ADVFN UK Market News

Author: Fiona Craig

  • Zinc Media delivers record 2025 performance and builds momentum into 2026

    Zinc Media delivers record 2025 performance and builds momentum into 2026

    Zinc Media Group plc (LSE:ZIN) reported unaudited revenue of £41 million for 2025, alongside adjusted EBITDA of £1.9 million, with both figures rising 27% year-on-year. The results mark the company’s fifth straight year of growth in revenue and profitability, achieved against a challenging backdrop for the wider television production market.

    The group said the performance reflects continued demand for its content across domestic and international broadcasters, reinforcing its standing in the TV and content production sector. Despite industry headwinds, the business delivered its strongest annual outcome to date.

    Looking ahead, Zinc has entered 2026 with £3 million of new contracts already secured. A further £21 million is either contracted or at an advanced negotiation stage, while discussions are ongoing regarding an additional £10 million in commissions and several potential seven-figure projects.

    Management believes efficiency measures, alongside a robust development pipeline spanning intellectual property creation, expansion within entertainment formats, and geographic growth in the Middle East, will help drive progress toward its medium-term objectives of £50 million in revenue and £5 million in EBITDA. The outlook has strengthened confidence among investors and commissioning partners.

    From a market perspective, the company’s stock profile remains shaped by financial pressures, including past profitability constraints and elevated leverage levels. That said, strategic progress and successful programme launches have supported its longer-term growth case. Technical signals currently indicate a bearish trend, while valuation measures continue to reflect underlying financial challenges.

    More about Zinc Media

    Zinc Media is a premium television and content producer focused on award-winning factual programming for UK and global broadcasters. Its portfolio includes production labels such as Atomic, Brook Lapping and Tern Television.

    Beyond broadcast production, the group operates commercial content divisions including The Edge Picture Company, a specialist in branded films, and Zinc Audio, which produces podcast and radio programming.

  • Gold dips modestly but holds above $5,000 as markets brace for key U.S. data

    Gold dips modestly but holds above $5,000 as markets brace for key U.S. data

    Gold prices edged lower on Tuesday, easing from the previous session’s strong advance as investors stayed on the sidelines ahead of a busy run of U.S. economic releases later in the week.

    Other precious metals also traded weaker. Silver and platinum slipped despite some overnight support from a softer dollar, which later stabilized during Asian trading.

    At 08:15 ET (13:15 GMT), spot gold was down 0.3% at $5,042.29 an ounce, while April gold futures fell 0.3% to $5,064.31 per ounce. Spot silver dropped 0.8% to $81.575 per ounce, and spot platinum declined 1.1% to $2,094.35 per ounce.

    Volatility persists as traders hesitate to buy the dip

    Precious metals have seen sharp price swings over the past week, with profit-taking and crowded positioning driving prices down from record highs. Heightened uncertainty over U.S. monetary policy — particularly ahead of a potential change in leadership at the Federal Reserve — has further fueled market volatility.

    Safe-haven demand has also been uneven amid conflicting signals from U.S.-Iran relations. While officials cited progress in nuclear talks over the weekend, Washington nevertheless issued a warning on Monday urging U.S.-flagged vessels transiting the Strait of Hormuz to exercise caution.

    Although gold and other metals have clawed back some recent losses, prices remain well below late-January peaks, as investors appear reluctant to chase the rebound.

    “Dip-buying has been selective rather than aggressive, indicating participants are still sensitive to macro signals,” OCBC analysts said in a note.

    They added that while de-dollarization trends have supported gold over the past year, near-term direction will still hinge largely on developments in the U.S. labor market and their implications for monetary policy.

    Analysts at Heraeus said gold and silver have shifted away from their traditional role as safe havens and are now trading in a high-volatility environment.

    “The seeds of the price decline were sown in the preceding rally that for a supposedly low-volatility safe-haven asset was exceptional,” Heraeus said. “The price of gold has gone up 5x in 10 years but the dollar index is at the same level that it was in 2015. With such a sharp price drop there was likely an element of leveraged positions being unwound, with stop losses being hit and rising margin requirements. Exchanges are still raising margin requirements for futures’ positions.”

    U.S. data calendar takes center stage

    Investors are now turning their attention to a packed U.S. economic calendar that could provide clearer signals on growth and interest rate prospects.

    December retail sales data are being watched closely for insight into consumer spending trends amid signs of cooling in the labor market. January nonfarm payrolls figures are due Wednesday, followed by the consumer price index on Friday. Both reports are expected to influence Federal Reserve policy expectations, given the central bank’s focus on inflation and employment.

