ADVFN UK Market News

Author: Fiona Craig

  • Wall Street Futures Steady as Oil and Treasury Yields Retreat: Dow Jones, S&P, Nasdaq

    Wall Street Futures Steady as Oil and Treasury Yields Retreat: Dow Jones, S&P, Nasdaq

    U.S. equity futures were little changed on Wednesday, suggesting a muted start for Wall Street following several sessions of declines as investors monitored developments in the Middle East and upcoming economic data.

    Oil prices and U.S. Treasury yields moved lower after their recent increases, while geopolitical uncertainty remained in focus following another exchange of attacks involving the U.S. and Iran.

    Iran launched missiles and drones toward U.S.-linked sites in Bahrain, Jordan and Kuwait on Wednesday. The action followed U.S. strikes against Iranian military targets on Tuesday.

    The Iranian response came after U.S. President Donald Trump warned that retaliation would result in Iran being “hit much harder” and said the U.S. was still holding back “the biggest attack of them all.”

    U.S. Crude Falls After Two-Session Rally

    U.S. crude oil futures declined 0.8% on Wednesday after gaining more than 8% over the previous two sessions.

    Treasury yields also moved lower, with the benchmark 10-year yield retreating after reaching its highest closing level in almost three years.

    Recent increases in oil prices and bond yields have drawn investor attention because of their potential implications for inflation and monetary policy. The eventual effects will depend on how energy prices and financial conditions develop.

    Markets are also awaiting Friday’s Labor Department employment report for further evidence about the condition of the U.S. labour market.

    ADP Reports 38,000 Private-Sector Jobs Added in August

    ADP reported that U.S. private employers added 38,000 jobs in August, below the 48,000 increase expected by economists.

    July’s increase was revised to 46,000 jobs from the previously reported 44,000.

    The ADP report provides an indication of private-sector employment conditions but does not necessarily correspond with the figures that will be reported in Friday’s government employment data.

    The upcoming Labor Department report will provide additional information for investors assessing the economic and monetary policy outlook.

    U.S. Indices Extend Declines on Tuesday

    Wall Street recorded another negative session on Tuesday, with all three major indices closing lower.

    The Nasdaq Composite declined 271.11 points, or 1%, to 26,099.77. The Dow Jones Industrial Average lost 419.02 points, or 0.8%, to finish at 52,766.88, while the S&P 500 dropped 54.67 points, or 0.7%, to 7,631.47.

    The indices recovered from their intraday lows but still finished with notable losses.

    The session coincided with an announcement from U.S. Central Command that American forces had conducted another series of strikes against Islamic Revolutionary Guard Corps targets in Iran.

    Centcom said the action followed attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and U.S. military personnel stationed in the region.

    Trump Issues Warning Following U.S. Strikes

    President Donald Trump responded to the latest developments with a warning to Iran on Truth Social.

    Trump said Iran would be “hit again at a much harder and higher level” if it retaliated.

    “But it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!” Trump said.

    U.S. crude futures rose by more than 5% during Tuesday’s trading following the latest military developments.

    The increase brought renewed attention to the potential inflationary effects of higher energy prices. However, the implications for inflation and interest rates will depend on whether the increase in oil prices is sustained.

    ISM Manufacturing PMI Falls to 54.6

    Investors also assessed economic data showing that U.S. manufacturing activity continued to expand in August, although at a slower pace.

    The Institute for Supply Management’s manufacturing PMI declined to 54.6 from 55.6 in July, below economists’ forecast of 55.2.

    Readings above 50 indicate expansion.

    The manufacturing data, together with the latest private-sector employment figures, provide additional information ahead of Friday’s government jobs report.

    While economic data may influence expectations for the Federal Reserve’s meeting later this month, the outcome of the central bank’s next interest-rate decision remains dependent on policymakers’ assessment of employment, inflation and other economic conditions.

    Gold and Technology-Related Sectors Record Losses

    Several areas of the U.S. equity market recorded larger declines during Tuesday’s trading.

    The NYSE Arca Gold Bugs Index dropped 4.2% as gold-related stocks moved lower alongside the precious metal.

    Networking shares also declined, with the NYSE Arca Networking Index falling 2.6%, while the Dow Jones Transportation Average lost 2.5%.

    Software, housing and semiconductor stocks were also lower. Oil producers and pharmaceutical companies, meanwhile, moved higher against the broader market trend.

