Author: Fiona Craig

European equities are showing a mixed performance on Thursday, with London’s FTSE 100 trailing its continental peers following another interest rate cut by the Bank of England, as economic challenges persist both domestically and abroad.

The Bank’s Monetary Policy Committee voted narrowly, 5-4, to trim the benchmark rate by 25 basis points to 4.00%, marking the fifth cut in a year and bringing rates to their lowest level since early 2023.

On the economic front, Germany reported a surprise rebound in exports in June, rising 0.8% month-over-month despite weaker shipments to the United States. This follows a 1.4% decline in May, according to Destatis. However, German industrial production fell 1.9% in the same month—sharply worse than May’s 0.1% dip and missing economists’ expectations for a 0.4% drop.

In the UK, Halifax reported that house prices climbed 0.4% in July compared to June, exceeding forecasts.

Across the major indices, the FTSE 100 is down 0.8%, weighed by monetary policy developments, while the CAC 40 has gained 1.1%, and Germany’s DAX is up 1.6%.

Among notable movers:

A.P. Moller-Maersk (TG:DP4A) rose more than 3% after the Danish shipping giant upgraded its 2025 guidance following solid Q2 earnings.

United Internet (TG:UTDI) slipped 1.7% despite posting a modest profit increase in the first half.

Valneva (EU:VLA) jumped 6% as the U.S. FDA lifted its recommendation to pause the use of its IXCHIQ vaccine.

Henkel (TG:HEN3) advanced 2.2% after the consumer goods maker raised its full-year margin guidance.

Rheinmetall (TG:RHM) tumbled 5.2% following disappointing second-quarter revenue figures.

Siemens (TG:SIE) gained 1.2% after surpassing expectations for both revenue and new orders in Q3.

Allianz (TG:ALV) surged 5.4% thanks to stronger-than-expected second-quarter earnings and reaffirmed full-year profit targets.

Deutsche Telekom (TG:DTE) dropped 3% after reporting weaker performance in its domestic market during Q2.

Swisscom (TG:SWJ) moved 1.5% higher following a positive half-year revenue report.

In the UK, WPP (LSE:WPP) slid 3.7% after announcing a 48% plunge in operating profit for the first half.

Serco Group (LSE:SRP) rallied nearly 8% after strong mid-year earnings and confirmation of its FY25 outlook.

Hikma Pharmaceuticals (LSE:HIK) fell nearly 7% after the company revised down margin expectations for its injectables division.

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 are pointing to a higher open on Thursday, suggesting that major indexes may continue the strong upward momentum seen in Wednesday’s session.

Investors are reacting to former President Donald Trump’s announcement of a new 100% tariff on imported chips and semiconductors. However, Trump emphasized that companies manufacturing domestically would not be affected.

“The good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” Trump said.

“So in other words, we’ll be putting a tariff on of approximately 100 percent on chips and semiconductors,” he added. “But if you’re building in the United States of America, there’s no charge.”

Trump’s remarks were made during a joint appearance with Apple (NASDAQ:AAPL) CEO Tim Cook, who confirmed the tech giant plans to inject an additional $100 billion into U.S. operations.

Following a strong performance on Wednesday, Apple shares are continuing to climb in premarket trading, up 2.8%.

Meanwhile, Intel (NASDAQ:INTC) is under pressure, dropping 3.1% premarket after Trump criticized the company’s leadership. He called for CEO Lip-Bu Tan to step down, referring to him as “highly conflicted.”

On Wednesday, stocks built on early gains and extended higher through the day. The Nasdaq led the advance with a 252.87-point rise, or 1.2%, closing at 21,169.42. The S&P 500 followed with a gain of 45.87 points, or 0.7%, ending at 6,345.06. The Dow Jones Industrial Average posted a smaller increase of 81.38 points, or 0.2%, finishing at 44,193.12.

Apple played a major role in lifting markets, surging 5.1% after reports that it would officially unveil a new $100 billion U.S. investment plan during a White House event.

“Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security,” White House spokesperson Taylor Rogers told CNN.

Later, Tim Cook appeared alongside Trump to announce Apple’s increased commitment, raising its total planned U.S. investment over four years to $600 billion.

Earnings results from other major companies also boosted investor sentiment. McDonald’s (NYSE:MCD) jumped 3.0% after beating second-quarter earnings and revenue estimates.

