Earnings Hit

• European consumer discretionary earnings plummeted by over 12% in Q1 2026, marking the worst performance of the current earnings season according to MSCI Europe data. • The decline highlights the sector's extreme vulnerability to geopolitical instability, specifically noting how economic slowdowns in hubs like Dubai directly impact luxury markets in Paris and Milan. • The Voices of Retail 2026 report indicates a widening economic gap in the UK and a broader "polycrisis" eroding the traditional certainties of global retail.

• US equities closed higher with the S&P 500 rising 0.8% and Nasdaq 100 up 0.8% to new records, while the Dow remained flat. • Apple shares gained more than 5% after reporting strong earnings driven by robust iPhone sales and performance in China. • The rally came amid a pullback in oil prices and positive corporate earnings momentum.

• The S&P 500 rose 0.8% to close above 7,000 points for the first time, while the Nasdaq Composite surged 1.6% to a record high, driven by gains in technology and software stocks and optimism over potential U.S.-Iran peace talks. • Bank of America posted a 17% rise in quarterly profit from strong trading and investment banking fee rebounds, while Morgan Stanley reported a near 30% profit jump supported by record equities trading revenue and improved dealmaking activity. • Stock index futures edged higher after-hours, with S&P 500 Futures up 0.2% to 7,070.75 points and Nasdaq 100 Futures rising 0.3% to 26,440.75 points, reflecting continued market momentum.