Author: Fiona Craig

U.S. equity futures were trading mostly higher on Thursday, supported by a strong outlook from memory chipmaker Micron (NASDAQ:MU), although investors remain cautious ahead of the release of key U.S. inflation figures. In Europe, attention is split across several central bank policy decisions, with the Bank of England widely expected to be the only authority to ease monetary conditions.

Micron lifts tech sentiment as CPI looms

Wall Street futures showed modest gains in early trading, driven by strength in technology stocks after Micron delivered an upbeat earnings outlook. Even so, markets are bracing for the latest U.S. consumer price data, which could quickly shift sentiment.

By early morning in New York, S&P 500 futures were higher by around 18 points, while Nasdaq 100 futures climbed roughly 0.6%. Dow Jones futures edged lower, slipping about 0.1%.

Micron’s update helped offset recent disappointment from other major technology names, including Broadcom (NASDAQ:AVGO) and Oracle (NYSE:ORCL). Still, the broader market remains under pressure after another weak session, with the S&P 500 and Dow both extending their losing streaks to four days. The Nasdaq Composite lagged after a sharp drop in Oracle shares, following reports that a key backer had withdrawn from a $10 billion data centre project in Michigan.

With risk appetite fragile, investors are now focused on U.S. inflation data for clearer guidance on the Federal Reserve’s policy path in the year ahead.

Inflation report takes centre stage

Recent U.S. economic data point to a cooling labour market, with unemployment rising to a more than four-year high of 4.6%. That has increased scrutiny of Thursday’s consumer price index release, which brings inflation back into the spotlight.

While Fed officials have shown greater concern about employment trends than stubborn price pressures, the CPI figures remain critical. Both headline and core inflation are expected to come in at 3.0% year on year, matching the pace seen in September. Overall, progress toward the Fed’s 2% inflation target has stalled for over a year, with readings stuck in a relatively narrow range.

Micron signals sustained demand for chips

Market confidence had been shaken last week by lacklustre results from several companies exposed to artificial intelligence spending. Micron Technology has helped restore some optimism by forecasting a strong second quarter.

The company continues to see solid demand from data centres, driven by heavy investment from large cloud service providers. This trend is expected to persist, with Micron chief executive Sanjay Mehrotra telling investors that supply constraints mean the company is likely to meet only half to two-thirds of demand from certain major customers through 2026.

Micron’s products are used across a wide range of applications, from servers and personal computers to vehicles and smartphones. The group is also a key supplier of high-bandwidth memory, a crucial component in training and deploying generative AI models.

Bank of England in the spotlight

Several European central banks announce policy decisions on Thursday, but the Bank of England is expected to attract the most attention.

The European Central Bank is widely seen holding rates steady at 2%, potentially alongside slightly improved growth forecasts. Sweden’s Riksbank and Norway’s Norges Bank are also expected to keep policy unchanged.

In contrast, the BoE is expected to cut interest rates by 25 basis points to 3.75%, down from 4.0%, following a sharp slowdown in inflation and softer economic momentum. UK inflation data released on Wednesday reinforced expectations of an imminent rate cut, even though at 3.2% inflation remains the highest among G7 economies.

Markets are currently pricing in just one additional BoE rate cut in 2026, most likely by the end of April, although expectations for a second cut increased after the November inflation data.

Oil prices rebound on Venezuela developments

Oil prices moved higher after U.S. President Donald Trump ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, raising concerns over possible supply disruptions.

Brent crude futures rose 0.7% to $60.08 a barrel, while U.S. West Texas Intermediate gained 0.8% to $56.24.

The move followed Tuesday’s announcement that tankers carrying Venezuelan oil already under U.S. sanctions would be targeted, intensifying pressure on President Nicolás Maduro’s government.

“The key questions are, first, how effective this blockade will be, and second, how long it will last. This will be important in determining the impact on the oil market,” ING analysts said in a note.

Despite the bounce, oil prices remain on track for weekly declines of close to 2%, weighed down by expectations of oversupply and the possibility of a peace agreement in Ukraine.

European equity markets showed little clear direction on Thursday, with investors adopting a cautious stance ahead of several closely followed central bank policy announcements across the region.

By 08:35 GMT, Germany’s DAX was trading around flat levels, while the UK’s FTSE100 was also largely unchanged. France’s CAC40 edged slightly higher, gaining around 0.2% in early dealings.

Focus on central bank policy

Market participants appeared reluctant to take strong positions as they waited for guidance from multiple central banks that could influence sentiment heading into the new year. The European Central Bank is widely expected to leave interest rates unchanged at 2% later in the day, with inflation close to its medium-term target and the eurozone economy showing relative resilience despite ongoing trade tensions driven by US President Donald Trump’s policies.

Sweden’s Riksbank and Norway’s Norges Bank are also expected to maintain current policy settings at their final meetings of 2025. In contrast, the Bank of England is broadly anticipated to lower interest rates by 25 basis points to 3.75%, down from 4.0%, which would mark the lowest borrowing costs since January 2023.

The case for easing has been reinforced by UK inflation data, with annual consumer price growth slowing to 3.2% in November from 3.6% the previous month, the weakest reading in eight months.

