Live Markets: Before the bell: European banks briefly in spotlight

Microsoft

Wed 07:48

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BEFORE THE BELL: EUROPEAN BANKS BRIEFLY IN SPOTLIGHT 
We're at the start of a big 48 hours or so for markets with the Fed, Bank of Canada, ECB and BOJ all announcing rate decisions between now and this time on Friday, a British budget, as well as a raft of major corporate earnings, including from Microsoft and Alphabet. 
All that uncertainty is keeping most markets in check and Euro STOXX 50 futures are next to flat, as are most currencies we look at in European trading — anyone wanting to know more on the New Zealand dollar, can read Morning Bid below. French yields are up another 6 basis points, but that's just par for the course now. 
That means the focus of the open will be on how markets react to the European earnings we've had before the bell, and banks are among the standouts. 
UBS UBSG.S reported results largely in line, and Deutsche Bank DBKGn.DE BNP Paribas BNPP.PA and Santander SAN.MC all beat top line expectations. 
Whether markets are less happy with under the surface numbers remains to be seen, but for now, traders are calling Deutsche and BNP's shares up about 2%. 
Standard Chartered STAN.L also beat estimates, and its Hong Kong listed shares are up around 8%, 2888.HK diverging sharply from its larger neighbour HSBC, whose shares finished London trading on Tuesday down 5.4%. HSBA.L 
Away from banks, German chemicals group BASF BASFn.DE raised its 2026 outlook for the second time this year, a further reflection of how European chemical suppliers are benefiting from an Iran war-related demand boost.
And once under fire software stocks could continue their recovery after France's Dassault Systèmes DAST.PA raised its 2026 revenue and margin targets after its results. 
Software has typically traded inversely to AI stocks, but that pattern could be tested today, as Asian chip makers rose after Korea's SK Hynix 000660.KS reported a more than seven-fold jump in quarterly profit.
(Alun John) 
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