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European Equities Mostly Lower in Thursday Trading; Sodexo Picked by Meta for Global Food Services

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European stock markets closed mostly lower in Thursday trading, with the Stoxx 600 fractionally lower, Germany's DAX shedding 0.5%, the UK's FTSE 100 advancing 0.5%, France's CAC 40 shedding 0.1%, and the Swiss Market Index down 0.4%.

In geopolitical news, the US unleashed another round of strikes against Iran. US Central Command said in a post on X that it completed another wave of attacks against Iran, holding the nation "accountable" at the direction of President Donald Trump. Iran warned that it would hit key infrastructure in the Gulf region if the US followed through on Trump's threats on Tuesday to strike Iranian infrastructure such as bridges and power plants if progress on peace talks was not achieved.

Brent Crude was little changed at $84.96.

In economic news, UK gross domestic product rose 0.1% in May, according to the Office for National Statistics. The UK economy is estimated to have expanded 0.7% in the three months to May.

In corporate news, Meta Platforms has selected Sodexo to provide workplace food services across more than 130 locations in over 30 countries, including corporate offices, campuses, data centers and conference hubs, Sodexo said Thursday. The company said the contract is one of the largest global workplace food services agreements it has secured and will be implemented progressively in the coming months. Sodexo shares gained 2.2% in Paris.

Uber on Thursday disclosed its acquisition offer to buy Berlin-based Delivery Hero in a deal representing an equity value of $14.8 billion, or $13.7 billion adjusted for Uber's prior stake purchases. Under the terms of the deal, Uber will offer Delivery Hero shareholders cash consideration of 41.50 euros ($47.60) per share that they hold. Delivery Hero shares were fractionally higher in Frankfurt.

TotalEnergies expects Q2 hydrocarbon production to be nearly 2.4 million barrels of oil equivalent per day, supported by about 4% organic growth, the company said Thursday. Average liquids price is expected to be $91.60 per barrel, compared with $73.70/bbl in Q1 and $65.60/bbl a year ago. Average gas price in Q2 is expected to drop to $5.55 per million British thermal unit from $5.59/MMBtu in Q1 and $5.63/MMBtu a year ago. TotalEnergies shares fell 1.5% in Paris.

UBS hired former Goldman Sachs managing director Takehiro Sakuramoto to head its debt capital markets division in Japan, Bloomberg reported Thursday, citing an internal memo. The investment bank plans to pursue underwriting mandates for Japanese corporate bonds with an initial emphasis on foreign currency-denominated debt, the report said. UBS shares declined 2.1% in Zurich.

Grifols has dosed the first patients in two separate phase 3 trials aiming to expand the US labels for Gamunex-C, an intravenous immunoglobulin, and Xembify, a subcutaneous immunoglobulin. The Sigma trial will evaluate the impact, efficacy, and safety of Gamunex-C in combination with standard of care treatment to prevent infections in patients with secondary immunodeficiency characterized by low immunoglobulin levels, the company said. Grifols shares rose 1.2% in Spain.

Alphabet's Google may be held liable for YouTube videos promoting online gambling if they were uploaded by a content creator with whom the company had a commercial partnership, the EU's top court ruled Thursday. The ruling arose from Google's challenge to a 750,000 euro ($859,984) fine imposed by Italy's communications regulator AGCOM over YouTube videos promoting online gambling.

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Asia Markets

Update: US Equity Indexes Climb as Unexpected Decline in Inflation Helps Counter Sharp Deterioration in Iran Geopolitics