Shopify (NYSE:SHOP) soared by 22.0% after the e-commerce firm posted stronger-than-expected Q2 revenue and issued a positive outlook for Q3.

However, not all earnings news was welcomed. Super Micro Computer (NASDAQ:SMCI) plunged 18.3% after the company reported weak Q4 results and offered a disappointing forecast for Q1. Snap (NYSE:SNAP) fell 17.2% on a Q2 revenue miss, while Disney (NYSE:DIS) also retreated after delivering mixed Q3 results.

Several sectors showed strong performances. Networking stocks stood out, with the NYSE Arca Networking Index jumping 5.6% to a new record close. Arista Networks (NYSE:ANET) was a standout, climbing 17.5% on better-than-expected earnings and improved guidance.

Retail stocks were also in demand, as the Dow Jones U.S. Retail Index climbed 2.8%. Gains were seen across gold and airline sectors as well.

In contrast, pharmaceutical stocks lagged behind, with the NYSE Arca Pharmaceutical Index falling 1.9%.

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.

Just Group PLC (LSE:JUST) released its first-half 2025 financials on Thursday, revealing a mixed performance as sales dropped 13% and pre-tax profits fell 12%, missing analyst forecasts by 16%.

The retirement income provider, which recently agreed to a takeover deal, experienced a 13% sales decline across both its retail annuities and bulk business segments. Notably, the bulk segment saw lower revenue despite an increased number of transactions, suggesting smaller average deal sizes.

The shortfall in profits was largely due to “higher CSM transfers from the profit and loss account linked to revised future cash flow assumptions,” the company explained.

On a brighter note, organic capital generation grew 12%, surpassing consensus estimates by 104%. However, this was mainly driven by management initiatives that contributed about five times more than anticipated, while the underlying cash flow increased by just 9%, falling slightly short of expectations by 2%.

New business margins came in at 7.5%, missing forecasts by 0.7 percentage points, and the Solvency II capital coverage ratio stood at 198%, 3 points below the consensus estimate.

Other performance indicators showed a mixed bag: retirement income sales outperformed forecasts by 1.0%, defined benefit sales exceeded estimates by 1.6%, while Guaranteed Income & Life (GIfL) and Care sales fell short by 0.8%.

Dividends per share were in line with market expectations, and tangible net asset value per share met consensus projections.

Given the recent takeover announcement, the market impact of these results is expected to be limited as the company prepares for the transition to new ownership.

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 traded with mixed results on Thursday as investors processed a fresh batch of quarterly corporate earnings ahead of the Bank of England’s upcoming policy announcement.

By 07:05 GMT, Germany’s DAX edged up 0.1%, France’s CAC 40 rose 0.3%, while the U.K.’s FTSE 100 slipped 0.2%.

This earnings season continues to reveal the financial health of companies, with Q2 results so far providing some relief to investors concerned about the effects of trade tensions on business performance. Notably, this is the first reporting period reflecting the impact of President Donald Trump’s tariff-driven trade disputes. Following the recent EU-U.S. trade agreement, analysts have generally increased their earnings growth expectations for the quarter.

Key Corporate Updates

Shipping giant AP Moeller-Maersk (USOTC:AMKAF), often seen as a barometer for global trade flows, beat expectations with its Q2 operating profit and raised its profit forecast for the full year.

German insurer Allianz (TG:ALV) posted a record operating profit in the quarter, supported by strong gains in its Property-Casualty division, driven by higher insurance income and better underwriting results.

Telecom leader Deutsche Telekom (TG:DTE) maintained its full-year profit outlook after reporting Q2 core earnings in line with forecasts, citing ongoing expansion in both its German and U.S. markets.

Siemens (TG:SIE) delivered industrial profit matching estimates for the quarter, though the weaker dollar weighed on its overall performance.

Defense contractor Rheinmetall (TG:RHM) reported slightly below-expected Q2 sales partly due to delays in German defense contract awards but reaffirmed its full-year guidance.

Bank of England’s Rate Move Anticipated

Outside of corporate results, market attention turns to the Bank of England’s policy meeting scheduled later in the day. Most analysts expect a further quarter-point interest rate cut, marking the fifth reduction over the past year.

Investors will closely monitor the central bank’s outlook, as policymakers balance a cooling labor market against persistent inflation concerns.

Industrial Output and Tariff Developments

Earlier Thursday, data showed Germany’s industrial production dropped 1.9% in June, exceeding forecasts, as the temporary boost from companies accelerating shipments ahead of U.S. tariffs faded.

