ADVFN UK Market News

Author: Fiona Craig

  • U.S.–Iran diplomacy in focus; Palo Alto Networks earnings due – market drivers today: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S.–Iran diplomacy in focus; Palo Alto Networks earnings due – market drivers today: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures traded cautiously on Tuesday as investors prepared for a fresh batch of economic data and corporate earnings in a shortened trading week. The ongoing shift away from high-growth technology names toward defensive sectors remains a central theme, amid renewed debate over whether heavy artificial intelligence spending will translate into sustainable returns. Meanwhile, Brent crude slipped ahead of scheduled U.S.–Iran talks in Switzerland, and gold prices pulled back. Cybersecurity company Palo Alto Networks (NASDAQ:PANW) is set to report after the closing bell.

    Futures trade near flatline

    As of 03:04 ET, Dow futures were down 26 points, or 0.1%. S&P 500 futures declined 11 points, or 0.2%, while Nasdaq 100 futures fell 99 points, or 0.4%. U.S. markets were closed Monday for a public holiday, shortening the trading week.

    Wall Street finished last Friday mixed. Investors weighed concerns about the competitive impact of newly launched AI models across multiple industries, alongside questions about whether continued large-scale AI infrastructure investments will deliver meaningful payoffs for mega-cap technology firms.

    At the same time, traders assessed data showing U.S. headline inflation eased more than expected in January. The softer reading reinforced expectations that the Federal Reserve could move sooner rather than later on its next rate cut, following last month’s pause in its easing cycle.

    Against this backdrop, the Nasdaq Composite edged down 0.2%, while the S&P 500 and Dow Jones Industrial Average posted modest gains.

    Crude eases before diplomatic talks

    Oil markets softened with attention fixed on upcoming negotiations between U.S. and Iranian officials in Geneva.

    A firmer dollar ahead of key macroeconomic releases and signals from Federal Reserve policymakers this week also weighed on crude.

    Brent futures for April delivery slipped 0.7% to $68.13 per barrel. West Texas Intermediate futures rose 0.6% to $63.11 per barrel at 03:06 ET, with price action influenced by the prior U.S. holiday.

    According to media reports, U.S. and Iranian representatives are scheduled to meet in Switzerland to address Tehran’s nuclear enrichment program. The discussions come amid elevated geopolitical tensions in the Middle East, as Washington increases its military presence in the region. President Donald Trump has repeatedly warned that military action remains an option if Iran declines to accept U.S. terms.

    Trading activity was also muted due to Lunar New Year holidays across several Asian markets, including China, Hong Kong, Taiwan, South Korea and Singapore.

    Precious metals pull back

    Gold and silver retreated as investors looked ahead to a slate of U.S. economic releases.

    At 03:09 ET, spot gold fell 1.4% to $4,919.72 per ounce, while April gold futures dropped 2.2% to $4,941.74 per ounce.

    Spot silver declined 2.0% to $75.0925 per ounce, while platinum gained 0.2% to $2,024.79 per ounce.

    Precious metals have experienced sharp volatility in recent weeks, with gold and silver still trading below their late-January highs.

    Attention now turns to U.S. industrial production data due Wednesday and the PCE price index — one of the Fed’s preferred inflation gauges — scheduled for Friday. Markets are also awaiting minutes from the Fed’s January meeting, when policymakers kept rates steady at a range of 3.5% to 3.75%.

    Palo Alto Networks results ahead

    Investors will closely monitor Palo Alto Networks’ earnings for further clarity on how technology firms are navigating intensified competition from newly released AI models.

    The California-based cybersecurity company raised its full-year revenue and profit outlook in November, citing rising demand for digital security solutions as cyber threats escalate.

    It also announced a $3.35 billion acquisition of cloud monitoring firm Chronosphere, which will be integrated into its Cortex AgentiX platform. The integration is expected to allow Palo Alto’s AI-driven systems to leverage Chronosphere’s data to detect performance bottlenecks and identify root causes.

    Together with a separate acquisition of identity security specialist CyberArk Software, the Chronosphere deal is projected to close in the second half of Palo Alto’s fiscal 2026.

    Nikkei extends decline on weak GDP

    Japan’s Nikkei index fell again, extending losses after data revealed that fourth-quarter economic growth undershot expectations.

