Europe, analysts seem to be concluding that the deal is mostly Scotch mist. The tariff level itself is much lower than what Trump previously threatened, and the accompanying investment will get lost in the mail. 'The EU and the U.S. agreed that U.S. consumers should pay more tax—levied at 15% for imports from the EU. EU President [Ursula] von der Leyen made vague pledges to buy stuff from and invest in the U.S., without the necessary authority to make those pledges reality. Pharmaceuticals and steel seem to be excluded from this deal. The result is better for the U.S. economy than the worst-case scenario, but worse for the U.S. economy than the situation in January this year,' UBS's Paul Donovan told clients this morning. Here's a snapshot of the action prior to the opening bell in New York: S&P 500 futures were up 0.3% this morning, premarket, after the index closed up 0.4% on Friday, hitting a new all-time high at 6,388.64. STOXX Europe 600 was up 0.67% in early trading. The U.K.'s FTSE 100 was up 0.14% in early trading. Japan's Nikkei 225 was down 1.10%. China's CSI 300 Index was up 0.21%. The South Korea KOSPI was up 0.42%. India's Nifty 50 was down 0.6%. Bitcoin was flat at just under $119K. This story was originally featured on
Yahoo
6 days ago
- Business
- Yahoo
‘Goldilocks' is ignoring the three bears, Wall Street analysts say
Markets are mostly maintaining their all-time highs despite Trump's tariffs, threats to Fed independence, and analysts reducing their expectations for U.S. GDP growth. Investors are instead enjoying a 'Goldilocks scenario,' Goldman Sachs says. Barclays agrees: 'Another week, another tariff salvo, and another market shrug.' S&P 500 futures are barely moving this morning after the index itself hit an all-time high yesterday, poking its head above 6,300 for the first time ever and closing at 6,305.6. In Asia and Europe, there was a small amount of profit-taking earlier today but nothing to be concerned about—equities remain mostly near their record peaks globally. There is no excuse for this behavior, arguably. There are three bearish indicators that ought to be scaring investors right now: The U.S. is imposing a trade tax on the entire planet; President Trump has threatened the independence of the Federal Reserve; and Goldman Sachs just moved down its forecast for U.S. GDP in the second half of the year (to 1.1%). But, as Goldman's Christian Mueller-Glissmann told clients in a recent note seen by Fortune, the markets appear to be ignoring this and enjoying a 'Goldilocks scenario' instead. 'Another week, another tariff salvo, and another market shrug,' Barclays analyst Christian Keller et al. told their clients. 'Resilient US consumer data and robust Q2 earnings for now dominate over initial signs of tariff effects on CPI, continuing threats of tariff escalations and increasing political pressures on the Fed.' There are reasons to worry that stocks might be overpriced. Deutsche Bank's Henry Allen pointed out recently that the Fed Funds futures speculators are betting in a way that suggests they expect an upcoming recession. 'If we look at Fed funds futures as of last night's close, we can see that just over 100bps of cuts are priced in over the next year to August 2026. That comes on top of 100bps already delivered between Sep-Dec 2024. So, if realised, that would be just over 200bps of cuts in two years. But historically, getting 200bps of cuts in two years has almost always required a recession,' he wrote in a research note. Maybe. It's worth remembering that the Fed Funds futures market changes daily, sometimes moving quite dramatically. These investors may not literally be pricing in a recession. But they are certainly betting that Fed Chair Jerome Powell will deliver cuts to interest rates sooner or later. More cheap money is good for stocks, and that's what stocks seem to be reflecting right now. Here's a snapshot of the action prior to the opening bell in New York: S&P 500 futures were off 0.13% this morning after the index hit a new high, at 6,305.60, up 0.14% yesterday. The S&P has never been above 6,300 before. The UK's FTSE 100 was clinging on above 9,000, at 9,008.61 in early trading. STOXX Europe 600 was down 0.44% in early trading. Japan's Nikkei 225 was down 0.11%. China's CSI 300 Index was up 0.8%. Bitcoin is still above $118K. This story was originally featured on
Express Tribune
21-07-2025
- Business
- Express Tribune
Valentino refutes rumours of sale
