Author: Fiona Craig

European equity markets edged lower on Wednesday, as persistent inflation worries combined with fresh corporate earnings reports tempered investor sentiment early in the new earnings season.

By 07:05 GMT, Germany’s DAX index fell 0.4%, France’s CAC 40 declined 0.3%, and the U.K.’s FTSE 100 slipped 0.1%.

Trade tensions dampen market mood

Investor confidence in Europe took a hit this week following U.S. President Donald Trump’s announcement of 30% tariffs on imports from the European Union, set to begin in August.

European officials remain hopeful that negotiations can avert the tariffs before the deadline, preserving the roughly $1.7 trillion trade relationship between the U.S. and EU. However, uncertainty continues to cloud the outlook.

This uncertainty has impacted forecasts for European corporate earnings, with expectations now pointing to an average year-over-year decline of 0.7% in second-quarter profits—worse than the 0.2% drop anticipated just last week, according to LSEG I/B/E/S data.

Corporate results keep coming

ASML (EU:ASML), a leading manufacturer of semiconductor equipment, exceeded second-quarter booking estimates but cautioned that growth may stall in 2026.

Luxury powerhouse Richemont, owner of Cartier and Van Cleef & Arpels, reported stronger-than-expected revenue gains in the first quarter, fueled by robust demand in its jewelry segment, though margin pressures remain a concern.

Sweden’s Handelsbanken (LSE:0R7S) revealed a 12% quarter-over-quarter fall in operating profit due to decreased net interest income and trading losses.

Across the Atlantic, U.S. banks JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C) kicked off the American earnings season with mixed market reactions on Tuesday. More bank reports are expected later, including from Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), and Bank of America (NYSE:BAC). Meanwhile, Johnson & Johnson (NYSE:JNJ) will offer further insights into consumer trends.

Inflation remains front and center

Investor anxiety over inflation persists following higher-than-expected U.S. consumer price data released Tuesday.

In the U.K., consumer price inflation unexpectedly rose to 3.6% year-over-year in June—the highest in over a year—according to Wednesday’s figures.

All eyes now turn to U.S. factory inflation data due later on Wednesday, as market participants seek clues about the timing of the Federal Reserve’s next potential interest rate cut.

Oil rebounds on steady OPEC demand forecast

Oil prices climbed on Wednesday after two days of decline, buoyed by OPEC’s reaffirmed outlook for robust global demand.

At 03:05 ET, Brent crude futures were up 0.3% at $68.89 per barrel, while U.S. West Texas Intermediate futures gained 0.4% to $66.80 per barrel.

The rebound followed a market reassessment of supply risks after President Trump’s threats to impose tariffs on Russian oil imports.

OPEC reiterated its optimistic oil demand projections for 2025 and 2026, highlighting expectations for stronger-than-forecast economic growth in the second half of the year despite ongoing trade disputes.

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 nudged higher in early Asian trading on Wednesday, recovering from previous losses after stronger-than-anticipated U.S. consumer inflation figures bolstered the dollar. The data reduced expectations for near-term interest rate cuts, putting some pressure on the precious metal.

Other metals also saw a rebound after recent declines. Platinum and silver, which had surged past gold in recent weeks, pulled back slightly as traders locked in profits following their recent rallies.

Despite this, gold’s appeal as a safe haven remained supported by ongoing concerns over U.S. trade tariffs imposed by President Donald Trump. Uncertainty around the Federal Reserve’s autonomy also played a role, with mounting pressure from Trump and his supporters calling for Fed Chair Jerome Powell’s removal. Additionally, geopolitical tensions involving Russia and Ukraine continued to sustain demand for the metal.

Spot gold gained 0.4% to trade at $3,339.26 per ounce, while September gold futures were up 0.3% at $3,345.40 per ounce by early Wednesday morning ET.

Gold Holds Within Established Range, While Other Precious Metals Show Strength

Although gold saw modest gains this week, it remained confined within a well-established range between $3,300 and $3,500 per ounce—levels consistent over the last three months. The metal faced resistance as investors weighed whether gold’s record highs from April had left it overbought, especially compared to the stronger performances of other precious metals.

Platinum and silver had outpaced gold recently, reaching decade-high prices. Their rise was fueled by investors seeking better value alternatives to gold, alongside expectations of improved demand and tighter supply conditions.

