Author: Fiona Craig

European stock markets moved mostly higher on Wednesday after U.S. inflation data met forecasts, reinforcing market confidence that the Federal Reserve will lower interest rates in September.

U.S. Treasury Secretary Scott Bessent has urged the Fed to keep the option open for a larger 50-basis-point cut next month, citing recent downward revisions to U.S. job growth.

In regional economic updates, Germany’s federal statistics office, Destatis, confirmed that the country’s consumer price index rose 2.0% year-over-year in July, matching June’s increase and in line with the preliminary estimate released on July 31.

By midday, the German DAX Index was up 0.8%, the French CAC 40 Index gained 0.5%, and the U.K.’s FTSE 100 Index added 0.2%.

Notable movers:

• RENK Group (TG:R3NK) rose 2.8% after the gearbox manufacturer posted stronger-than-expected second-quarter results.
• Thyssenkrupp Nucera (TG:NCH2) slipped 2% as the hydrogen equipment supplier disclosed an unexpected quarterly loss.
• E.ON (TG:EOAE) gained over 1% after reaffirming its full-year adjusted earnings guidance and reporting improved first-half performance.
• TUI (TG:TUI1) advanced 2.6% following a quarterly earnings beat.
• Persimmon (LSE:PSN) fell 3.3% as the British homebuilder flagged ongoing market headwinds and budget uncertainty.
• Beazley (LSE:BEZ) tumbled 9% after the insurer cut its forecast for full-year premium growth.
• Balfour Beatty (LSE:BBY) declined 3.6% despite posting strong first-half 2025 financial results.
• Hill & Smith (LSE:HILS) surged more than 10% on the back of robust interim earnings.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock index futures signaled a slightly higher open on Wednesday, suggesting Wall Street could extend the robust rally seen in the prior session.

Investors remain buoyed by expectations that the Federal Reserve will lower interest rates next month, following the release of consumer price inflation figures on Tuesday.

The data, which largely aligned with economists’ forecasts, has strengthened the market’s view that the Fed will cut rates by at least 25 basis points in September. U.S. Treasury Secretary Scott Bessent has urged policymakers to keep the option of a larger, 50 basis point cut on the table, citing recent weakness in the labor market.

According to CME Group’s FedWatch Tool, markets are now pricing in a 99.9% probability of a quarter-point rate reduction next month.

President Donald Trump has also continued to pressure Fed Chair Jerome Powell for rate cuts and recently warned he may allow a “major lawsuit” over renovations at the central bank’s headquarters to proceed.

Still, with no major U.S. economic releases scheduled for the day, trading activity could be more subdued. Attention will likely shift later in the week to reports on producer price inflation, retail sales, industrial production, and consumer sentiment.

After Monday’s choppy trading ended in modest losses, stocks staged a sharp rebound on Tuesday. The major indices more than recouped prior declines, with the S&P 500 and Nasdaq closing at fresh record highs. The Nasdaq surged 296.50 points, or 1.4%, to 21,681.90, the S&P 500 climbed 72.31 points, or 1.1%, to 6,445.76, and the Dow Jones Industrial Average advanced 483.52 points, or 1.1%, to 44,458.61 — all finishing near their session peaks.

The rally followed the Labor Department’s July consumer price index report, which showed a 0.2% increase after a 0.3% gain in June, matching expectations. Annual CPI growth remained at 2.7%, slightly below the forecasted uptick to 2.8%.

Core CPI, which excludes food and energy, rose 0.3% in July after a 0.2% increase in June — also in line with forecasts. On an annual basis, core inflation accelerated to 3.1% from 2.9%, above the expected 3.0%.

Despite the higher-than-expected core reading, traders remain confident that the data supports a September rate cut. “Although the Fed supposedly focuses more on the core number than on the headline number (in order to strip out the noisier components of inflation), we don’t believe that this report will deter the Fed from cutting rates next month,” said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

Sector-wise, airline stocks soared, with the NYSE Arca Airline Index jumping 9.3% to its highest close in five months. Semiconductor shares also rallied, as the Philadelphia Semiconductor Index gained 3.0%. Strength was evident across multiple sectors, including steel, housing, banking, and computer hardware, as the broader market moved higher.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European stock markets edged higher on Wednesday, following Wall Street gains after U.S. inflation data suggested a softer economic backdrop and raised expectations for easier monetary policy next month.