Luxury group Kering's partner in Valentino was quick to rule out a newspaper report on Friday that the two were considering selling the Italian fashion label. But that could be just the move that incoming Kering CEO Luca de Meo needs to reset the debt-laden Gucci owner – even if it comes at a cost. Under current Chairman and CEO Francois-Henri Pinault, Kering bought a 30 per cent stake in Valentino for 1.7 billion euros in 2023 from Qatari fund Mayhoola to diversify away from slowing star brand Gucci, with a commitment to buy the rest by 2028. However, the deal includes options that could force Kering to buy the remaining 70 per cent as soon as May 2026, company filings show, potentially adding to Kering's 10-billion-euro-plus debt pile. In a note to clients this month, Bank of America analyst Mark Xu estimated the potential liability at 4-6 billion euros ($4.7-7.0 billion), depending on Valentino's performance. Revisiting the Valentino deal, which would require bringing Mayhoola back to the negotiating table, will be one of the first and biggest challenges for De Meo, industry experts and bankers say. The former Renault boss was picked in June to turn round the 24-billion-euro French luxury conglomerate. "With incoming CEO Luca de Meo joining in September 2025, not having to deal with the integration of Valentino may be one less thing on his already long to-do list," RBC analysts said on Friday. Contacted by Reuters about the report in Italian newspaper Corriere della Sera that Valentino could be put up for sale, Mayhoola CEO Rachid Mohamed Rachid said it was "untrue". Kering declined to comment. Kering shares rose 3.5 per cent after the report, outperforming the STOXX Europe 600 index, suggesting investors would welcome a sale. Besides Gucci, the group owns brands including Bottega Veneta and Yves Saint Laurent and high-end perfume label Creed, which Pinault bought in 2023 for 3.5 billion euros amid a wider acquisition spree. Reuters
Time of India
16-07-2025
- Business
- Time of India
ASML stock drops 6.5% despite strong Q2 earnings — why is it falling while other chip stocks rise amid trimmed 2025 forecast and weak 2026 growth outlook?
ASML shares drop 6.5% after company says it can't confirm growth in 2026 despite strong Q2 earnings- ASML shares fell sharply after the company reported solid second-quarter earnings but raised concerns about its growth prospects in 2026. Despite beating revenue and profit expectations for Q2, the chip-making equipment giant warned of uncertainties due to macroeconomic and geopolitical factors. Investors reacted negatively, causing the stock to tumble 6.5% in early trading. Here's a detailed breakdown of ASML's latest performance, forecasts, and what lies ahead. How did the stock market react? ASML stock dropped 6.5% in Amsterdam trading—its steepest single-day fall since October 2024. The STOXX Europe 600 tech index slipped 0.3%, dragged by ASML's weight. Ads By Google Ad will close in 27 Skip ad in 2 Skip Ad U.S. peers Lam Research , Applied Materials , and KLA all fell between 2% and 2.5% , reflecting sector-wide concerns. Why are other chip stocks rising? While ASML is facing equipment-specific headwinds, AI chipmakers like Nvidia and AMD are thriving. Here's why: Explore courses from Top Institutes in Select a Course Category healthcare Technology Management Artificial Intelligence Others Healthcare Public Policy MBA Data Science Product Management Leadership Project Management Finance others MCA Data Science Degree Data Analytics Design Thinking CXO Cybersecurity Operations Management Digital Marketing Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details The U.S. just cleared new AI chip exports to China, allowing Nvidia and AMD to resume shipments. That's a huge win for revenue. CoreWeave and other AI infrastructure firms are ramping up GPU server demand, pushing the broader market higher. The Nasdaq and S&P 500 both hit new all-time highs on July 16, largely thanks to tech momentum. So, while the tools side of the semiconductor chain is facing pressure, the AI chip side is booming—leading to a divergence in performance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 6 måder du kan stoppe med at arbejde med 2,5 mio. kr. Fisher Invest. Norden Undo Why did ASML stock drop despite strong Q2 numbers? ASML shares dropped 6.5% in early European trading on Wednesday after the company, a vital player in the global semiconductor supply chain, reported uncertainty around its 2026 growth. This came even as the Dutch tech firm posted stronger-than-expected results for the second quarter of 2025. Live Events Q2 net sales: €7.7 billion ($8.95 billion), beating estimates of €7.52 billion Q2 net profit: €2.29 billion, exceeding the forecast of €2.04 billion Net bookings: €5.5 billion, much higher than the expected €4.19 billion The drop in ASML's stock price was driven not by its Q2 performance, but by management's cautious outlook and lowered forward guidance. What did ASML say about its 2026 growth? One of the most critical points from ASML's announcement was its inability to confirm growth in 2026. CEO Christophe Fouquet pointed to "increasing uncertainty driven by macro-economic and geopolitical developments" as the key reason. 