    Official figures showed Japan’s GDP expanded at an annualized rate of 0.2% in the October–December quarter, far below forecasts of 1.6%. However, the result marked a rebound from the previous quarter’s 2.6% contraction.

    The data highlight the economic challenges facing Prime Minister Sanae Takaichi’s administration following its recent electoral victory. Although the government has signaled plans for stimulus measures to support growth, persistent cost-of-living pressures continue to dampen domestic demand.

    Meanwhile, the Bank of Japan remains focused on managing sticky inflation and currency weakness. Policymakers have indicated they intend to continue gradually tightening policy after years of ultra-loose monetary conditions.

  • European shares mixed; miners’ results, nuclear discussions and UK jobs data in focus: DAX, CAC, FTSE100

    European shares mixed; miners’ results, nuclear discussions and UK jobs data in focus: DAX, CAC, FTSE100

    European equity markets were uneven on Tuesday as investors digested another wave of corporate earnings, fresh UK labour figures and developments surrounding U.S.-Iran nuclear negotiations.

    At 08:05 GMT, Germany’s DAX was down 0.1%. France’s CAC 40 added 0.2%, while London’s FTSE 100 advanced 0.3%.

    Mining earnings take centre stage

    The reporting season remains front and centre, with major mining groups drawing particular attention.

    BHP Group (LSE:BHP) posted better-than-expected first-half underlying profit, helped by robust copper earnings. For the first time, copper overtook iron ore as the company’s largest profit contributor, as prices for the metal climbed amid demand linked to artificial intelligence.

    Antofagasta (LSE:ANTO) also delivered record 2025 earnings, supported by firmer copper and by-product prices that lifted both profitability and operating cash flow. Annual revenue climbed 30%, reflecting stronger realised copper pricing and improved by-product contributions.

    Results are due this week from Europe’s largest diversified miners — Rio Tinto (LSE:RIO), Glencore (LSE:GLEN) and Anglo American (LSE:AAL) — alongside Antofagasta, at a time when several key metals are trading near recent highs.

    Outside the mining space, InterContinental Hotels (LSE:IHG) reported a 16% increase in adjusted earnings for 2025. However, revenue per available room in its Americas division fell 2% in the fourth quarter, marking the sharpest quarterly decline of the year as U.S. government and inbound international travel softened.

    Spanish gas grid operator Enagas (BIT:1ENG) returned to profitability in 2025, exceeding its financial objectives. Asset disposals, a higher arbitration award linked to its Peruvian investment and disciplined cost management supported performance.

    UK labour market shows signs of cooling

    Data released Tuesday indicated further easing in UK labour conditions, potentially strengthening the case for additional monetary easing from the Bank of England.

    The unemployment rate rose to 5.2% in the three months to December, up from 5.1% previously and the highest level since early 2021.

    Meanwhile, annual growth in regular pay excluding bonuses slowed to 4.2% in the final three months of 2025 compared with a year earlier, down from 4.4% in the period to November.

    “The lack of green shoots of recovery in the labor market and further fall in wage growth supports the idea that the Bank of England has at least a couple more interest rate cuts in its locker, with the chances of the next cut happening in March rather than April edging higher,” analysts at Capital Economics said in a note.

    Later in the day, Germany’s ZEW economic sentiment survey is expected to show improving confidence in Europe’s largest economy.

    Oil slips ahead of U.S.-Iran discussions

    Crude prices edged lower as markets evaluated potential supply risks from Iran ahead of indirect talks with the United States in Geneva aimed at addressing their long-standing nuclear dispute.

    Brent futures fell 0.7% to $68.15 per barrel, while U.S. West Texas Intermediate rose 0.6% to $63.12 per barrel. Monday’s U.S. public holiday meant there was no official settlement price.

    While diplomatic efforts are under way, reports suggest the U.S. military is preparing contingency plans for possible extended operations involving Iran. Tehran has also begun military exercises in the Strait of Hormuz, a key global shipping lane for oil exports from Gulf producers.

