ADVFN UK Market News

Author: Fiona Craig

  • Avation Delivers First ATR 72-600 to Finnair Under Six-Year Lease

    Avation Delivers First ATR 72-600 to Finnair Under Six-Year Lease

    Avation PLC (LSE:AVAP) has delivered the first of two ATR 72-600 turboprop aircraft to Finnair under a six-year leasing agreement, establishing a new relationship between the London-listed aircraft lessor and Finland’s flag carrier.

    The first aircraft has now entered the lease, while delivery of the second ATR 72-600 is expected in September 2026. Finnair is also a member of the oneworld Alliance, adding another established international airline to Avation’s customer portfolio.

    The two-aircraft agreement supports Avation’s strategy of diversifying its lessee base while securing long-term placements for aircraft across its portfolio. It also points to continued demand for regional turboprops in Europe, where airlines use smaller aircraft to provide capacity on short-haul and lower-density routes.

    Securing a six-year commitment from an established European carrier could further strengthen Avation’s position in the regional aircraft leasing market. The transaction also demonstrates the company’s ability to place aircraft with full-service airlines while helping customers such as Finnair manage regional capacity without directly purchasing additional aircraft.

    Avation’s broader investment outlook remains constrained by net losses and relatively high leverage, although operating efficiency and resilient cash generation provide some support. Technical indicators are broadly neutral, with limited evidence of strong momentum. Valuation signals are also mixed, given the negative price-to-earnings ratio and low dividend yield, while recent share buybacks and operational developments offer a modest counterbalance.

    More About Avation

    Avation PLC is a Singapore-headquartered commercial passenger aircraft leasing company listed on the London Stock Exchange. It owns and manages a global fleet that is leased to airlines across multiple markets, with a particular focus on regional and narrow-body aircraft.

    The company seeks to maintain a diversified portfolio across airline customers, geographic markets and aircraft types. This approach is intended to limit concentration risk while providing greater flexibility when aircraft reach the end of existing leases or need to be transferred between operators.

    Avation actively markets returned aircraft to prospective airline customers with the aim of securing suitable long-term placements. Its leasing model allows carriers to add or adjust fleet capacity while giving Avation opportunities to generate recurring lease income from its aircraft portfolio.

  • Riverstone Energy Moves Wind-Down Forward With Onyx Exit and £30 Million Capital Return

    Riverstone Energy Moves Wind-Down Forward With Onyx Exit and £30 Million Capital Return

    Riverstone Energy Limited (LSE:RSE) reported a significant reduction in its asset base for the first half of 2026 as the investment company continued to implement its managed wind-down. Net asset value stood at $77.3 million at 30 June 2026, while its market capitalisation was approximately £27 million. The remaining portfolio is now centred on three private decarbonisation investments, reflecting Riverstone Energy’s transition away from listed conventional energy holdings and towards businesses linked to the energy transition.

    A key development during the period was the disposal of Riverstone Energy’s entire stake in Onyx Power for $50 million. The transaction lifted total proceeds generated from the investment to approximately $171 million and provided the company with the resources to carry out a second compulsory share redemption, returning £30 million to shareholders.

    Following the Onyx disposal and capital distribution, Riverstone Energy held around $23.6 million in cash. The company intends to use this liquidity to support its remaining portfolio companies and cover operating requirements as the wind-down continues. Management remains focused on protecting the value of the residual portfolio while pursuing opportunities to realise investments and return further proceeds to shareholders.

    The investment outlook remains influenced by uneven financial performance and volatile cash generation, despite the company carrying relatively low leverage and recording a notable improvement in operating cash flow during 2025. Technical indicators provide a more supportive signal, with the shares displaying an established upward trend and positive momentum. Valuation signals remain mixed, however, with a dividend yield of around 5.45% offset by loss-making earnings and a negative price-to-earnings ratio.

    More About Riverstone Energy

    Riverstone Energy Limited is a London-listed investment company focused on the energy industry. Its remaining portfolio is concentrated on private decarbonisation businesses including Infinitum Electric, GoodLeap and Group14 Technologies.

