Market Wrap: Capital Flows Back into Tech; ASML Rises 2.5%
Date: July 9, 2026
Market Overview
The European session opened with a renewed risk-on sentiment, despite escalating tensions in the US-Iran conflict. Major US indices showed positive futures, with the S&P 500 up 0.3%, Nasdaq 100 up 0.61%, and Dow Jones up 0.15%. The market's optimism comes in the wake of President Trump's announcement ending the ceasefire with Iran, which led to US airstrikes in response to attacks on oil tankers in the Strait of Hormuz.
European Indices Performance
European indices rebounded, with the Stoxx 600 up 0.5%, the French CAC 40 and German DAX both up 0.6%. However, the London FTSE 100 fell by 0.2%, primarily due to a significant drop in AstraZeneca's stock. WTI crude oil prices, after a sharp increase of 6% the previous day, remained elevated around $77 per barrel, although they retreated slightly amid expectations of renewed negotiations. The US dollar maintained its strength, trading between 100.9 and 101.2 points, supported by safe-haven demand and anticipated Federal Reserve rate hikes due to inflationary pressures from rising oil prices.
Sector Performance
The technology and materials sectors led the gains in the European stock market. Notable performers included ASML, which rose by 2.6%, Siltronic up 10.5%, and Soitec up 4.5%. This rally was further supported by reports indicating that Chinese AI firms may gain access to Nvidia’s H200 chips. Conversely, the healthcare sector faced challenges, declining by approximately 1.5% due to AstraZeneca's poor performance. The food and telecom sectors also experienced pressure, while Spain’s IBEX index rebounded by 1.1% after earlier declines linked to Trump's comments on NATO policy.
AstraZeneca's Setback
AstraZeneca's stock plummeted by 9-10%, marking its worst day since March 2020, following the failure of its drug Wainua in a Phase III trial for treating ATTR-CM (amyloid cardiomyopathy). This failure has raised concerns about the management's credibility regarding clinical trial designs. In contrast, competitors like Alnylam and BridgeBio saw their shares rise by 11-16% as Wainua's failure strengthens their market position. Ionis Pharmaceuticals, AstraZeneca's partner, also faced a significant drop of 12.5-13.8%.
Other Notable Company Updates
Hugo Boss advised shareholders to reject a takeover bid from Frasers Group, arguing that the proposed price of 38 euros per share does not reflect the company's true value. SK Hynix reported overwhelming demand ahead of its US stock market debut, with shares in Seoul rising by 5.3%. Nordex shares increased by 5% following a rise in project orders driven by strong demand from the US. Computacenter's stock jumped by 11.1% due to better-than-expected results, bolstered by demand for AI infrastructure. Novo Nordisk announced the launch of Awiqli, a new once-weekly insulin injection in India, aiming to expand its presence in the diabetes market, despite facing competition from Eli Lilly and local generics.
Conclusion
The market is navigating through geopolitical tensions while showing resilience, particularly in the technology sector. The upcoming earnings season is anticipated to provide further insights into corporate performance amidst these dynamics.