ADVFN UK Market News

Author: Fiona Craig

  • European semiconductor stocks rally after ASML raises 2026 outlook again

    European semiconductor stocks rally after ASML raises 2026 outlook again

    European semiconductor shares moved higher after ASML Holding (EU:ASML) increased its full-year guidance for the second time in 2026, reflecting continued strong demand for advanced chipmaking equipment as investment in artificial intelligence infrastructure accelerates.

    ASML lifts sales and margin forecasts

    ASML shares climbed 5.3 percent in early Amsterdam trading. The positive update also lifted the wider semiconductor sector, with Soitec (EU:SOI) gaining 3.6 percent, Jenoptik (TG:GEN) rising 5.5 percent and BE Semiconductor (EU:BESI) advancing 0.8 percent.

    The company now expects annual revenue of between 43 billion euros and 45 billion euros, compared with previous guidance of 36 billion euros to 40 billion euros. Gross margin is forecast to range between 54 percent and 56 percent, up from the earlier expectation of 51 percent to 53 percent.

    Chief Executive Christophe Fouquet said:

    “AI-related investments and continued progress in AI technologies are driving demand for advanced logic and memory chips, further strengthening the semiconductor industry’s growth outlook.”

    Third-quarter guidance exceeds expectations

    ASML expects third-quarter revenue of 11.5 billion euros, around 11 percent above the Visible Alpha consensus forecast of 10.37 billion euros.

    The company also projected a gross margin of 56 percent for the quarter, comfortably ahead of analysts’ expectations of 52.1 percent.

    According to Bank of America, the updated guidance implies fourth-quarter revenue of 14.41 billion euros, compared with the market consensus of 11.62 billion euros. Gross profit is projected at 8.08 billion euros with a 56 percent margin, exceeding consensus estimates of 6.11 billion euros and a 53 percent margin.

    The bank’s analysts said ASML delivered:

    “robust 2Q results driven by stronger Installed Base Management (IBM) sales & margins.”

    AI demand continues to support expansion

    Strong demand for memory and storage chips has continued as artificial intelligence investment outpaces supply.

    Fouquet said memory-related revenue is expected to increase by 75 percent this year, highlighting continued demand for ASML’s manufacturing equipment. He also noted that the company is close to securing all the orders required for next year’s extreme ultraviolet lithography systems and is considering increasing production capacity.

    ASML is evaluating a roughly 30 percent increase in EUV system output during 2027, followed by a further 30 percent expansion in 2028, after customers placed substantial orders well in advance.

    For the second quarter, ASML reported revenue of 9.33 billion euros, up from 7.69 billion euros a year earlier and above analyst expectations of 8.83 billion euros.

  • European luxury shares climb after Richemont delivers stronger-than-expected quarterly sales

    European luxury shares climb after Richemont delivers stronger-than-expected quarterly sales

    European luxury stocks moved higher after Richemont (TG:RITN) reported first-quarter revenue that exceeded market forecasts, sending the Swiss luxury group’s shares up more than 7 percent and putting them on course for their strongest daily performance since April.

    Jewellery division powers revenue growth

    The owner of Cartier reported first-quarter sales of 6.33 billion euros at constant exchange rates, representing a 20 percent increase from a year earlier and comfortably ahead of the 5.90 billion euros forecast by analysts surveyed by Visible Alpha.

    Richemont’s jewellery division, its largest business, generated quarterly revenue of 4.73 billion euros, an increase of 24 percent year on year. The performance marked the seventh consecutive quarter of double-digit growth for the division.

    Luxury sector benefits from upbeat results

    Richemont’s strong update lifted sentiment across the European luxury sector.

    Hermes (EU:RMS), Kering (EU:KER) and LVMH (EU:MC) advanced between 2.4 percent and 2.9 percent during early trading. Swatch (TG:UHR) gained almost 4 percent, while Burberry (LSE:BRBY) rose 1.6 percent and Moncler (BIT:MONC) added 0.7 percent.

    Analysts see further upside

    Deutsche Bank said Richemont’s better-than-expected results, together with lower gold prices, are likely to drive meaningful upgrades to market earnings forecasts. The broker expects the shares to deliver a high single-digit percentage gain following the update.

    Citi also highlighted the strength of the company’s core jewellery business across every major region, stating that it:

    “continue to view one of the sector’s undisputed growth leaders as offering attractive upside potential.”

    Richemont’s watchmaking division also delivered a solid performance, with quarterly sales increasing 8 percent.