Tariffs remain a focal point for investors, especially after President Trump announced late Wednesday via social media that new trade tariffs on several major economies would take effect at midnight.

Last week, Trump detailed tariffs ranging from 15% to 50% targeting key U.S. trading partners. On Thursday, he further increased tariffs on India to a cumulative 50%, citing its ongoing purchases of Russian oil.

Trump also declared plans to impose roughly 100% tariffs on imported semiconductors but exempted chipmakers with domestic production facilities.

Oil Prices Recover Amid Mixed Signals

Oil prices rebounded Thursday, buoyed by indications of robust U.S. demand despite lingering concerns over the broader economic impact of tariffs and the possibility of renewed Russian crude supply entering global markets.

At 03:05 ET, Brent crude futures climbed 0.7% to $67.33 per barrel, while U.S. West Texas Intermediate crude rose 0.7% to $64.81 per barrel.

Support came from a larger-than-expected decline in U.S. crude inventories last week. The Energy Information Administration reported Wednesday that stockpiles fell by 3 million barrels for the week ending August 1, surpassing analysts’ modest draw projections.

Both benchmarks had hit eight-week lows on Wednesday after a five-day losing streak, spurred by Trump’s comments on progress in talks with Moscow aimed at ending the Ukraine conflict, which could lead to a resumption of Russian oil exports.

Still, the U.S. is preparing secondary sanctions, potentially targeting China, to pressure Moscow into halting its military operations in Ukraine.

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 nudged higher Thursday following the activation of President Donald Trump’s newest wave of tariffs, which target a broad range of countries and aim to reshape longstanding global trade arrangements. In parallel, Apple committed to ramping up manufacturing investments in the U.S., while Trump hinted at a possible 100% tariff on semiconductor imports but suggested exemptions for companies that expand domestic production. Meanwhile, Toyota (NYSE:TM) lowered its full-year operating profit forecast, attributing the revision largely to tariff-related expenses.

Futures Gain Ground

By 2:45 a.m. ET, Dow futures had inched up 34 points (0.1%), the S&P 500 futures gained 17 points (0.3%), and Nasdaq 100 futures rose 67 points (0.3%). The previous session saw the main indexes on Wall Street climb, buoyed by solid earnings reports, including strong results from McDonald’s (NYSE:MCD). Apple shares (NASDAQ:AAPL) also rose sharply after announcing increased U.S. manufacturing investments (details below).

Following Wednesday’s trading, the S&P 500 recovered from a dip caused late last week by weaker-than-expected employment data.

Vital Knowledge analysts commented, “The easiest explanation is that nothing happened to alter the current trend (which has been to the upside); the burden of proof is on the bears to shift the market’s mood, and (so far) they’ve failed to do so.” They further noted that hopes the Fed would lower interest rates in response to soft job figures have also bolstered investor confidence. Several Fed officials recently signaled they may consider cutting rates at the upcoming meeting to address a cooling labor market, despite lingering concerns tariffs could stoke inflation.

Trump’s New Tariffs Take Effect

Just after midnight Eastern time, Trump’s expanded tariffs went live, impacting over 90 countries as part of the administration’s ongoing trade overhaul.

Some countries, such as Bolivia and Nigeria, now face a 15% tariff, while others including Taiwan are subject to a 20% duty. Brazil and India face even steeper tariffs — partly due to political factors like Brazil’s prosecution of Trump ally Jair Bolsonaro and India’s purchase of Russian oil.

A number of trading partners, including the UK, EU, Japan, South Korea, and Vietnam, negotiated preliminary trade deals with Washington before the tariffs began, resulting in tariff rates between 15% and 20%. In exchange, they agreed to open markets to U.S. goods and, in some cases, pledge investments in the U.S.

Meanwhile, the existing 30% tariff on Chinese goods remains in place following a trade truce earlier this year but is set to expire August 12.

Trump also threatened a 100% tariff on semiconductor imports to encourage reshoring of chip manufacturing, but “companies who promise to invest and build in the U.S. will be exempted.”

Apple Commits to U.S. Investment

At the White House, Apple CEO Tim Cook announced plans to invest an additional $100 billion in the U.S., emphasizing the company’s goal to expand its American manufacturing footprint and bring back more of its supply chain.

Cook said he was taking Trump’s call to reshore operations “very seriously.”

