Author: Fiona Craig

Smith & Nephew (LSE:SN.) announced an 11.2% increase in trading profit for the first half of 2025 on Tuesday, driven by effective cost-cutting measures and a rebound in its U.S. business, which helped counterbalance softer demand from China.

The medical devices company posted a trading profit of $523 million for the six months ending June 28, surpassing analysts’ forecast of $496 million. The trading profit margin rose to 17.7%, up from 16.7% in the same period last year.

Revenue climbed to $2.96 billion compared to $2.82 billion a year earlier. Operating profit grew 30.6% year-over-year, reaching $429 million, while earnings per share increased to 33.5 cents.

Smith & Nephew also revealed plans for a new $500 million share repurchase program scheduled for the second half of 2025.

“This additional return of value will be undertaken in the second half of 2025 and reflects strong cash generation and balance sheet resulting from the 12-Point Plan transformation,” the company said in a statement.

Underlying revenue growth accelerated to 6.7% in Q2, with reported growth of 7.8% boosted by a 110 basis point positive impact from currency fluctuations.

Smith & Nephew confirmed its full-year guidance for 2025 remains unchanged.

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 of Capita plc (LSE:CPI) increased by 2.6% on Tuesday following the company’s report of robust results in its public sector division, alongside confirmation of its full-year outlook despite ongoing challenges in its contact center segment.

For the first half of 2025, Capita posted adjusted revenues of £1,154.8 million, a 4% decrease from £1,198.6 million in the same period last year, aligning closely with analysts’ consensus estimate of £1,161 million.

Nonetheless, adjusted operating profit surpassed expectations, reaching £42.6 million versus the forecasted £34.9 million, despite registering a 22% year-on-year decline.

The public sector business, which represents 62% of the group’s total revenue, experienced 4% growth driven by contract wins and expansions. This helped counterbalance a 20% drop in revenue within the contact center division, which has faced contract losses and lower telecommunications volumes.

“We are pleased to see good signs of momentum in the ongoing transformation of Capita, with a particularly strong performance in our Public Sector business, underscoring our important role in bringing innovation and fresh thinking to the challenge of delivering efficient public services,” said Adolfo Hernandez, Chief Executive Officer.

The value of contracts secured rose by 17% to £1,044.4 million compared to the first half of 2024, while the book-to-bill ratio improved from 0.7x to 0.9x.

Capita also reported an unweighted opportunity pipeline totaling £11.7 billion, which includes £4.4 billion related to higher technology-based projects.

The firm upheld its full-year guidance, anticipating flat adjusted revenues overall. However, it raised its growth outlook for the public sector to mid-single digits, while forecasting a mid-teen percentage revenue decline in the contact center segment.

Progress on cost reduction initiatives was highlighted, with £205 million in annualized savings achieved by July 31, 2025. The company remains on course to reach its £250 million savings target by December 2025.

Capita anticipates generating positive free cash flow by the end of 2025.

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 showed little movement during Tuesday’s Asian trading session, stabilizing after a recent steep decline driven by worries over growing supply and weakening demand as global economic challenges intensify.

Despite threats of additional U.S. sanctions targeting buyers of Russian oil, crude continued to face downward pressure, compounded by a firmer U.S. dollar.

By 21:23 ET (01:23 GMT), September Brent futures edged down 0.1% to $68.72 per barrel, while West Texas Intermediate (WTI) crude futures also slipped 0.1% to $65.23 per barrel.

Supply Glut and Slowing Demand Weigh on Oil

Brent and WTI prices fell to their lowest levels in a week, pressured by ongoing concerns about rising production volumes. Over the weekend, OPEC+ confirmed another production increase, adding 547,000 barrels per day for the second month running.

This marks the latest in a series of output hikes this year, as the coalition seeks to reverse the cuts implemented over the past three years and regain greater market share.

These production boosts signal higher supply levels ahead, even as worries mount over declining global demand due to slower economic growth.

The market’s anxiety was heightened by disappointing U.S. nonfarm payroll figures, suggesting a potential drop in fuel consumption from the world’s largest oil user. Additional uncertainty stemmed from concerns about the impact of President Donald Trump’s trade tariffs on the U.S. economy.

Adding to bearish sentiment, China — the world’s biggest oil importer — reported a sharper-than-expected slowdown in manufacturing activity last week, as indicated by weak purchasing managers index (PMI) data.

