Extreme heatwaves grip Europe, US: From Daikin to Exxon, global stocks likely to stay in focus – Markets

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Global stocks to watch

Global stocks to watch amid heatwaves: Extreme heatwaves across Europe and the US could keep HVAC, energy, tourism, soft commodity and labour-intensive stocks in focus. (Image: AI/ET Now)

Western Europe is grappling with a severe heatwave, with temperatures soaring above 40°C across several countries, triggering health alerts, infrastructure strain, and a rising death toll linked to extreme heat.

The intense weather has pushed temperatures more than 10°C above seasonal averages in parts of western France, England, and Wales. France has been among the worst affected, recording local temperature highs and issuing widespread red heat alerts.

The United Kingdom has seen rare June temperature records, while Spain has reported some of its hottest June readings on record, prompting fresh warnings. Germany, Belgium, the Netherlands, and Italy have also faced escalating heat alerts as the system expanded across the continent.

WHO warns of rising heat-related deaths in Europe

World Health Organisation (WHO) Director-General Tedros Adhanom Ghebreyesus warned that Europe is warming at twice the global average rate, calling it the fastest-warming continent.

“Right now, 150 million people are living under extreme heat, hundreds have died, schools are shut, grids are buckling,” he said on the social media platform X.

He further noted that more than 1,300 excess deaths have been recorded since June 21, linked to high temperatures across Europe, urging governments to strengthen heat-health action plans to protect populations from climate-related risks.

EDF shuts down nuclear reactors

France’s main energy provider shut down two nuclear reactors on Thursday as an environmental protection measure to avoid discharging too much hot water into rivers already warming in a record-breaking heatwave.

Heatwave expands into US, raises energy demand concerns

The heatwave risk is not confined to Europe, with the United States also bracing for a significant surge in temperatures across central and eastern regions.

According to the US National Weather Service, a heat corridor stretches from Texas and the Lower Mississippi Valley through the Midwest and into the Mid-Atlantic and Northeast, placing a large portion of the country under dangerous heat conditions.

Commenting on the stock-specific impact of the ongoing heatwaves across Europe and the US, Viram Shah, CEO and Founder of Vested Finance, said the firm is still assessing which sectors are likely to be the most affected. However, he believes that thermal power, tourism, soft commodities, and labour-intensive businesses could see some impact.

Shah added that the effect on these sectors or stocks is expected to be short-lived, as heatwaves are seasonal events and do not occur with the same intensity every year.

  • Here is a list of global stocks that Viram Shah believes could remain in focus amid the ongoing heatwaves in Europe and the US:
  • Global stocks in focus Stock Exchange What the Company Does
    Daikin Industries Tokyo Stock Exchange (TSE) World’s largest air-conditioner and HVAC manufacturer, high presence in the EMEA region
    Carrier Global Corporation New York Stock Exchange (NYSE) Heating, ventilation, air-conditioning (HVAC) and refrigeration solutions
    Trane Technologies New York Stock Exchange (NYSE) Climate solutions, HVAC equipment and building technologies
    Compagnie de Saint-Gobain Euronext Paris Building materials, insulation and energy-efficiency solutions
    Exxon Mobil Corporation New York Stock Exchange (NYSE) Integrated oil and gas major
    Chevron Corporation New York Stock Exchange (NYSE) Integrated energy producer
    ConocoPhillips New York Stock Exchange (NYSE) Upstream oil and gas exploration and production company
    Equinor Oslo Stock Exchange (OSE) Integrated energy and LNG major
    Baker Hughes Company Nasdaq Oilfield services, LNG and energy technology provider
    Occidental Petroleum New York Stock Exchange (NYSE) Oil and gas exploration and production company
    Booking Holdings Nasdaq Online travel and accommodation booking platform, owner of Booking.com
    Volkswagen Group Frankfurt Stock Exchange (Xetra) Global automobile manufacturer
    Cargill Privately held (Not publicly listed) Agriculture, food processing and commodity trading

    Booking Holdings (booking.com) and Cargill will be impacted due to operational disruptions and tourism impacts due to extreme weather events. Additionally, due to its labour-intensive manufacturing operations, Volkswagen Group could face disruptions from extreme heatwaves.

  • With both Europe and North America facing simultaneous heat stress, this could potentially put stocks across different sectors under strain.

    (Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)



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