At 07:05 GMT, Germany’s DAX added 0.4%, France’s CAC 40 climbed 0.3%, and the U.K.’s FTSE 100 rose 0.2%.

Global sentiment buoyed by mild U.S. inflation

Investor sentiment received a lift on Tuesday after U.S. consumer prices increased only 0.2% in July, with an annual rise of 2.7%—a pace considered moderate enough to keep the door open for a potential Federal Reserve rate cut in September.

According to CME’s FedWatch tool, markets now assign roughly a 94% chance of a 25-basis-point reduction next month, up from 86% a day earlier and 57% a month ago. The news helped push the S&P 500 and the tech-heavy Nasdaq Composite to fresh record closes on Wall Street.

This positive momentum extended to Asia, with Japan’s Nikkei also hitting a new high, and the optimism carried into European trading.

German inflation remains controlled

In Europe, July data confirmed that German consumer prices rose 0.3% month-on-month, translating into a 2.0% annual increase, suggesting that inflation remains contained in the eurozone’s largest economy. Analysts note that inflation rates in major markets appear to be in a “Goldilocks” zone—not too hot to trigger aggressive central bank action, yet not too low to stall growth.

The European Central Bank had cut its key rate to 2% over the past year but held steady last month, projecting that inflation would remain near target in the medium term and reducing the need for immediate policy moves.

Corporate earnings continue to roll in

Quarterly results continued to shape market sentiment, even as earnings season nears its end.

• E.ON (TG:EOAE) saw first-half group earnings rise 13%, citing increased investment and stronger operational performance.
• RENK Group (TG:R3NK) reported second-quarter results that exceeded expectations, benefiting from steady European defense spending.
• Vestas Wind Systems (TG:A3LFGK) noted a 44% year-on-year drop in second-quarter turbine orders, as some clients delayed purchases amid policy uncertainty.
• Tui (TG:TUI1) lifted its full-year EBIT growth outlook after posting record third-quarter earnings, driven by strong performance in its Hotels & Resorts and Cruises segments.

Oil prices steady ahead of Trump-Putin meeting

Crude markets were mostly flat on Wednesday, as investors awaited a high-profile meeting between U.S. President Donald Trump and Russian President Vladimir Putin.

As of 03:05 ET, Brent crude futures dipped 0.1% to $66.09 a barrel, and U.S. West Texas Intermediate futures fell 0.1% to $63.11 a barrel. The Alaska meeting, scheduled for Friday, is expected to focus on the Ukraine war, which has been ongoing since February 2022 and has disrupted global energy markets.

Meanwhile, U.S. oil inventories, the world’s largest, rose by 1.52 million barrels last week, according to the American Petroleum Institute. Official data from the U.S. Energy Information Administration, due later in the day, may provide further insight into fuel demand as the summer travel season concludes.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold remained largely steady in Asian trading on Wednesday, buoyed by modest U.S. inflation data that fueled expectations of a Federal Reserve rate cut, while markets turned their attention to an upcoming U.S.-Russia meeting.

Spot gold traded mostly unchanged at $3,348.87 per ounce, with December gold futures also muted at $3,398.42/oz as of 01:59 ET (05:59 GMT).

Earlier in the week, gold had dipped sharply after President Donald Trump confirmed that gold bars would not be subject to tariffs, easing concerns about supply disruptions.

U.S. Inflation Data Boosts Odds of Fed Rate Cut

Tuesday’s release showed the U.S. consumer price index (CPI) rose 0.2% in July compared to June, down from a 0.3% increase the previous month. The annual inflation rate slowed to 2.7%, nearing the Federal Reserve’s 2% target.

Economists noted that the data indicate easing inflationary pressures, strengthening the case for a potential reduction in the Fed’s benchmark interest rate at its September meeting.

Lower rates reduce the cost of holding non-yielding assets like gold, making bullion more appealing to investors. Current market pricing implies more than a 90% chance of a September rate cut.

Trump-Putin Meeting in Focus

Geopolitical developments tempered gold’s upward momentum, with traders closely monitoring the planned Friday summit between Trump and Russian President Vladimir Putin in Anchorage.

