[MARKET ANALYSIS] European bourses gain as energy prices fall and "successful" US-China talks boost optimism

European bourses (STOXX 600 +0.8%) are firmer across the board, helped by lower energy prices despite heightened geopolitical tensions over the weekend. The Houthis said they attacked sensitive sites in Riyadh and an Aramco facility in Yanbu over the weekend, while US President Trump reportedly said that he is thinking of "blowing up" all of Iran. One source of potential optimism is the commentary following US-China trade talks, with US Treasury Secretary Bessent describing talks as "successful" on trade and AI, while they agreed to hold another meeting on AI dialogue. Sectors highlight the positive bias. Tech tops the sector pile, with Industrials and Basic Resources following closely behind. To the downside is Health Care, with Optimised Personal Care and Energy rounding out the sector laggards. Explaining the underperformance in Health Care is the downbeat reaction in Novo shares (-5%) after they announced their 2030 ambitions. The drugmaker plans to launch over 5 blockbusters by the end of 2030 and targets pipeline sales of over DKK 150bln in 2035. Key movers include: Porsche (-1.8%), as Handelsblatt reports of further jobs cuts but has been pushed back on since; Kuehne+Nagel (+5.6%), partners with Amazon (AMZN); Societe Generale (+3.1%), targets ROTE to between 13-14% in 2029 (2026 target of "around" 11%); Galderma (+1.3%), raises its FY26 net sales growth guidance to between 19-21% (prev. guided 17-20%). US equity futures gain, with outperformance in the NQ. Outside of the reasons detailed above, the upside in tech could be influenced by South Korean exports rising 89.8% Y/Y in the first 20 days of September, as semiconductors continue to be the primary driver.