    The company is carrying out a shareholder-approved managed wind-down, under which investments are being monetised and capital returned to shareholders rather than redeployed into new opportunities. The process has substantially reduced Riverstone Energy’s exposure to conventional energy assets while leaving it with a smaller portfolio focused on clean-energy and decarbonisation technologies.

    These remaining investments provide exposure to longer-term themes including energy efficiency, electrification and lower-carbon technologies. Riverstone Energy’s priority is now to maximise the value realised from these holdings through an orderly disposal process and distribute available proceeds to shareholders as the wind-down progresses.

  • Wall Street Futures Slide as Oil and Bond Yields Intensify Market Pressure: Dow Jones, S&P, Nasdaq

    Wall Street Futures Slide as Oil and Bond Yields Intensify Market Pressure: Dow Jones, S&P, Nasdaq

    U.S. equity futures pointed to another negative start on Tuesday as rising Treasury yields and higher crude oil prices threatened to extend Wall Street’s two-session pullback.

    Technology stocks were positioned to bear the brunt of the selling, with Nasdaq 100 futures down 1.3%. The weakness came as the yield on the 30-year U.S. Treasury climbed to its highest level in nearly two decades, increasing pressure on growth stocks whose valuations are particularly sensitive to borrowing costs.

    Persistent inflation concerns linked to the Middle East conflict have helped push longer-term yields higher, even as recent economic indicators have reduced expectations for an imminent Federal Reserve rate increase.

    Oil Rally Complicates the Inflation Outlook

    U.S. crude futures advanced another 0.8% on Tuesday after surging 2.6% in the previous session, with investors becoming increasingly doubtful that Washington and Tehran will reach an agreement capable of easing the conflict.

    Higher energy prices risk adding fresh inflationary pressure to the U.S. economy and could keep financial conditions restrictive even if the Federal Reserve refrains from raising interest rates.

    Daniela Hathorn, Senior Market Analyst at Capital.com noted the increase in treasury yields comes “despite softer recent economic data reducing expectations for an imminent Fed hike.”

    “Instead, the long end is responding to persistent inflation risks, heavy government borrowing and growing competition for capital—including debt issuance associated with the AI investment boom,” Hathorn said.

    She added, “That creates an uncomfortable environment for equities because financial conditions can tighten even without the Fed raising rates.”

    Major U.S. Indices Extend Recent Pullback

    The weaker futures followed Monday’s broadly negative trading session, when stocks struggled for direction initially before selling intensified later in the day.

    The S&P 500 fell 40.70 points, or 0.5%, to 7,745.06, closing near its session low and moving further below the record closing high established last Thursday.

    The Dow dropped 272.63 points, also 0.5%, to 53,459.78, while the Nasdaq declined 84.25 points, or 0.3%, to 26,644.91.

    Monday’s losses extended the modest pullback recorded during Friday’s session.

    Iran Rules Out Ceasefire Negotiations

    Crude prices accelerated higher as geopolitical tensions surrounding Iran returned to the centre of market attention.

    U.S. oil futures gained more than 2% on Monday after indications emerged that Tehran had ruled out talks with Washington to extend a 60-day ceasefire scheduled to expire on Tuesday.

    “We did not start any negotiations at all, and the U.S. violated the understanding from the very beginning; therefore, the 60-day issue is not relevant,” Iran Foreign Ministry spokesman Esmail Baghaei said, according to state news agency Tasnim.

    Concerns about a broader regional confrontation increased further after President Donald Trump threatened Oman during an interview with Fox News, warning, “If Oman gets in the way, we’ll bomb the s— out of them.”

    The comments came as Iran and Oman appeared to be making progress towards an understanding over management of the Strait of Hormuz, one of the world’s most important routes for energy shipments.

    Airlines Hit as Energy Costs Rise

    Airline stocks were among Monday’s biggest casualties as the jump in crude prices raised concerns about higher fuel expenses. The NYSE Arca Airline Index fell 2.8%.