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes rose, as a boost from an unexpected drop in producer price inflation helped outweigh a worsening geopolitical environment, including potential complex military operations against Iran and an emerging threat to shut down the maritime gateway to the Red Sea.The Nasdaq rose 0.6% to 26,269.23, the S&P 500 climbed 0.4% to 7,572.40, and the Dow Jones Industrial Average advanced 0.3% to 52,658.64 on Wednesday. Communication services and consumer discretionary topped the gainers, while utilities led the decliners.The US Producer Price Index fell 0.3% in June after a 0.6% increase in May, below consensus for no change in a Bloomberg-compiled survey. Core PPI rose 0.2%, slower than the 0.3% gain expected and a 0.1% rise in May. PPI was up 5.5% year-over-year in June, versus the 6% gain in May, while core PPI climbed 4.7%, up from 4.6% in May.Fed policy is likely to remain unchanged given the divide between inflation optimists and pessimists, Stifel Chief Economist Lindsey Piegza said in a note. Following the PPI data, the CME FedWatch tool showed a 90% probability of the Fed holding rates steady in July, up from 84% on Tuesday, with the rate-pause likelihood also increasing for September, October, and December. Treasury yields retreated, with the 10-year yield falling four basis points to 4.55% and the two-year sliding 6.3 basis points to 4.13%.Geopolitically, the strikes on Iran aimed at forcing open the Strait of Hormuz are also targeting capabilities that the US would like destroyed before executing complex operations in the country, Reuters reported, citing three US officials. The officials said the strikes effectively strengthen Trump's additional military options.In response, Iran's paramilitary Revolutionary Guard threatened to halt all energy exports from the Middle East over the blockade of its ports, the Associated Press reported. "The export of oil and gas from the region will be either for everyone or for no one," the Guard was cited as saying. Iran is also signaling it could use Yemen's Houthi allies to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world's most important energy arteries at risk, a separate report from Reuters said.Despite these tensions, crude oil futures traded off session highs following US inventory data. Brent rose 0.4% to $85.05 a barrel, and the US West Texas Intermediate climbed 0.5% to $79.71 a barrel.US commercial crude oil stocks fell by 1.7 million barrels in the week ended July 10, below the 1.8 million-barrel slide forecast in a Bloomberg-compiled poll. Gasoline stocks fell by 1.5 million barrels during the same period in the US summer driving season, smaller than the 2.0-million-barrel slide expected. Distillate stocks, which power the supply chain comprising commercial trucking and freight trains, rose by 4.6 million barrels, compared with an expected drop of 2.0 million barrels.In company news, Dutch semiconductor equipment supplier ASML (ASML) reported growth in Q2 earnings and sales and raised revenue guidance for the full-year 2026.Mega-cap banks continued to post strong results. Morgan Stanley's (MS) Q2 sales beat the outlook, with robust investment banking and trading driving the top line higher year over year. BlackRock (BLK) also reported higher Q2 adjusted earnings and revenue, and The Bank of New York Mellon (BNY) reported Q2 adjusted earnings and revenue above market expectations.

Dow JonesNasdaq CompositeS&P 500$ASML$BLK$BNY$MS
Asia Markets

Update: US Equity Indexes Edge Up After Producer Price Inflation Unexpectedly Drops, Iran Signals Red Sea Disruption

