Commezbank on Overnight News

Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: United States Treasuries fall in the New York session, trend sideways in Asia. Bund futures mirror USTs. S&P closes higher, e-minis sideways, Asian equities mixed. The euro (EUR) weakens to $1.16. Brent remains below US$83/barrel.

U.S. withdraws key NATO force pledges with immediate effect, including a carrier strike group, a long-range bomber unit and more than 50 fighter jets (FAZ sources).

U.S.: Strategic petroleum reserve hits 43-year low.

Iran war: Vice President JD Vance says nuclear inspectors would be allowed into Iran, toll-free Strait of Hormuz is explicitly in agreement. U.S. official says Hormuz will fully reopen by Friday, 40-50 ships expected per day within one to two weeks, Strait toll-free for at least 60 days. The Memorandum of Understanding contains a possible $300 billion rebuilding fund (Bloomberg sources). Israeli Prime Minister Benjamin Netanyahu says Iran won't get nuclear weapons "with or without deal."

==EUROPE:

Italy: BTP Italia Si orders total 3.177 billion euros on first day.

==ASIA:

Japan: The central bank (BoJ) raises overnight rate to 1.00% in a 7-1 decision, says it will keep raising rates, pace depends on impact from the Middle East and the economic outlook.

Japan: The BoJ releases Q3 bond purchase schedule earlier than planned, cuts purchase frequency; monthly Japanese government purchases to reach two trillion yen from April 2027. BoJ says it will respond "nimbly" if long-term rates rise sharply, including increasing purchases.

High Tide Shares Jump 15% After Hours as Its Fiscal Q2 Profit and Record Revenue Top Estimates

High Tide (HITI.V, HITI), up 15% at look in after-hours Nasdaq trading, after the cannabis retailer on Monday said it swung to a fiscal second-quarter profit on record revenue, with both earnings and sales exceeding analyst estimates.The company reported a profit of C$24,000, or C$0.01 per share, in the quarter ended April 30, compared to a loss of C$2.8 million, or C$0.04, in the prior-year period. FactSet expected a loss of C$0.02 per share in the last quarter.The company reported record revenue C$179.3 million for the period, compared to C$137.8 million during the same period last year, an increase of 30% year-over-year, the fastest growth rate in 11 quarters. It exceeded FactSet analysts' consensus estimate of C$171.2 million.High tide's adjusted EBITDA stood at record C$13.9 million in the second quarter. This was up 73% compared to last year, marking the fastest growth rate in nine quarters, and up 21% sequentially despite there being three fewer days in the quarter, the company said."Our second quarter results highlight the strength of High Tide's diversified growth strategy and our ability to execute at a high level across multiple geographies. Through the continued integration of Remexian, we have expanded our supply chain capabilities, eliminated unnecessary intermediaries, and are procuring biomass at materially lower costs than Remexian could on its own, enabling us to achieve key operational and financial objectives approximately 90 days ahead of our internal expectations," said chief executive Raj Grover.In its outlook, the company reiterated its long-term goal of surpassing 350 retail locations nationwide and opening 20-30 locations in calendar 2026, mostly through organic growth, while also evaluating supplemental M&A opportunities of varying sizes. It also anticipates "significant" growth in its white-label portfolio and expects sales of its higher-margin white-label brands to reach approximately 20% of total sales.The results come after High Tide earlier Monday said it is taking yet another step to expand its bricks-and-mortar retail cannabis operations, by entering into a definitive agreement to acquire J. Supply Holdings Inc., operating as Northern Helm, resulting in High Tide's acquisition of four of the six retail cannabis stores currently operated by Northern Helm in Ontario for $7.74 million. These acquisitions will bring High Tide's total store count to 228 Canna Cabana locations across Canada and 103 in the province of Ontario.Separately, High Tide said it had secured credit approval for a loan agreement with Bank of Montreal in respect of new senior secured credit facilities in the principal amount of C$40 million. Closing of the new credit facilities remains subject to the satisfaction of customary closing conditions and upon closing, will replace the company's existing senior credit facility.Shares of the company were trading up US$0.33 to US$2.58 at last look on Nasdaq, after closing down C$0.05 to C$3.18 on TSX Venture Exchange.

$HITI.V

Commezbank on Overnight News

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