Apple shares jumped over 2% in after-hours trading Thursday, following a more than 5% gain the day before.

Earlier this year, Apple revealed plans to invest $500 billion in the U.S., aiming to hire around 20,000 workers over four years and build a new facility in Texas focused on machines for artificial intelligence development.

Despite Trump’s May threat of a 25% tariff on imported smartphones, Apple has yet to fully shift iPhone production to the U.S., instead moving some manufacturing from China to countries like India and Thailand.

Toyota Cuts Profit Outlook Amid Tariff Pressure

Shares of Toyota dipped after the automaker lowered its fiscal year operating profit forecast by 16%, citing an expected $10 billion cost from U.S. tariffs on imported vehicles, rising input costs, and a stronger yen.

Toyota now expects 3.2 trillion yen in operating profit for the year ending March 2026, down from 3.8 trillion yen. U.S. tariffs alone are projected to reduce income by 1.4 trillion yen (about $9.5 billion), a much higher estimate than previously forecast.

The forecast cut and a dip in first-quarter profit highlight the challenges foreign automakers face from Trump’s aggressive trade policies.

However, demand remains strong: Toyota posted record global sales for the first half of the year, and its operating profit of 1.17 trillion yen in Q1 beat analyst expectations.

China’s Export Growth Remains Strong

China’s exports grew faster than expected in July, despite a decline in shipments to the U.S., indicating that tariffs have yet to severely impact a vital part of the Chinese economy.

Exports rose 7.2% in dollar terms compared to last July, up from 5.8% in June, according to Thursday data from China’s General Administration of Customs.

Meanwhile, exports to the U.S. dropped 22% year-over-year in July, following declines of 16% and 35% in June and May.

The figures suggest that although U.S.-China trade tensions have eased somewhat, China has managed to sustain exports by shipping to other global markets — a key factor supporting economic activity amid sluggish domestic consumer demand and a prolonged property slump.

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 prices inched higher Thursday, driven by increased safe-haven buying following renewed tariff threats from U.S. President Donald Trump and softer U.S. economic indicators, which have fueled expectations of an interest rate cut by the Federal Reserve.

By 04:30 ET (08:30 GMT), Spot Gold climbed 0.1% to $3,373.80 per ounce, while December Gold Futures rose 0.4%, reaching $3,447.90 per ounce.

Trump’s Semiconductor Tariff Warning

Investor interest in gold was supported after President Trump announced plans to impose a 100% tariff on semiconductor imports from certain countries unless they boost chip manufacturing within the U.S. This move aims to encourage domestic production but raised concerns over possible disruptions to global supply chains and the risk of increased inflation.

Additionally, Trump signed an order doubling tariffs on Indian imports to 50%, citing India’s ongoing purchases of Russian oil. Announcing the reciprocal tariffs on his social media platform late Wednesday, Trump confirmed they would take effect at midnight, contributing to market uncertainty.

The anticipation of rising costs and heightened trade tensions bolstered gold’s appeal as a traditional safeguard against inflation and economic instability.

Growing Expectations for Fed Rate Cuts

Gold’s rally also reflected rising market sentiment that the Federal Reserve could start cutting interest rates as soon as September. Recent data highlighted a slowdown in the U.S. services sector during July, compounding last week’s weaker-than-expected nonfarm payroll numbers.

Investors are awaiting weekly initial jobless claims later Thursday, with forecasts pointing to a modest increase of 3,000 claims to 221,000 for the week ending August 2, reinforcing concerns over a cooling U.S. economy.

According to CME’s FedWatch Tool, markets now assign a 95% probability to a rate reduction next month. Lower rates tend to make non-interest-bearing assets like gold more attractive by reducing their opportunity cost.

Metals Rise on Positive China Trade Data

Other metals also saw gains, with Platinum Futures advancing 1% to $1,353.70 per ounce and Silver Futures up 0.9% at $38.25 per ounce.

Copper prices increased as well, with London Metal Exchange Copper Futures rising 0.3% to $9,719.20 per ton, and U.S. Copper Futures gaining 0.5% to $4.4328 per pound.

The market also responded to Chinese trade figures showing a robust export surge, suggesting easing tensions between the U.S. and China on trade issues.

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 slipped slightly on Thursday, as rising expectations of interest rate cuts by the Federal Reserve and ongoing trade concerns weighed on sentiment.