    Wednesday’s relatively flat futures indicated a more limited move ahead of the open as investors continued to assess geopolitical developments, oil prices, Treasury yields and forthcoming U.S. employment data.

  • European Stocks Fall as Oil Prices and Bond Yields Rise: DAX, CAC, FTSE100

    European Stocks Fall as Oil Prices and Bond Yields Rise: DAX, CAC, FTSE100

    European equities traded lower on Wednesday, with major indices approaching one-month lows as investors assessed higher oil prices, rising government bond yields and the outlook for monetary policy.

    Brent crude moved toward $95 a barrel following U.S. military strikes on targets in Iran and subsequent Iranian missile and drone attacks on sites across the region.

    The developments increased concerns about potential energy supply disruptions and commercial shipping through the Strait of Hormuz.

    Eurozone Bond Yields Extend Gains

    Eurozone government bond yields moved higher, following similar increases in U.S. and Asian bond markets overnight.

    The moves came as investors assessed the outlook for European Central Bank monetary policy following the latest Eurozone inflation data.

    The supplied information indicates that Eurozone inflation reached a nearly three-year high in August. Market expectations cited in the source point to a 25-basis-point ECB rate increase at its September 10 meeting.

    While markets may assign a high probability to a rate increase, the ECB’s decision has not yet been made and will depend on its assessment of inflation, economic conditions and other available data.

    DAX, FTSE 100 and CAC 40 Trade Lower

    Germany’s DAX was down 0.4%, while the UK’s FTSE 100 declined 0.3%.

    France’s CAC 40 fell 0.1%.

    The declines came as investors monitored developments in energy markets and sovereign bond yields alongside the monetary policy outlook.

    Prudential and BP Shares Move Lower

    British insurer Prudential (LSE:PRU) traded slightly lower despite announcing plans to repurchase up to $1.472 billion of shares by December 18, 2026, under its existing share buyback programme.

    The share-price movement and buyback announcement occurred during the same session, but the supplied information does not establish the factors responsible for the stock’s decline.

    BP Plc (LSE:BP.) also moved lower after appointing Ian Tyler as its new chair.

    The supplied information similarly does not establish that the management appointment caused BP’s share-price movement.

    Halma and Wizz Air Trade Higher

    Halma (LSE:HLMA) moved higher after agreeing to acquire U.S.-based water quality monitoring specialist Pyxis.

    The transaction has an initial value of $170 million, according to the supplied information.

    Wizz Air Holdings (LSE:WIZZ) also traded higher after reporting its August operating performance.

    European markets remained focused on the combination of higher energy prices, rising bond yields and expectations surrounding the ECB’s September policy meeting.

  • European Gas Prices Reach Highest Levels Since 2023 Amid Persian Gulf Supply Disruption

    European Gas Prices Reach Highest Levels Since 2023 Amid Persian Gulf Supply Disruption

    European and British natural gas prices rose sharply on Wednesday, reaching their highest levels since 2023 as military developments in the Persian Gulf increased concerns about liquefied natural gas supply routes.

    The benchmark Dutch front-month contract climbed to €74.32 per megawatt-hour (MWh), its highest level in nearly three years. In Great Britain, the equivalent NBP wholesale gas contract rose to 183.95 pence per therm, also reaching a level last seen in 2023.

    The latest increases took both benchmarks above previous highs recorded during the ongoing Middle East conflict, as market participants assessed the potential duration and scale of disruption to global LNG transportation.

    Strait of Hormuz Traffic Falls Following Military Escalation

    The latest price movement followed strikes targeting Islamic Revolutionary Guard Corps (IRGC) sites and retaliatory missile attacks against U.S. air bases in Jordan.

    Commercial shipping through the Strait of Hormuz has fallen to a fraction of pre-war levels, according to the maritime tracking data cited in the supplied information. Washington maintains that the waterway remains open to navigation.

    U.S. President Donald Trump has threatened “harder” military action, including potential strikes against Iran’s Kharg Island export facility.

    The Strait of Hormuz accounts for approximately 20% of global seaborne LNG transit, with Qatar representing a significant source of those shipments. Continued disruption could affect the availability of LNG cargoes for both European and Asian buyers.

    The duration of the disruption and its eventual effect on regional gas supplies remain uncertain.