Although a stronger dollar exerted some downward pressure on crude, this was somewhat balanced by the weak U.S. economic indicators.

Sanctions on Russian Oil Buyers Keep Market on Edge

Last week saw some price support following President Trump’s threats to expand sanctions on countries importing Russian oil amid the ongoing Ukraine conflict.

Trump recently targeted Russia’s largest oil purchasers, China and India, with a 25% tariff imposed on India and warnings of harsher penalties if India did not halt its Russian crude imports immediately. He reiterated these threats on Monday.

The looming possibility of more stringent U.S. sanctions on Russian oil buyers has added a layer of support to oil prices, as such measures could tighten global supply even further.

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 remained steady during Tuesday’s Asian session, pausing after a three-day rally, as investors weighed rising expectations of a Federal Reserve interest rate cut and ongoing global trade disruptions.

Spot gold hovered near recent highs at $3,372.25 per ounce, showing little movement, while December gold futures held flat around $3,425.02/oz as of 01:00 ET (05:00 GMT).

Gold Benefits from Rate Cut Optimism, Trade Tensions

The precious metal extended gains over the past three sessions, with a sharp 2% surge on Friday, triggered by disappointing U.S. labor market data.

The July nonfarm payrolls report showed only 73,000 jobs added, far below market estimates. Additionally, earlier figures for May and June were revised downward, while the unemployment rate ticked up to 4.2%, amplifying concerns about a cooling U.S. economy.

In response, markets have ramped up expectations for Fed easing, now pricing in a 92% chance of a rate reduction in September, according to data from the CME FedWatch Tool.

With interest rates expected to drop, the appeal of non-yielding assets like gold typically increases, as the opportunity cost of holding them declines.

Although the U.S. dollar regained some ground following two sessions of sharp losses, gold remained attractive for international buyers due to the relatively weaker greenback.

Concerns over trade policies also bolstered bullion’s safe-haven demand. U.S. Trade Representative Jamieson Greer indicated that the broad tariffs targeting imports from nearly 70 countries—first introduced by President Trump—are unlikely to be rolled back, stoking fears of inflationary pressures.

Further unsettling markets were renewed tariff threats on India, sparked by its ongoing oil trade with Russia. These developments added to global economic uncertainty and supported safe-haven flows into gold.

Other Metals Mixed; Platinum Falls, Silver Inches Higher

In other metals trading, platinum futures slipped 0.5% to $1,335.65/oz, while silver futures rose slightly by 0.2% to $37.415/oz.

On the industrial side, benchmark copper futures on the London Metal Exchange climbed 0.3%, reaching $9,720.65 per ton. However, U.S. copper futures stayed mostly flat at $4.454 per pound.

Notably, U.S. copper prices plunged 20% last week, after Trump’s decision to exclude refined copper from a proposed 50% import tariff, sending shockwaves through the market.

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 regained some footing on Tuesday, recovering slightly after sliding in response to disappointing U.S. payroll data. Market participants are now weighing the likelihood of interest rate cuts by the Federal Reserve amid signs of economic deceleration.

As of 04:15 ET (08:15 GMT), the Dollar Index—tracking the greenback against a group of six major currencies—rose 0.2% to 98.765, bouncing off a one-week low hit earlier in the session.

Payroll Data Weighs, But Dollar Finds Support

Friday’s weaker-than-expected July jobs report triggered a sharp selloff in the dollar, as traders swiftly adjusted their expectations for monetary policy.

According to the CME FedWatch tool, the odds of the Federal Reserve lowering rates at its September meeting surged above 90%, a significant jump from the 63% probability priced in just a week earlier.

Goldman Sachs now projects that the Fed will initiate a series of three 25-basis-point rate cuts beginning in September. The investment bank also noted that “a 50 basis point move [is] possible if the unemployment rate climbs further in the next report.”

Adding to dovish expectations, San Francisco Fed President Mary Daly commented on Monday that weakening labor market signals and the absence of inflationary pressure from tariffs have shifted the risk outlook. She said, “given mounting evidence the U.S. jobs market is softening and no signs of persistent tariff-driven inflation, the risks are now skewed to more than two Fed cuts this year.”

