[MARKET ANALYSIS] European bourses soften as higher energy prices return as a headwind

European bourses trade mostly in the red, outside of the AEX and IBEX 35, as higher energy prices weigh on indices. The source of the move higher in energy came amid reports that a Saudi ship was reportedly targeted near Bab-al-Mandab. As a reminder, the Houthis have vowed in recent days to continue operations targeting Saudi oil tankers. Sectors have a negative bias. Energy is the only sector with clear gains, given the upside in energy benchmarks (Brent +2.5%). The sector laggard is Travel & Leisure, with Insurance and Construction rounding out the underperformers. Key movers include: Alcon (+3.7%), Q2 core EPS beat estimates and raises its FY26 guidance; Lion Finance Group (+0.6%), announces an additional GEL 59mln in share buybacks; IHG (-1.4%), H1 revenue slightly missed; Spirax (-10.3%), as FY26 guidance remains unchanged, contrary to investor hopes of an upgrade. Over in Switzerland, the Economic Affairs and Taxation Committee is to discuss a number of changes to a draft bill to overhaul capital regulations throughout Tuesday. This will be key for UBS. The finance ministry has proposed making UBS hold the full book value of its foreign units in equity capital at home, rising from the current 45% requirement. UBS has pushed back on the reforms, as it would weaken its competitive position and damage the Swiss economy. Talks today are the 1st step of 4, so this measure may not come into effect until next year. US equity futures are essentially flat. Focus today will be after-hours, with CoreWeave and Supermicro set to report earnings. For CoreWeave, guidance will be highly watched, as the Co. has said that the benefits of the recent investments in data centre capacity should start showing in H2’26.