​EBC Markets Briefing | European shares jump; Micron shares unexpectedly skid

European shares rebounded on Monday, snapping a three-day losing streak after Trump said he had instructed the US military to delay planned strikes on Iran's power plants and energy facilities for five days.

Hedge funds last week piled into bets against US shares and emerging markets stocks in Asia, while wagering that European shares would rise, said a ‌Goldman Sachs note.

Energy was the only sector with net long positions. Global stocks selling reached new highs last week, the largest net selling since April 2025 as speculators shorted equities for the 5th straight week.

The EU is bracing for a protracted energy price shock after Iran crippled a vital Qatar gas plant. The ECB said a prolonged disruption would push inflation to 6.3% and trigger a broad recession.

The EU's economy chief, Valdis Dombrovskis recently said that a prolonged energy price spike would dent 2026 growth by as much as 0.4 percentage points, a considerable drop from the forecasted 1.4% pace.

There are only a handful of sectors that have posted earnings growth in Q4, with financials being one of them. UBS believes the banking sector will be "net winners" in the bloc's market.

The Stoxx 50 remained below 200 SMA amid uncertainty about Trump's next moved despite an erratic recovery. A return to the 5,500 level is likely in the short run.

Asset recap

As of market close on 23 March, among EBC major products, XPeng shares led gains. The company has set up a Robotaxi business unit, responsible for overseeing product definition, project integration, etc.

Micron's most recent quarter was exceptional. However, Middle East tensions are being cited as a pullback driver alongside profit-taking from those who rode the stock up significantly.

US natural gas prices retreated significantly. US gas exporters are emerging as among the biggest beneficiaries of war with Iran, as governments in Asia scramble for alternatives.

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