    Growth broadens across global markets

    The company reported particularly strong momentum in the Americas and Asia-Pacific.

    Revenue in the Americas increased 27 percent, accelerating from 18 percent growth in the previous quarter. Sales across Asia-Pacific, including China, rose 21 percent compared with 14 percent previously.

    European sales grew 11 percent, while the Middle East returned to growth despite disruption linked to the conflict involving Iran, as stronger local demand helped offset weaker tourist spending.

  • Bank of America upgrades Imperial Brands on improving outlook and attractive valuation (IMB)

    Bank of America upgrades Imperial Brands on improving outlook and attractive valuation (IMB)

    Bank of America has upgraded Imperial Brands (LSE:IMB) from Neutral to Buy, arguing that investor concerns over the tobacco group’s earnings outlook have become overdone. The broker believes improving conditions in Australia, combined with the company’s valuation, create an attractive opportunity for investors.

    Price target increased

    Bank of America raised its price target for Imperial Brands to 3,200 pence from 2,675 pence, suggesting potential upside of around 17 percent from current trading levels.

    Shares in Imperial Brands rose 0.6 percent during Tuesday’s trading session in London, outperforming the wider FTSE 100 index, which declined 0.7 percent.

    Australia concerns seen as overestimated

    The broker said recent worries about earnings growth in the 2026 financial year have largely centred on developments in Australia, where changes to tobacco excise duties and tighter enforcement measures have affected industry sales volumes.

    However, Bank of America believes the market has placed too much emphasis on these challenges. The broker noted that Australia contributes only around 4 percent of Imperial Brands’ earnings before interest and tax and expects stronger pricing and market share gains to offset near-term weakness. It also forecasts that the Australian business will make a positive contribution to earnings again from the 2027 financial year.

    Pricing power and valuation support investment case

    Beyond Australia, the broker highlighted Imperial Brands’ continued pricing strength across its traditional tobacco portfolio, while next-generation products remain an additional source of growth.

    Bank of America also expects foreign exchange movements to become more supportive from the second half of 2027 if current currency trends continue.

    The broker concluded that Imperial Brands is trading on an attractive valuation compared with its peers despite delivering consistent earnings before interest and tax growth of between 3 percent and 5 percent. It believes this provides investors with an appealing entry point ahead of the company’s 2026 annual results later this year.

  • Market Open: Barratt Redrow Shareholder Returns, Audioboom Record First Half

    Market Open: Barratt Redrow Shareholder Returns, Audioboom Record First Half

    FTSE 100 opens flat as Barratt Redrow boosts shareholder returns, Audioboom posts record results and oil keeps markets focused.

    Market Overview

    The FTSE 100 opened down slightly at 10,529.05, while the Euronext 100 edged 0.01 per cent lower and Germany’s DAX fell 0.87 per cent. Overnight, the Nasdaq closed higher at 26,107.01 and the S&P 500 finished up at 7,543.59 as investors weighed renewed US-Iran hostilities, rising oil prices and corporate earnings against continued resilience in technology shares.

    Commodity markets remained dominated by higher energy prices following renewed attacks linked to the US-Iran conflict, supporting Brent crude while gold also edged higher on safe-haven demand. Copper traded lower and natural gas strengthened. Against sterling, the US dollar, Swiss franc, euro and Japanese yen were little changed, while the Australian dollar was marginally firmer. Bitcoin was down.

    Market Numbers

    FTSE 100: Down (0.001%), 10,529.05

    Euronext 100: Down (-0.01%), 1,913.94

    DAX: Down (-0.87%), 24,928.12

    NASDAQ: Up, 26,107.01

    S&P 500: Up, 7,543.59

    In the Headlines

    Capital Returns – Barratt Redrow (LSE:BTRW)

    Barratt Redrow increased planned shareholder returns after delivering a resilient financial year despite challenging housing market conditions. The housebuilder announced a stronger capital return programme centred on share buybacks, underlining confidence in its balance sheet and future cash generation.

    Record Half-Year – Audioboom (LSE:BOOM)

    Audioboom reported record first-half revenue and profit, reflecting continued growth across its podcast advertising business. The results reinforce the company’s improving operational momentum and expanding monetisation strategy.

