[MARKET ANALYSIS] STMicroelectronics (-13.3%) slumps after Q3 revenue missed estimates, further weighing on US equity futures alongside geopolitics

European bourses (STOXX 600 -0.5%) started Thursday's busy earnings day in the red, with higher energy prices and disappointing earnings weighing on indices. On the geopolitical front, the US and Iran exchanged strikes for the 12th consecutive night, while US President Trump said Iran is getting hit so hard and that they want to make a deal. Additionally, Yemeni Houthis targeted two Saudi oil tankers in the Red Sea, while reports noted that at least 9 ships have stopped passing through Bab al-Mandeb, following the blockade on Saudi ports by Houthis. Sectors highlight the negative bias. Energy (+1.6%) tops the sector pile, with Real Estate (+0.8%) also printing decent gains. Food, Beverages & Tobacco (-2.8%) is the sector laggard, with Consumer Products & Services (-1.9%) and Travel & Leisure (-1.6%) rounding out the key underperformers. A lot of big European earnings this morning, with focus concentrated on STMicroelectronics figures. Its Q2 metrics beat estimates; however, its guidance and commentary have driven the biggest drop in shares since October 2025 (-13.3%). The Co. guided Q3 net revenue of "about" USD 3.7bln, which missed analysts' expectations, and raised its revenue ambition for data centres due to continued strong demand. Citi analysts say that shares already reflect a recovery across its end markets and acceleration in revenue from data centres. Additionally, analysts say that shares may struggle in the near-term. Other key earnings include: UniCredit (-2.3%), despite Q2 figures beating estimates and raising its FY26/28/30 net profit guidance; Nokia (+2.6%), comparable operating profit beat estimates helped by its licensing business within mobile infrastructure; Roche (+2.1%), H1 sales beat expectations after better-than-forecasted performance in Xolair and Perjeta; Nestle (-6.5%), real internal growth of 1.5% missed estimates and announced 50:50. US equity futures are softer across the board, with downside in tech-heavy NQ weighed on by STMicroelectronics earnings. Mag-7 earnings kicked off yesterday after the bell, with Alphabet and Tesla reporting Q2 metrics. For GOOGL (-3.8% pre-market), it sharply raised its AI capex forecast (which benefited Asia-Pac chip names overnight). For TSLA (-5.6% pre-market), Q2 figures disappointed, as adj. EPS missed estimates.