    European Gas Storage Stands at Around 62%

    The developments in the Persian Gulf coincide with Europe’s efforts to rebuild underground gas inventories ahead of the northern hemisphere winter.

    Data from Gas Infrastructure Europe cited in the supplied information showed regional storage facilities at approximately 62% of capacity, below the five-year seasonal average.

    Gas-fired electricity demand increased during summer heatwaves in Southern Europe, while routine offshore pipeline maintenance in Norway and delayed LNG shipments from Qatar limited storage injections during August.

    The combination has left European inventories below their typical seasonal level as the autumn period approaches.

    LNG Supply Remains Key Variable for Winter Market

    Market participants are monitoring whether disruption to seaborne LNG supplies continues through the autumn.

    A sustained reduction in LNG availability could increase competition between European and Asian buyers for uncommitted Atlantic basin cargoes. The eventual effect on prices and physical supply would depend on factors including the duration of shipping disruption, weather conditions, alternative supply availability and regional demand.

    The supplied information also indicates that trading desks are considering the possibility of further price volatility and supply constraints if inventories remain below seasonal averages during an extended period of cold winter weather.

    These outcomes remain scenarios rather than established future developments.

    Higher Energy Prices Add to ECB Inflation Considerations

    The increase in natural gas prices also comes ahead of the European Central Bank’s Governing Council meeting scheduled for September 10.

    Preliminary Eurozone inflation data for August showed core inflation easing to 2.4%, while headline inflation increased to 3.3%.

    The supplied information indicates that the increase in headline inflation was primarily associated with a 14.3% rise in the energy component.

    The ECB will assess inflation, economic activity and other available data when considering monetary policy. The recent increase in gas prices adds another energy-related factor to that assessment, although its eventual impact on inflation will depend on the duration and extent of the price movement.

  • Gold Extends Decline as Bond Yields and Fed Rate Expectations Rise

    Gold Extends Decline as Bond Yields and Fed Rate Expectations Rise

    Gold prices moved lower again on Wednesday, reaching their lowest level in more than three weeks as markets assessed higher oil prices, rising global government bond yields, a firmer U.S. dollar and expectations surrounding the Federal Reserve’s next interest-rate decision.

    At 01:52 ET (05:52 GMT), XAU/USD declined 0.4% to $4,311.83 an ounce, while Gold Futures fell 0.9% to $4,358.24. XAG/USD was down 0.4% at $63.82 an ounce, with XPT/USD also declining 0.4% to $1,736.87.

    The U.S. Dollar Index increased 0.1% to 99.77.

    Higher Oil Prices Add to Inflation Focus

    Gold was on course for its fourth consecutive daily decline, leaving the metal approximately 8% below the previous week’s high near $4,700.

    The move followed another round of U.S. strikes against targets in Iran on Tuesday. Tehran said it retaliated, following almost a month of relative calm.

    Brent crude moved above $95 a barrel, while U.S. crude exceeded $91 as traders considered whether an extended conflict could disrupt energy flows through the Strait of Hormuz.

    Oil prices are being monitored for their potential effect on inflation because higher energy costs can contribute to broader price pressures. This has added to investor attention on the outlook for Federal Reserve monetary policy.

    Markets were assigning a probability of close to 70% to a Federal Reserve rate increase at the 15-16 September meeting.

    Fed Comments Keep Interest-Rate Outlook in Focus

    Expectations for interest rates have also been influenced by Federal Reserve Chair Kevin Warsh’s comments at Jackson Hole last week and subsequent remarks from other policymakers about inflation.

    Fed Governor Michael Barr said on Tuesday that policymakers should be prepared to raise interest rates if inflation does not moderate. He also warned that price pressures could become embedded after inflation remained above the Fed’s target for more than five years.

    The remarks reflect policymakers’ assessment of inflation risks. Any future change in interest rates remains dependent on incoming economic data and decisions by the Federal Reserve.

    Long-Dated Treasury Yields Return to Earlier Levels

    The increase in yields has also affected global government bond markets, with long-dated U.S. Treasury yields returning to levels seen before the Treasury’s intervention in the bond market last month.

    The U.S. 30-year Treasury yield moved above 5.28% on Tuesday, around the level recorded before Treasury Secretary Scott Bessent announced an expansion of bond buybacks on 19 August.