    Currencies (vs GBP)

    USD: Down (-0.01%), $1.3396

    CHF: Down (-0.01%), Fr.1.0839

    EUR: Unchanged (0.00%), €1.1726

    JPY: Up (+0.04%), ¥217.2795

    AUD: Down (-0.01%), $1.9202

    Bitcoin (BTC/GBP): Down, £48,157.37

    Commodities

    Copper: Down

    Gold: Up

    Brent Crude: Down

    Natural Gas: Up

  • FTSE 100 slips as Middle East tensions and weaker China data weigh on sentiment

    FTSE 100 slips as Middle East tensions and weaker China data weigh on sentiment

    The FTSE 100 traded lower on Wednesday as investors reacted to escalating conflict between the United States and Iran, while weaker-than-expected economic growth in China added to concerns over the global outlook. The UK benchmark fell 0.60 percent in early trading, with Germany’s DAX down 0.90 percent and France’s CAC 40 losing 0.28 percent. Sterling strengthened 0.17 percent against the US dollar to 1.3414.

    China slowdown and geopolitical tensions pressure markets

    China’s economy expanded by 4.3 percent year on year during the second quarter, marking its slowest pace of growth since late 2022. The figure fell short of market expectations and below the Chinese government’s annual growth target, raising concerns about demand in one of the world’s largest commodity-consuming economies.

    Investor sentiment was also affected by a fourth consecutive day of military action between the United States and Iran. The United States confirmed further strikes on Iranian military targets near the Strait of Hormuz and reinstated a naval blockade affecting vessels travelling through Iranian ports.

    US President Donald Trump warned that military operations could intensify further unless Iran returned to negotiations. Iran responded with retaliatory strikes against US military assets in the region, while attacks on commercial shipping in the Strait of Hormuz heightened concerns over global energy supplies.

    Oil rises as supply concerns increase

    Brent crude climbed 1.4 percent to 85.90 dollars a barrel, while West Texas Intermediate crude rose 1.2 percent to 80.32 dollars as investors assessed the potential impact of disruption to Middle East oil exports.

    Gold prices moved lower despite the geopolitical uncertainty, with futures falling 0.85 percent to 4,034.40 dollars an ounce and spot gold declining 0.60 percent to 4,029.69 dollars.

    UK corporate news

    B&M (LSE:BME) reported 2 percent revenue growth in the first quarter, supported by strong trading in France and Heron Foods despite weaker like-for-like sales in the UK.

    Barratt Redrow (LSE:BTRW) completed homes at the upper end of its guidance for the 2026 financial year and announced plans for a 400 million pound share buyback programme during 2027.

    Thames Water said it has sufficient funding through the fourth quarter of 2026 as it continues discussions with creditors, regulators and the UK government regarding its recapitalisation plans.

    Rio Tinto (LSE:RIO) increased first-half copper equivalent production by 3 percent and maintained full-year production guidance across its major commodities.

    Antofagasta (LSE:ANTO) reported a 9.5 percent decline in first-half copper production but kept its full-year production forecast unchanged.

    Hunting (LSE:HTG) maintained full-year EBITDA guidance after first-half performance met expectations, supported by continued strength in its subsea and perforating businesses.

    ICG (LSE:ICG) reported a 10 percent increase in fee-earning assets under management, driven by strong fundraising for its flagship European structured capital strategy.

  • ICG grows assets under management as flagship Europe fund exceeds fundraising target (ICG)

    ICG grows assets under management as flagship Europe fund exceeds fundraising target (ICG)

    ICG Plc (LSE:ICG) reported strong growth in assets under management during the first quarter of its financial year, supported by continued fundraising success for its flagship European structured capital strategy.

    Fee-earning assets continue to expand

    Total assets under management reached 126 billion dollars at 30 June, while fee-earning assets under management increased 3 percent during the quarter and 10 percent over the past year to 88 billion dollars.

    The company added 2.4 billion dollars of net new fee-earning assets, as gross inflows of 4.4 billion dollars more than offset 2.0 billion dollars of realisations. ICG also reported 36 billion dollars of available investment capital, including 18 billion dollars that has yet to begin generating management fees.

    Europe IX fund drives fundraising

    Total fundraising during the quarter reached 4.1 billion dollars.

    The Structured Capital and Secondaries division attracted 2.2 billion dollars, with the majority coming from the Europe IX fund, which raised 2.1 billion dollars during the quarter. By 30 June, the fund had reached 11 billion euros in commitments.

    ICG said the fund is expected to close well above its original 10 billion euro target and will be around 50 percent larger than its predecessor, making it the firm’s largest commingled fund to date.