    Software stocks also experienced substantial selling, with the Dow Jones U.S. Software Index dropping 2.7%.

    Telecommunications, computer hardware and housing shares were also under pressure, while the market displayed greater resilience in oil producers, biotechnology companies and semiconductor stocks.

    The combination of elevated long-term borrowing costs, persistent geopolitical uncertainty and rising energy prices leaves Wall Street facing a difficult backdrop in which financial conditions could tighten even without additional Federal Reserve action.

  • European Stocks Retreat as U.S.-Iran Tensions Intensify: DAX, CAC, FTSE100

    European Stocks Retreat as U.S.-Iran Tensions Intensify: DAX, CAC, FTSE100

    European equities moved broadly lower on Tuesday as escalating tensions between the United States and Iran unsettled investors, pushed oil prices higher and drove long-dated eurozone government bond yields to multi-year highs.

    Brent crude futures climbed above $91 a barrel after U.S. President Donald Trump ruled out extending a temporary ceasefire agreement with Iran. Tehran, meanwhile, said it was preparing to adopt a “fully offensive” military posture, further reducing expectations for an easing of the conflict.

    Strait of Hormuz Incident Adds to Market Concerns

    Fresh concerns over security in the Middle East emerged after a cargo vessel was struck by a projectile while travelling through the Strait of Hormuz, according to the UKMTO.

    The incident added to worries surrounding the safety of commercial shipping through the strategically important waterway, increasing uncertainty around global energy supplies and supporting higher crude prices.

    Against this backdrop, European markets remained under pressure. France’s CAC 40 Index declined 0.4%, while Germany’s DAX Index fell 0.3%.

    The U.K.’s FTSE 100 Index moved against the broader regional trend, however, gaining 0.2%.

    UK Unemployment Holds at 4.9%

    Investors also assessed fresh economic figures from the United Kingdom, where the unemployment rate remained at 4.9% in the three months to June, unchanged from the previous period, according to the Office for National Statistics.

    The number of job vacancies continued to decline, falling by 6,000 to 707,000 during the three months to July.

    Currency markets were relatively subdued, with the U.S. dollar edging higher but remaining close to multi-month lows against major counterparts.

    Investors were awaiting several U.S. economic releases later in the session, including import and export prices, housing starts, industrial production and pending home sales.

    Basilea Pharmaceutica Surges After Profit Upgrade

    Among individual stocks, Basilea Pharmaceutica (TG:PK5) shares surged after the Swiss biopharmaceutical company raised its 2026 profit outlook.

    The revised forecast followed a strong first-half performance, with net profit increasing 77% compared with the corresponding period last year.

    HgCapital Trust (LSE:HGT), meanwhile, moved lower after the British investment trust announced plans to invest approximately £20 million through its manager Hg in Nourish Care, a nutritional diet consulting platform.

    Mining heavyweight BHP (LSE:BHP) traded modestly higher after reporting a 9% increase in annual net profit.

    With geopolitical risks driving energy prices and bond yields higher, European markets remained largely defensive as investors monitored developments surrounding Iran and the strategically important Strait of Hormuz.

  • Gold Retreats Under $4,400 as Rising Yields and Oil Test Bullion’s Recovery

    Gold Retreats Under $4,400 as Rising Yields and Oil Test Bullion’s Recovery

    Gold prices weakened on Tuesday, slipping below $4,400 an ounce as higher U.S. Treasury yields and stronger crude prices offset some of the metal’s recent momentum. Investors are also positioning ahead of the Federal Reserve’s July meeting minutes, which could offer fresh signals on the direction of U.S. monetary policy.

    At 02:26 ET (06:26 GMT), XAU/USD was down 0.5% at $4,395.78 an ounce, while Gold Futures declined 0.5% to $4,451.07. XAG/USD dropped 0.8% to $65.24 an ounce and XPT/USD fell 0.7% to $1,760.90. The US Dollar Index edged 0.1% higher to 99.67.

