European Midday Briefing: Shares Rise as Micron Earnings Ease AI Fears

MARKET WRAPS

Stocks:

European shares were on the rise as rallying AI-linked stocks lifted indexes.

Memory-chip maker Micron's blockbuster results Wednesday eased fears over the scale of spending on AI infrastructure and overheated valuations.

The results "reignited hopes about AI-fuelled growth and helped to push back against fears we were in some kind of bubble," Deutsche Bank said.

Meanwhile, energy stocks were slightly lower as oil prices fell back to prewar levels. Tanker traffic through the Strait of Hormuz is picking up and boosting hopes that supplies from the region will bounce back.

"The market is likely extrapolating the swift, thus far, recovery of Mideast supply

and already pricing expected future surpluses," Goldman Sachs said.

The European Central Bank will need to continue to increase borrowing costs

to control inflation that jumped on higher energy prices due to the war in the Middle East, executive board member Isabel Schnabel told German newspaper Die Zeit.

"However, the extent and timing of further measures will depend on how the conflict, the economy and inflation evolve," she added.

U.S. Markets:

Stock futures were climbing Thursday as artificial intelligence stocks remain in focus.

PCE prices data, the Federal Reserve's preferred inflation gauge, are due at 1230 GMT. Weekly jobless claims, durable goods orders and the third estimate of first-quarter growth are also expected at 1230 GMT.

Forex:

The euro traded flat. Artificial intelligence-related sentiment now appears to be the primary driver of the euro's trajectory against the dollar, ING said.

The dollar traded steady

after reaching a 13-month high Wednesday as investors await key inflation data that could provide clues on whether the Fed could raise interest rates this year as expected.

Sterling rose as risk sentiment improves, oil prices fall and U.K. political concerns ease.

Bonds:

Eurozone government bond yields were barely changed as the economic data calendar is thin before a pickup in the coming days.

Treasury yields edged higher

in early trade, slightly more so on the short end of the curve, signaling market expectations of Fed interest-rate hikes.

The 10-year Treasury yield is expected to rise

to 4.65% over the next year in Barclays's base-line scenario.

Energy:

In early European trading, Brent crude fell 1.1%, while WTI futures were down 0.9%.

Metals:

Gold prices held below $4,000 a troy ounce on rising bets of interest-rate hikes by the Fed this year.

Copper

Copper prices were flat in early trade as persistent supply-side tightness continued to offset concerns over weakening seasonal demand, Ruida Futures said.

Iron

Iron ore prices rose in early trading hours after a prolonged selloff, easing some market concerns over downside risks, Everbright Futures said.

EMEA HEADLINES

easyJet Board Rejects Castlelake's Revised $6.49 Billion Takeover Offer

EasyJet's board said it has rejected a fourth takeover bid from U.S. investment firm Castlelake, but said it would extend talks and share limited commercial information in order to obtain a higher offer.

The company said Thursday that it received a revised proposal valuing the company at 4.93 billion pounds ($6.49 billion). Under the proposal, shareholders in the airline would receive 650 pence a share in cash.

Volkswagen to Sell Majority Stake in Engine Unit to Bain Capital

Volkswagen is selling a 51% stake in engine subsidiary Everllence to Bain Capital, seeking to streamline its investment portfolio.

The German automaker will retain a 49% stake in Everllence and stay on as a major shareholder in the medium term, the company said Wednesday. The transaction in the form of a leveraged buy-out generates proceeds of roughly 7.4 billion euros, equivalent to $8.40 billion, for Volkswagen.

H&M Earnings Hit by One-Off Costs as Turnaround Efforts Continue

STOCKHOLM-Hennes & Mauritz's second-quarter earnings were dented by one-off costs as it continues work to grow revenue through a series of product and customer experience strategies.

The Swedish fast-fashion retailer said it booked provisions and restructuring costs totaling 1.24 billion Swedish kronor ($127.2 million) in the quarter as it made organizational changes and continued with transition work across its brands, technology and logistics.