Investors will also be eyeing the U.S. ISM services index for July, due later Tuesday. Analysts at ING noted in a client note: “For today, the U.S. focus is on the ISM services figure for July. A mild improvement is expected and could give the dollar a nudge higher.”

On a broader level, concerns about global trade continue to simmer. Fresh tariffs imposed last week by President Trump on imports from multiple nations have added to fears about the strength of global growth.

Euro Pressured by French Services Contraction

In Europe, the euro slipped, with EUR/USD down 0.3% to 1.1544 after weaker-than-anticipated economic data from France.

The latest HCOB France Services PMI came in at 48.5 for July, down from 49.6 in June, indicating a faster contraction and marking the sharpest decline since April. Political tension and subdued demand are eroding business confidence.

The eurozone’s June producer price index is due later Tuesday and is forecast to rise 0.6% year-on-year. The muted inflation outlook is likely to keep the European Central Bank on alert for downside risks to its 2% target.

“EUR/USD looks quite comfortable near the 1.1550 level and, in the absence of market drivers, may hang around that level for a while. We imagine buyers would return in the 1.1500/1520 area should the U.S. data weigh on EUR/USD today,” said ING.

Sterling was also slightly lower, with GBP/USD easing 0.1% to 1.3277, remaining within a narrow trading band.

Indian Rupee Hits Record Low on Trade Tensions

Elsewhere, USD/JPY edged 0.1% higher to 147.25, buoyed by stronger-than-expected services PMI figures out of Japan.

The Australian dollar ticked up 0.1% to 0.6468, while USD/CNY rose 0.1% to 7.1856 even as Chinese services PMI data outperformed expectations.

The Indian rupee came under sharp pressure, with USD/INR climbing 0.2% to 87.800 after reaching a new all-time high. The currency was rattled by President Trump’s threats of steep tariffs on India in retaliation for its purchases of Russian oil.

Last week, Trump announced a 25% tariff on Indian imports and warned of even tougher penalties ahead.

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 pushed higher on Tuesday, buoyed by optimism carried over from a strong Wall Street session, as investors evaluated fresh earnings reports and awaited key economic data from the eurozone.

By 07:02 GMT, Germany’s DAX was up 0.6%, France’s CAC 40 rose 0.3%, and the UK’s FTSE 100 added 0.5%.

The upbeat momentum followed a solid rebound in U.S. equities on Monday, where the S&P 500 jumped 1.5%, snapping a four-day losing streak. Markets took encouragement from growing speculation that the Federal Reserve could lower interest rates in September following disappointing U.S. jobs data last week.

Eurozone Economic Data in Focus

Optimism extended to European markets, helped by a recently signed trade agreement between the U.S. and the EU, which is expected to reduce corporate uncertainty in the coming months.

Traders are now awaiting the final July readings of the eurozone’s services and composite purchasing managers’ indexes, which are projected to confirm growth in the region’s services sector—key to lifting overall economic performance.

Additionally, inflation remains on the radar. Eurozone producer prices for June are due Tuesday, while French industrial output surprised to the upside, jumping 3.8% month-on-month in June.

BP Exceeds Expectations in Q2

A wave of corporate results also shaped the session.

BP (LSE:BP.) reported stronger-than-forecast second-quarter earnings, as the energy group bounced back amid recent turbulence in global oil and gas prices. The performance marks a step forward for BP in its ongoing effort to regain investor trust after lagging behind competitors in recent years.

Meanwhile, Diageo (LSE:DGE), the global spirits leader, projected that organic sales growth for fiscal 2026 will be broadly in line with fiscal 2025, despite the drag from U.S. tariffs. The company also raised its cost-saving goal to approximately $625 million.

German fashion brand Hugo Boss (TG:BOSS) reported quarterly operating profit that slightly exceeded expectations. Cost control efforts helped offset currency-related pressure from a stronger euro.

French-Swiss recruitment giant Adecco (BIT:1ADEN) posted a 28% drop in adjusted earnings per share for Q2, attributing the decline to squeezed profit margins, even as revenues began to stabilize and volumes improved across regions.

Medical device maker Smith & Nephew (LSE:SN.) delivered an 11.2% increase in trading profit for the first half of the year, bolstered by cost savings and a rebound in U.S. demand that helped counteract weaker performance in China.

