[MARKET ANALYSIS] European bourses higher on a busy day of earnings; US equity futures indicated higher despite contrasting META and MSFT earnings

European bourses trade entirely in the green following a busy morning of earnings (see more below) and constructive rhetoric by the Pakistani Foreign Ministry. Al Jazeera reported comments by the spokesperson stating that discussions between Tehran and Washington are ongoing regarding the situation in the Strait of Hormuz and de-escalation; this spurred broader risk-on, with yields also falling as crude benchmarks pulled back. On the data front, flash GDP figures across the EZ came in broadly stronger than expected (outside of France); however, Spanish inflation came in hotter than expected, with German state CPIs also rising Y/Y. Sectors highlight the positive bias. Construction tops the pile, with Chemicals and Basic Resources rounding out the sector outperformers. Health Care, Financial Services and Telecoms are the only sectors in the red. A typical busy Thursday of earnings, with L'Oreal, Adidas and Stellantis in focus. L'Oreal LFL sales beat estimates, and it announced a 50-year exclusive deal with Kering. Adidas Q2 operating profit missed estimates while its H1 gross margin ticked lower. The Co. highlighted higher US tariffs and unfavourable currency developments as key reasons for the softer figures. In other news, Adidas' Board appointed a new CFO. Finally, for Stellantis, its H1 adj. operating profit missed estimates while analysts at Bernstein also highlighted that margins for both Europe and North America missed. Other market-moving earnings include: Rolls-Royce, H1 metrics beat estimates and notes further confidence in mid-term guidance; Rentokil, after it highlights struggles in North America (accounts for 59% of total revenue); Schneider Electric, Q2 revenue beat estimates and raises its FY26 guidance. US equity futures are higher; however, there are some big pre-market movers following earnings after-hours. Positively, Microsoft prints gains of over 8% pre-market after it reported Q2 top and bottom lines with Cloud revenue beating and Copilot eclipsing 30mln paid seats. On the other side, Meta slumps 9% after Q2 EPS missed estimates while Q3 revenue guide was a little soft and FY capex and total expense guide was elevated again.