The talks are expected to address the Ukraine conflict. Analysts say a constructive outcome could lessen demand for gold as a safe-haven asset, whereas any signs of failed negotiations or rising tensions might spur investors back into bullion.

Trump’s extension of the U.S.–China tariff truce by another 90 days also reduced gold’s safe-haven appeal.

Other Metals Remain Muted

Precious metals broadly showed limited movement on Wednesday, mirroring a subdued U.S. dollar following a sharp decline in the previous session.

Platinum futures were largely unchanged at $1,351.00/oz, while silver futures gained 0.5% to $38.24/oz.

On the copper front, London Metal Exchange copper futures inched up 0.1% to $9,842.65 per ton, while U.S. copper futures remained flat at $4.519 per pound.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil markets hovered near two-month lows in Asian trading on Wednesday as investors awaited a high-profile meeting between U.S. President Donald Trump and Russian President Vladimir Putin later this week.

Attention also turned to U.S. crude stockpiles, after industry figures revealed an unexpected increase in inventories in the world’s largest oil-consuming nation.

Crude showed little reaction to slightly weaker-than-expected U.S. consumer inflation data, which left market expectations largely unchanged for a Federal Reserve rate cut in September.

Brent crude for October delivery held steady at $66.13 a barrel, while West Texas Intermediate (WTI) futures dipped 0.1% to $62.41 per barrel by 21:39 ET (01:39 GMT).

U.S. inventories rise unexpectedly, API data shows

According to the American Petroleum Institute (API), U.S. crude stocks climbed by 1.5 million barrels in the week ending August 8, in contrast to forecasts for a 0.8 million barrel draw.

Such API readings often signal the trends that official data will later confirm, and this increase fueled concerns that U.S. fuel demand may be softening as the busy summer travel season winds down.

The U.S. Energy Information Administration (EIA) is scheduled to release its weekly inventory report later Wednesday, with analysts anticipating a modest draw of 300,000 barrels.

Both the EIA and OPEC, in their separate monthly reports, projected higher oil output in the months ahead—a factor weighing on prices this week. OPEC also slightly raised its forecast for global oil demand in 2026.

Rising supply and muted demand have weighed on crude prices throughout 2025, and looming U.S. sanctions against Russia have done little to arrest the decline.

Trump-Putin summit in focus

U.S. President Trump and Russian President Putin are set to meet in Alaska on Friday to discuss ways to end the conflict in Ukraine.

The summit comes amid Washington’s threats of stricter sanctions on Russia’s energy sector, including potential tariffs targeting major buyers such as India and China. Trump had previously proposed a 50% tariff on Indian oil imports.

The White House on Tuesday tempered expectations for a rapid resolution to the Ukraine conflict, signaling the possibility of protracted ceasefire negotiations and additional restrictions on Russian crude in the coming weeks.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar declined on Wednesday, extending its retreat after a modest inflation report strengthened expectations that the Federal Reserve could lower interest rates next month.

At 04:25 ET (08:25 GMT), the Dollar Index, which tracks the greenback against six major currencies, slipped 0.4% to 97.540, following a 0.5% drop in the previous session.

Markets Eye September Rate Cut

Data released Tuesday showed U.S. consumer prices rising only slightly in July, highlighting the limited effect of the Trump administration’s tariffs on inflation. This has boosted expectations that the Fed may cut rates at its next policy meeting.

Investors are now pricing in a 98% probability of a rate reduction in September, pressuring the dollar lower.

“At this stage, the dollar has few bullish arguments to hold onto. Upcoming surveys might paint a better activity picture, but it’s all about the jobs market now: a substantial recovery in the dollar from these levels appears realistic only if jobs figures turn significantly stronger,” analysts at ING said in a note.

The economic calendar is light for the day, though a producer prices gauge for final demand is scheduled for Thursday, followed by U.S. retail sales and consumer sentiment data on Friday.

“The proximity to the Trump-Russia summit on Friday and recent reassessment of the chances of an imminent ceasefire mean the dollar may not fall much further for now,” ING added.

Euro Rises Against Dollar

In Europe, the euro gained 0.3% to 1.1712 against the dollar, building on a roughly 0.5% rise in the prior session.

