ADVFN UK Market News

Author: Fiona Craig

  • Futures rise, oil retreats as hopes grow for de-escalation in Iran war — market drivers: Dow Jones, S&P, Nasdaq, Wall Street

    Futures rise, oil retreats as hopes grow for de-escalation in Iran war — market drivers: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures traded higher early Wednesday as investors responded to signs that Washington may be preparing to step away from the ongoing conflict with Iran. Oil prices also dropped below $100 per barrel, though they remain significantly above pre-war levels. In corporate news, Nike (NYSE:NKE) shares fell in after-hours trading following its earnings release, as continued weakness in China weighed on results.

    Futures move higher

    U.S. stock futures pointed to gains ahead of the open, with markets encouraged by indications that the United States could soon wind down its military campaign in Iran, now entering its second month.

    As of 03:25 ET, Dow futures had climbed 270 points, or 0.6%, S&P 500 futures were up 43 points, or 0.7%, and Nasdaq 100 futures had advanced 227 points, or 1.0%.

    Wall Street’s major indexes closed higher on Tuesday, supported by rising expectations that the U.S. may soon pull back from its joint operations with Israel against Iran, a conflict that has expanded and raised concerns about broader instability across the Middle East.

    Those expectations gained traction after a Wall Street Journal report said U.S. President Donald Trump told advisers he would consider ending the war even if tanker traffic through the Strait of Hormuz remains largely restricted. Analysts at Vital Knowledge said Trump’s later comments to reporters and posts on social media appeared to reinforce the report.

    Trump also repeated that negotiations with Iran are progressing, although officials in Tehran have frequently disputed that claim. Still, Iran acknowledged that communications are ongoing between the two sides, while the country’s president said Iran has the “necessary will” to end the war if it receives assurances that further attacks will not occur.

    “Risk sentiment has been stabilizing as equities recover and bond spreads ease. Amid the mixed messaging, there were already signs that U.S. President Trump was looking for a way out; markets pounced on headlines that the Iranian president was willing to end the conflict, albeit sticking to Iran’s demands,” ING analysts wrote in a note.

    Oil slips following Trump remarks

    Oil prices fell below the $100 threshold on Wednesday, reflecting a degree of easing anxiety in energy markets.

    Brent crude, the international oil benchmark, dropped 4.2% to $99.60 per barrel for the June contract. After the war broke out in late February, Brent had surged to nearly $120 per barrel, compared with roughly $70 prior to the conflict.

    The earlier surge was largely driven by disruptions around the Strait of Hormuz, the strategic shipping lane along Iran’s southern coast that normally handles about 20% of global oil shipments. Persistent threats from Iranian drone and missile strikes significantly reduced tanker traffic, heightening fears of supply disruptions.

    The spike in energy costs also fueled concerns that inflation could accelerate, potentially forcing central banks to keep interest rates elevated. Government bond yields rose on those expectations, adding pressure on equity markets.

    Speaking to reporters at the White House on Tuesday, Trump said the United States would be “leaving very soon,” adding that the administration’s goal of eliminating Iran’s nuclear threat had been “attained” and that a formal agreement was not required to end the conflict.

    However, Trump has yet to outline what steps Washington plans to take regarding the Strait of Hormuz. On Tuesday he said U.S. allies should “take” responsibility for the waterway.

    Gold extends gains

    Gold prices advanced again in European trading, marking a fourth consecutive session of gains.

    Spot gold rose back above $4,700 per ounce. The precious metal gained 3.5% on Tuesday as the U.S. dollar weakened, though it still dropped more than 11% during March, its worst monthly performance since October 2008.

    Expectations for persistently high interest rates had weighed on gold, which does not generate yield, for much of the previous month. Those concerns eased somewhat after Federal Reserve Chair Jerome Powell said this week that long-term U.S. inflation expectations remain stable and policy is “in a good place to wait and see.”