    Government bond yields have also risen across other major markets, with global yields reaching their highest levels since 2008, according to the supplied information.

    The dollar has strengthened alongside the rise in yields. A stronger U.S. currency can make dollar-denominated gold more expensive for buyers using other currencies. At the same time, higher yields increase the returns available from interest-bearing securities compared with gold, which does not pay interest.

    Gold Pulls Back After Nearly 10% August Gain

    The recent decline follows an advance of almost 10% for gold in August, representing its largest monthly increase since January.

    Gold’s August advance accelerated after the U.S. Treasury expanded its bond-buyback programme. Concerns surrounding sovereign debt and potential currency depreciation were also among the factors being considered by investors during the period.

    ANZ said the Treasury’s liquidity measures initially encouraged investors to increase their exposure to gold. The bank said the subsequent reversal in bond yields and the dollar has limited that momentum, although it expects the broader currency-debasement theme to continue attracting buyers.

    ANZ’s expectations represent the bank’s outlook and are not an established future outcome.

    Gold has also moved below its 200-day moving average, a technical indicator commonly monitored as a measure of longer-term price momentum.

  • Oil Extends Gains as U.S.-Iran Conflict Keeps Strait of Hormuz in Focus

    Oil Extends Gains as U.S.-Iran Conflict Keeps Strait of Hormuz in Focus

    Oil prices advanced for a third consecutive session on Wednesday, although earlier gains moderated as markets assessed renewed military exchanges between the United States and Iran and the potential impact on crude supplies from the Middle East.

    At 04:46 ET (08:46 GMT), November Brent crude futures were 0.2% higher at $94.87 a barrel, while West Texas Intermediate (WTI) crude futures increased 0.1% to $90.31 a barrel, according to Investing.com data.

    Brent had traded as high as $97.04 earlier in the session. Both crude benchmarks gained almost 5% on Tuesday, reaching their highest levels in around five weeks.

    Tanker Traffic Through Strait of Hormuz Draws Attention

    The United States launched another series of airstrikes against Iranian targets overnight. Iran subsequently carried out retaliatory missile and drone attacks against U.S. forces in Jordan and Bahrain.

    Markets are monitoring whether the developments could further affect tanker traffic through the Strait of Hormuz and regional crude shipments.

    Two supertankers carrying Saudi crude were struck by unidentified projectiles while travelling through the strait on Monday. Each vessel had loaded around 2 million barrels at Saudi Arabia’s Juaymah terminal.

    ING analysts said:

    “We’ve seen oil flow through the Strait of Hormuz despite the stalemate between the US and Iran, but rising tensions clearly put crossings at risk,”

    The U.S. energy secretary said 17 million barrels of oil moved through the Strait of Hormuz on Monday. Analysts, however, said ship-tracking data indicated lower volumes and suggested that longer-term averages offered a more representative measure of traffic through the waterway.

    Iranian Oil Loadings Fall From March Levels

    Iranian crude loadings declined to between 220,000 and 255,000 barrels per day in August from approximately 2 million barrels per day in March, Reuters reported.

    Disruptions to diesel exports from the Middle East and Russia are another factor being monitored by energy markets.

    ING analysts said:

    “Given disruptions to Middle East and Russian diesel exports, and with little sign of an imminent recovery, middle distillate cracks are likely to remain highly elevated and volatile, particularly as we move towards seasonally stronger demand,”

    The comments reflect ING’s assessment of future market conditions rather than an established outcome.

    API Reports 2.6 Million-Barrel Drop in U.S. Crude Stocks

    U.S. crude oil inventories decreased by 2.6 million barrels in the week ended 28 August, according to American Petroleum Institute figures released late Tuesday.

    That compared with an increase of 4.2 million barrels during the preceding week.

    API data also showed gasoline inventories increasing by approximately 300,000 barrels, while distillate stocks declined by a similar amount.

    The figures came ahead of the U.S. Energy Information Administration’s weekly inventory report, scheduled for release later Wednesday, which will provide further information on U.S. crude and refined product inventories.

  • U.S. Stock Futures Little Changed as Treasury Yields Approach 5%: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. Stock Futures Little Changed as Treasury Yields Approach 5%: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. stock futures traded close to unchanged on Wednesday as markets awaited economic data and the Federal Reserve’s Beige Book while assessing higher government bond yields, oil prices and developments involving the United States and Iran.