Spain’s EU-harmonized inflation for the past 12 months rose to 2.7% in July from 2.3% in June, while Germany’s equivalent remained at 1.8%.

“EUR/USD’s bullish case is stronger after yesterday’s US inflation report. However, a break above might be delayed until after the Trump-Putin meeting on Friday,” ING noted.

GBP/USD also climbed 0.4% to 1.3560, after data indicated that U.K. wage growth stayed elevated, reinforcing the Bank of England’s cautious stance on cutting rates.

Yen Strengthens Following PPI Data

Elsewhere, USD/CNY remained largely unchanged at 7.1763, after earlier declines this week following the U.S. and China’s announcement of a 90-day extension to their temporary trade agreement. U.S. officials said negotiations with Beijing will resume in the coming months.

USD/JPY fell 0.2% to 147.46, with the yen gaining after producer prices came in slightly stronger than expected, raising the possibility of additional rate hikes by the Bank of Japan.

AUD/USD advanced 0.4% to 0.6551, with the Australian dollar climbing despite the Reserve Bank of Australia cutting its benchmark rate on Tuesday—its third reduction this year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures rose Wednesday, pointing to further gains on Wall Street following soft inflation data that pushed the S&P 500 and Nasdaq Composite to record closing levels. Investors are awaiting Cisco Systems’ (NASDAQ:CSCO) earnings report, while Perplexity AI has launched a $34.5 billion bid to acquire Google’s Chrome browser.

Futures Signal Continuation of Rally

Futures tied to the main U.S. indexes climbed, suggesting Tuesday’s gains could continue. By 03:36 ET, S&P 500 futures were up 33 points (0.5%), Nasdaq 100 futures added 264 points (1.1%), and Dow futures increased 49 points (0.1%).

The prior session saw all three major indices rise over 1%, fueled by July’s consumer price growth matching June’s level. The data strengthened expectations that the Federal Reserve might cut interest rates next month, prioritizing labor market support over inflation containment.

“Inflation was broadly in line with expectations as tariffs continue to be largely absorbed within U.S. corporate profit margins. This gives the Fed the room to respond to the weaker jobs backdrop,” analysts at ING wrote.

The S&P 500 and Nasdaq set new closing highs, while yields on short-term Treasuries fell, reflecting the typical inverse relationship between yields and prices.

Cisco’s Earnings in Focus

Cisco Systems is first in a wave of companies reporting earnings for the quarter ending in July. Analysts expect results to exceed estimates, supported by “general strength” in Cisco’s firewalls and cybersecurity subscription business, according to Piper Sandler.

“Cisco is still experiencing net-momentum into the second half, with early networking prints a good signal for the space and 2026 likely a good refresh period,” said James Fish and his team.

Fiscal 2026 guidance will be “key,” particularly after Mark Patterson replaced Scott Herren as CFO. Herren retired in July, leaving after Cisco raised its fiscal 2025 outlook, counting on AI to maintain demand from cloud clients.

Analysts also highlighted that Splunk (NASDAQ:SPLK), acquired by Cisco for $28 billion in 2024, will now be included in organic results. The deal marked Cisco’s largest acquisition and a push to integrate AI more fully into operations.

Perplexity AI Targets Chrome

Perplexity AI has made a $34.5 billion all-cash offer to buy Google’s Chrome browser, aiming to leverage data from billions of users to train its AI models.

The bid comes amid ongoing antitrust scrutiny over Google’s search dominance. A U.S. judge ruled last year that Google had illegally monopolized search, paving the way for remedies including a Chrome sale, which could reshape digital advertising.

Perplexity, which previously bid for TikTok US amid U.S. regulatory concerns, has not disclosed how it would fund the offer. The startup was last valued at $14 billion and has raised around $1 billion from investors including SoftBank (USOTC:SFTBY) and Nvidia (NASDAQ:NVDA).

Ether Approaches All-Time High

Bitcoin (COIN:BTCUSD) inched higher, while Ether (COIN:ETHUSD) surged as much as 8.5% to $4,683, nearing its November 2021 peak of $4,861. Corporate buyers are increasingly stockpiling Ether, mirroring strategies used by Michael Saylor’s Strategy for Bitcoin accumulation.