  • FTSE 100 today: Sterling Slides on Rising Jobless Rate and Slower Pay Growth; Index Edges Higher

    FTSE 100 today: Sterling Slides on Rising Jobless Rate and Slower Pay Growth; Index Edges Higher

    The pound weakened on Tuesday after fresh UK labour data showed unemployment ticking higher and wage growth cooling more sharply than expected. Equity markets, however, opened firmer in London, while major European indices were mixed.

    By 0811 GMT, the blue-chip FTSE 100 was up 0.3%, while sterling had fallen 0.5% against the dollar to 1.3573. Germany’s DAX slipped 0.06%, and France’s CAC 40 gained 0.2%.

    UK labour market update

    According to figures released by the Office for National Statistics, the UK unemployment rate rose to 5.2% in the three months to December, up from 5.1% previously and marking the highest reading since early 2021.

    At the same time, wage pressures continued to ease. Annual growth in regular pay, excluding bonuses, slowed to 4.2% over the same period, down from 4.5% in the prior three-month window.

    The combination of higher unemployment and moderating pay growth points to further softening in the labour market, potentially strengthening the case for additional interest rate cuts from the Bank of England at its upcoming meeting.

    Corporate highlights

    Antofagasta (LSE:ANTO) reported record EBITDA for 2025, supported by stronger copper and by-product pricing. Revenue increased 30% to $8.62 billion, while EBITDA rose 52% to $5.20 billion, lifting the margin to 60.3% from 51.8% a year earlier.

    Profit before tax came in at $3.16 billion, and earnings per share including exceptional items climbed to 134.8 cents from 84.1 cents. Operating cash flow rose 30% to $4.25 billion. The board proposed a final dividend of 48.0 cents per share, taking total annual dividends to 64.6 cents, equivalent to a 50% payout of underlying earnings.

    InterContinental Hotels Group (LSE:IHG) posted a 16% increase in adjusted EPS for 2025 to 501.3 cents, up from 432.4 cents a year earlier, and opened a record 443 hotels during the year.

    However, its Americas division experienced pressure, with fourth-quarter revenue per available room declining 2%, marking the sharpest quarterly drop of the year amid softer US government and inbound international travel. The board approved a new $950 million share buyback for 2026 after completing a $900 million programme in 2025, and proposed a 10% higher final dividend of 125.9 cents per share, bringing the full-year total to 184.5 cents.

    Coca-Cola Europacific Partners (LSE:CCEP) reported a 31% rise in operating profit for 2025 and announced a €1 billion share repurchase plan. Reported operating profit reached €2.79 billion, while comparable operating profit stood at €2.81 billion, up 5.4% on a comparable basis and 7.5% on a comparable, FX-neutral basis.

    Annual revenue increased 2.3% to €20.90 billion, with adjusted comparable FX-neutral revenue growth of 2.8%, according to preliminary unaudited figures.

  • Antofagasta Delivers Record 2025 EBITDA, Reaffirms 2026 Guidance as Shares Ease

    Antofagasta Delivers Record 2025 EBITDA, Reaffirms 2026 Guidance as Shares Ease

    Antofagasta (LSE:ANTO) posted record EBITDA for 2025, supported by stronger copper pricing and improved by-product contributions that lifted earnings and operating cash flow. Despite the solid performance, the shares fell more than 3% in early trade, with results broadly matching market expectations.

    Full-year revenue increased 30% to $8.62 billion, benefiting from higher realised copper prices and stronger by-product income. The total came in 2% ahead of consensus forecasts.

    EBITDA rose 52% year-on-year to $5.20 billion, approximately 1% above company-compiled consensus estimates. The EBITDA margin expanded to 60.3%, up from 51.8% in the prior year.

    Profit before tax reached $3.16 billion. Adjusted earnings per share of $129.3 exceeded consensus by 2%. Operating cash flow advanced 30% to $4.25 billion.

    The board recommended a final dividend of 48.0 cents per share, taking total 2025 distributions to 64.6 cents per share, equivalent to a 50% payout of underlying earnings.

    In a post-results commentary, Morgan Stanley analysts said Antofagasta’s full-year EBITDA was “just 1% above consensus” and broadly aligned with the bank’s own projections. The analysts added they expected “the shares to modestly outperform at the open.”