    S&P 500 Futures were flat at 7,637.5 points at 03:20 ET, with Nasdaq 100 Futures unchanged at 29,112 points. Dow Jones Futures were up 0.17% at 52,914 points.

    The relatively limited moves followed declines on Wall Street, where the major indexes fell by as much as 1% during the previous session.

    Middle East Developments Remain a Factor for Oil Markets

    Markets continued to assess developments in the Middle East after the United States conducted another series of strikes against Iran’s Islamic Revolutionary Guard Corps. It was the second U.S. attack on Iran reported during the week.

    The United States and Iran have provided different accounts of the status of the Strait of Hormuz. Washington says the waterway remains available to commercial shipping, while Tehran says it is closed.

    Developments surrounding the region have coincided with higher oil prices, keeping the potential impact of energy costs on inflation among the factors being considered by investors.

    Investors Await Fed Beige Book

    Attention is also turning to U.S. economic releases and the Federal Reserve’s Beige Book, which could provide further information about economic conditions, employment and price pressures.

    Investors are assessing the balance between persistent inflation and indications of slower economic or labour-market activity when considering the potential direction of interest rates.

    Markets are also monitoring the Bank of Canada’s policy communication for information about how another major central bank is responding to inflation and borrowing costs.

    Future policy decisions by the Federal Reserve and other central banks will remain dependent on economic data and policymakers’ assessments.

    Global Government Bond Yields Continue to Rise

    The U.S. 10-year Treasury yield was approaching 5%, putting it near its highest level in three years.

    Elsewhere, Australia’s 10-year government bond yield reached its highest level in more than 15 years, while Japan’s equivalent yield was around levels not recorded for approximately 30 years.

    Higher bond yields increase the returns available on government debt relative to equities. They can also raise borrowing and refinancing costs for companies and consumers.

    In equity valuation models, higher interest rates can increase the discount rate applied to projected corporate cash flows, reducing their calculated present value. This can have a greater effect on some growth and technology companies where a larger proportion of expected earnings is forecast further into the future.

    Oil, Interest Rates and Economic Data Remain in Focus

    Markets are consequently assessing the interaction between higher oil prices, elevated government bond yields, geopolitical developments and expectations for U.S. monetary policy.

    Incoming inflation, employment and broader economic data will provide additional information for investors assessing whether interest rates are likely to remain elevated or whether economic conditions could eventually allow policymakers to adjust their stance.

  • European Shares Hold Near One-Month Lows as Bond Yields Remain Elevated: DAX, CAC, FTSE100

    European Shares Hold Near One-Month Lows as Bond Yields Remain Elevated: DAX, CAC, FTSE100

    European equities were broadly flat on Wednesday after several major indexes closed at their lowest levels in more than a month in the previous session, as investors continued to assess elevated government bond yields and their implications for equity valuations and corporate financing costs.

    Germany’s DAX and France’s CAC 40 both closed on Tuesday at their lowest levels in more than a month. London’s FTSE 100 also moved towards a one-month low as markets responded to volatility in global government bond yields.

    German 10-year Bund yields were trading around 3.35%, near levels last seen in 2011, while U.S. 10-year Treasury yields moved above 4.78%.

    Higher Bond Yields Affect Equity Valuations

    Higher sovereign bond yields can affect equities through several channels. As returns available from government debt increase, the relative return investors receive for taking additional equity-market risk can decline.

    Bond yields are also commonly incorporated into the discount rates used to calculate the present value of projected corporate cash flows. Higher discount rates reduce the present value assigned to future earnings, with the effect generally more significant for companies whose valuations depend heavily on earnings expected further into the future.

    Rate-sensitive sectors can therefore face greater valuation pressure when long-term yields increase.

    Higher borrowing costs can also increase financing and refinancing expenses for companies, potentially affecting profit margins and analysts’ earnings estimates.

    Oil Prices Add to Inflation and Interest-Rate Focus

    Crude oil prices moved above $90 a barrel following direct U.S.-Iranian strikes in the Persian Gulf, adding to market attention around the outlook for energy-driven inflation.

    Traders were pricing an approximately 60% to 65% probability of a 25-basis-point interest-rate increase at the Federal Reserve’s 16 September meeting following comments from Chair Kevin Warsh at Jackson Hole.