    ING analysts said gold remains exposed to risks from tighter liquidity conditions and a stronger dollar, but added that “so far pullbacks have been met with buying rather than a loss of confidence.”

    Investors are also awaiting upcoming U.S. economic releases, particularly Friday’s nonfarm payrolls report, for further signals about monetary policy and currency trends.

    Nike earnings disappoint investors

    Separately, Nike (NYSE:NKE) reported quarterly earnings that topped expectations on both revenue and profit, but its results highlighted continued challenges in the Greater China market and declining gross margins.

    The athleticwear company’s shares slipped in extended trading.

    Nike’s results come as investors look for evidence that CEO Elliott Hill’s turnaround plan is gaining traction. The company has been grappling with slowing revenue in China, margin pressure linked to tariffs and intensifying competition from brands such as Anta and Li Ning in China, Switzerland’s On, and Deckers’ Hoka.

    Nike reported earnings of $0.35 per share on revenue of $11.28 billion for its fiscal third quarter. Analysts had forecast $0.30 per share on revenue of $11.23 billion.

    Revenue from Greater China, which accounts for roughly 15% of Nike’s total global sales, fell 7% year over year to $1.62 billion, marking the seventh consecutive quarterly decline.

    Microsoft in talks over data center power project

    In other corporate developments, Microsoft Corporation (NASDAQ:MSFT) is reportedly in exclusive negotiations with Chevron Corp (NYSE:CVX) and Engine No. 1 regarding the development of a large energy complex in West Texas to supply electricity to a data center campus, according to Bloomberg News.

    The proposed natural gas-powered facility could cost about $7 billion and initially produce 2,500 megawatts of power, people familiar with the discussions told Bloomberg.

    The talks come as Microsoft and other AI-focused technology giants rapidly expand computing infrastructure to meet growing demand for artificial intelligence applications, making reliable power supply a critical part of their strategy.

    Microsoft is expected to spend as much as $146 billion on AI-related capital expenditures during its fiscal year 2026.

  • European stocks rise as investors weigh Iran war developments and rising Eurozone inflation: DAX, CAC, FTSE100

    European stocks rise as investors weigh Iran war developments and rising Eurozone inflation: DAX, CAC, FTSE100

    European equity markets moved higher on Tuesday despite the continued surge in global oil prices, supported in part by reports that U.S. President Donald Trump may be prepared to end the war in Iran even if the Strait of Hormuz remains largely closed.

    The pan-European Stoxx 600 gained 0.4%, while Germany’s DAX added 0.3%. The FTSE 100 in the United Kingdom climbed 0.5%, and France’s CAC 40 rose 0.6%.

    According to a report from the Wall Street Journal, Trump is open to bringing the military campaign in Iran—now running for more than a month—to a close even if Tehran continues to control the Strait of Hormuz, a key shipping route that normally carries about one-fifth of global oil supply. The waterway’s effective closure in recent weeks has pushed oil prices sharply higher and increased fears of a potential global economic slowdown.

    Brent crude, the international benchmark, was trading above $115 per barrel, compared with around $70 per barrel before the conflict began.

    The report said Trump and his advisers believe that a full operation to reopen the strait would extend the conflict well beyond the administration’s preferred four-to-six-week timeline. Instead, the strategy has focused on damaging Iran’s naval capabilities and missile stockpiles before gradually reducing military engagement while applying diplomatic pressure on Tehran. If those efforts fail, Washington may encourage European and Gulf allies to take responsibility for restoring access to the strait, according to administration officials cited by the newspaper.

    At the same time, the economic consequences of the expanding Middle East conflict—initially sparked by a joint U.S.–Israeli offensive against Iran and now involving multiple regional actors—were reflected in the latest eurozone inflation figures released Tuesday.

    Data showed that consumer prices across the 21 countries using the euro rose 2.5% year-on-year in March, up from 1.9% in February, when the broader escalation of the conflict had not yet fully taken hold. Economists had expected inflation to come in slightly higher at 2.6%.