BP shares rise on leadership change

In company news, BP (LSE:BP.) shares moved higher after the energy group announced the appointment of Woodside Energy chief executive Meg O’Neill as its next CEO. She will succeed Murray Auchincloss, who steps down after less than two years in the role.

O’Neill is due to take up the position in April, becoming BP’s first externally appointed chief executive and the first woman to lead any of the world’s five largest oil majors.

Oil prices rebound on Venezuela developments

Oil prices advanced after US President Donald Trump ordered a blockade targeting sanctioned oil tankers entering and leaving Venezuela, raising concerns over potential supply disruptions.

Brent crude futures climbed 0.7% to $60.11 a barrel, while US West Texas Intermediate crude rose 0.8% to $56.27. The move followed Tuesday’s announcement that the blockade would apply to tankers already subject to US sanctions, increasing pressure on Venezuelan President Nicolás Maduro’s government.

Despite the rebound, oil prices remain on track for weekly declines of nearly 2%, weighed down by expectations of oversupply and speculation around a possible peace agreement in Ukraine.

Campari (BIT:CPR) has entered into an agreement to divest its Averna and Zedda Piras brands to Illva Saronno Holding for €100 million, continuing its efforts to simplify its brand portfolio and reduce financial leverage.

The deal covers the Sicilian bitters brand Averna and the Sardinian myrtle liqueur Zedda Piras, while explicitly excluding Braulio, which will remain Campari’s sole bitters brand. The transaction is expected to complete in the first half of 2026, subject to customary closing conditions.

Campari said the disposal is consistent with its broader strategic priorities. Commenting on the announcement, chief executive Simon Hunt said: “The sale of Averna and Zedda Piras marks a further key step in our portfolio rationalization strategy, with the aim of focusing on fewer but more strategically impactful initiatives, while continuing to drive deleveraging, as highlighted at our Capital Markets Day.”

The agreement includes transitional arrangements covering both production and distribution. Campari will continue to handle certain blending and bottling activities for Averna at its Canale facility for a limited period. In addition, the group will temporarily manage distribution of Averna and Zedda Piras in selected markets, including Germany, Austria, and Switzerland, until Illva Saronno has established its own distribution network.

Illva Saronno owns a portfolio of well-known brands, including Disaronno amaro and the Sicilian wine labels Florio and Duca di Salaparuta, and is expected to integrate the newly acquired brands into its existing global operations.

Naked Wines PLC (LSE:WINE) said it now expects adjusted EBITDA for the 2026 financial year to come in at the top end of its previously issued guidance, following a strong peak trading period across all of its markets.

The online wine retailer said performance has been supported by robust seasonal trading and tighter cost control, with disciplined management of general and administrative expenses, cost of goods sold, and customer acquisition investment. These measures have helped offset the impact of a more selective growth strategy.

The company acknowledged that its decision to scale back less efficient investment is likely to result in revenue landing toward the lower end of guidance. Management reiterated that this approach is consistent with its longer-term aim of building “a smaller but materially more profitable business” that can return to sustainable, profitable growth.

Looking ahead, Naked Wines said it expects adjusted EBITDA to increase progressively over the medium term. A more detailed trading update covering peak performance is scheduled to be released in mid-January 2026. The company also confirmed that adjusted EBITDA excludes the impact of inventory liquidation and related costs.

BP Plc (LSE:BP.) has confirmed the appointment of Meg O’Neill as its new chief executive, with her tenure set to begin on 1 April 2026. The announcement follows the decision by current CEO Murray Auchincloss to step down, with Carol Howle appointed as interim chief executive during the transition period.

The energy group said Auchincloss will resign from both his executive role and the board on 18 December. Howle, who currently serves as executive vice president for supply, trade and transportation, will lead the company on an interim basis until O’Neill formally takes up the position. Auchincloss will continue to support BP in an advisory capacity through to December 2026 to ensure a smooth handover.

O’Neill has been chief executive of Woodside Energy since 2021, a period during which BP noted that the company became the largest energy business listed on the Australian Securities Exchange. During her tenure, she also led the acquisition of BHP Petroleum International, creating a more geographically diversified oil and gas portfolio.

Prior to joining Woodside in 2018, O’Neill spent 23 years at ExxonMobil, where she held a range of technical, operational, and senior management roles across multiple countries, according to BP.

Commenting on the appointment, BP chairman Albert Manifold said the board viewed the change as a strategic opportunity. “After a comprehensive succession planning process, the board believes this transition creates an opportunity to accelerate our strategic vision to become a simpler, leaner, and more profitable company,” Manifold said in a statement.

O’Neill said BP “plays a crucial role in providing energy to customers around the world” and added that she was “honored to serve as the company’s next CEO”.

Auchincloss, who has spent more than 30 years with BP, said his departure followed discussions with the chairman. “After more than three decades at BP, the time has come to hand over the reins to a new leader,” he said.

Interim chief executive Carol Howle has been with BP for 25 years and has held her current executive vice president role since July 2020. Her previous responsibilities included leading BP Shipping and overseeing integrated oil supply and trading operations. Outside the company, she also serves as a non-executive member of the Royal Navy Board of Trustees and chairs the Navy’s Audit and Risk Assurance Committee.

