JPM | Industrial Spec Sales - Sunday Machinations: Pre-Closes, Pre-Announcements and Contract Cancelations

Research evidence excerpt

JPM | Industrial Spec Sales - Sunday Machinations: Pre-Closes, Pre-Announcements and Contract Cancelations

Specialist Sales J P M O R G A N

28 June 2026

JPM | Industrial Spec Sales - Sunday Machinations: Pre-Closes, Pre-

Announcements and Contract Cancelations

Sam Edmunds

+44 207 742 8733

sam.edmunds@jpmorgan.com

The market is not very healthy at the moment - and it’s always a bit of a worry when you can't really see a smoking gun.

The IUS and Iran trading strikes over the weekend will not help - but the market weakness and rotation set in before then. There’s

not a new AI worry and (ex autos at least) there’s little sign that we should be particularly worried about Q2 earnings. We were

lucky enough to get a fairly extensive ‘preview’ from our conference last week - so the pre-close season perhaps lacks some of the

excitement it’s generating elsewhere - but the markets has rolled over anyway so I’m not sure Q2 is the primary focus for now.

Fortunately, I was on a call with one of my senior generalist colleagues on Friday and he said ‘one of the most predictable market

rolls on an end of quarter rebalance’ which offers some comfort that the thoughts that come after this are not wholly irrelevant.

Chip inflation and potential shortages in 2027 are something that needs a keen eye, however.

At this stage last year we had Data Centers, Electrification, European Defence and European Cement Consolidation as

our 4 bullish themes/drivers and Autos and Chemicals (including Spec Chems) as the structurally challenged sectors in

Industrials. At present 2 of the growth themes are ‘on hold’ - but both with a chance of a comeback - while the Spec Chems seem

to have achieved some respite. Diversified Chems benefitted from the Middle East conflict - and both Evonik and Brenntag have