    The company said, “Europe IX is ICG’s largest-ever co-mingled fund and at €12bn will be the largest co-mingled structured capital fund ever raised globally. It is materially oversubscribed, reflecting the highly differentiated nature of the strategy and its strong track record.”

    New fund launches support future growth

    Within its Real Assets business, ICG launched the SRE III European real estate equity fund, with the first close expected before end of FY27.

    The total fund size for SRE II was €0.7bn.

    The company also launched SDP VI within its Debt division, with a first close expected before the end of the current financial year.

    Across its investment strategies, ICG deployed 3 billion dollars during the quarter, bringing capital deployed over the previous 12 months to 14.3 billion dollars.

    Dividend confirmed and credit rating maintained

    ICG confirmed its final dividend for the 2026 financial year of 59.3 pence per share, which is scheduled to be paid on 31 July.

    The company also noted that Fitch Ratings reaffirmed its BBB+ credit rating with a stable outlook on 10 July, reflecting continued confidence in its financial position.

  • Anglo Asian Mining reports record first-half production as Demirli copper mine gathers momentum (AAZ)

    Anglo Asian Mining reports record first-half production as Demirli copper mine gathers momentum (AAZ)

    Anglo Asian Mining Plc (LSE:AAZ) delivered record production during the first half of 2026 as output from its Demirli copper mine continued to increase, while the company’s net cash position strengthened significantly.

    Copper output surges as Demirli ramps up

    Copper production reached 5,129 tonnes during the second quarter, an increase of 38 percent from the 3,711 tonnes produced in the first quarter.

    The Demirli mine contributed 3,250 tonnes during the quarter, while the Gedabek operation produced a further 1,879 tonnes. Total first-half copper production rose to 8,840 tonnes, compared with 1,188 tonnes in the same period last year, reflecting the rapid expansion of Demirli.

    Strong cash generation improves balance sheet

    The company increased its net cash position by 39.9 million dollars during the second quarter.

    Cash balances stood at 69.8 million dollars at the end of June, while outstanding debt declined to 12.2 million dollars, resulting in a net cash position of 57.6 million dollars.

    During the first half, Anglo Asian sold 58,577 dry metric tonnes of concentrate with a total value of 125.9 million dollars. Of that total, Demirli accounted for 71.4 million dollars of sales.

    Full-year guidance unchanged

    Gold production totalled 12,329 ounces during the first six months of the year, while silver production reached 92,855 ounces.

    The company maintained its full-year production guidance, forecasting copper output of between 20,000 and 25,000 tonnes, gold production of between 28,000 and 33,000 ounces, and silver production of between 170,000 and 210,000 ounces.

    Management expects the Demirli mine to reach steady-state production during the third quarter, providing further support for production growth over the remainder of the year.

  • Iofina reports record iodine production and raises expectations for second half (IOF)

    Iofina reports record iodine production and raises expectations for second half (IOF)

    Iofina plc (LSE:IOF), a producer of iodine and manufacturer of specialty chemical products, delivered record operating performance during the first half of 2026 after exceeding its upgraded production guidance.

    First-half production surpasses forecast

    The company produced a record 393.3 metric tonnes of crystalline iodine during the first six months of the year, representing a 29 percent increase compared with the 305.5 metric tonnes produced in the same period of 2025.

    Production also exceeded the company’s upgraded guidance of 385 tonnes by 8.3 tonnes. Iofina attributed the stronger-than-expected performance to higher brine volumes at its central Oklahoma production facilities.

    New capacity expected to drive second-half growth

    Looking ahead, Iofina expects second-half iodine production to reach between 460 and 485 metric tonnes, supported by increased output from its IO#11 facility and the planned commissioning of IO#12.

    The new IO#12 plant, which will become the company’s largest IOsorb facility, is scheduled to enter service during the third quarter. Production is expected to begin towards the end of September, with the plant designed to deliver annual output of between 170 and 220 metric tonnes.

    Strong market demand continues

    Iodine spot prices remained in the mid-70 US dollars per kilogram range during the reporting period, providing continued support for the company’s operations.

    Iofina also reported robust demand for its specialty chemical products, particularly those serving the animal health and animal feed sectors.

    Alongside expanding production capacity, the company is finalising an additional 10 million US dollar project loan facility as it continues working towards its long-term objective of producing 2,000 metric tonnes of iodine annually.

  • Ashtead Technology maintains full-year outlook while monitoring Middle East conflict (AT.)

    Ashtead Technology maintains full-year outlook while monitoring Middle East conflict (AT.)