Prosus Investment Values Health Insurer Alan at $6.3 Billion

Tech investor Prosus said it is investing in France's Alan, a company that built a healthcare platform powered by artificial intelligence, in a deal that values the health insurer at 5.5 billion euros ($6.25 billion).

Prosus-the largest shareholder in China's Tencent Holdings and owner of food-delivery company Just Eat Takeaway-said it is investing 400 million euros in Alan through both newly issued and existing shares.

GLOBAL NEWS

Markets on Watch for Yen Intervention But That May Not Turn the Tide

Foreign exchange markets are on edge, watching for potential government intervention as the Japanese yen approaches its weakest levels against the dollar in almost two years. But intervention alone is unlikely to be enough to change the yen's fate.

The dollar was recently at 161.82 yen on Thursday, a mere whisker from its high of Yen161.92 on June 22. If it rises above that, the yen would be at its weakest since July 2024, and potentially trigger action from authorities.

The Data-Center Boom Is Sparking a Third Wave of Inflation

President Trump's trade wars have waned. The price of gas is finally falling. But inflation has a new catalyst: America's massive artificial-intelligence build-out is beginning to push up prices on everything from smartphones to electricity.

The question now is how widely that build-out might ripple through the economy, and how long it could keep inflation elevated. The answers will have big consequences for the economy.

Micron's Blockbuster Earnings Quiet the AI Doubters

A dayslong tech selloff raised new questions about whether America's artificial-intelligence boom could continue at its breakneck pace. On Wednesday, Micron Technology answered.

The memory maker blew past analyst expectations for its May quarter and projected revenue and profit that also topped Wall Street's forecast. Its shares jumped 14% in after-hours trading, propelling a rally in Nasdaq futures.

Deadly Earthquakes Rock Venezuelan Capital

Two powerful earthquakes hit Venezuela on Wednesday, causing buildings to collapse in the capital Caracas, rattling other cities and leaving dozens dead and hundreds injured.

A 7.2-magnitude quake hit at about 6 p.m. local time Wednesday, and was quickly followed by a second, 7.5-magnitude quake. The epicenter for both was near the town of Yumare, about 200 miles west of Caracas, according to the U.S. Geological Survey.

Trump Stuns Republicans With Whirlwind Day of Frustration and Finger-Pointing

WASHINGTON-At 2:38 a.m. on Wednesday, President Trump delivered a political attack line that most Republican politicians could rally behind.

"America the Beautiful will NEVER be a Communist Country," he wrote on social media, criticizing the progressive candidates aligned with the Democratic Socialists of America who won primary elections for House seats in New York on Tuesday.

How a Crypto Exchange Became a Major Hub for Illicit Iranian Cash

Earlier this year, crypto sleuths found an alarming series of transactions tied to two digital wallets controlled by the Central Bank of Iran.

Tracing backward, investigators discovered the wallet's funds were linked to $1.5 billion that North Korean hackers stole from the crypto exchange Bybit. After reaching the Iranian wallets, the money flowed through a complex maze of transactions. One destination was a crypto exchange that has become key to Iran's ability to use cryptocurrency to evade far-reaching U.S. economic sanctions.

A Turkish Arms Sale Leads to a Face-Off Between Trump and Congress

The Trump administration is expected to override a decision by a Democratic lawmaker who is blocking a proposed $750 million sale of jet engines to Turkey over concerns about the country's ties to Russia.

Rep. Gregory Meeks (D., N.Y.) had placed a hold on the sale to Turkey-a NATO ally that is hosting an alliance summit next month-because the country continues to hold a Russian S-400 air-defense system that it bought roughly a decade ago, along with other concerns about Turkey's role in the region.

Write to priscila.barrera@wsj.com

Write to us at newsletters@dowjones.com

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.

This article is a text version of a Wall Street Journal newsletter published earlier today.

Corrections & Amplifications

This article was corrected at 8:39 p.m. ET. The epicenter of the two earthquakes that hit Venezuela at about 6 p.m. local time Wednesday was near the town of Yumare. The original version incorrectly said they hit at 5 p.m. local time, and it misspelled the name of the town as Yamure.

(END) Dow Jones Newswires

June 25, 2026 05:16 ET (09:16 GMT)