[MARKET ANALYSIS] Tentative trade after KOSPI falls ~10%, Mag7 earnings ahead

European bourses (STOXX 600 +0.2%) began the session on a firmer footing after a heavy earnings slate overshadowed sharp losses in APAC equities, particularly KOSPI (-10%). Stocks on Monday were hit after reports that China started DUV tool production, weighing on ASML which closed lower by -8.5%, and continues to slip today, lower by -1.5%, weighing on the Euro Stoxx 50 -0.1%, as well. Memory concerns continue to weigh on KOSPI following the listing of China's CXMT, which has encouraged concerns over cheaper-to-run AI models, along with the idea that the surge in memory prices could lead to demand destruction. The Index's top names SK Hynix and Samsung fell ~12%.  On geopolitics, Brent Oct'26 falls ~2% as optimism over US-Iran talks grows; Trump said the US paused strikes to allow negotiations, talks with Iran are underway, and there is a good chance of a deal, though he warned strikes would resume if negotiations fail. An update which benefited stocks this morning was "Oman is said to have presented to Iran a proposal for a joint regional mechanism to manage the Strait of Hormuz with voluntary fees". On Earnings: LVMH (-1%) reported Q2 revenue above expectations; fashion and leather goods revenue was 8.69bln below expectations, US sales rose 6% while Europe was flat as the Iran war weighed on tourism. Unilever (+6%) reported a revenue beat and lifted its full-year outlook. Mercedes-Benz (+3%) lowered its FY group revenue guidance, though maintained its core margin forecast. Sectors are mostly green, Optimised Personal Care leads, Energy lags.  US equity futures are lower after the aforementioned tech factors weigh on indices, specifically NQ (-0.8%) ahead of a number of earnings slated for this week, including Microsoft, Meta, Qualcomm, Amazon and Apple, set to test the resilience of the AI trade.