[MARKET ANALYSIS] European bourses softer but on light volumes with UK participants away for Bank Holiday

European bourses are mixed to start the week, with Italy's FTSE MIB outperforming while Germany's DAX 40 lags. To note, UK markets are closed today for a Summer Bank Holiday. Little in terms of newsflow; however, the US and Iran exchanged strikes for the first time in around a month at the weekend, with the US targeting Larak Island while Iran struck two US bases in Jordan. Overnight, South Korea's KOSPI gapped lower and traded with losses as much as 3.6%, before reversing and closing with gains of 0.5%. Samsung Securities' Roy Lim explains this reversal by pointing to notable buying by pension funds, primarily in tech names. Lim said pensions bought KRW 120bln worth of shares over a 20-minute period heading into the close. Sectors are mixed. Chemicals top the sector pile, with Autos and Energy completing the sector outperformers. Tech is the laggard, with worries that the Fed hiking rates will drag yields higher and, in turn, weigh on tech. Real Estate and Industrials round out the sector laggards. Key stories to start the week: Allianz (-0.2%), considering a GBP 5bln takeover bid of AA according to Sky News; Airbus (-1.0%), FT reports the Co. is mulling the sale of its US space business; Mercedes-Benz (-0.2%), announces a EUR 1bln share buyback programme; InPost (U/C), Q2 metrics beat but cuts its FY26 adj. EBITDA guidance. US equity futures are muted with a slight negative tilt. A typical quiet start of the week, with an important jobs report awaiting markets on Friday.