    Treasury Yields Challenge Gold as Oil Fuels Inflation Concerns

    The benchmark 10-year U.S. Treasury yield extended its advance, increasing the relative cost of holding gold, which does not provide interest or other regular income.

    Energy markets added another complication. Oil prices moved higher after Iran warned it would adopt a “fully offensive” military posture if diplomatic efforts with the United States failed, while Washington ruled out extending the temporary ceasefire.

    Continued uncertainty in the Middle East has kept crude markets volatile and raised the possibility that elevated energy costs could feed back into inflation.

    Interest-rate swaps no longer fully reflect expectations for another Federal Reserve rate increase before the end of the year. That marks a change from last week, when traders were pricing in another hike by year-end.

    Persistently expensive energy could nevertheless strengthen inflation expectations and encourage the Fed to keep monetary policy restrictive for longer. While gold can benefit from its reputation as an inflation hedge, higher interest rates simultaneously make the non-yielding asset less attractive.

    September Fed Hike Expectations Decline

    Recent U.S. economic figures have moved rate expectations in the opposite direction.

    Markets have sharply scaled back the probability of a September increase following unexpected job losses in July, softer-than-anticipated consumer inflation and weaker retail sales.

    Current pricing implies roughly a 65% chance that the Federal Reserve will leave interest rates unchanged at its September meeting.

    Investors will now turn to Wednesday’s minutes from the Fed’s latest policy meeting for further insight into how officials viewed inflation risks and the appropriate path for borrowing costs.

    Gold Faces Important Technical Test Near $4,500

    Gold’s rebound above $4,000 an ounce in recent weeks has been supported by renewed investment demand and stronger central-bank purchases, particularly from China.

    The metal climbed above its 100-day moving average last week for the first time since April, although prices have subsequently moved back around that level.

    The broader technical picture remains constructive while bullion stays above its late-June low near $3,942.

    However, gold remains below the $4,440-$4,450 resistance area associated with the downtrend from its late-January record near $5,602. The 200-day moving average around $4,503 represents another significant barrier.

    A sustained break above both levels could strengthen the prospect of a recovery towards $5,000. Failure to overcome those resistance zones could instead result in further consolidation.

    Central-Bank Buying Provides Longer-Term Support

    Beyond short-term interest-rate and technical considerations, ANZ sees continued support from central banks seeking to diversify their reserves.

    Central banks globally purchased 244 tonnes of gold during the first quarter of 2026, the strongest quarterly total since the fourth quarter of 2024.

    China added another 8 tonnes in April, representing its largest monthly purchase since December 2024.

    ANZ expects deteriorating international relations to sustain demand for reserve diversification and forecasts that gold will reach $5,200 an ounce by the end of 2026.

  • Oil Extends Rally as US-Iran Diplomatic Breakdown Raises Supply Risks

    Oil Extends Rally as US-Iran Diplomatic Breakdown Raises Supply Risks

    Oil prices climbed for a third consecutive session on Tuesday, approaching three-week highs as deteriorating prospects for a US-Iran peace agreement increased concerns that disruption to Middle Eastern energy supplies could continue.

    Brent crude futures rose 35 cents, or 0.39%, to $91.22 a barrel by 0827 GMT, while U.S. West Texas Intermediate crude futures advanced 81 cents, or 0.96%, to $85.31.

    Brent reached its highest intraday level since July 30, while WTI touched its strongest point since July 31. Both contracts were on course to record a third successive daily gain.

    “Sentiment remained supported by US President Donald Trump’s decision not to extend the US-Iran peace agreement and continued security concerns in the Strait of Hormuz,” ING analysts wrote in a note.

    Iran’s Offensive Shift Clouds Prospects for Peace

    Oil markets have become increasingly sensitive to developments surrounding negotiations between Washington and Tehran, with progress towards a permanent settlement now appearing to have stalled.

    Normal tanker movements through the Strait of Hormuz have also failed to resume, prolonging disruption to the strategic waterway following the conflict launched by the United States and Israel with attacks on Iran on February 28.

    A senior Iranian official told Reuters on Monday that Tehran would move to a “fully offensive” military posture after efforts to reach a permanent end to the war stalled. Washington has meanwhile ruled out extending the temporary ceasefire agreement.

    The breakdown is also beginning to influence expectations for oil prices beyond the immediate crisis.

    “The lack of any kind of deal will have an impact on oil price expectations further out in 4Q and even in 2027,” said DBS Bank’s head of energy research Suvro Sarkar.

    Vessel Strike Highlights Continued Hormuz Threat

    Security risks surrounding the Strait of Hormuz remain elevated after another vessel was struck on Tuesday.

    A projectile hit a ship travelling out of the strait, adding to a series of attacks that have kept the number of crossings in single digits. Tracking data indicated that traffic had improved slightly compared with the weekend but remained severely restricted.

    The continuing disruption is particularly important for oil markets because of the volume of Middle Eastern crude normally transported through the waterway.

    Saudi Aramco has resumed loading oil from inside the Strait of Hormuz and is offering cargoes through ship-to-ship transfers off Fujairah in the UAE, creating another route for moving supplies despite the disruption.

    Iran’s Ability to Restrict Oil Exports Remains Key Risk

    Analysts are increasingly considering the possibility that Iran could further restrict energy flows if the military confrontation escalates.

    “It is probably in Iran’s power to fully halt the flow of oil out of the Strait of Hormuz whenever they find it suitable. Or they will soon have built the capability of that. Iran is for sure not just sitting still waiting for new US sanctions,” said SEB analyst Bjarne Schieldrop.

    Separate negotiations between Iran and Oman over management of the Strait of Hormuz are continuing, with Tehran saying the two countries are close to reaching an agreement.

    However, Trump has responded to those negotiations by threatening to bomb Oman, despite the Gulf state being a longstanding U.S. security partner.

    Red Sea Attacks Add to Middle East Shipping Concerns

    Risks to regional shipping are not confined to the Strait of Hormuz.

    Yemen’s Houthis launched missiles at vessels they described as a Saudi military ship accompanied by four escorts in the Red Sea, military spokesperson Yahya Saree said on Telegram.

    The incident adds another layer of uncertainty for shipping routes through the Middle East at a time when oil markets are already dealing with severe disruption around Hormuz.

    With diplomatic negotiations stalled, tanker movements constrained and military risks spreading across key maritime corridors, crude prices remain vulnerable to further geopolitical premiums as traders assess supply conditions for the fourth quarter and into 2027.

  • Oil, Hormuz Risks and Canada Tariffs Weigh on Wall Street Futures: Dow Jones, S&P, Nasdaq

    Oil, Hormuz Risks and Canada Tariffs Weigh on Wall Street Futures: Dow Jones, S&P, Nasdaq

    U.S. stock futures traded lower on Tuesday as markets faced a combination of renewed oil-price pressure, continued disruption in the Strait of Hormuz and the approaching introduction of additional U.S. tariffs on Canadian goods.

    Investors were also preparing for quarterly results from Home Depot (NYSE:HD), which will provide another indication of the health of the U.S. consumer. Gold, meanwhile, slipped below $4,400 an ounce as Treasury yields moved higher.

    Nasdaq Futures Lead Declines

    At 03:05 ET (07:05 GMT), Dow futures were down 49 points, or 0.1%, while S&P 500 futures fell 29 points, equivalent to 0.4%. Nasdaq 100 futures were the weakest of the three, dropping 209 points, or 0.7%.

    The moves followed a negative session on Monday, when the major Wall Street averages declined and the S&P 500 recorded its worst trading day of August so far.

    “The overall equity mood soured,” analysts at Vital Knowledge said.

    Semiconductor stocks provided some relief. Sentiment towards the sector was supported by reports surrounding revenue expectations at Claude developer Anthropic (NASDAQ:ANTP), as well as Nvidia’s (NASDAQ:NVDA) smaller-than-expected financial commitment to an Ohio data centre. Vital Knowledge said the developments helped reinforce enthusiasm surrounding artificial intelligence.

    However, Deutsche Bank strategists highlighted the renewed increase in crude prices and the potential inflationary consequences of the Iran war. The move in energy markets was accompanied by higher U.S. government bond yields.

    Strait of Hormuz Disruption Keeps Oil Above $90

    Brent crude futures rose 0.3% to $91.10 per barrel on Tuesday, while U.S. West Texas Intermediate gained 0.6% to $85.02.

    The latest increase followed another incident in the Strait of Hormuz. The United Kingdom Maritime Trade Operations agency said a vessel travelling outbound through the waterway had been struck by an unidentified projectile, damaging its engine room and resulting in a crew casualty.

    Political tensions have also intensified after U.S. President Donald Trump ruled out extending the framework ceasefire agreement reached with Tehran in June. The agreement expired on Monday.

    Trump said the U.S. had established a back channel with officials from Iran’s Islamic Revolutionary Guard Corps, although Tehran rejected that assertion.

    The president also threatened military action against Oman, which has been attempting to negotiate an agreement with Iran to reopen the Strait of Hormuz. Both countries border the strategically important shipping route.

    Commercial tanker traffic remains effectively suspended through the strait, which carried approximately one-fifth of global oil flows before the war began in late February.

    “With both sides still far apart, investors grew pessimistic that the Strait of Hormuz would properly reopen any time soon,” Deutsche Bank analysts said.

    Higher Treasury Yields Pressure Gold

    Gold moved below $4,400 an ounce as rising U.S. Treasury yields reduced the appeal of the non-interest-bearing precious metal.

    The benchmark 10-year Treasury yield extended its advance as investors considered whether higher energy costs could complicate the Federal Reserve’s inflation outlook.

    Markets are awaiting minutes from the Fed’s July meeting for further guidance on interest rates.

    Expectations for a possible September rate increase have risen slightly because of inflation concerns linked to the Middle East conflict. Even so, the probability remains considerably lower than it was a week ago following unexpected employment losses, softer consumer inflation and disappointing July retail sales.

    Canada Faces Midnight Tariff Deadline

    Canada is preparing for another round of U.S. tariffs scheduled to take effect at midnight on Tuesday unless negotiations produce a last-minute agreement.

    U.S. Trade Representative Jamieson Greer said any retaliation by Canada would not be “tolerated,” while adding that he expected the longstanding U.S. trading partner to take a “more conciliatory approach.”

    Canadian Prime Minister Mark Carney is expected to speak with Trump on Tuesday, according to media reports. Carney has reportedly instructed Canadian negotiators to consider concessions that could prevent the new tariffs while potentially reducing some existing trade barriers.

    The Trump administration threatened in July to impose 50% duties on a broad range of Canadian products, including wine, furniture, fishing rods and hockey sticks, invoking a Depression-era law aimed at countries accused of discriminating against U.S. goods.

    Home Depot Results Could Shed Light on Consumer Demand

    Home Depot (NYSE:HD) is due to report quarterly earnings, beginning a major week for U.S. retail results that will also include Walmart and Target.

    The home-improvement retailer warned in May that economic uncertainty surrounding the Iran war, combined with affordability pressures, was discouraging consumers from undertaking major renovation projects.

    Home Depot sells products ranging from around $5 to more than $500, while its average customer basket is approximately $90, leaving the business sensitive to changes in discretionary household spending.

    CEO Ted Decker previously said customers appeared to be in “reasonably good shape,” although they were delaying larger remodelling projects.

    The latest earnings could therefore provide investors with fresh evidence on whether consumers remain cautious about major purchases and home improvement spending.

  • European Gas Extends Five-Day Rally as Strait of Hormuz Disruption Intensifies

    European Gas Extends Five-Day Rally as Strait of Hormuz Disruption Intensifies

    European natural gas prices moved higher again on Tuesday, extending their recent rally as escalating military tensions in the Persian Gulf and severe disruption to tanker traffic through the Strait of Hormuz increased concerns over winter energy supplies.