'Looking at 2026, we see that our AI customers' fundamentals remain strong,' Fouquet said in a statement. 'At the same time, we continue to see increasing uncertainty... Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.' This uncertainty spooked investors, especially as chipmakers are closely tied to global demand and political policy, such as U.S. tariffs on tech exports. How did ASML perform in Q2 compared to estimates? Despite the cautious forward outlook, ASML actually delivered solid financial results for Q2 of 2025: Metric Reported Estimated Net Sales €7.7 billion €7.52 billion Net Profit €2.29 billion €2.04 billion Net Bookings €5.5 billion €4.19 billion In a video interview, CFO Roger Dassen credited the Q2 beat to better-than-expected revenue from upgrades of existing machines and less negative impact from tariffs than previously assumed. What's ASML's outlook for Q3 and the rest of 2025? ASML's forecast for the third quarter missed market expectations. The company guided revenue between €7.4 billion and €7.9 billion , lower than the anticipated €8.3 billion . For the full year 2025, ASML now expects 15% revenue growth , which suggests approximately €32.5 billion in sales — a narrowed outlook from its earlier forecast range of €30 billion to €35 billion . So, while 2025 still looks like a growth year, it's more modest than initially expected — and 2026 remains up in the air. How is artificial intelligence influencing ASML's performance? AI demand remains a bright spot for ASML. The company produces extreme ultraviolet lithography (EUV) machines, crucial for making advanced chips that power AI applications. Major tech companies like Apple, Nvidia, Intel, and TSMC rely on ASML's equipment to manufacture next-generation semiconductors. CFO Dassen confirmed that AI demand is a 'big driver for EUV,' which continues to support long-term demand, even amid broader industry uncertainty. What's the concern with ASML's 2026 outlook? The real shocker was ASML's lack of confidence in 2026 growth. CEO Fouquet said the company "cannot confirm growth" for next year due to: Macroeconomic uncertainty Geopolitical risks, especially related to export controls and global trade policies Potential slowdowns in customer demand for new lithography tools, particularly High-NA EUV systems This prompted Jefferies to lower their 2026 revenue estimate from +7% growth to a 2% decline, while UBS warned of a potential 10% drop in EPS next year. Are tariffs and export controls adding pressure? Absolutely. The backdrop of rising trade tensions between the U.S. and EU is a major overhang. The Biden–Trump-era 30% tariffs on EU chip equipment—set to take effect Aug. 1—could significantly raise ASML's costs when shipping to the U.S. Meanwhile, restrictions on exports to China continue to affect key customers like SMIC, who rely on ASML's cutting-edge lithography machines. These geopolitical crosswinds are making it difficult for ASML to commit to forward guidance, and investors don't like uncertainty. What is ASML's next big product and how could it shape the future? ASML recently shipped its next-gen EUV machine, called the High NA EUV system (High Numerical Aperture). These machines are essential for the next evolution of semiconductor production and can cost more than $400 million each — roughly the size of a double-decker bus. This technology is expected to play a key role in ASML's long-term growth strategy, especially as chipmakers push toward smaller, more powerful, and more efficient chips for AI and high-performance computing. ASML's strong second-quarter performance highlights its role as a semiconductor powerhouse, but its cautious comments about 2026 rattled investors. While AI-related demand remains promising, economic and geopolitical uncertainty continues to weigh heavily. Investors will be watching closely to see how things evolve — particularly around U.S. tariff policy and global chip demand. FAQs: What caused ASML shares to drop? ASML shares dropped after it said it can't confirm growth in 2026 despite strong Q2 results. Is AI demand still driving ASML's business? Yes, AI chip demand remains a major growth driver for ASML's EUV machines.