    Even so, the figure remains above the European Central Bank’s 2% inflation target. In recent days, ECB officials have indicated that interest rate increases could be considered if price pressures continue to rise as a result of the geopolitical shock triggered by the late-February U.S.–Israeli assault on Iran.

    Energy prices have been one of the most visible economic effects of the conflict, with Eurozone energy costs jumping 4.9% this month amid soaring oil and natural gas prices.

  • European gas prices decline as markets weigh possible U.S. exit from Iran conflict

    European gas prices decline as markets weigh possible U.S. exit from Iran conflict

    European natural gas prices moved lower on Tuesday after a report suggested the United States may soon scale back its military involvement in Iran.

    The Dutch TTF front-month contract, Europe’s benchmark for natural gas, was down 2.3% at €53.73 per megawatt hour.

    According to the Wall Street Journal, U.S. President Donald Trump told advisers he is considering ending the war in Iran even if the Strait of Hormuz has not been fully reopened. Administration officials cited by the newspaper said Trump and his team concluded that a full military operation to reopen the waterway could extend the conflict well beyond the president’s preferred four-to-six-week timeframe.

    Instead, the report said Trump has opted to wind down active hostilities after achieving key objectives, including weakening Iran’s naval capabilities and reducing its missile inventory.

    Following a military drawdown, Washington is expected to apply diplomatic pressure on Tehran to reopen the strait. If those efforts fail, the U.S. could encourage European and Gulf allies to take the lead in restoring maritime traffic through the channel, the newspaper reported.

    The Strait of Hormuz has become a central flashpoint in the U.S.–Israel conflict with Iran. Tehran has effectively restricted passage through the waterway using naval mines and missile strikes. Approximately 20% of global oil shipments normally transit the narrow route along Iran’s southern coast.

    Last week, Trump reportedly set an April 6 deadline for Iran to allow shipping to resume through the strait or risk U.S. strikes targeting major energy and water infrastructure. Iran has largely rejected those demands and has attacked several tankers attempting to pass through Hormuz in recent weeks.

    The disruption has pushed global energy prices sharply higher over the past month, raising concerns about inflation and increasing pressure on industries dependent on fuel and transport costs.

    Europe has been particularly sensitive to the situation after turning to liquefied natural gas imports from the Persian Gulf following Russia’s invasion of Ukraine in 2022. Over the past month, Dutch TTF gas futures have surged more than 68%.

    Data released Tuesday by Eurostat showed that inflation in the eurozone accelerated to 2.5% in March, slightly below economists’ forecasts but still above the European Central Bank’s 2% medium-term target. The increase was largely driven by higher energy costs.

    In February—before the escalation of the current U.S.–Israeli military campaign against Iran—consumer prices in the eurozone had risen by 1.9%.

  • Eurozone manufacturing PMI rises to 51.6 in March, highest level in 45 months

    Eurozone manufacturing PMI rises to 51.6 in March, highest level in 45 months

    Manufacturing activity across the euro area strengthened in March, with the S&P Global Eurozone Manufacturing PMI increasing to 51.6 from 50.8 in February, reaching its strongest reading since mid-2022, according to figures released on Wednesday.

    The Manufacturing Output Index edged up to 52.0 in March from 51.9 the previous month, marking a seven-month high. Industrial production expanded for the third straight month, supported by continued growth in new orders, which matched the rapid pace recorded in February — the fastest in 46 months.

    Demand from overseas markets stabilized during the period, bringing an end to eight consecutive months of declining export orders. Meanwhile, outstanding workloads increased for the first time in nearly four years.

    Supply chain pressures intensified during March as the conflict in the Middle East disrupted global logistics. Delivery times from suppliers lengthened to the greatest degree in just over three and a half years. Manufacturers in the eurozone also increased their purchasing activity for the first time since June 2022.

    Cost pressures accelerated, with input prices rising at the fastest pace since October 2022, reaching a 41-month high. Companies also lifted selling prices at factory gates at the quickest rate in just over three years as higher costs were passed through to customers.