Oil Prices Steady After OPEC+ Decision

Crude oil prices held steady early Tuesday after recent declines, following OPEC+’s decision to ramp up output despite an uncertain demand outlook.

As of 03:02 ET, Brent crude slipped 0.2% to $68.66 per barrel, while U.S. West Texas Intermediate dropped 0.2% to $66.16 per barrel.

Both contracts had fallen over 1% in Monday’s session—their fourth straight daily loss—reaching one-week lows.

OPEC and its allies, collectively known as OPEC+, agreed over the weekend to boost production by 547,000 barrels per day in September. The move represents an early and full reversal of a major production cut of around 2.5 million barrels per day, or roughly 2.4% of global oil demand.

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 climbed early Tuesday, pointing to continued momentum after Monday’s rally. While concerns persist over the state of the U.S. economy following disappointing labor data, optimism around corporate earnings and growing speculation of a potential Federal Reserve rate cut next month have kept investor sentiment afloat. Meanwhile, former President Donald Trump has sharpened his rhetoric on India’s Russian oil imports, threatening steep new tariffs. Palantir (NASDAQ:PLTR), on the other hand, jumped in after-hours trading after a strong quarter driven by surging government demand and a hike in its annual revenue forecast.

Futures Edge Higher

U.S. equity futures showed modest gains in the early hours of Tuesday trading, following a positive start to the week. Investors are weighing mixed signals from the economy against encouraging earnings reports.

As of 03:37 ET, Dow futures were up by 50 points (0.1%), S&P 500 futures rose 12 points (0.2%), and Nasdaq 100 futures added 63 points (0.3%).

Monday’s gains helped markets recover from a sharp drop at the end of last week, which had been triggered by soft job data and renewed trade concerns. Trump’s decision to fire the head of the Bureau of Labor Statistics over downward revisions to May and June employment figures added to the political drama and economic uncertainty.

Analysts at Vital Knowledge noted that signs of a weakening labor market could, paradoxically, increase the likelihood of a Fed rate cut in September. CME’s FedWatch Tool now puts the odds of a cut next month at around 90%, up from 63% a week earlier.

Earnings optimism is also playing a role in lifting sentiment. “[T]he fact we’re coming through a […] earnings season where management teams didn’t sound dramatically alarmed about economic conditions is giving investors some comfort,” analysts at Vital Knowledge wrote.

Trump Escalates Tariff Threats Toward India

On Monday, Trump took aim at India over its continued purchases of Russian oil, threatening to “substantially” increase tariffs on Indian goods.

In a sharp escalation, he suggested imposing a 25% reciprocal tariff on Indian exports and even hinted at levies as high as 100% on countries that remain major buyers of Russian oil, naming both India and China. Trump’s stance on Moscow has hardened, particularly following stalled negotiations over a ceasefire in Ukraine.

He also criticized India’s participation in the BRICS alliance, accusing the group of attempting to counterbalance U.S. influence globally.

Despite the pressure, Reuters reported that India has no plans to alter its oil purchases from Russia, citing long-standing diplomatic and economic ties. In response to the trade uncertainty, Indian government bonds dipped slightly in early trading, and some analysts now anticipate a rate cut from the Reserve Bank of India at its upcoming meeting.

Palantir Delivers Blowout Quarter

Shares of Palantir soared in after-hours trading after the company announced its strongest quarterly revenue since its 2020 public debut. Robust demand for its AI-enabled products, particularly from U.S. government agencies, fueled the results.

Recent initiatives by the White House to promote AI adoption, alongside increased Pentagon spending on software from alternative vendors, have played to Palantir’s strengths in defense and analytics.

Second-quarter revenue jumped 48% year-over-year to approximately $1 billion, with over 40% of that total attributed to U.S. government contracts. The Denver-based firm, co-founded by Peter Thiel, also surpassed expectations for adjusted earnings.

Palantir raised its full-year revenue guidance to a range of $4.14 billion to $4.15 billion, up from its previous forecast of $3.89 billion to $3.90 billion.

On Tuesday, investors will also be watching results from Caterpillar (NYSE:CAT) and Pfizer (NYSE:PFE) before the bell, followed by chipmaker Advanced Micro Devices (NASDAQ:AMD) after the close.

Services Sector Data in Focus

This week’s U.S. economic calendar is relatively light, though Tuesday brings a key update from the services sector. The Institute for Supply Management is set to release its non-manufacturing PMI, which is expected to inch higher to 51.5 in July from 50.8 in June.