By 04:10 ET (08:10 GMT), the U.S. Dollar Index, which measures the greenback’s strength against six major currencies, was down 0.1% at 97.877, extending losses after a 0.6% drop in the previous session.

Jobless Claims in Focus

The dollar has come under pressure following a weaker-than-expected U.S. employment report last week. That bearish tone was reinforced earlier this week by soft data from the services sector, fueling speculation that tariffs implemented under the Trump administration are beginning to take a toll on economic momentum.

Traders are now looking to the upcoming weekly initial jobless claims report, expected later today. Economists anticipate a rise of 3,000 claims to a total of 221,000 for the week ending August 2.

Market participants are increasingly convinced that the Fed will ease policy at its next meeting, with FedWatch data from the CME Group showing a 94% probability of a rate cut in September, compared to 48% just a week earlier. In total, markets are now pricing in 60.5 basis points of cuts by year-end.

Trade Tensions, Institutional Concerns Pressuring Dollar

Investor anxiety remains elevated over the trade front, particularly after President Donald Trump announced late Wednesday on social media that new tariffs on major economies will come into effect at midnight.

The dollar is also being influenced by growing concerns about political interference in key U.S. institutions. Trump recently dismissed the official in charge of labor statistics, and must now fill a vacancy on the Fed’s Board of Governors. He is also considering candidates for the role of Fed Chair.

“We think the nomination of Kevin Hassett, who is considered the frontrunner, is a negative event for the dollar due to his dovish views and greater perceived exposure to Trump’s influence compared to the other main candidate, Kevin Warsh,” said ING in a note.

Euro Rises on Hopes for Ukraine Truce

The euro gained ground against the dollar, with EUR/USD up 0.2% to 1.1689, supported by headlines suggesting that Trump could meet Russian President Vladimir Putin as early as next week as part of renewed diplomatic efforts to end the war in Ukraine.

“Trump’s optimism on a Ukraine-Russia truce is likely feeding into euro strength, which stands in complete opposition to the dollar on the matter,” ING commented. “Should a truce become a more tangible prospect, EUR/USD and EUR/CHF are expected to serve as the primary channels for euro appreciation.”

However, not all European data was supportive. Figures released earlier Thursday showed that Germany’s industrial production dropped 1.9% in June, exceeding expectations and suggesting the boost from companies rushing to beat U.S. tariffs may be fading.

Sterling Climbs Ahead of BoE Decision

The British pound edged up 0.2% to 1.3378, ahead of the Bank of England’s policy meeting later today.

Markets widely expect the central bank to lower its benchmark interest rate to 4% from 4.25%, marking the fifth rate cut over the past 12 months.

Investors are particularly focused on the BoE’s forward guidance as policymakers navigate between a weakening labor market and persistent inflation pressures.

“The reaction in sterling will be primarily driven by the vote split; expect dissenters on both sides,” said ING. “At least one member (Catherine Mann) should vote for a hold, and might be joined by two more (Huw Pill and Megan Greene), although this is not our base case. Arch-dove Swati Dhingra should vote for 50bp, with some risks of fellow dove Alan Taylor joining her.”

Yuan and Aussie Dollar Supported by Trade Data

In Asia, USD/JPY fell 0.3% to 146.94, despite conflicting reports indicating that Washington may layer new 15% tariffs on top of existing levies targeting Japanese imports.

Meanwhile, the Australian dollar rose 0.4% to 0.6526, supported by stronger-than-anticipated June trade figures. A 6% jump in exports helped the country recover from a previous slump in outbound shipments.

The Chinese yuan also strengthened, with USD/CNY down 0.1% to 7.1788. While China’s overall trade surplus shrank more than expected in July, a 7.2% surge in exports helped offset concerns. Local exporters appeared to benefit from a temporary trade truce with Washington. Imports also unexpectedly rose 4.1%, suggesting resilience in domestic demand despite broader headwinds.

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 prices regained some ground in early Asian trading on Thursday, following a sharp drop the day before, as geopolitical tensions and new U.S. tariffs sparked expectations of tighter global supplies.

The rebound came after U.S. President Donald Trump announced a steep tariff hike on Indian imports, citing India’s continued purchases of Russian oil. The announcement triggered speculation that supply chains could be disrupted, especially if major buyers are forced to diversify away from Moscow’s barrels.

Brent crude futures for October climbed 0.9% to $67.48 per barrel, while West Texas Intermediate (WTI) rose 0.9% to $63.98 by 21:43 ET (01:43 GMT).