    Among the eight countries included in the survey, Greece recorded the strongest PMI reading, followed by Ireland. Germany and Italy posted their best results in 46 months and 37 months, respectively. France’s manufacturing sector remained largely stagnant, while Spain was the only economy still showing contraction.

    Employment in the sector continued to fall, with job cuts occurring at a faster pace in March. Inventories of both purchased materials and finished goods were also reduced more sharply during the month.

    Confidence among manufacturers weakened to a five-month low, although companies still expect activity to grow over the coming year. Even so, optimism slipped below its long-term average.

    The survey data were gathered between 12 and 24 March 2026 from roughly 3,000 private-sector companies across the eurozone.

  • FTSE 100 rises at the open as markets react to Trump’s Iran withdrawal signal

    FTSE 100 rises at the open as markets react to Trump’s Iran withdrawal signal

    UK equities opened higher on Wednesday, following a broader rally across European markets after U.S. President Donald Trump indicated that American forces could potentially withdraw from Iran within the next two to three weeks.

    By 07:25 GMT, the FTSE 100 had climbed 1.7%, while the pound strengthened 0.4% against the dollar to 1.3280 in the GBP/USD pair. European markets also posted strong gains, with Germany’s DAX advancing 2.7% and France’s CAC 40 rising 2.2%.

    UK corporate updates

    Berkeley Group Holdings PLC (LSE:BKG) said it will pause new land purchases and extend its medium-term strategic plan through April 2030. The developer pointed to geopolitical instability, a weaker economic environment and regulatory delays that have added roughly a year to construction timelines. The FTSE-listed company now expects pre-tax profit exceeding £1.4 billion over the four years to April 2030, with the majority of earnings anticipated later in the period.

    Topps Tiles PLC (LSE:TPT) reported group revenue of £142.7 million for the 26 weeks ending March 28, representing a 0.1% decline year-on-year. Revenue excluding CTD increased 2.1%, although growth slowed to 0.6% in the second quarter after a stronger first quarter. The tile retailer still outperformed the broader UK Home Improvements and DIY market, which contracted by around 2.5% during the same period according to Barclays UK Consumer Spend Report data. Topps Tiles recorded 0.1% like-for-like revenue growth in the first half.

    Babcock International Group PLC (LSE:BAB) confirmed it has agreed a six-month bridging contract with the UK Ministry of Defence to continue delivering naval base operations and in-service support for the UK’s nuclear submarine fleet. The agreement follows the expiry of the previous five-year Future Maritime Support Programme contract on Tuesday.

    The interim deal ensures uninterrupted service provision while Babcock and the Ministry of Defence negotiate a new long-term arrangement. The MOD has also issued a Letter of Intent, reaffirming its commitment to a strategic partnership with Babcock and the Royal Navy.

  • Berkeley halts land purchases and extends strategy to 2030 amid market uncertainty

    Berkeley halts land purchases and extends strategy to 2030 amid market uncertainty

    Berkeley Group Holdings (LSE:BKG) announced on Wednesday that it will suspend new land purchases and extend the timeline of its medium-term strategy through April 2030, pointing to geopolitical tensions, a weakening economic backdrop and regulatory delays that have lengthened construction schedules by roughly a year.

    The FTSE-listed housebuilder said it is now targeting pre-tax profit of more than £1.4 billion over the four years to April 2030, with earnings expected to be more heavily weighted toward the latter part of the period. Previously, Berkeley had projected pre-tax profit of about £450 million for FY26 and a similar figure for FY27.

    The company said it will not acquire additional land while current market conditions persist. Berkeley highlighted rising taxes on residential development—costs not applied to other land uses—as a key factor keeping land prices elevated despite a drop in residential transactions. Instead, the group plans to focus entirely on its existing development pipeline of more than 10,000 homes across London and the South East.

