BofA analysts say the Stoxx Europe 600 is trading near record highs while consensus profit-margin expectations for European companies are at record levels, leaving the market exposed to disappointment. Key downside risks cited are AI-driven trading volatility, further escalation in the Middle East that could lift energy prices, and an elevated interest-rate outlook that could deepen European equities’ underperformance. The Stoxx Europe 600 rose 0.5% on Friday and is up 8.5% year-to-date.

The Shanghai Stock Exchange held a Hong Kong roundtable with nearly 40 foreign asset managers, investment banks and long-term investors, focusing on STAR Market developments, reform measures and index-based investment outcomes. Participants said China’s macro outlook is showing resilience and capital markets are stabilizing; foreign, particularly long-term, investors have increased interest in high-quality sci‑tech assets and intend to continue allocating to A‑share hard‑tech names. The SSE said, under CSRC coordination, it will continue international investor services to attract more overseas medium- to long-term capital and promote deeper, higher-level opening of China’s capital markets.

U.S. Treasury imposes further sanctions on individuals and companies linked to Iranian financier Babak Zanjani for suspected sanctions evasion.