Trump Moves Against India, Eyes China Next

In a move aimed at increasing pressure on the Kremlin, Trump signed an executive order on Wednesday raising tariffs on Indian imports to a cumulative 50%, set to take effect 21 days after August 7. The White House cited India’s ongoing Russian oil imports as justification for the decision.

Trump also warned that China could face similar penalties over its energy trade with Russia. Both countries are among the largest global importers of oil.

The tariff escalation forms part of Washington’s broader strategy to squeeze Moscow’s wartime revenues. In parallel, top U.S. officials arrived in Moscow this week to continue ceasefire negotiations, with Trump potentially meeting President Vladimir Putin in the near future to discuss the Ukraine conflict.

These developments raised concerns about disruptions in the global oil market, should major buyers pivot away from Russian supply and compete for alternative sources.

Analysts Caution Over Timing and Negotiations

While the move pushed oil prices higher, analysts at ANZ pointed out that the 21-day grace period for the Indian tariffs might allow room for diplomatic talks to defuse the situation.

Oil Still Faces Broader Market Headwinds

Despite Thursday’s recovery, oil prices remain under pressure from persistent worries over weakening global demand and rising OPEC+ output.

The OPEC+ group recently agreed to raise production levels significantly in September, continuing to reverse earlier output cuts that had supported prices. The increase comes as member states seek to recover lost revenues amid sluggish oil prices.

Meanwhile, soft economic data from both the U.S. and China have heightened concerns about slowing global consumption, further weighing on market sentiment.

There was, however, a glimmer of optimism from U.S. inventory data: crude stockpiles unexpectedly fell by 3 million barrels last week, versus expectations for a modest 0.2 million barrel increase, suggesting domestic demand may still be holding up.

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.

Shares in Vanquis Banking Group PLC (LSE:VANQ) climbed 9.9% in early trading on Thursday, following news that the specialist lender had returned to profit in the first half of 2025, marking a significant milestone in its ongoing turnaround strategy.

The bank reported statutory pre-tax profits of £6.2 million for the six months ended 30 June, a notable rebound from the £46.1 million loss posted during the same period last year. This performance marks two consecutive profitable quarters for the group.

Return on tangible equity improved to 3.1%, while gross customer interest-earning balances rose by 7% to £2.46 billion, reflecting growing lending activity.

Chief Executive Ian McLaughlin said the bank is “firmly on track” with its transformation strategy, crediting the progress to sound credit quality, cost discipline, and advancements in its Gateway technology programme.

The cost-income ratio improved to 62.5%, aided by £15 million in transformation-related savings and a 36% drop in complaint-related expenses, reinforcing efforts to streamline operations and enhance service quality.

Vanquis also clarified its position regarding the UK Supreme Court ruling on motor finance, stating it did not engage in discretionary commission arrangements similar to those scrutinized in the Johnson case. The group emphasized that its commission disclosures were more transparent than those deemed unfair by the court.

The bank remains well-capitalised, boasting a liquidity coverage ratio of 366% and a Tier 1 capital ratio of 18.5%, signalling strong financial resilience as it continues executing its turnaround plan.

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.

Shares in Epwin Group PLC (LSE:EPWN) surged by 29.8% after the company confirmed it has agreed to a £167.3 million all-cash acquisition by the UK subsidiary of German construction conglomerate Laumann Group.

The deal, which prices Epwin at 120 pence per share, reflects a significant premium over its recent trading value and equates to roughly 6.1 times the company’s forecasted adjusted earnings for 2024.

The board of Epwin has unanimously recommended the offer. Laumann’s move signals a clear intention to deepen its footprint in the UK building products sector, with the acquisition of Epwin viewed as a strategic entry point into a market seen as both resilient and expanding.

Citing Epwin’s strong portfolio of brands and the limited operational crossover between the two businesses, Laumann expressed confidence that the deal aligns well with its long-term growth ambitions.

Epwin, which manufactures low-maintenance, energy-efficient building materials, operates across the repair and maintenance, new build, and social housing segments of the construction industry. The company believes it stands to benefit from access to Laumann’s scale, technical expertise, and infrastructure post-acquisition.

Management also emphasized that the offer gives shareholders full liquidity at a valuation not seen in over eight years—a particularly appealing outcome amid the ongoing headwinds facing UK small-cap equities.

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.