    Berkeley also pointed to regulatory hurdles, noting that the Building Safety Regulator’s gateway process has extended the period between planning approval and the start of construction by approximately 12 months. The company added that new housing starts in London currently stand at less than 10% of the target set by the Ministry of Housing, Communities and Local Government.

    While Berkeley said it observed early signs of a modest recovery during the first two months of 2026, it warned that “recent geopolitical events and the macroeconomic consequences, including reduced potential for further rate cuts, could reduce confidence in a near-term market recovery,” a risk it said had “become a reality.”

    Financially, the group has reduced land creditors from £900 million to about £470 million and lowered operating costs by roughly 25% in real terms. It continues to aim for an operating margin within its historical range of 17% to 21% and a return on capital employed above 15% by FY30, with returns expected to fall between 11% and 15% during the intervening years. Berkeley also confirmed it will maintain a net cash position.

    The company has returned £336 million so far under its £2 billion shareholder return programme, including £260 million up to September 2025 and a further £76 million since then. Berkeley remains on track to complete the programme by September 2030 and said it prefers share buybacks while the share price trades below net asset value per share.

    Meanwhile, the group’s first six Berkeley Living build-to-rent projects, representing about £400 million in cost, are progressing well. Berkeley reiterated its commitment to delivering 4,000 build-to-rent homes, though it is reviewing the timing of later phases.

    “We believe that it is in the best interests of shareholders to adapt our approach in this way, rather than pursue short-term profit targets,” Berkeley said.

  • Arcline Investment Management withdraws plans to bid for Senior plc

    Arcline Investment Management withdraws plans to bid for Senior plc

    Arcline Investment Management LP said on Wednesday that it will not move forward with a potential takeover offer for Senior plc (LSE:SNR), issuing the announcement in accordance with Rule 2.8 of the UK City Code on Takeovers and Mergers.

    However, the firm noted that it may revisit its decision under certain circumstances. These include situations where Senior’s board agrees to engage with another suitor or if a rival bidder emerges.

    Arcline identified Advent International Limited and a consortium formed by Tinicum Incorporated and Blackstone Private Investments Advisors as possible third parties whose formal bid announcements could reopen the door for a renewed approach.

    The investment group also stated it could reconsider its position if Senior were to announce a waiver of Rule 9 or pursue a reverse takeover under the Takeover Code, or if the Takeover Panel rules that there has been a material change in circumstances.

  • OptiBiotix reports strong growth while sharpening focus on profitability

    OptiBiotix reports strong growth while sharpening focus on profitability

    OptiBiotix Health (LSE:OPTI) delivered solid performance in 2025, with revenue increasing 30% to £1.13 million. Gross profit rose 82% to £603,000, lifting margins to 53%, while operating costs remained broadly stable. The company ended the year with £1.03 million in cash and held investments in ProBiotix Health and SkinBioTherapeutics valued at £6.45 million. Product activity also gained momentum, highlighted by the launch of SlimBiome within the Hydroxycut brand and expanding customer engagement across Asian markets.

    After the reporting period, OptiBiotix secured a 24-metric-tonne SlimBiome order from Taiwan-based Meelung Trading and recorded more than £800,000 in orders during January 2026, representing the strongest start to a year for the business. Management is now implementing a strategy focused on improving commercial sustainability, which includes reducing marketing and research-related spending, improving manufacturing economics for SlimBiome and introducing stricter profit-and-loss accountability across regional and distribution channels. The company aims to reach profitability across all business segments by the end of 2026.

    Despite strong revenue momentum in 2024 and improving margins, the company’s outlook remains constrained by ongoing losses and continued cash burn. Technical indicators also show a prolonged downward trend with negative price momentum. However, OptiBiotix benefits from a debt-free balance sheet, which offers some financial stability, although valuation metrics remain difficult to support given negative earnings and the absence of a dividend yield.