A reading above 50 signals expansion. The ISM notes that readings above 49 typically align with broader economic growth. Given that services represent more than two-thirds of U.S. economic activity, investors are paying close attention to the data.

Also due Tuesday is a trade update on U.S. imports and exports for June. Preliminary GDP figures suggested imports fell last quarter, following a temporary spike earlier in the year linked to tariff-driven stockpiling.

China’s Services Sector Outperforms

In Asia, China’s services sector surprised to the upside in July. The S&P Global China General Services PMI climbed to 52.6, up from 50.6 in June and ahead of the 50.4 consensus estimate.

S&P Global attributed the improvement to strong domestic and international demand. Consumer-focused stimulus measures have supported domestic spending, while services exports remain relatively untouched by ongoing U.S. tariffs, which largely affect physical goods.

The upbeat services reading stood in contrast to recent weakness in China’s manufacturing data. Despite broader economic concerns, the services sector has been a consistent area of growth so far this year.

Note: Caixin is no longer sponsoring the S&P Global China PMI as of July.

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.

Diageo plc (LSE:DGE) announced its fiscal year 2025 results, showing a slight decline in net sales primarily caused by adverse foreign exchange impacts and restructuring costs. Nevertheless, the company achieved 1.7% organic net sales growth, supported by a balanced combination of volume increases and price adjustments. The ongoing Accelerate program is delivering increased cost savings with a sharpened focus on agility and operational efficiency. Despite continuing macroeconomic uncertainties affecting the spirits industry, Diageo remains committed to long-term growth through portfolio enhancement and financial strengthening.

Diageo’s robust financial performance and fair valuation are balanced by mixed insights from earnings calls and moderate technical indicators. The company’s stable financial position and strategic investments underpin a positive outlook in a challenging market environment.

About Diageo

Diageo PLC is a leading global alcoholic beverages company, renowned for its wide-ranging portfolio of premium spirits, beer, and wine brands. The company emphasizes innovation and market share expansion across diverse international markets.

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.

Zotefoams plc (LSE:ZTF) reported record interim results for the first half of 2025, with revenue rising 9% to £77.4 million and profit before tax increasing 37% to £11.4 million. The company has strengthened its market position through strategic realignment of its commercial functions around three global market verticals, alongside enhancements in manufacturing capacity, including a new facility in Vietnam developed in partnership with Seoheung Co. Ltd. These operational and strategic advances support sustainable growth prospects, despite expected sectoral slowdowns.

The outlook highlights robust cash flow and favorable corporate developments, although weak technical indicators and challenging valuation metrics temper enthusiasm. While strong revenue growth and strategic progress are encouraging, ongoing profitability pressures and a high dividend yield suggest caution. Technical trends point to a cautious near-term stance.

About Zotefoams

Zotefoams plc is a global leader in supercritical fluid foam technology, offering advanced material solutions across industries. Its environmentally friendly nitrogen expansion process produces lightweight, high-performance foams for markets including Consumer & Lifestyle, Transport & Smart Technologies, and Construction & Other Industrial. Headquartered in Croydon, UK, Zotefoams operates manufacturing sites in the USA and Poland, with foam conversion facilities in the USA and China.

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.

Serica Energy (LSE:SQZ) posted a resilient financial performance in the first half of 2025, overcoming challenges such as downtime at the Triton FPSO. The company is optimistic about raising production to approximately 50,000 barrels of oil equivalent per day (boepd) with new wells coming online and ongoing optimization at the Bruce Hub. It is also advancing future development opportunities, including the Belinda field, aiming to build on the success of its recent drilling campaign.

With a strong cash position, Serica Energy is well-positioned to fund organic growth, sustain dividend payments, and explore mergers and acquisitions in the UK North Sea.

The company offers an attractive investment case based on a solid balance sheet, favorable valuation metrics, and positive corporate developments. However, variability in revenue and profit margins pose some risks. Technical analysis indicates a stable price trend, supporting a generally positive outlook.

About Serica Energy

Serica Energy plc is a British independent upstream oil and gas company focused on gas production in the UK North Sea. Its key assets include the Bruce Hub and Triton FPSO, with a strategic emphasis on organic growth and value-enhancing acquisitions.

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.