Investor sentiment in the eurozone ticked up in June, with the Sentix confidence index rising to -13.4 from -16.4, offering a modest bright spot for risk appetite as German industry posted its first monthly output gain since the start of the Iran war — a 0.4% rise in April that suggests the bloc’s industrial heartland may be stabilising.
Geopolitics and tech policy added friction. The US military formally designated Alibaba, BYD and Baidu as “Chinese Military Companies,” a classification that stops short of immediate sanctions but risks heightening investor scrutiny; all three firms publicly rejected the label.
China’s tech and trade momentum is gathering pace. Bloomberg reports Beijing is preparing a roughly $295 billion programme to underwrite a nationwide AI buildup, while exports jumped 19% in May, driven in part by demand for AI‑related goods. In the US, Bloomberg also says OpenAI has confidentially filed for an IPO to be led by Goldman Sachs and Morgan Stanley later this year.
Diplomatic headlines offered tentative relief: President Trump said peace talks remained on track after a pause in strikes between Iran and Israel, a development that helped temper some risk premia.
Corporate moves underscored dealflow resilience. GSK agreed to buy cancer‑drug specialist Nuvalent for about $10.6 billion as it beefs up its oncology pipeline. In banking, Intesa Sanpaolo CEO Carlo Messina said the group’s bid for Monte dei Paschi could pave the way for further consolidation across Europe.
Market reaction was constructive. European equities gained about 1%, while Asia delivered a mixed picture — mainland China and Japan rose roughly 1.5% on average and Hong Kong traded flat. US futures pointed to a roughly 0.5% firmer open as Brent crude slipped about 2% to near $92 a barrel.