However, this week both platinum and silver retreated amid declining expectations of imminent Fed rate cuts. Spot platinum stabilized at $1,421.00 per ounce, while silver edged up slightly to $37.84 per ounce.

Dollar Gains Pressure Metal Prices Amid Persistent Inflation Concerns

Broader metal prices remained under pressure as the U.S. dollar climbed to a three-week peak on Tuesday, driven by inflation data that showed consumer prices rising more than expected in June.

Among industrial metals, London Metal Exchange copper futures held steady at $9,639.70 per ton, while U.S. copper futures dipped 0.4% to $5.50 per pound.

Although June’s Consumer Price Index showed only a slight increase over May, the continued rise raised concerns about persistent inflation. The data also underscored worries about the inflationary impact of the tariffs imposed by President Trump.

The Federal Reserve has signaled it will maintain current interest rates until it better understands the effects of these tariffs, a stance reinforced by the latest inflation figures. Meanwhile, this position has drawn criticism from Trump and his allies, who are increasing calls for Powell’s exit and for interest rate cuts.

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 bounced back during Wednesday’s Asian trading session, recovering from losses seen earlier in the week. This uptick came as OPEC+ upheld its positive global demand projections despite boosting production levels, while traders processed a slight increase in U.S. crude stockpiles.

By 22:17 ET (02:17 GMT), September Brent crude futures edged up 0.4% to $69.01 per barrel. Meanwhile, West Texas Intermediate (WTI) crude for September delivery rose 0.6%, settling at $66.94 per barrel.

Earlier volatility this week was driven by U.S. President Donald Trump’s alert about a forthcoming “major statement” concerning Russia, sparking worries over possible supply interruptions. Yet, oil prices dropped nearly 3% across the first two trading days after Trump paused on immediate action, instead granting Russia a 50-day timeframe to resolve the Ukraine conflict.

OPEC Maintains Demand Forecast, Anticipates Stronger Growth in Second Half

OPEC released its monthly report reaffirming its demand outlook for 2025 and 2026, expressing confidence that easing trade tensions could support better-than-expected economic growth in the latter half of the year.

The cartel highlighted that recent developments suggest potential agreements with key U.S. trading partners may be reached, which could further reduce global economic uncertainties.

Despite the positive outlook, oil markets face downward pressure linked to concerns over President Trump’s planned tariff hikes set for August 1, which might accelerate inflation and dampen economic expansion, ultimately weakening oil demand.

OPEC+ also pointed out that refinery activity worldwide—especially in the U.S.—is expected to remain robust to meet the seasonal rise in transportation fuel needs, including gasoline, jet fuel, and residual fuels.

This outlook comes as the group continues to increase output, with the latest adjustment adding 548,000 barrels per day starting in August.

U.S. Crude Inventories See Slight Uptick

According to the American Petroleum Institute’s weekly report ending July 11, U.S. crude stockpiles rose modestly by about 839,000 barrels. Gasoline inventories climbed by 1.93 million barrels, while distillate supplies increased by 828,000 barrels.

The prior week had witnessed a more significant crude build of 7.1 million barrels, primarily attributed to reduced refinery throughput during seasonal maintenance shutdowns.

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 edged down as markets digested mixed consumer price data and prepared for more inflation figures. Several U.S. companies are expected to release quarterly earnings soon. Meanwhile, European chip equipment supplier ASML (EU:ASML) warned it cannot confirm growth for 2026, citing possible headwinds from heightened U.S. tariffs. On the trade front, President Donald Trump announced a new deal with Indonesia, as the August 1 deadline for his elevated “reciprocal” tariffs looms.

Futures Lower

On Wednesday, U.S. stock futures dipped as investors awaited a fresh batch of corporate earnings and a key wholesale producer price index reading. By 03:37 ET (07:37 GMT), Dow futures were down 91 points (-0.2%), S&P 500 futures fell 15 points (-0.2%), and Nasdaq 100 futures declined 75 points (-0.3%).

The prior session saw the Dow Jones Industrial Average and S&P 500 dip, with markets eyeing June inflation data that broadly matched expectations but showed rising costs in goods affected by tariffs. The latest numbers have largely cemented expectations that the Federal Reserve will hold interest rates steady at its upcoming meeting, potentially escalating tensions between President Trump and Fed Chair Jerome Powell. Trump has hinted at firing Powell due to dissatisfaction with the Fed’s reluctance to cut rates quickly.