UK equities traded largely flat on Thursday morning as investors awaited the Bank of England’s latest interest rate decision, while sterling edged lower and major European markets moved higher. By 08:18 GMT, the FTSE100 was down marginally by 0.01%, and the pound slipped 0.07% against the US dollar, remaining just above the 1.33 level.

Across Europe, sentiment was more positive, with Germany’s DAX rising 0.1% and France’s CAC40 gaining 0.2% in early trading.

Markets are widely expecting the Bank of England to cut interest rates by 25 basis points to 3.75%. Economists anticipate a close vote, potentially split 5–4, with Governor Andrew Bailey expected to support easing. However, stronger-than-expected UK inflation data for November, particularly a sharp fall in food prices, has increased speculation that the vote could swing to a 6–3 split.

In company news, BP PLC (LSE:BP.) announced that Meg O’Neill will take over as chief executive from 1 April 2026. Current CEO Murray Auchincloss will step down from both his executive role and the board on Thursday, with Carol Howle appointed as interim chief executive during the transition period.

Elsewhere, Currys PLC (LSE:CURY) reported a strong set of first-half results. The electronics retailer said adjusted profit before tax jumped 144% to £22 million for the 26 weeks to 1 November. Group revenue increased 8% year on year to £4.23 billion, compared with £3.92 billion previously. On a currency-neutral basis, revenue rose 6%, while like-for-like sales across the group grew 4%.

Adjusted earnings before interest and tax increased 32% to £54 million, with reported EBIT rising to £43 million from £29 million. The improvement was driven by higher sales volumes and particularly strong performance in the Nordic region.

Currys plc (LSE:CURY) has reported a robust first-half performance, with adjusted profit before tax rising to £22 million, representing a 144% increase year on year. Free cash flow also strengthened significantly, increasing 68% to £84 million, reflecting improved operational efficiency and disciplined cost management.

Revenue growth was recorded across both the UK & Ireland and Nordic regions. In the UK & Ireland, performance was supported by growth in services, increased B2B sales, and the expansion of new product categories, while Nordic operations delivered strong execution and maintained market leadership. Despite ongoing cost pressures, Currys outperformed the wider UK market and continued to demonstrate resilience in a challenging retail environment.

The group remains focused on sustainable growth, cash generation, and returning value to shareholders. This approach is reflected in its £50 million share buyback programme and the declaration of dividends. Full-year guidance has been left unchanged, underlining management’s confidence in the company’s financial and operational trajectory.

More about Currys plc

Currys plc is a leading retailer of consumer electronics and technology products, offering solutions across computing, mobile, domestic appliances, and associated services. The company operates across the UK, Ireland, and the Nordic region, serving both consumer and business-to-business customers through an extensive store network and digital channels.

Blackbird PLC (LSE:BIRD) has completed a £500,000 fundraising through the issue of 22,222,222 new ordinary shares, strengthening its balance sheet and providing additional resources to accelerate development and marketing of its elevate.io platform.

The proceeds will be used to support elevate.io during its product–market fit phase, with a particular focus on expanding marketing activity to drive customer acquisition and establish recurring revenue streams. Management also plans to use the capital to scale operations in response to growing demand within the rapidly expanding Creator Economy.

Despite the successful raise, Blackbird continues to face challenges around profitability and cash generation. While the company maintains a solid equity position and recent strategic progress offers potential upside, valuation concerns persist due to ongoing losses. Technical indicators suggest a relatively stable share price backdrop as the business works to convert product momentum into sustainable financial performance.

More about Blackbird PLC

Blackbird PLC is a technology company operating across the SaaS, media, and entertainment sectors. It develops patented cloud-based video editing and viewing solutions, including the BlackbirdⓇ platform for professional broadcasters and media organisations, and elevate.io, a browser-based collaborative content creation tool aimed at professional teams and the growing Creator Economy.

Shield Therapeutics (LSE:STX) has applied to the London Stock Exchange for a block listing covering 15,000,000 ordinary shares, which are intended for use under the company’s Retention and Performance Share Plan. The shares are expected to be admitted to trading on 23 December 2025.

The move is designed to support the company’s incentive framework as it continues to commercialise its iron deficiency treatment ACCRUFeR®. Management said the block listing will provide additional flexibility in rewarding and retaining key personnel as the business seeks to build on its position within the global iron deficiency market, estimated to be worth around $2.3 billion.

From a market standpoint, Shield Therapeutics is benefiting from supportive technical momentum and recent corporate developments. However, these positives are tempered by ongoing financial pressures and valuation concerns, with funding stability remaining a key consideration for investors.

More about Shield Therapeutics

Shield Therapeutics plc is a commercial-stage pharmaceutical company focused on the development and global commercialisation of ACCRUFeR®/FeRACCRU® (ferric maltol), an oral treatment for iron deficiency with or without anaemia. The company operates through partnerships and licensing arrangements, with products marketed across the US, UK, Europe, Canada, China, South Korea, Japan, and other international markets.