    Copper output for the year totalled 653,700 tonnes, representing a 2% decline compared with the previous year. Net cash costs fell 27% to $1.19 per pound, supported by stronger by-product credits.

    Capital expenditure reached $3.68 billion in 2025, up from $2.41 billion in 2024, reflecting continued investment in major development projects at Centinela and Los Pelambres. The balance sheet remained resilient, with net debt to EBITDA at 0.53x.

    Looking ahead to 2026, Antofagasta reiterated its copper production target of between 650,000 and 700,000 tonnes. Cash costs before by-product credits are expected in the range of $2.30 to $2.50 per pound, with net cash costs forecast between $1.15 and $1.35 per pound. Capital spending for the year is projected at approximately $3.4 billion.

  • ITM Power Upgrades FY26 Revenue Outlook Amid Solid Project Delivery

    ITM Power Upgrades FY26 Revenue Outlook Amid Solid Project Delivery

    ITM Power (LSE:ITM) has increased its revenue forecast for the 2026 financial year to between £40 million and £43 million, lifting the midpoint of guidance by around 11% from its prior £35 million to £40 million range. The revision reflects strong progress across projects and the implementation of percentage-of-completion accounting, enabling revenue recognition over the duration of contracts, including recently won agreements.

    While revenue expectations have moved higher, the company has kept its adjusted EBITDA and cash guidance unchanged, signalling continued discipline on costs and liquidity management. Management pointed to growth in its firm contract backlog and sustained momentum across its sales pipeline, reinforcing confidence in its commercial traction within the green hydrogen equipment market.

    Operational updates, including record first-half revenue and improving backlog quality, suggest forward momentum. However, the broader outlook remains weighed by ongoing losses and negative operating and free cash flow. The share price continues to trade below key moving averages, indicating a bearish technical backdrop. A relatively low-leverage balance sheet offers some support, but execution risks around profitability and cash timing persist in the near term.

    More about ITM Power

    ITM Power, founded in 2000 and listed on London’s AIM market since 2004, is a UK-based manufacturer of proton exchange membrane (PEM) electrolysers used to generate green hydrogen from renewable electricity and water. Headquartered in Sheffield, the company supplies technology aimed at supporting the transition to net-zero energy systems and advancing the global green hydrogen economy.

  • OptiBiotix Confirms Commitment to Affiliate Stakes as Cash Position and Orders Strengthen

    OptiBiotix Confirms Commitment to Affiliate Stakes as Cash Position and Orders Strengthen

    OptiBiotix Health (LSE:OPTI) has sought to reassure shareholders following recent developments at SkinBioTherapeutics, confirming it has no plans to dispose of its 5.64% holding in that business or its stake in ProBiotix Health. Management stated that recent share price volatility does not affect its long-term strategic investments and reiterated confidence in OptiBiotix’s own operational trajectory.

    The group reported an unaudited cash balance of just over £1 million as of 31 December 2025, compared with £739,000 a year earlier, and indicated that it does not anticipate the need for additional fundraising at present. Focus remains on driving revenue growth, expanding margins and lowering overheads across divisions. More than £800,000 of orders for 2026 have already been secured, while ecommerce activities — including Amazon and Chinese distribution channels — are either profitable or nearing breakeven.

    The board highlighted continued traction from its first-generation product portfolio and progress in launching next-generation offerings. In particular, developments within the SweetBiotix range and a significant 24-metric-tonne order from partner Meelung were cited as notable milestones. Leadership emphasised that tighter cost controls and clearer regional profit-and-loss accountability have positioned the company more strongly operationally, even amid broader market uncertainty.

    Despite commercial progress, the company’s outlook remains tempered by ongoing losses and sustained cash outflows, alongside weak share price momentum and a prolonged technical downtrend. A debt-free balance sheet offers some resilience, though valuation remains challenging given negative earnings and the absence of dividend support.

    More about OptiBiotix Health

    OptiBiotix Health is a UK-based life sciences business focused on microbiome science and the development of ingredients designed to prevent and manage chronic health conditions. Its portfolio includes prebiotic platforms such as SlimBiome, WellBiome, SweetBiotix and other microbiome modulators. The group also holds equity interests providing exposure to skincare innovations through SkinBioTherapeutics and probiotic solutions via ProBiotix Health, targeting global consumer healthcare markets.