    Ashtead Technology (LSE:AT.) said it remains confident in meeting full-year market expectations despite disruption to activity in the Middle East during the first half of 2026. The Aberdeen-based subsea technology specialist said its outlook assumes geopolitical tensions between the United States and Iran ease during the second half of the year, allowing customer projects to progress as planned.

    Revenue edges higher despite regional disruption

    The company generated revenue of 100.2 million pounds during the first six months of 2026, representing a 1 percent increase compared with the same period last year.

    EBITDA margin declined to 25.0 percent from 27.3 percent a year earlier, reflecting weaker rental activity in the Middle East and Asia, together with a higher proportion of lower-margin, non-rental revenues linked to project scheduling.

    Ashtead said: “The impact of the geopolitical tension in the Middle East continues to be monitored closely, and the group is working with its customers and partners in the region to manage changing vessel schedules and project priorities.”

    The company added: “Assuming that the disruption associated with the Middle East conflict eases through the second half, and there are no major changes to project scheduling, the board is comfortable with full-year market expectations.”

    Energy security continues to support demand

    Ashtead expects stronger trading during the second half of the year and continues to target a full-year EBITA margin in the high twenties.

    The latest update follows heightened tensions in the Middle East after the United States carried out strikes on multiple targets in Iran on 12 July. Iran subsequently launched retaliatory attacks, including strikes that reportedly hit three Kuwaiti border posts and a Kuwait Oil Company drilling platform.

    The company said growing attention on energy security, combined with a strong customer project backlog, continues to support confidence in its medium-term growth prospects.

    Management remains focused on long-term opportunities

    Ashtead’s latest comments build on remarks made by Chief Executive Allan Pirie during the company’s 2025 annual results in March, when he said the business remained alert to developments in the Middle East.

    At the time, Pirie said the company was, “mindful of the evolving situation” and would be “closely monitoring” the impact of the conflict on its operations.

    Ashtead is scheduled to publish its full first-half 2026 results at the beginning of September.

  • Barratt Redrow increases shareholder returns after resilient year in challenging housing market (BTRW)

    Barratt Redrow increases shareholder returns after resilient year in challenging housing market (BTRW)

    Barratt Redrow (LSE:BTRW) delivered a solid performance during the 2026 financial year despite continued challenges across the UK housing market. The company completed 17,667 homes and reported adjusted profit before tax in line with market expectations. Careful cost management, lower land expenditure and disciplined operations helped protect margins, while the group ended the year with net cash of approximately 772 million pounds.

    Stable demand supports outlook

    Customer demand remained affected by wider economic and geopolitical uncertainty, although reservation rates improved slightly during the year and affordable housing completions increased.

    Looking ahead, Barratt Redrow expects to complete between 17,700 and 18,200 homes during the 2027 financial year. Management anticipates limited house price inflation, while build cost inflation is expected to remain in the range of 3 percent to 4 percent.

    Capital allocation shifts towards share buybacks

    The board has introduced a revised capital allocation strategy that places greater emphasis on share buybacks instead of ordinary dividends. Management believes the company’s share price continues to trade at a significant discount to tangible net asset value, making buybacks a more attractive use of capital.

    During the 2027 financial year, Barratt Redrow intends to return around 400 million pounds to shareholders, with the majority expected to be delivered through share repurchases. The company said it will continue to invest in land acquisitions and work in progress while meeting ongoing commitments related to land creditors and building safety remediation.

    Strong balance sheet supports long-term strategy

    Management said the revised capital allocation approach reflects confidence in the company’s financial strength and its ability to generate cash over the long term.

    The business continues to focus on improving returns through integration synergies following the Redrow combination, increasing the number of active sales outlets and maintaining disciplined land investment. These initiatives are intended to strengthen shareholder returns while preserving balance sheet flexibility.

    Although Barratt Redrow benefits from a solid balance sheet, healthy revenue growth and an attractive valuation, investors continue to monitor weaker cash flow and softer technical share price performance.

    About Barratt Redrow plc

    Barratt Redrow plc is one of the United Kingdom’s largest residential property developers, operating through three complementary housebuilding brands that deliver private and affordable homes across the country.

    The company serves owner occupiers, private rental investors and institutional customers while maintaining a strong focus on build quality and customer satisfaction. Following the integration of Redrow, Barratt Redrow continues to pursue cost synergies, operational efficiencies and disciplined capital allocation to support long-term shareholder value.