(Updates with index/price moves, macroeconomic/rates data, and company/geopolitical news from the first paragraph.)US equity indexes ground higher following a surprise decline in the wholesale price inflation rate and a signal from Iran that its allies could shut the maritime gateway to the Red Sea.The Nasdaq rose 0.4% to 26,221.4, the S&P 500 climbed 0.3% to 7,564.7, and the Dow Jones Industrial Average advanced 0.3% to 52,643.8 after midday Wednesday. All three gauges briefly traded moderately lower earlier in the session. Communication services and consumer discretionary topped the gainers, while energy led the decliners.The US Producer Price Index fell 0.3% in June following a 0.6% increase in May, below the flat consensus in a Bloomberg-compiled survey. Excluding food and energy, core PPI rose 0.2%, slower than the 0.3% gain expected and a 0.1% rise in May. PPI was up 5.5% year-over-year in June, versus the 6% gain in May, while core PPI climbed 4.7%, up from 4.6% in May.The probability of the Federal Reserve leaving its policy unchanged in July rose to 90% following the PPI data, from 84% a day ago and 69% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also jumped. On Tuesday, market expectations for an unchanged monetary policy surged after the June consumer price inflation rate declined the most since April 2020.Most US Treasury yields fell after midday, with the 10-year down 4.4 basis points to 4.54% and the two-year declining 6.9 basis points to 4.12%.US Central Command struck Iran's coastal defense systems and cruise missile storage and launch sites on Greater Tunb Island during the 90-minute wave on Wednesday, it said. "The strikes further degraded Iran's ability to attack commercial shipping in the Strait of Hormuz." The strikes followed attacks overnight.Iran is now signaling it could use Yemen's Houthi allies to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world's most important energy arteries at risk, Reuters reported. As US strikes deepen inside Iran and Houthi attacks escalate in tandem, analysts said Tehran is widening the conflict and seeking to increase pressure on Washington by extending the threat to global trade and energy supplies beyond the Gulf, the news report said.The front-month global benchmark North Sea Brent shed 0.2% to $84.53 a barrel, and the US West Texas Intermediate declined 0.4% to $79.05 a barrel, off session highs.Excluding inventories in the Strategic Petroleum Reserve, US commercial crude oil stocks fell by 1.7 million barrels in the week ended July 10, following the Labor Day weekend, versus a 1.8 million-barrel decline expected in a Bloomberg-compiled poll and a 3.0-million-barrel gain in the previous week. Gasoline stocks fell by 1.5 million barrels, smaller than the 2.0-million-barrel decrease expected. Further, distillate stocks rose by 4.6 million barrels, compared with an expected drop of 2.0 million barrels.In precious metal markets, gold futures retreated 0.2% to $4,060.90, and silver futures slumped 2.2% to $57.78.In company news, Dutch semiconductor equipment supplier ASML (ASML) reported year-over-year growth in Q2 earnings and sales and raised revenue guidance for the full-year 2026.Mega-cap banks continued to post strong results. Morgan Stanley's (MS) Q2 sales beat the outlook, with robust investment banking and trading driving the top line higher year over year. BlackRock (BLK) also reported higher Q2 adjusted earnings and revenue. The Bank of New York Mellon (BNY) reported its Q2 adjusted earnings and revenue above market expectations.Payments firm Stripe and Advent International have offered to acquire PayPal (PYPL) for $60.50 per share in a deal valuing the company at more than $53 billion, Reuters reported, citing two unnamed people familiar with the matter.

Dow JonesNasdaq CompositeS&P 500$ASML$BLK$BNY$MS$PYPL
Asia Markets

Exchange-Traded Funds Rise, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV edged higher Wednesday afternoon. Actively traded Invesco QQQ Trust (QQQ) fell 0.9%.US equity indexes were mixed following a surprise decline in the wholesale price inflation rate and a signal from Iran that its allies could shut the maritime gateway to the Red Sea.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each shed about 1.4%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 2.3%; iShares US Technology ETF (IYW) shed 1%, and iShares Expanded Tech Sector ETF (IGM) was down 1.5%.The State Street SPDR S&P Semiconductor (XSD) declined 3.9%, and iShares Semiconductor (SOXX) fell 4%.FinancialThe State Street Financial Select Sector SPDR (XLF) rose 0.9%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 2.7%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 2.5%.CommoditiesCrude oil gained 0.1%, and the United States Oil Fund (USO) rose 0.1%. Natural gas added 0.5%, and the United States Natural Gas Fund (UNG) was up 0.1%.Gold on Comex dipped 0.9%, and the State Street SPDR Gold Shares (GLD) eased 0.5%. Silver was down 3.7%, and iShares Silver Trust (SLV) was 3.3% lower.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.6%. The Vanguard Consumer Staples ETF (VDC) rose 0.7%, and iShares Dow Jones US Consumer Goods (IYK) was up 0.7%.The State Street Consumer Discretionary Select Sector SPDR (XLY) rose 1.2%. VanEck Retail ETF (RTH) added 1.2%, and the State Street SPDR S&P Retail (XRT) advanced 1.8%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 0.4%, iShares US Healthcare (IYH) added 0.3%, and Vanguard Health Care ETF (VHT) was up 0.4%. IShares Biotechnology ETF (IBB) was up 0.2%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) slipped 1.1%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) rose 0.8%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) added 0.8%, ProShares Ether ETF (EETH) was up 2%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.8% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH