ADVFN UK Market News

Author: Fiona Craig

  • ECB survey finds geopolitical tensions are driving inflation concerns higher

    ECB survey finds geopolitical tensions are driving inflation concerns higher

    The latest European Central Bank Consumer Expectations Survey indicates that renewed geopolitical tensions are reinforcing fears of rising inflation and weaker economic growth among households across the euro area, with the conflict involving Iran prompting a notable deterioration in consumer sentiment.

    According to survey data collected in March 2026, consumers significantly increased their inflation expectations following the outbreak of hostilities in Iran in February. Average inflation expectations rose by approximately 2.5 percentage points, while expectations for economic growth fell by around 1.2 percentage points. Median inflation expectations also increased by 1.5 percentage points over the same period.

    The study, conducted by researchers including Olivier Coibion of the University of Texas and Dimitris Georgarakos of the European Central Bank, examined how households responded to the Iran conflict compared with reactions to Russia’s invasion of Ukraine in 2022. The findings suggest that consumers remain particularly sensitive to geopolitical events after experiencing the sharp inflationary pressures of recent years.

    Longer-term inflation expectations also moved higher. Average expectations for inflation three years ahead increased by 0.87 percentage points in March 2026, while median forecasts rose by 0.44 percentage points. Researchers noted that these increases came on top of already elevated expectations, indicating that concerns about future price pressures had been building even before the latest geopolitical developments.

    Consumer focus on inflation remained unusually high throughout the period. Almost half of respondents reported paying close attention to inflation developments in March 2026, only slightly below the levels seen in early 2023 when eurozone inflation reached 8.6%. The results suggest that the effects of the recent inflation surge continue to influence household perceptions and expectations.

    The survey also highlighted the enduring impact of geopolitical uncertainty on consumer confidence. Around 35% of respondents reported being highly concerned about the effect of geopolitical risks on their personal finances in May 2022. Although this figure eased over time, approximately 25% of consumers continued to express similar concerns as recently as December 2024, with elevated anxiety levels persisting into late 2025 ahead of the Iran conflict.

    Researchers found that confidence in the European Central Bank played an important role in shaping expectations. Households with greater trust in the ECB tended to adjust their inflation forecasts by a smaller margin following geopolitical shocks than those with lower levels of confidence in the institution. Survey results also indicated that trust in the central bank was stronger in early 2026 than it had been prior to the Ukraine conflict in 2022.

  • FTSE 100 edges higher as investors monitor uncertainty over potential Iran agreement

    FTSE 100 edges higher as investors monitor uncertainty over potential Iran agreement

    European stock markets traded modestly higher on Friday as investors assessed reports of progress in negotiations between the United States and Iran, while remaining cautious over the lack of a final agreement and the potential for renewed geopolitical tensions over the weekend.

    By 07:13 GMT, the FTSE 100 was up 0.09%, with Germany’s DAX gaining 0.16% and France’s CAC 40 advancing 0.45%. Sterling weakened 0.09% against the US dollar to trade at $1.3434.

    Market sentiment was influenced by reports that US and Iranian negotiators had drafted a proposal for a 60-day ceasefire extension that would reopen the Strait of Hormuz and pave the way for formal discussions regarding Iran’s nuclear programme. However, uncertainty remained after reports suggested US President Donald Trump had yet to approve the proposal and was considering the terms before making a final decision.

    Speaking on Thursday, Vice President JD Vance indicated that discussions were continuing, with negotiators still working through several outstanding issues. “Going back and forth on a couple of language points,” he said, adding that it was “still to be discussed” whether Trump would sign the agreement. “We’re not there yet, but we’re very close.”

    Despite signs of diplomatic progress, tensions in the region remained elevated. US Central Command said Iran launched a ballistic missile towards Kuwait on Wednesday night in what it described as an “egregious ceasefire violation.” Kuwaiti defence systems successfully intercepted the missile.

    The incident followed US military action near Bandar Abbas, where American forces reportedly targeted an Iranian ground control facility and intercepted several attack drones that were said to pose a threat to commercial shipping passing through the Strait of Hormuz. Regional governments including Kuwait, Saudi Arabia, Qatar and Egypt, along with the Organisation of Islamic Cooperation, subsequently condemned the missile launch towards Kuwaiti territory.

    Political divisions within Iran also added to market uncertainty. Iranian officials questioned the reported framework, with one lawmaker claiming the draft differed substantially from proposals prepared under the supervision of Supreme Leader Ayatollah Ali Khamenei. Other officials reiterated that Iran would not export its enriched uranium stockpile and continued to advocate long-term control of the Strait of Hormuz as a strategic objective.

    Further uncertainty emerged after Iran’s Tasnim News Agency reported that no memorandum of understanding had been finalised, contradicting suggestions that an agreement was close to completion.

    Meanwhile, the United States continued to increase economic pressure on Tehran. Treasury Secretary Scott Bessent announced new sanctions targeting Iran’s Persian Gulf Strait Authority as part of what he described as an “Economic Fury” campaign, warning companies and governments against paying transit fees linked to the Strait of Hormuz. Bessent also said Iranian oil exports had fallen sharply and indicated that military options remained available should negotiations fail.

    Diplomatic efforts are continuing, with US officials scheduled to meet representatives from Pakistan and Oman, both of which have played important roles in mediation efforts. Reports suggest the proposed framework could include phased sanctions relief and limited access to frozen Iranian assets, although several key issues remain unresolved.

    Investors are expected to remain focused on developments over the coming days, with any progress or setbacks in negotiations likely to influence market sentiment, energy prices and broader risk appetite.

  • Market Open: Asda Ocado Partnership, Drax Hirwaun Plant

    Market Open: Asda Ocado Partnership, Drax Hirwaun Plant

    FTSE 100 rises as investors assess Iran ceasefire developments. Asda partners with Ocado while Drax expands generation capacity.

    Market Overview

    Global markets were mixed overnight as investors weighed uncertainty surrounding Iran ceasefire negotiations and broader geopolitical developments. The FTSE 100 rose 0.30 per cent to 10,436.22, while the CAC 40 fell 0.23 per cent and the DAX declined 0.34 per cent. In the US, the Nasdaq edged 0.01 per cent higher and the S&P 500 was broadly flat, reflecting a cautious tone as markets assessed reports of efforts to extend the US-Iran ceasefire and the implications for risk assets.

    Commodity markets reflected a balanced risk backdrop. Gold gained as traders monitored inflation pressures and geopolitical developments, while Brent crude eased as concerns over energy supply disruption moderated. Natural gas moved higher and copper softened slightly. Sterling weakened against major currencies including the US dollar, euro, Swiss franc and yen, while Bitcoin advanced against the pound, indicating continued interest in alternative assets.

    Market Numbers

    FTSE 100: Up (0.30%), 10,436.22
    CAC40: Down (-0.23%), 8,188.870
    DAX: Down (-0.34%), 25,092.25
    NASDAQ: Up (0.01%), 30,225.4
    S&P 500: Down (-0.01%), 7,570.3

    In the Headlines

    Online Expansion – Ocado Group (LSE:OCDO)
    Asda has selected Ocado to help develop its online grocery business through the deployment of Ocado’s technology and automation platform. The agreement strengthens Ocado’s position in UK grocery fulfilment while supporting Asda’s efforts to improve its digital offering and operational efficiency.

    New Power Capacity – Drax Group (LSE:DRX)
    Drax has taken commercial control of its first 299MW open-cycle gas turbine plant at Hirwaun in South Wales. The facility increases the group’s flexible generation capacity and supports grid resilience as the UK continues its energy transition.

    Currencies (vs GBP)

    USD: Down (-0.15%), $1.3423
    CHF: Down (-0.14%), Fr.1.05254
    EUR: Down (-0.07%), €1.1525~
    JPY: Down (-0.13%), ¥213.811
    AUD: Down (-0.03%), $1.874940
    Bitcoin (BTC/GBP): Up (0.30%), £54,870.2

    Commodities

    Copper: Down (-0.08%), 6.44795
    Gold: Up (0.40%), 4,513.90
    Brent Crude: Down (-0.78%), 91.700
    Natural Gas: Up (0.55%), 3.313

  • CelLBxHealth secures AstraZeneca agreement to provide circulating tumour cell analytics services (CLBX)

    CelLBxHealth secures AstraZeneca agreement to provide circulating tumour cell analytics services (CLBX)

    CelLBxHealth plc (LSE:CLBX) has entered into a Master Services Agreement with AstraZeneca that establishes the company as an approved provider of circulating tumour cell (CTC)-based analytical services for clinical trial programmes.

    Under the agreement, CelLBxHealth will be able to support AstraZeneca’s research and development activities using its proprietary Parsortix platform, which is designed to isolate and analyse circulating tumour cells from blood samples. The framework agreement provides the potential for the company to contribute analytical services across multiple programmes within AstraZeneca’s clinical development pipeline.

    Management believes the arrangement represents an important commercial milestone, expanding the company’s reach within the pharmaceutical sector and reinforcing the value of its CTC technology in drug development and clinical research applications. The agreement also strengthens CelLBxHealth’s position as a specialist provider of advanced cancer analytics services to major biopharmaceutical companies.

    The Parsortix platform enables the capture of rare circulating tumour cells from blood samples, allowing researchers to conduct detailed molecular, genomic and proteomic analyses. Such capabilities can provide valuable insights into cancer biology, treatment response and disease progression, supporting both drug development and precision medicine initiatives.

    The new relationship with AstraZeneca is expected to enhance CelLBxHealth’s visibility within the pharmaceutical industry and create opportunities for additional service contracts as demand for advanced biomarker analysis and liquid biopsy technologies continues to grow.

    More about CelLBxHealth plc

    CelLBxHealth plc is a biotechnology company specialising in circulating tumour cell intelligence and cancer-related diagnostic technologies. The company’s patented Parsortix platform is designed to harvest circulating tumour cells from blood samples, enabling advanced analysis for oncology research, drug development and potential clinical applications.

    Its business model combines product sales, laboratory services, clinical trial support and the development of laboratory-developed tests. By integrating CTC analysis with imaging, genomic and proteomic technologies, CelLBxHealth aims to provide valuable insights for pharmaceutical companies, researchers and healthcare providers working to improve cancer diagnosis and treatment.

  • Clean Power Hydrogen suspends testing and share trading following electrolyser incident (CPH2)

    Clean Power Hydrogen suspends testing and share trading following electrolyser incident (CPH2)

    Clean Power Hydrogen PLC (LSE:CPH2) has halted testing activities and requested a suspension of trading in its AIM-listed shares after a serious incident occurred during the final factory acceptance test of its 1MW MFE220 membrane-free electrolyser system.

    The event took place during the third and concluding stage of the testing programme and resulted in an automatic shutdown of the unit. The incident caused significant damage to equipment, prompting the company to suspend operations while a detailed investigation is carried out to determine the cause and assess the implications for the technology and development timetable.

    As a result of the setback, completion of the factory acceptance testing process has been materially delayed. The company said the incident has also affected ongoing discussions with potential investors regarding an equity fundraising, placing additional pressure on working capital resources as management evaluates available financing options.

    Clean Power Hydrogen is reviewing its insurance coverage and contractual arrangements with customers as part of its response to the incident. The board said it is also assessing a range of strategic alternatives and funding solutions aimed at stabilising the business and supporting future development activities while the investigation is underway.

    The company’s outlook remains challenging, reflecting its limited revenue base, continuing losses and significant cash consumption. The incident adds further uncertainty to near-term funding requirements and commercial progress. While technical indicators had previously shown positive momentum in the share price, valuation remains difficult to assess given the company’s loss-making position and lack of dividend payments.

    More about Clean Power Hydrogen PLC

    Clean Power Hydrogen PLC is a UK-based hydrogen technology company focused on developing membrane-free electrolyser systems capable of producing high-purity hydrogen and oxygen. The company’s technology is designed to reduce the lifetime cost of hydrogen production while supporting decentralised energy applications.

    Listed on AIM under the ticker CPH2, the group targets a range of markets including wastewater treatment, renewable energy integration, data centre backup power, medical and life sciences applications, and heavy-duty transport. Through its patented technology platform and ongoing research and development efforts, the company aims to establish a competitive position within the emerging hydrogen economy.

  • Ocado secures Asda technology partnership as focus shifts toward cash generation (OCDO)

    Ocado secures Asda technology partnership as focus shifts toward cash generation (OCDO)

    Ocado Group (LSE:OCDO) has signed a new ecommerce partnership with Asda that will see the retailer adopt Ocado’s technology platform to modernise its online grocery operations across the UK from 2027.

    Under the agreement, Asda will deploy the Ocado Smart Platform throughout its digital grocery network, incorporating ecommerce storefronts, in-store fulfilment capabilities and last-mile delivery planning systems. The technology is designed to support a range of fulfilment options, including scheduled deliveries, rapid-delivery services, click-and-collect orders and purchases made through third-party delivery aggregators.

    The partnership represents a significant addition to Ocado’s client base in the UK grocery market and further demonstrates the adaptability of its technology platform. For Asda, the arrangement is intended to strengthen digital operations, improve efficiency and enhance the customer experience across multiple shopping channels.

    While Ocado does not expect the agreement to have a material financial impact during the 2026 financial year, management believes the deal reinforces the long-term growth potential of its technology business as adoption of the platform continues to expand. The company also reiterated its expectation of achieving positive cash flow during the second half of the current year and delivering full-year cash-flow positivity in 2027, reflecting confidence in the scalability of its business model and improving financial performance.

    Despite these developments, Ocado’s outlook remains influenced by variability in operating profitability and weaker technical indicators, with the shares continuing to trade below key moving averages and momentum measures remaining subdued. However, improving cash generation trends and an undemanding valuation provide some support, while management has outlined a clear pathway toward sustainable cash generation. Investors continue to weigh these positives against the company’s debt levels and the execution risks associated with scaling its technology and retail partnerships.

    More about Ocado Group

    Ocado Group is a UK-based technology company specialising in ecommerce, automation and logistics solutions for the grocery sector. Its proprietary Ocado Smart Platform provides retailers with an integrated suite of tools covering online storefronts, fulfilment operations, warehouse automation and last-mile delivery management.

    The company partners with supermarkets around the world to support the growth of online grocery shopping, helping retailers improve efficiency, enhance customer service and manage increasingly complex omnichannel operations. Through its technology-led approach, Ocado has established itself as a leading provider of digital infrastructure for the global grocery industry.

  • Avacta appoints new chairman as cancer therapy programmes continue to progress (AVCT)

    Avacta appoints new chairman as cancer therapy programmes continue to progress (AVCT)

    Avacta Therapeutics (LSE:AVCT) has announced a leadership transition that will see non-executive director Richard Hughes assume the role of non-executive chairman following the company’s annual general meeting on 22 June 2026.

    Hughes will succeed Shaun Chilton, who is stepping down from the board after serving as chairman. Although leaving his board position, Chilton will continue to support the company as an adviser to the chief executive officer and directors, helping to maintain continuity as Avacta advances its clinical development programmes.

    The company also confirmed that it is searching for a non-executive deputy chairman and senior independent director with significant international biotechnology experience. The recruitment process forms part of a broader effort to strengthen governance and support the next phase of growth as Avacta continues to develop its oncology portfolio.

    Operationally, the group remains focused on progressing two cancer drug candidates based on its proprietary pre|CISION platform through clinical trials. At the same time, management is expanding discussions with potential pharmaceutical partners as it seeks to maximise the commercial potential of its technology and development pipeline.

    Avacta’s outlook continues to be influenced by the financial demands of clinical-stage drug development. The company remains loss-making and is managing ongoing cash burn and balance sheet pressures associated with advancing multiple programmes. However, technical indicators have been more supportive, with the shares trading above longer-term moving averages and showing positive momentum signals. Recent clinical progress and efforts to improve cash management provide additional encouragement, although future financing requirements, partnership negotiations and development timelines remain important factors for investors to monitor.

    More about Avacta Group plc

    Avacta Therapeutics is a clinical-stage biotechnology company focused on developing innovative cancer treatments. The company’s research is centred on its proprietary pre|CISION platform, which is designed to activate therapeutic agents within the tumour microenvironment while limiting exposure to healthy tissue.

    By targeting fibroblast activation protein (FAP), the technology aims to improve the delivery of highly potent cancer therapies, potentially reducing side effects and enabling more effective dosing. Avacta is advancing a pipeline of oncology candidates intended to address unmet medical needs across a range of cancer indications.

  • Blencowe Resources boosts Orom-Cross valuation as downstream graphite plans enhance project economics (BRES)

    Blencowe Resources boosts Orom-Cross valuation as downstream graphite plans enhance project economics (BRES)

    Blencowe Resources (LSE:BRES) has upgraded the commercial assumptions supporting its Definitive Feasibility Study for the Orom-Cross graphite project in Uganda, resulting in a significant increase in the project’s estimated value. The updated model has raised the project’s net present value (NPV10) by 15% to US$1.254 billion, while maintaining the previously forecast two-phase development capital expenditure of US$170 million.

    The revised projections reflect a combination of factors, including a larger reserve base, additional offtake agreements, improved pricing assumptions for purified graphite products and a more favourable product mix. As a result, projected net free cash flow over the initial 15-year mine life has more than doubled to US$4.466 billion, representing a 120% increase from earlier estimates.

    Management believes the updated economics reinforce Orom-Cross’s potential to become a major supplier of graphite outside China, particularly as demand grows for secure and diversified supply chains supporting battery manufacturing and energy transition technologies. The project’s strategy increasingly focuses on downstream processing and value-added products, including uncoated spheronised purified graphite and expandable graphite, which command higher margins than traditional concentrate sales.

    To support development, Blencowe is pursuing a phased funding approach. The company is targeting approximately US$45 million of predominantly project-level equity financing for Phase 1, followed by around US$125 million of mainly debt financing for Phase 2. At the same time, management continues to progress tender submissions, engage with European battery-sector initiatives and pursue infrastructure improvements that could strengthen the project’s commercial attractiveness and strategic importance.

    Despite the enhanced project economics, the company’s outlook remains influenced by its current financial position. Blencowe continues to operate without revenue and remains loss-making, with negative operating and free cash flow that deteriorated during 2025. Technical indicators also remain relatively weak, with the share price trading below key short-term moving averages and momentum measures remaining subdued. Traditional valuation metrics offer limited support given the absence of earnings.

    More about Blencowe Resources Plc

    Blencowe Resources Plc is a natural resources development company focused on advancing the Orom-Cross graphite project in Uganda. The project contains significant natural flake graphite resources and is being developed to supply both graphite concentrate and higher-value processed graphite products.

    The company is positioning Orom-Cross as a strategically important source of non-Chinese graphite for Western markets, targeting demand from battery manufacturers, electric vehicle supply chains, energy storage applications and a range of industrial end markets seeking secure and diversified raw material supplies.

  • MedPal AI generates first revenues as pharmacy and digital health expansion gains momentum (MPAL)

    MedPal AI generates first revenues as pharmacy and digital health expansion gains momentum (MPAL)

    MedPal AI (LSE:MPAL) reported its first interim results since joining AIM, marking a significant milestone as the company transitioned from a pre-revenue business to a growing healthcare platform. For the six months ended 28 February 2026, the group generated revenue of £1.6 million and gross profit of £0.37 million, while annualised revenue run rates exceeded £5 million by March.

    The company recorded a post-tax loss of £3.27 million during the period, reflecting substantial investment in expanding its pharmacy operations, recruiting clinical personnel, increasing marketing activity and developing its technology platform. Despite these costs, pharmacy gross margins improved to more than 34%, highlighting the growing contribution of the group’s healthcare services.

    A key focus during the period was the development of MedPal Health OS, the company’s vertically integrated healthcare platform. Progress included the acquisition of Universal Pharmacy, the launch of an NHS-contracted distance-selling pharmacy in Swaffham and the establishment of direct supply agreements with Eli Lilly and Novo Nordisk. These agreements support the company’s MedPal.clinic weight-management service, which offers GLP-1 treatments to eligible patients.

    The business also expanded its presence in the care home sector through a growing business-to-business channel, with Care UK providing a significant customer relationship. Rising prescription dispensing volumes and a secondary listing in Frankfurt further increased operational scale and investor visibility.

    Following the reporting period, MedPal strengthened its financial position through a £527,000 placing and a further £3.0 million fundraising. The proceeds are being used to support increasing NHS dispensing volumes and the continued expansion of MedPal.clinic. The company also completed the acquisition of the Remedi pharmacy business in Runcorn, a facility with historical annual prescription volumes approaching one million items, providing additional capacity to support future growth. Ongoing board changes are expected to further strengthen governance as the business continues to scale.

    The company’s strategy remains centred on integrating digital health services, pharmacy operations and AI-enabled clinical tools into a single platform designed to improve patient engagement and healthcare delivery. Management believes recent investments and acquisitions have established a foundation for continued growth across both consumer and business markets.

    More about MedPal AI Plc

    MedPal AI plc is a UK-based digital healthcare company that has evolved from a health application developer into an integrated healthcare services provider. Its flagship MedPal platform aggregates data from more than 100 health applications and wearable devices, combining this information with AI-assisted clinical tools, pharmacy services and healthcare delivery solutions.

    The company operates NHS-contracted and distance-selling pharmacies, robotic dispensing facilities and a private GLP-1 weight-management service. Through its growing healthcare ecosystem, MedPal serves individual consumers as well as corporate and care home customers, with recent acquisitions expanding its operational footprint and capacity across the UK.

  • Churchill China reports trading in line with expectations and reiterates confidence in future growth (CHH)

    Churchill China reports trading in line with expectations and reiterates confidence in future growth (CHH)

    Churchill China (LSE:CHH) said trading has remained broadly in line with management expectations ahead of its annual general meeting, with demand from the hospitality sector continuing to support performance across the business.

    The company highlighted ongoing efforts to improve efficiency and productivity within its manufacturing operations, noting that these initiatives are contributing to enhanced factory performance. Churchill also confirmed that its energy requirements for the year are fully covered, providing greater certainty over costs and operational planning.

    Management welcomed the UK government’s recently announced £120 million support package for the ceramics industry, describing it as a positive development for the sector. While acknowledging continued geopolitical risks, including tensions in the Middle East, the company said it remains focused on areas within its control and continues to take a disciplined approach to managing its operations.

    Despite the uncertain external environment, Churchill expressed confidence in its long-term prospects, supported by its established market position, operational improvements and focus on delivering high-quality products to hospitality customers worldwide.

    The company’s outlook is underpinned by a strong financial profile, characterised by low levels of debt and consistent profitability. Valuation metrics also remain attractive, with the shares trading on a relatively modest earnings multiple and offering a notable dividend yield. However, some technical indicators remain mixed, with the share price showing weaker performance relative to certain medium- and long-term moving averages, while cash flow generation has been less consistent over time.

    More about Churchill China

    Churchill China is a UK-based manufacturer of performance ceramic products serving the global hospitality industry. The company specialises in tableware and related ceramic solutions designed for professional use in restaurants, hotels, catering operations and other foodservice environments.

    Through a focus on innovation, durability and product quality, Churchill has established itself as a leading supplier to hospitality customers around the world, providing ceramic products engineered to withstand the demands of high-volume commercial settings.