    In the eurozone, preliminary August data showed core inflation easing to 2.4%, while headline inflation increased to 3.3%, with energy costs contributing to the rise. Investors are assessing what the figures could mean for the European Central Bank’s 10 September policy meeting.

    These market-implied probabilities and expectations remain subject to changes in economic data and central-bank policy signals.

    DAX Declines While CAC 40 Trades Flat

    Germany’s DAX fell 0.2% on Wednesday, while France’s CAC 40 was broadly unchanged.

    Cyclical stocks, automakers and technology companies were among the areas facing pressure, alongside capital goods and consumer discretionary shares.

    London’s FTSE 100 was broadly flat. Its weighting towards integrated energy companies provided some support as crude oil prices remained elevated.

    Shell (LSE:SHEL) and BP (LSE:BP.) are among the major oil companies represented in the index.

    BP shares rose 1.3% after the company appointed Ian Tyler as chairman.

  • Market Open: TT Electronics Outlook, Wizz Air Growth

    Market Open: TT Electronics Outlook, Wizz Air Growth

    FTSE 100 opens flat as TT Electronics raises its outlook and Wizz Air reports passenger growth, while Brent crude moves higher.

    Market Overview

    The FTSE 100 opened broadly unchanged, up 0.01 per cent at 10,789.94, as renewed US-Iran strikes and higher oil prices weighed on risk appetite. The Euronext 100 was unchanged at 1,905.94, while Germany’s DAX fell 0.20 per cent to 25,918.40 as rising global bond yields pressured European equities. In the US, the Nasdaq closed lower at 26,099.77 and the S&P 500 declined to 7,631.47.

    Commodity markets were mixed, with copper and gold lower while Brent crude and natural gas moved higher. Oil remained supported by renewed concern over supply disruption as the US and Iran exchanged fresh strikes and tensions around the Strait of Hormuz intensified. Bitcoin was up against sterling. The US dollar and Japanese yen strengthened marginally versus the pound, while the euro and Australian dollar weakened slightly and the Swiss franc was broadly unchanged.

    Market Numbers

    FTSE 100: Up (+0.01%), 10,789.94
    Euronext 100: Unchanged (0.00%), 1,905.94
    DAX: Down (-0.20%), 25,918.40
    NASDAQ: Down, 26,099.77
    S&P 500: Down, 7,631.47

    In the Headlines

    Profit outlook raised – TT Electronics (LSE:TTG)
    TT Electronics raised its full-year adjusted operating profit outlook above current market expectations after first-half adjusted operating profit increased and margins improved. The engineered electronics group also expects organic revenue growth to return during the second half, supported by its order book.

    Passenger growth – Wizz Air (LSE:WIZZ)
    Wizz Air carried 8.70 million passengers in August, up 25.9 per cent year on year, as the low-cost airline expanded capacity. The company is also extending its Spanish network with plans for a third base in the country at Santiago de Compostela.

    Currencies (vs GBP)

    USD: Up (+0.02%), $1.3513
    CHF: Unchanged (0.00%), Fr.1.0972
    EUR: Down (-0.01%), €1.1658
    JPY: Up (+0.02%), ¥216.485
    AUD: Down (-0.01%), $1.8912
    Bitcoin (BTC/GBP): Unchanged (0.00%), £57,393.09

    Commodities

    Copper: Down
    Gold: Down
    Brent Crude: Up
    Natural Gas: Up

  • FTSE 100 Falls as Iran-U.S. Strikes Keep Oil Prices Elevated

    FTSE 100 Falls as Iran-U.S. Strikes Keep Oil Prices Elevated

    The FTSE 100 traded lower on Wednesday as investors monitored further military exchanges involving Iran and the United States and developments affecting shipping in the Strait of Hormuz.

    The UK benchmark was down 0.30% as of 03:18 ET (07:18 GMT), while Germany’s DAX declined 0.22% and France’s CAC 40 fell 0.16%. Sterling was 0.12% lower against the U.S. dollar at $1.3501.

    Jefferies noted that risk assets had already weakened on Tuesday, when the S&P 500 declined 0.7% and the Eurostoxx fell 0.8%. The 10-year U.S. Treasury yield increased five basis points to above 4.80%.

    Iran Reports Strikes on U.S. Bases

    Iran’s Islamic Revolutionary Guard Corps said it had targeted the al-Dhafra and al-Minhad U.S. bases in the United Arab Emirates with drones. The claim had not been confirmed by UAE authorities.

