FINWIRES · TerminalLIVE
FINWIRES

European Stocks Head Lower in Wednesday Trading; Strait of Hormuz Stalemate Continues

By

-- The European stock markets were tracking lower Wednesday as a stalemate over the reopening of the Strait of Hormuz continues, and a slew of major European companies report quarterly earnings.

The Stoxx Europe was down 0.7%, Germany's DAX was declining 0.3%, the FTSE 100 was falling 1.2%, France's CAC was off 0.6%, and the Swiss Market Index dropped 1%.

In corporate news, UBS Group reported Q1 earnings Wednesday of $0.94 per diluted share, up from $0.51 a year earlier. Analysts polled by FactSet expected $0.80.

Total revenue for the quarter was $14.24 billion, up from $12.56 billion a year earlier.

UBS expects Q2 net interest income for global wealth management and personal & corporate banking to be "broadly flat" compared with Q1, it said.

Shares of the Swiss Bank were up 3.6% in Zurich.

Deutsche Bank reported Q1 earnings Wednesday of 1.06 euros ($1.24) per diluted share, up from 0.99 euro a year earlier. Five analysts polled by FactSet expected 1 euro.

Net revenue for the quarter, expressed as the sum of net interest income and total noninterest income, was 8.67 billion euros, compared with 8.52 billion euros a year earlier. Analysts surveyed by FactSet expected 8.54 billion euros.

Shares of the German bank were falling close to 2% in Frankfurt.

Lloyds Banking Group reported Q1 earnings Wednesday of 0.024 British pounds ($0.03) per diluted share, up from 0.017 pounds a year earlier.

Net income for the quarter ended March 31 was 4.79 billion pounds, up from 4.39 billion pounds a year earlier. Analysts surveyed by FactSet expected 4.89 billion pounds.

Shares of the British bank were down 1.4% in London.

TotalEnergies reported Wednesday Q1 adjusted earnings of $2.45 per diluted share, up from $1.83 per share a year earlier. Analysts polled by FactSet expected $2.16 per share.

Revenue for the quarter was $54.16 billion, up from $52.25 billion a year earlier. Analysts surveyed by FactSet expected $44.58 billion.

Shares of the French oil and gas company edged marginally lower in Paris.

Banco Santander reported Q1 earnings Wednesday of 0.36 euro ($0.42) per share, up from 0.21 euro a year earlier. Analysts polled by FactSet expected 0.27 euro.

Revenue for the quarter ended March 31 was 15.14 billion euros, up from 14.58 billion euros a year earlier. Analysts surveyed by FactSet expected 15.04 billion euros.

For 2026, the bank expects higher profits and affirmed its previous guidance of mid-single-digit revenue growth.

Shares of the Spanish lender were rising 1.1% in Madrid.

GSK reported Q1 core earnings Wednesday of about 0.47 British pound ($0.63) per share, up from about 0.45 pound a year earlier. Analysts polled by FactSet expected 0.43 pound.

Sales for the quarter ended Dec. 31 were 7.63 billion pounds, up from 7.52 billion pounds a year earlier. Analysts surveyed by FactSet expected 7.63 billion pounds.

For 2026, the pharmaceutical company expects core EPS to increase 7% to 9% and sales to increase 3% to 5%.

The company said it declared a quarterly dividend of 0.17 pounds per share, payable July 9 to holders on record of May 15.

Shares of GSK were losing 6.3% in London.

Related Articles

Research

Research Alert: CFRA Maintains Sell Rating On Shares Of Illinois Tool Works Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target to $235 from $250, valuing shares at 19.5x our 2027 EPS outlook of $12.04 (adjusted from $12.03; 2026 EPS view revised to $11.26 from $11.25), a discount to ITW's long-term multiple average given a slowing rate of growth. Anemic growth and softness in several of ITW's segments were reflected in Q1 results. Organic sales grew just 0.4%, with a 1% headwind from product pruning activity and declines in four out of seven segments: Food Equipment -3%, Automotive OEM -1%, Construction Products -1%, and Specialty Products -5%. More positively, enterprise initiatives continue to drive margin gains, with pricing fending off inflationary pressures well. While management noted outperformance across challenged markets in Q1, we still view ITW as lagging behind other industrial peers that have a more concentrated exposure to secular growth opportunities. We reiterate our Sell recommendation on shares.

$ITW
Research

Research Alert: CFRA Lifts Rating On Shares Of Parker-hannifin To Buy From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Following the recent pullback in shares and encouraging Q3 FY 26 (Jun.) results, we lift our 12-month target by $50 to $1,050 and upgrade our view on shares to Buy from Hold. We value shares at 30.5x our FY 27 EPS outlook of $34.42 (up from $33.35; FY 26 EPS view revised to $31.20 from $30.90), above the company's long-term multiple average given an accelerated growth trajectory within aerospace markets. PH's Diversified Industrial business is beginning to inflect into recovery, with orders above 7% in NA signaling a cyclical uptrend. Q3 structural improvements in margins inform our upgraded outlook for earnings in FY 26-FY 27, with negative mix impacts from outsized growth in lower-margin OEM products being more than offset by strong operational execution. With greater participation in growth across the portfolio, PH once again deploying capital to synergistic M&A, and margin expansion still in full swing, we believe that shares are positioned to outperform over the next 12 months.

$PH
Research

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Chipotle Mexican Grill Inc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month target price at $44, 35x our 2026 EPS estimate, a discount to shares' 50x five-year average, reflecting a lower comparable sales growth profile. We raise our 2026 EPS estimate to $1.26 (from $1.25) and lower 2027's to $1.45 (from $1.46). Following encouraging Q1 results, we reiterate our Buy opinion. CMG posted comparable sales growth of 0.5%, including transaction growth of 0.6%, which highlights the company's focus on value perception with U.S. consumers. We are encouraged by comparable sales growth stabilization following declines in 2025, suggesting the company's structural growth profile remains intact. Further evidence of structural growth catalysts includes new store growth (+49 in Q1) and a pipeline of limited-time offerings and incremental add-ons (such as its cilantro lime sauce) gaining traction and boosting revenue without increasing menu prices. Though this strategy will pressure restaurant margins (-250 bps in Q1), we think this is beneficial for long-term growth.

$CMG