Markets across continental Europe remain...>

EQUITIES: Markets across continental Europe remain in the red, with broad-based

losses of 1.5-2.0% at the midway point. Peripheral indices are modestly

underperforming, with Italy and Spain faring slightly worse than core German,

French and UK equities.

- The hardest hit sector today are made up of the strongest performers of the

past few weeks, with financials, energy and real estate all down around

2.5-3.3%. Defensive names are seeing the shallowest declines, with healthcare,

utilities and consumer staples escaping some of the downtick.

- Weaker commodities today are clearly having an impact, with oil services firms

some of the poorest performers (Subsea 7, John Wood Group, TechnipFMC) as well

as transport, airlines and heavy industrials (Airbus, Dassault Aviation and

thyssenkrupp).

- Equity futures are all indicating a negative open on Wall Street today,

although the fall is slightly shallower in the US, with the e-mini S&P just 35

points or so from the recovery high. This keeps 3231.25 the initial upside

target.