Bank earnings, which often mark the start of quarterly reports, were mixed. JPMorgan shares dipped slightly, Citigroup (NYSE:C) gained 3.7%, while Wells Fargo fell 5.5% after lowering its full-year net interest income forecast.

U.S.-Indonesia Trade Deal Announcement

Trump revealed on Tuesday that the U.S. will impose a 19% tariff on goods from Indonesia as part of a new trade agreement. Indonesia currently applies a flat 10% tariff on imports and has not imposed levies on U.S. exports.

The deal includes penalties on “transshipping,” where goods from China are routed through Indonesia to avoid tariffs. This pact follows preliminary agreements with the UK, China, and Vietnam. Trump has indicated more deals are forthcoming as the August 1 deadline for “reciprocal” levies approaches. The White House confirmed the deadline will not be delayed again after earlier market turmoil when the tariffs were first announced in April.

Estimates from Yale Budget Lab suggest the average U.S. duty rate will rise to 20.6% under Trump’s announced tariffs, up from 2-3% before his presidency.

ASML Reports

Dutch semiconductor equipment supplier ASML reported second-quarter bookings above estimates but cautioned that it may not grow in 2026. CEO Christophe Fourier cited “macroeconomic and geopolitical” challenges, particularly tariffs, as key risks.

“While we still prepare for growth in 2026, we cannot confirm it at this stage,” Fourier said. The update disappointed some analysts, highlighting uncertainties for companies in early 2025’s final six months. ASML shares dropped more than 6% in early European trading.

Not all earnings news was negative. Cartier owner Richemont (SIX:CFR) posted a 6% increase in quarterly sales to €5.4 billion, roughly meeting expectations thanks to strong jewellery demand offsetting weakness in watches.

U.S. Earnings Ahead

A busy slate of U.S. earnings is expected on Wednesday, including major banks Bank of America, Morgan Stanley, and Goldman Sachs, which may provide insight into the financial sector’s outlook.

Pharmaceutical giant Johnson & Johnson (NYSE:JNJ), known for brands like Neutrogena and Acuvue, is also reporting. United Airlines will release results after the market close. Rival Delta Air Lines (NYSE:DAL) recently reinstated guidance, citing hopes for stabilizing demand and reduced industry capacity, which could improve revenue per available seat mile.

U.S. PPI and Beige Book Due

Investors will also receive June’s producer price index (PPI), a key inflation gauge. Economists forecast headline PPI growth of 2.5% year-on-year, slightly down from 2.6% in May, with month-on-month gains of 0.2%, a slight acceleration from the previous 0.1%.

The Federal Reserve’s Beige Book will be published as well. This report, released eight times a year, gathers anecdotal data on economic conditions from interviews with businesses, economists, and market experts.

Analysts at Vital Knowledge noted, “The Beige Book has taken on added importance in the present environment given all the moving pieces influencing economic data, and it’s likely to reflect continued stagflationary forces in the domestic economy (with growth headwinds and upward pressure on prices from trade friction).”

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.

Bloomsbury Publishing PLC (LSE:BMY) expects its full-year results to meet market forecasts, driven by strong showings across both its consumer and non-consumer segments. The company pointed to the success of several bestselling titles and highlighted its strategic expansion, including the opening of a new office in Singapore aimed at capturing growth opportunities in the region. Operational enhancements, such as shifting UK distribution to Hachette UK, have improved supply chain flexibility, reinforcing Bloomsbury’s long-term growth strategy.

While Bloomsbury’s robust financial results and recent corporate developments are encouraging, weak technical indicators temper the overall outlook. The company’s strategic growth plans and steady valuation metrics offer support, but ongoing bearish signals in technical analysis suggest some caution for investors.

More about Bloomsbury Publishing

Bloomsbury Publishing PLC is a prominent independent publisher with a broad portfolio of books and digital products. Operating in both consumer and non-consumer sectors, it holds a strong presence in the UK and US markets. The company is recognized for publishing bestsellers and academic works, with international expansion efforts focused particularly on the Asian 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.

Cohort plc (LSE:CHRT) has reported record-breaking financial results for the year ending 30 April 2025, with revenue rising 33% to £270 million and adjusted operating profit increasing by 30% to £27.5 million. The company’s order book also hit a record high of £616.4 million, signaling strong prospects for future expansion. The acquisition of EM Solutions has bolstered performance, while sustained demand for defence technology—fueled by global geopolitical tensions—continues to support growth opportunities.