Gold Rises Modestly

Gold prices climbed in early European trading on hopes of Fed easing and ahead of U.S.-Russia talks. Spot gold rose 0.3% to $3,359.54 per ounce, and December futures increased 0.3% to $3,408.22/oz by 03:35 ET.

Markets now see a 96% chance of a September rate cut, according to CME’s FedWatch Tool. Geopolitical developments moderated gains, as traders monitor Friday’s summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska to discuss Ukraine and potential ceasefire proposals.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

British equities edged higher on Wednesday, supported by a stronger pound against the dollar and key earnings reports from U.K. firms such as Persimmon and Evoke.

By 0800 GMT, the FTSE 100 had risen 0.1%, while the British pound gained 0.3% against the dollar, surpassing the 1.35 mark. In continental Europe, Germany’s DAX climbed 0.5% and France’s CAC 40 advanced 0.3%.

Persimmon Exceeds Margin Expectations

U.K. homebuilder Persimmon (LSE:PSN) posted an underlying operating margin of 13.1% for H1 2025, surpassing Jefferies’ estimate of 12.3%.

The company delivered 4,605 homes, in line with guidance for a second-half weighted year, while maintaining £123 million in cash. Its return on capital employed reached 11.2%, which Jefferies described as sector-leading.

Persimmon confirmed its full-year 2025 completions guidance of 11,000–11,500 homes, compared with Jefferies’ forecast of 11,553. The company also projected an underlying operating margin of 14.2%–14.5% for the full year.

Evoke Affirms FY25 Outlook

Evoke (LSE:EVOK) reiterated its 2025 revenue growth target of 5%–9% and forecasted EBITDA margins of at least 20%.

At the low end, this translates to around £368 million, roughly 3% above market expectations of £356 million. The company’s last-12-month EBITDA totaled £363 million. Q2 revenue grew 5%, supported by a 6% increase in online sales (7% at constant currency) and a return to growth in retail.

Beazley Shares Fall on Reduced Premium Growth Guidance

Shares of Beazley PLC (LSE:BEZ) fell over 8% after the U.K. insurer lowered its full-year premium growth forecast, citing weaker demand in cyber and property risk insurance.

The firm now expects gross written premiums to rise in the low-to-mid single digits, down from prior guidance of mid-single-digit growth. Profit before tax for H1 fell to $502.5 million from $728.9 million a year earlier.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Persimmon Plc (LSE:PSN) reported a strong performance for the first half of 2025, with new home completions rising 4% and underlying operating profit increasing by 13%. The company has sustained its growth by expanding its sales outlets and refining planning and operational strategies. Despite a challenging market, Persimmon remains on track to achieve its full-year completion targets and continues to invest in future growth, including land acquisitions and building safety enhancements. Operational discipline and a focus on self-help have contributed to higher sales and improved profitability, supporting the company’s ongoing growth trajectory.

About Persimmon

Persimmon Plc is a leading residential construction company in the UK, specializing in building new homes. The company emphasizes quality housing and operational efficiency, with strategies centered on land acquisition, planning, and vertical integration. Recent strategic actions, such as the sale of FibreNest, combined with financial stability, a reasonable valuation, and an attractive dividend yield, reinforce Persimmon’s strong position in the housing market and its potential for long-term growth.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Shoe Zone (LSE:SHOE) reported a challenging trading period for June and July 2025, driven by reduced consumer confidence and lower discretionary spending following the government’s October 2024 budget. As a result, footfall, revenue, and profits have declined, with the company now forecasting an adjusted profit before tax of £2.5 million, down from the previously expected £5 million. In response, Shoe Zone is pausing its current dividend policy. Despite these headwinds, the company remains committed to its strategy, marked by the opening of its 200th new format store, and maintains a debt-free balance sheet with higher cash reserves than the previous year.

About Shoe Zone

Shoe Zone is a UK-based footwear retailer offering affordable, quality shoes for the whole family. The company operates 271 stores, including 74 high street locations and 198 larger format outlets, employing around 2,150 people. Shoe Zone also provides a multi-channel shopping experience through its stores and online platform, shoezone.com, selling approximately 13.3 million pairs of shoes annually.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.