    Benchmark Dutch front-month gas futures rose 1.8% to €62.8 per megawatt-hour, while equivalent British wholesale contracts gained 1.2% to 154.4 pence per therm.

    Both benchmarks advanced for a fifth consecutive session, their longest daily winning streak since late July, as traders continued to add a geopolitical risk premium to European gas prices.

    Iran Escalation Adds to Energy Market Concerns

    Reuters reported on Tuesday, citing Iranian officials, that Tehran had moved to a fully offensive military posture following the collapse of diplomatic efforts to secure a permanent peace agreement and Washington’s decision not to extend a temporary ceasefire framework.

    The deterioration in the geopolitical situation follows threats from US President Donald Trump over the weekend to impose a strict naval blockade or pursue military action in response to interference with regional shipping.

    The escalating rhetoric has increased concerns across energy markets that disruption to one of the world’s most important shipping corridors could persist.

    LNG Tankers Face Growing Hormuz Disruption

    Energy traders are increasingly pricing in the physical impact of the crisis as commercial commodity traffic through the Strait of Hormuz remains heavily disrupted.

    Traffic through the strategically important waterway came to a standstill over the weekend, leaving Qatari liquefied natural gas tankers stranded and delaying spot LNG cargoes destined for European import terminals.

    The disruption comes as European utilities compete with Asian buyers for available LNG supplies. Asian customers have been bidding more aggressively for spot cargoes as they seek to secure sufficient fuel ahead of the winter heating season.

    Prolonged restrictions on shipping could intensify that competition and potentially increase the cost of replacing delayed supplies.

    European Gas Storage Sits at Historic August Low

    The disruption is occurring at a particularly sensitive point for European energy security.

    Figures from Gas Infrastructure Europe show underground storage facilities across the European Union are only slightly above 60% full, representing a historically low level for the middle of August.

    Persistent summer heatwaves have increased electricity consumption for air conditioning, while weaker LNG inflows have restricted the amount of gas available for storage injections.

    The combination has slowed Europe’s efforts to rebuild inventories before colder weather arrives.

    Winter Supply Risks Rise as Storage Refill Lags

    With storage levels substantially below seasonal norms, traders are becoming increasingly concerned that Europe could enter the winter heating season with insufficient reserves if LNG shipments through the Strait of Hormuz do not return to normal.

    Continued competition with Asian buyers could compound the challenge, particularly if both regions attempt to secure additional spot cargoes simultaneously.

    The outlook for European gas prices is therefore becoming increasingly tied to developments in the Persian Gulf. A restoration of unrestricted LNG shipping could ease some of the current risk premium, while prolonged disruption would increase pressure on Europe to secure alternative supplies before winter.

  • Market Open: Made Tech Guidance, Great Western Drilling

    Market Open: Made Tech Guidance, Great Western Drilling

    FTSE 100 edges higher as Made Tech raises guidance, Great Western starts drilling and Middle East risks keep energy markets in focus.

    Market Overview

    The FTSE 100 opened 0.01 per cent higher at 10,720.85, with energy shares providing support as investors continued to assess risks surrounding the Strait of Hormuz. The Euronext 100 edged 0.01 per cent higher to 1,971.09, while Germany’s DAX fell 0.40 per cent to 26,233.55 as geopolitical concerns weighed on European sentiment. Overnight in the US, the Nasdaq closed lower at 26,644.91 and the S&P 500 declined to 7,745.06.

    Geopolitical risk remained the dominant macro theme as fading hopes for progress between the US and Iran kept energy supply concerns in focus. Against sterling, the US dollar, Swiss franc, euro and Japanese yen weakened marginally, while the Australian dollar strengthened and Bitcoin rose slightly. Copper and gold moved lower, natural gas gained, while Brent crude edged down from its previous close despite continuing concerns over Middle East supply.