    More about OptiBiotix Health

    OptiBiotix Health is a UK-listed life sciences company specialising in microbiome-based technologies designed to help prevent and manage human disease. The group develops and commercialises functional ingredients including SlimBiome, WellBiome, SweetBiotix and Microbiome Modulators. It also has exposure to probiotics and skincare through shareholdings in ProBiotix Health and SkinBioTherapeutics, targeting global markets in weight management, gut health and metabolic wellness.

    The company supplies ingredients and finished products through international manufacturing, distribution and e-commerce channels, serving consumer health markets where demand for scientifically supported microbiome solutions and healthier sugar alternatives continues to grow.

  • Filtronic secures new defence contract, strengthening role in wideband RF technology

    Filtronic secures new defence contract, strengthening role in wideband RF technology

    Filtronic plc (LSE:FTC), a specialist in advanced RF and microelectronics used in mission-critical communication networks, continues to expand its presence in high-growth sectors including low-Earth-orbit space, aerospace and defence. Headquartered in Sedgefield in the UK and listed on AIM, the company draws on more than 45 years of engineering expertise, a broad patent portfolio and modern manufacturing facilities to deliver customised solutions designed for high-capacity data transmission.

    The group has now secured a £0.4 million contract from a major European defence prime contractor. The agreement extends Filtronic’s collaboration with the customer into an additional business unit and represents the first stage of a new wide-bandwidth technology programme expected to be delivered in FY2027. Production will take place at the company’s recently established secure automated microelectronics facility in Sedgefield. The contract highlights rising demand from defence customers for sophisticated wideband RF modules and further reinforces Filtronic’s position as a trusted supplier capable of scaling manufacturing for larger future programmes.

    Filtronic’s outlook is supported by strong financial performance, including rapid revenue growth, robust margins, low leverage and solid cash generation. Technical indicators remain positive but suggest the shares may be approaching overbought territory, creating potential near-term volatility. Valuation is a modest constraint due to a relatively high P/E ratio and the absence of a dividend yield.

    More about Filtronic

    Filtronic plc is a UK-based designer and manufacturer of advanced RF and microelectronic systems serving space, aerospace, defence, telecommunications infrastructure and critical communications markets. Operating two manufacturing facilities and three engineering centres of excellence, the AIM-listed company focuses on wideband communication technologies that enable higher bandwidth, reduced latency and improved connectivity for high-growth sectors such as LEO space and defence.

  • Blue Star’s SatoshiPay records milestone Vortex volumes and advances DeFi FX technology

    Blue Star’s SatoshiPay records milestone Vortex volumes and advances DeFi FX technology

    Blue Star Capital (LSE:BLU) said its portfolio company SatoshiPay achieved a record US$10 million in monthly transaction volume in January 2026 on its Vortex fiat-to-crypto payments platform. The figure exceeded the platform’s entire cumulative volume recorded up to the end of 2025. Activity moderated in February and March, reflecting platform upgrades, compliance checks and a change in banking arrangements by a major client.

    Alongside these developments, SatoshiPay is expanding its decentralised foreign exchange infrastructure. The company has launched a EURC–USDC decentralised exchange (DEX) on the Base blockchain and is integrating DEX aggregators to increase liquidity and usage. It is also developing a retail Vortex widget designed to route fiat payments directly into decentralised finance yield products. These initiatives are expected to support higher transaction volumes over time and strengthen SatoshiPay’s position in both institutional payments and decentralised trading markets.

    Blue Star’s outlook remains constrained by weak financial fundamentals, including minimal or negative revenue, ongoing losses and continued negative operating and free cash flow, although the absence of debt provides some balance sheet stability. Technical indicators also point to caution, with the share price trading below key moving averages and a negative MACD signal. Valuation metrics offer limited support given the company’s negative P/E ratio and the lack of dividend yield data.

    More about Blue Star Capital

    Blue Star Capital is an AIM-listed investment company focused on emerging technologies, particularly in blockchain and payments. Its portfolio includes SatoshiPay, which develops fiat-to-crypto and decentralised finance infrastructure, as well as gaming-related investments such as Dynasty Media & Gaming and Paidia.