    Kuwait’s KUNA news agency reported that a drone strike caused a residential fire in Kuwait City. The fire was extinguished and no casualties were reported.

    Iran also said it had targeted U.S. bases in Erbil, Iraq, while Bahrain issued a public alert.

    Two tankers, the Sidr and Senegal Prosperity, were reportedly struck by projectiles in the Strait of Hormuz. ING analysts Warren Patterson and Ewa Manthey noted that the incidents followed strikes over the weekend and additional U.S. attacks on Iranian targets overnight.

    CENTCOM said a series of U.S. strikes on Tuesday targeted IRGC “air defense sites, radar systems… and communications sites.”

    Iran said five people were killed and around 50 injured in strikes at a wedding near Sirik. Iranian foreign ministry spokesman Esmaeil Baqaei described the incident as part of a “chain of atrocities.”

    Iran separately said 11 people were killed in strikes in Khuzestan on Wednesday.

    Jordan Disputes Iranian Claim of Direct Hit

    Iran said it had fired missiles at a U.S. base in Jordan and claimed a direct hit.

    Jordan’s military provided a different account, saying 13 missiles were launched and 10 were intercepted, with no casualties reported.

    U.S. President Donald Trump also issued a warning to Iran on Truth Social, saying the country faced a response after which “there will be very little left of the Islamic Republic,” while adding that the United States has “almost total control” of Hormuz and that Tehran’s economy is “totally collapsing.”

    The comments were contained in a single Truth Social post subsequently reported by ANI and CNN.

    Jefferies Continues to See September Fed Hike as Unlikely

    Jefferies analyst Mohit Kumar said the bank continues to expect no Federal Reserve interest-rate increase in September, citing its expectation for benign inflation data.

    However, Jefferies said the threshold for a rate increase had declined following recent comments from Federal Reserve Governor Kevin Warsh concerning credibility.

    The bank sees December as the earliest potential timing for an increase, depending on developments in the conflict and oil prices.

    Brent Crude Trades at $95 a Barrel

    Brent crude increased 0.37% to $95 a barrel, while U.S. crude rose 0.06% to $90.27.

    Spot gold was down 0.02% at $4,327.33 an ounce, while gold futures declined 0.52% to $4,374.09.

    UK Corporate Updates

    BP (LSE:BP.) appointed Ian Tyler as chairman of the board. Amanda Blanc will step down as an independent director once a successor has been appointed.

    Ryanair (NASDAQ:RYAAY) lowered its fiscal 2027 passenger target to 214 million from 216 million, citing elevated unhedged oil prices. The airline also warned of higher short-haul fares.

  • BP Appoints Ian Tyler as Chairman as Amanda Blanc Plans Board Departure

    BP Appoints Ian Tyler as Chairman as Amanda Blanc Plans Board Departure

    BP PLC (LSE:BP.) has appointed Ian Tyler as permanent chairman with immediate effect following a search process that considered internal and external candidates.

    Tyler has served as interim chair since 26 May 2026, having joined BP’s board as a non-executive director in April 2025.

    The appointment follows the departure of former chairman Albert Manifold. BP’s board had cited serious concerns regarding his governance standards, oversight and conduct.

    Tyler Takes Permanent Chairman Role

    Tyler has held non-executive positions across listed and private companies in sectors including oil and gas, natural resources and engineering, working alongside more than 15 chief executives during his non-executive career.

    He currently chairs building materials company Grafton Group and serves as senior independent director of Anglo American. His previous positions include chairman of Cairn Energy and non-executive director of BAE Systems.

    Amanda Blanc, BP’s senior independent director, said:

    “I am delighted that the board has unanimously appointed Ian Tyler as Chair of BP. Ian brings significant experience providing challenge and support to executive teams, while maintaining strong governance and oversight on behalf of shareholders,” said Blanc, BP’s senior independent director.

    “These qualities have been evident during his time as Interim Chair, where he has secured the confidence of the board and executive management through his considered leadership, judgement and integrity.”

    Amanda Blanc to Leave BP Board

    BP also announced that Blanc will not seek re-election at the company’s next annual general meeting.

    Blanc, who oversaw the appointments of both Manifold and Tyler, will remain on the board until a successor is identified and will step down once that appointment has been made.