Delta Air Lines Affirms FY26 EPS Guidance; IEA Sees Oil Market Surplus if Gulf Flows Recover; EU Commission Finds Meta in Breach of Digital Services Act

Lead Delta Air Lines affirmed its full-year 2026 adjusted EPS guidance of $6.50-$7.50, surpassing analyst estimates. The International Energy Agency projects the global oil market will return to a surplus by late 2026 if tanker traffic through the Strait of Hormuz recovers. Meanwhile, the European Commission has preliminarily found Meta in breach of the Digital Services Act over the addictive design of Instagram and Facebook. Session narrative European markets are trading mixed as investors digest a flurry of corporate earnings and geopolitical developments. Delta Air Lines reaffirmed its full-year adjusted EPS guidance, contributing to a positive outlook in the airline sector. The International Energy Agency's report on the oil market suggests a potential return to surplus by year-end, contingent on the recovery of Gulf tanker traffic. Geopolitical tensions remain a factor, with renewed U.S.-Iran hostilities and ongoing discussions about the Ukraine war. The European Commission's preliminary finding against Meta regarding the addictive design of its platforms highlights regulatory scrutiny on tech giants. In economic data, French CPI year-over-year remained at 1.8%, while German CPI month-over-month was -0.3%. Hong Kong stocks closed higher, with the Hang Seng Index rising 0.6%. Australian shares also advanced by 0.5% as investors considered the Middle East situation. The Canadian dollar has gained momentum this week, outperforming the US dollar, supported by expectations of a more hawkish Bank of Canada and firmer oil prices. Cross-asset check Equity futures are mixed, with S&P futures down 0.03% and Nasdaq futures down 0.33%. The US 10-year yield is down 0.66% at 4.54%. The US Dollar Index is down 0.07%. WTI crude is down 0.14% at $71.98, and Brent crude is down 0.09% at $76.23. Gold is down 0.54% at $4118.5. Bitcoin is up 1.94% at $64408. Themes & continuing stories Corporate earnings are a key theme, with Delta Air Lines affirming its full-year guidance and several other companies scheduled to report. Geopolitical tensions persist, with renewed U.S.-Iran hostilities and ongoing discussions about the Ukraine war. The International Energy Agency's outlook on the oil market and the European Commission's preliminary finding against Meta are also significant developments. The Canadian dollar's performance is being monitored ahead of the Canadian jobs report, with trade risks potentially limiting further gains. What’s ahead Upcoming economic data includes Canada's Unemployment Rate and Net Change in Employment at 12:30 UTC, followed by the WASDE Report from the United States at 16:00 UTC. Several major companies are scheduled to release Q2 2026 earnings today, including Boeing, UPS, Coca-Cola, American Express, Verizon, T-Mobile, American Airlines, Lockheed Martin, Thermo Fisher, RTX, AT&T, General Motors, 3M, Charles Schwab, UnitedHealth, Abbott, GE Aerospace, Taiwan Semiconductor, and Morgan Stanley.