Strategic initiatives and a solid financial position provide Cohort with a robust platform for further development and potential acquisitions. The company’s outlook remains positive, supported by strong earnings and recent corporate activities. Although technical analysis points to a bullish trend, investors should be mindful of potential short-term volatility. Valuation concerns introduce a note of caution into the otherwise favorable view.

About Cohort plc

Cohort plc is a UK-based defence technology company with operations in the UK, Australia, Germany, and Portugal. It is organized into two core divisions: Communications and Intelligence, and Sensors and Effectors. The company delivers a range of advanced products and services—including communications systems, electronic warfare, surveillance technology, and sonar systems—to both domestic and international clients.

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.

Rio Tinto (LSE:RIO) has announced a notable 13% year-on-year increase in copper equivalent production for the second quarter of 2025. This growth was driven by robust performance in its copper operations and the successful integration of the Arcadium acquisition. The company also recorded its highest Q2 bauxite output and achieved the strongest Pilbara production since 2018.

Key strategic developments include the accelerated progress of the Simandou iron ore project and advances in lithium integration, both of which support Rio Tinto’s efforts to diversify and strengthen its portfolio. These achievements reinforce the company’s commitment to profitable growth and operational excellence, enhancing its market positioning and offering potential advantages to stakeholders.

Rio Tinto’s strong financial results and appealing valuation underpin its favorable market outlook. Recent strategic initiatives and a stable earnings forecast further enhance the stock’s potential, despite some operational hurdles.

About Rio Tinto

Rio Tinto is a leading global mining group specializing in the discovery, extraction, and processing of mineral resources. Its operations span iron ore, aluminum, copper, diamonds, energy products, gold, and industrial minerals across multiple regions worldwide. The company places a strong emphasis on sustainable mining practices and innovation.

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.

Empire Metals Limited (LSE:EEE) has strengthened its project development capabilities through key appointments and strategic partnerships, pushing forward the Pitfield Titanium Project in Western Australia. The company has initiated bulk metallurgical testing—an essential phase in moving towards commercial production—and teamed up with Strategic Metallurgy to provide expert technical support. These efforts are focused on validating the project’s economic viability and exploring optimal mine design and product strategies, marking a pivotal step toward bringing the Pitfield mine into operation.

About Empire Metals

Empire Metals Limited is an AIM-listed and OTCQB-traded exploration and development firm concentrating on the Pitfield titanium project in Western Australia. The company’s high-grade titanium discovery at Pitfield boasts considerable scale and promising drill results, highlighting its potential as a significant resource development.

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.

Synectics plc (LSE:SNX) has secured two major gaming contracts totaling around US$3 million, expanding its footprint in both Asian and North American markets. The deals include a US$2.5 million upgrade to the surveillance system at a prominent casino resort in Manila and a US$600,000 implementation of the Synergy software platform at a tribal gaming facility in Oklahoma. These contracts support Synectics’ growth strategy and contribute to revenue stability for the current fiscal year.

The company’s outlook is bolstered by strong financial results, positive corporate developments, and moderately favorable technical indicators. Although valuation appears fair and recent earnings data is limited, Synectics’ strategic momentum and contract wins underscore its potential for continued growth.

About Synectics

Synectics plc specializes in cutting-edge security and surveillance technology, delivering integrated solutions that enhance safety, streamline operations, and enable informed decision-making. Renowned for its technical expertise and robust partnerships, Synectics provides innovative systems that create lasting value for clients.

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.

McBride plc (LSE:MCB) reported a solid financial performance for the year ending June 2025, with adjusted operating profits expected to align with market forecasts. Group revenue edged up by 0.7%, while contract manufacturing volumes surged 48.9%, driven by new long-term agreements. Although private label market share remained steady, McBride made significant progress reducing net debt by £26.3 million and announced plans to reinstate annual dividends, reflecting confidence in its financial health.

The company’s shares present potential upside, supported by a strong financial rebound and favorable valuation metrics. Technical analysis offers mixed signals but does not suggest overbought conditions, indicating room for growth. Additionally, the alignment of management incentives through restricted share units (RSUs) strengthens investor confidence in McBride’s strategic direction.

About McBride

McBride plc is a leading European manufacturer specializing in private label and contract manufacturing of household and professional cleaning and hygiene products.