  • Rockfire Intersects High-Grade Zinc and Germanium as Molaoi Resource Upgrade Progresses

    Rockfire Intersects High-Grade Zinc and Germanium as Molaoi Resource Upgrade Progresses

    Rockfire Resources (LSE:ROCK) has reported continued progress at its wholly owned Molaoi zinc project in Greece, where diamond drilling is under way to upgrade the existing resource from Inferred to Indicated status. The campaign has now completed its fifth drill hole, with recent assay results from hole HMO-010 confirming multiple high-grade zinc and germanium lodes. Further assay results are pending, while a second drill rig from contractor Geotest is still awaited to accelerate the programme.

    The latest findings reinforce the continuity and reliability of mineralisation at Molaoi. Management noted that valuable by-products — including germanium, silver and lead — contribute to an enhanced zinc-equivalent grade, supporting the project’s broader economic potential. Chief executive David Price highlighted that the grades strengthen Molaoi’s positioning as a potential future European supplier of critical minerals.

    Rockfire also emphasised that Molaoi is among the first European deposits to transition from a JORC Inferred classification into the United Nations Framework Classification for Resources (UNFC). The move is intended to improve regulatory alignment and technical transparency as the project advances, potentially enhancing credibility with investors and stakeholders.

    While operational progress is encouraging, the company remains pre-revenue and continues to report losses and negative free cash flow. A debt-free balance sheet and signs of improving operating cash flow provide some mitigation. Technical indicators for the shares are supportive, though valuation remains constrained by negative earnings and the absence of dividend support.

    More about Rockfire Resources PLC

    Rockfire Resources is a London-listed exploration company targeting gold, base metals and critical minerals. Its flagship asset is the high-grade zinc, lead, silver and germanium Molaoi deposit in Greece. The group also holds gold, copper and silver projects in Queensland, Australia, including the Plateau gold-silver deposit and the Marengo gold-silver-copper prospect, both subject to farm-in arrangements with ASX-listed partners, offering diversified commodity and geographic exposure.

  • Transense Core Divisions Drive Growth as Lower Royalties Weigh on Interim Revenue

    Transense Core Divisions Drive Growth as Lower Royalties Weigh on Interim Revenue

    Transense Technologies (LSE:TRT) reported unaudited interim results showing strong momentum across its core SAWsense and Translogik businesses, where combined revenue rose 39% to £1.25 million. However, total group revenue declined 8% to £2.26 million, reflecting lower royalty income from Bridgestone’s iTrack system and adverse currency movements.

    Despite the dip in headline revenue, the company remained cash generative. Gross margin held firm at 90%, profit before tax was close to breakeven and net cash stood at £0.92 million. Management also highlighted a strengthening order book and expanding project pipeline, signalling improving forward visibility.

    SAWsense delivered standout performance, with revenue surging 74% to £0.66 million. Growth was driven by programmes in aerospace, automotive, industrial and robotics markets. The division’s order book more than doubled, and it now has 23 funded projects under way with 17 customers, including major names such as GE and Airbus.

    Translogik reported 13% revenue growth to £0.59 million, supported by expanding SaaS-based tyre management deployments and new reseller agreements. The launch of its TLGi smart inflation product and upcoming EU digital life-cycle passport regulations are expected to support further demand. However, management acknowledged that customer adoption has been slower than initially anticipated and stressed the importance of disciplined execution.

    Executive Chairman Nigel Rogers said the group remains frustrated by the pace of order conversion but confident in its long-term strategy and growing pipeline. He added that Transense is well funded and anticipates stronger cash generation as recently secured contracts begin to scale. The interim results reflect an ongoing shift toward building scalable, high-margin sensor and tyre data platforms to counterbalance declining legacy royalty streams and enhance longer-term growth prospects.

    From an investment standpoint, the company benefits from solid operational metrics, high margins and low leverage. However, technical indicators remain weak, with the share price trading below key moving averages and momentum oscillators at subdued levels. On valuation, a price-to-earnings ratio of around 12.16 offers moderate support.

