[MARKET ANALYSIS] European bourses give back Tuesday's gains, Autos supported on reports of import caps on Chinese hybrids

European bourses are broadly lower, giving back the gains seen earlier in the week, but have rebounded slightly in recent trade amid the recent downside in energy benchmarks. No clear driver has been seen to explain this reversal. Over in Asia, the KOSPI underperformed its regional peers, ahead of preliminary figures from Samsung Electronics on Thursday. Markets are expecting Q3 operating profit of KRW 106.1tln (prev. 12.17tln Y/Y); however, focus will be on chip margins to see if it can calm investor concerns that margins have peaked and quell questions about the durability of the AI spending boom. Sectors lack a clear bias. Telecoms top the sector pile, with Autos (see more below) and Retail rounding out the sector gainers. Banks reside at the bottom of the sector pile, with Tech and Utilities rounding out the sector laggards. European autos are finding some support this morning, after Bloomberg reported that the EU is preparing a temporary import cap on Chinese hybrid cars. The safeguards by the EU will be welcomed by domestic manufacturers, as Chinese hybrid sales make up 25% of total sales in the bloc. Further in the report, the source added that the Commission plans to use hybrids as a test case, and if successful, would replicate it in other sectors. Elsewhere, in the autos sector, Porsche outlined a new strategy, which included plans to raise prices of its top-end sports cars by 20% on average. Other top movers include: Bridgepoint +7.2%, raises its 2027 EBITDA margin guidance; Pennon -17.5%, announces a capital raise of GBP 550mln via fully underwritten rights issue; Forvia +11%, signs a JV agreement with ANAND to strengthen its presence in India; ABN AMRO -1.0%, as the Dutch Government cuts its stake in the Co. to 10.5% from 20.7%; BE Semiconductor -7.7%, downgraded to Sell from Buy at UBS. US equity futures are lower, with the ES outperforming as it hovers around the unchanged mark. Constellation Brands, the Corona owner, fell after hours despite upbeat Q2 metrics as they highlight softer underlying beer demand and a reduced operating margin outlook.