[MARKET ANALYSIS] European bourses come under pressure amid higher energy prices and higher yields

European bourses (STOXX 600 -1.6%) have come under significant pressure to start the final quarter of 2026, with downside ranging between 1.5-2.0%. Energy prices continue to be the main driver (Brent +1.7%), while the downside in fixed income is also not helping sentiment. The draft budget announcement out of France will also, most likely, not support French assets as ministers look to plug a fiscal hole closer to the 5% mark. Initially, upbeat sentiment was seen across the Tech space after Micron delivered strong quarterly results after-hours, with upbeat guidance underscoring the robust AI-driven memory demand, although expected margin compression, due to increased worker pay, and higher operating expenses limited the reaction in shares (-0.7% pre-market). Micron's peers across Asia and Europe benefited early doors (SK Hynix +3.2%, Samsung Electronics +2.8%, ASML U/C, Infineon +0.7%) but have since given back its gains slightly, with the Asian peers expected to give back gains when trade re-opens. Sectors highlight the negative bias, with all sectors entirely in the red. Banks are the clear laggard, with Basic Resources and Consumer Products & Services following suit. Key stories include: Zealand Pharma -8.3%, its Phase 3 SYNCHRONIZE-2 trial met primary endpoints, achieving 13.1% weight loss but less than Novo's 15-17% weight loss figure; Sanofi +1.1%, expands its collaboration with Regeneron with a USD 8bln deal; Pandora -4.6%, opens a new USD 150mln crafting facility but the CEO highlights US demand at low levels; Land Securities -1.0%, to fund acquisition through an equity issue and existing debt facilities. US equity futures are mixed, with the tech-heavy NQ outperforming. Focus for Thursday will be on the flurry of Fed speakers, while the Jobs Report is to be released tomorrow.