    More about Transense Technologies PLC

    Transense Technologies, headquartered in Oxfordshire and listed on AIM, specialises in advanced sensor and measurement technologies for mission-critical environments. Its SAWsense division develops patented Surface Acoustic Wave-based sensors for aerospace, automotive and industrial clients, including GE Aerospace, McLaren Applied and Airbus. The Translogik arm provides connected tyre inspection and data systems to global tyre manufacturers and fleet operators such as Bridgestone, Goodyear, Continental and Prometeon, while also receiving residual royalties from Bridgestone’s iTrack off-highway monitoring system under a licence extending to 2030.

  • Debenhams Group Targets £35m Equity Raise to Reduce Debt and Speed Up Restructuring

    Debenhams Group Targets £35m Equity Raise to Reduce Debt and Speed Up Restructuring

    Debenhams Group (LSE:DEBS) has outlined plans to raise approximately £35 million through an equity placing aimed at bolstering liquidity and reshaping its balance sheet. Directors have indicated their intention to subscribe for shares at 20 pence each. The company is also in detailed discussions with its lending syndicate regarding covenant revisions tied to the capital raise, with a goal of reducing its net debt-to-Adjusted EBITDA ratio to about 2x in FY27 and to below 1x by the end of that financial year.

    Management reaffirmed its expectation of delivering £50 million in Adjusted EBITDA for FY26, followed by double-digit growth in FY27. Trading trends show improving gross merchandise value, while cost-saving measures continue to take effect. The group stated that all of its brands are now profitable on an Adjusted EBITDA basis. As part of its transformation, Debenhams is accelerating a shift toward an asset-light structure, trimming lease commitments, capital expenditure and interest costs. Additional deleveraging options under review include intellectual property licensing, supply-chain collaborations and potential disposals of non-core assets to improve cash flow and financial flexibility.

    Despite strategic progress, the company’s outlook remains constrained by its financial history and valuation pressures. While recent share price action indicates some near-term positive momentum, overbought signals suggest caution. Corporate initiatives offer potential upside, but balance sheet repair and sustained profitability remain critical to restoring investor confidence.

    More about Debenhams Group

    Debenhams Group, trading as boohoo group plc, is a UK-based online retail platform specialising in fashion, home and beauty. The business operates digital brands including Debenhams, boohoo, PLT, MAN and Karen Millen, and is transitioning toward a marketplace-led, asset-light model designed to enhance scalability and capital efficiency.

  • Chesnara Agrees €110m Acquisition of Scottish Widows Europe to Enter Luxembourg

    Chesnara Agrees €110m Acquisition of Scottish Widows Europe to Enter Luxembourg

    Chesnara (LSE:CSN) has reached an agreement to acquire Luxembourg-based Scottish Widows Europe SA from Scottish Widows for €110 million in cash. The transaction will add approximately €1.7 billion in assets under administration and around 46,000 policies to Chesnara’s portfolio. The purchase price represents 0.64x Scottish Widows Europe’s 2024 Solvency II Own Funds and will be funded from internal resources. Completion is expected by the end of 2026, subject to regulatory approvals.

    The deal is forecast to deliver roughly €250 million in additional cash generation over the lifetime of the acquired portfolio, including around €100 million within the first five years. This is set to enhance Chesnara’s capital and cash profile following its recent acquisition of HSBC Life (UK). Strategically, the move marks the group’s entry into the Luxembourg insurance market, expanding its footprint as a European life and pensions consolidator. Pro forma metrics indicate a Solvency II ratio of approximately 173%, with leverage remaining below the company’s long-term ceiling of 30%, preserving headroom for further acquisitions.

    Chesnara’s investment outlook is supported by positive technical momentum and constructive corporate activity, signalling confidence in its consolidation strategy. While profitability and equity management remain areas of focus, the company continues to demonstrate improving financial performance. A relatively high dividend yield offers valuation support, despite a negative price-to-earnings ratio driven by accounting factors.

    More about Chesnara

    Chesnara plc is a London-listed European life and pensions consolidator administering roughly 1.4 million policies. The group operates in the UK under the Countrywide Assured and Chesnara Life brands, in the Netherlands through Scildon, and in Sweden via Movestic. Its strategy centres on efficient policy administration, disciplined capital management and value-enhancing acquisitions across European markets.