    Market Numbers

    FTSE 100: Up (+0.01%), 10,720.85
    Euronext 100: Up (+0.01%), 1,971.09
    DAX: Down (-0.40%), 26,233.55
    NASDAQ: Down, 26,644.91
    S&P 500: Down, 7,745.06

    In the Headlines

    Guidance Raised – Made Tech Group (LSE:MTEC)
    Government technology specialist Made Tech raised its FY27 guidance after securing a record £40 million government contract. The win strengthens its contracted workload and improves expectations for the current financial year.

    Major Drilling Programme – Great Western Mining (LSE:GWMO)
    Mineral exploration company Great Western Mining has begun a major drilling programme at its Nevada tungsten project. The campaign marks an important step in evaluating the project’s mineral potential and advancing its exploration strategy.

    Currencies (vs GBP)

    USD: Down (-0.01%), $1.3551
    CHF: Down (-0.00%), Fr.1.0985
    EUR: Down (-0.00%), €1.1699
    JPY: Down (-0.00%), ¥215.915
    AUD: Up (+0.00%), $1.9063
    Bitcoin (BTC/GBP): Up, £47,448.10

    Commodities

    Copper: Down
    Gold: Down
    Brent Crude: Down
    Natural Gas: Up

  • European Stocks Head for Longest Losing Run Since 2025 as Middle East Risks Escalate: DAX, CAC, FTSE100

    European Stocks Head for Longest Losing Run Since 2025 as Middle East Risks Escalate: DAX, CAC, FTSE100

    European equities moved lower again on Tuesday, pushing major regional benchmarks towards two-week lows as a sharp deterioration in the Middle East conflict increased risk aversion across global markets.

    The pan-European Stoxx Europe 600 Index slipped 0.2%, extending its decline to a sixth consecutive session and reaching its lowest level since 5 August. If the index remains lower through the close, it would mark its longest daily losing streak since November 2025.

    Germany’s DAX declined 0.4%, while France’s CAC 40 and London’s FTSE 100 were broadly unchanged as investors assessed the potential economic and market consequences of further escalation in the region.

    Iran Adopts Offensive Stance as Washington Rules Out Ceasefire Extension

    Geopolitical concerns intensified on Tuesday after Reuters reported that Tehran had shifted to a fully offensive military posture following the collapse of diplomatic efforts aimed at securing a lasting end to the conflict.

    Citing Iranian officials, Reuters reported that Tehran had abandoned its previous defensive constraints after Washington explicitly rejected an extension of the temporary ceasefire framework that expired this week.

    The diplomatic breakdown follows months of worsening maritime tensions in the Persian Gulf alongside recent threats of naval enforcement from the US administration.

    The change in Iran’s military posture has heightened concerns over possible attacks on strategically important energy infrastructure and maritime shipping routes. Investors are consequently pricing in greater geopolitical risk as expectations for a negotiated settlement diminish.

    Brent Crude Climbs Above $91 to Multi-Week High

    Escalating tensions provided another boost to energy prices, adding to concerns over the cost environment facing European businesses.

    Brent crude futures advanced 0.8% to $91.49 per barrel, reaching their highest level since 30 July.

    A sustained increase in crude prices could revive cost-driven inflation pressures across European supply chains, particularly for companies with significant energy and transportation expenses.

    Investors are also assessing what a prolonged energy shock could mean for monetary policy. Persistent inflationary pressure could make it more difficult for central banks to ease policy later in the autumn, even as economic growth across Europe remains fragile.

    Earnings Support Fades After Strong Reporting Season

    European equities benefited throughout June and July from a strong corporate reporting season that helped propel the STOXX 600 towards record highs.

    Strong banking profits, resilient margins among luxury companies and better-than-expected results from energy groups provided investors with company-specific reasons to buy market declines despite broader concerns about economic growth.

    That support is now fading as the second-quarter reporting season draws to a close. With fewer positive corporate updates available to underpin valuations, investors are increasingly focused on macroeconomic and geopolitical developments.

    The market may be particularly sensitive to external shocks given that the equity risk premium is close to its lowest level in around 25 years. With earnings catalysts becoming scarcer, trading desks are increasingly dependent on top-down developments surrounding the Middle East conflict, energy prices and the monetary policy outlook.