Yahoo
11-07-2025
- Business
- Yahoo
Renta 4 Banco And 2 Other Undiscovered Gems In Europe
As the pan-European STOXX Europe 600 Index remains relatively flat, with mixed returns across major stock indexes, investors are keeping a close eye on inflation trends and labor market stability in the eurozone. In this environment of cautious optimism and steady economic indicators, identifying promising opportunities among lesser-known stocks can be particularly rewarding. A good stock often combines solid fundamentals with growth potential that aligns well with current market conditions, making it an attractive choice for those seeking to uncover hidden gems in the European market. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Flügger group 30.11% 1.55% -30.01% ★★★★★☆ Caisse Regionale de Credit Agricole Mutuel Toulouse 31 19.46% 0.47% 7.14% ★★★★★☆ Zespól Elektrocieplowni Wroclawskich KOGENERACJA 14.04% 21.73% 17.76% ★★★★★☆ Deutsche Balaton 5.64% -7.61% -16.14% ★★★★★☆ Alantra Partners 3.79% -3.99% -23.83% ★★★★★☆ va-Q-tec 43.54% 8.03% -34.33% ★★★★★☆ Evergent Investments 5.39% 9.41% 21.17% ★★★★☆☆ Darwin 3.03% 84.88% 5.63% ★★★★☆☆ Practic 5.21% 4.49% 7.23% ★★★★☆☆ Eurofins-Cerep 0.46% 6.80% 6.93% ★★★★☆☆ Click here to see the full list of 321 stocks from our European Undiscovered Gems With Strong Fundamentals screener. We're going to check out a few of the best picks from our screener tool. Simply Wall St Value Rating: ★★★★★☆ Overview: Renta 4 Banco, S.A. is a financial institution that offers wealth management, brokerage, and corporate advisory services both in Spain and internationally, with a market capitalization of €683.65 million. Operations: Renta 4 Banco generates revenue primarily through wealth management, brokerage, and corporate advisory services. The company's net profit margin is a key indicator of its financial efficiency. Renta 4 Banco, a nimble player in the financial sector, has demonstrated impressive earnings growth of 23%, outpacing the Capital Markets industry's 12.8%. With its debt-free status compared to a debt-to-equity ratio of 9.4% five years ago, it stands on solid ground. The company enjoys high-quality past earnings and positive free cash flow, although its share price has been highly volatile over the last three months. This dynamic environment suggests potential for both risk and reward as Renta 4 navigates forward with no immediate concerns about cash runway or interest coverage due to its lack of debt obligations. Get an in-depth perspective on Renta 4 Banco's performance by reading our health report here. Learn about Renta 4 Banco's historical performance. Simply Wall St Value Rating: ★★★★☆☆ Overview: Boryszew S.A. operates in the automotive, metals, and chemical industries both in Poland and internationally, with a market capitalization of PLN1.28 billion. Operations: Boryszew S.A. generates revenue primarily from its metals segment, contributing PLN2.82 billion, followed by the motorization segment at PLN1.54 billion, and chemistry at PLN153.55 million. Boryszew, a noteworthy player in the metals and mining sector, has seen its debt-to-equity ratio improve from 107.7% to 49.5% over the last five years, indicating better financial leverage. However, its interest coverage remains low at just 0.3x EBIT, which might raise some concerns about debt servicing capabilities. On a brighter note, Boryszew's earnings have outpaced industry trends with a robust growth of 33.4%, despite having experienced high share price volatility recently. A notable one-off gain of PLN164.9 million has impacted recent results positively, while its P/E ratio of 11.7x suggests it could be undervalued compared to the broader Polish market at 13x. Unlock comprehensive insights into our analysis of Boryszew stock in this health report. Evaluate Boryszew's historical performance by accessing our past performance report. Simply Wall St Value Rating: ★★★★★☆ Overview: innoscripta SE offers software-as-a-service solutions for managing research and development tax incentives and project management consulting in Germany, with a market capitalization of €1.06 billion. Operations: The company generates revenue primarily from its Internet Software & Services segment, amounting to €78.81 million. Innoscripta has made waves with its recent IPO, raising €223.60 million by offering 1.86 million shares at €120 each. This move comes on the heels of a robust earnings growth of 134% over the past year, outpacing the software industry average of 24%. Trading at a substantial discount to its estimated fair value, it presents an intriguing opportunity for investors. The company boasts high-quality earnings and maintains more cash than total debt, indicating financial stability despite recent share price volatility. With earnings forecasted to grow annually by 26%, Innoscripta seems poised for continued expansion in the market. Delve into the full analysis health report here for a deeper understanding of innoscripta. Explore historical data to track innoscripta's performance over time in our Past section. Discover the full array of 321 European Undiscovered Gems With Strong Fundamentals right here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BME:R4 WSE:BRS and XTRA:1INN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