    Markets are also assessing the outlook for monetary policy under Kevin Warsh, President Donald Trump’s nominee to replace Jerome Powell as Federal Reserve chair when his term ends in May.

    Seen as less dovish, Warsh’s nomination previously triggered steep sell-offs across precious metals markets — losses that have yet to be fully reversed. Gold fell from near-record highs around $5,600 per ounce, while silver retreated from levels above $120 per ounce.

  • Flat U.S. retail sales raise caution ahead of Wall Street open: Dow Jones, S&P, Nasdaq, Futures

    Flat U.S. retail sales raise caution ahead of Wall Street open: Dow Jones, S&P, Nasdaq, Futures

    U.S. stock index futures pointed modestly lower on Tuesday, signaling a cautious start to trading as investors reassessed the outlook following two sessions of solid gains.

    Futures slipped after fresh data from the Commerce Department showed that U.S. retail sales unexpectedly stalled in December, raising concerns about the strength of consumer spending heading into the new year.

    The report showed retail sales were essentially unchanged last month, following a 0.6% increase in November. Economists had been expecting a 0.4% rise. Even after excluding autos — where sales at motor vehicle and parts dealers edged slightly lower — sales remained flat, compared with a 0.4% gain the prior month. Ex-auto sales had been forecast to rise 0.3%.

    Meanwhile, separate figures from the Labor Department indicated that U.S. import prices rose marginally in December, matching market expectations.

    Wall Street closed mostly higher on Monday, extending the rally that began late last week. The Dow Jones Industrial Average inched to a fresh record close, while technology shares powered a stronger advance in the Nasdaq.

    By the close, all three major indexes finished in positive territory. The Dow added 20.20 points, less than 0.1%, to end at 50,135.87. The Nasdaq jumped 207.46 points, or 0.9%, to 23,238.67, while the S&P 500 rose 32.52 points, or 0.5%, to 6,964.82.

    Much of the momentum came from a continued rebound in technology stocks, building on Friday’s surge. Software shares were among the leaders, with Oracle (NYSE:ORCL) soaring 9.6% after D.A. Davidson upgraded the stock to Buy from Neutral.

    Despite the recent strength, investors appeared hesitant to make aggressive bets ahead of several high-impact U.S. economic releases scheduled for the days ahead. Particular focus is expected on the Labor Department’s monthly employment report, which was postponed last week due to a brief government shutdown.

    The jobs report is forecast to show payrolls rising by 70,000 in January, following a 50,000 increase in December, while the unemployment rate is expected to remain unchanged at 4.4%.

    Upcoming reports on retail sales and consumer price inflation are also set to draw close scrutiny, given their potential implications for the interest rate outlook.

    “With Jerome Powell nearing the end of his term and Kevin Warsh widely expected to take over as Fed Chair, markets are increasingly sensitive to how data influences rate expectations,” said Daniela Hathorn, Senior Market Analyst at Capital.com. “While leadership changes may affect tone and communication, the data remains the ultimate driver.”

    She added, “As a result, the employment and inflation releases this week will be critical in determining whether markets lean back into expectations of easing — a scenario that could support equities and precious metals — or whether sticky inflation forces continued restraint.”

    Gold-related stocks posted some of the strongest gains in the market on Monday, helped by a sharp rise in bullion prices that lifted the NYSE Arca Gold Bugs Index by 6.1%.

    Networking and software stocks also rallied strongly, with the NYSE Arca Networking Index climbing 4% and the Dow Jones U.S. Software Index advancing 3.3%. Brokerage and semiconductor stocks also performed well, while healthcare and airline shares moved lower.

  • European markets trade cautiously as earnings updates keep investors selective: DAX, CAC, FTSE100

    European markets trade cautiously as earnings updates keep investors selective: DAX, CAC, FTSE100

    European equities were largely subdued on Tuesday, as investors digested a mixed flow of corporate earnings and waited for key U.S. economic data later in the week that could influence expectations for Federal Reserve interest rates.

    France’s CAC 40 edged up 0.1%, while Germany’s DAX slipped 0.1%. The U.K.’s FTSE 100 lagged its peers, down 0.4%.

    Dutch healthcare group Philips (EU:PHIA) stood out on the upside after reporting strong fourth-quarter results and setting ambitious targets for 2026.

    Shares of luxury group Kering (EU:KER), owner of Gucci, also jumped after the company reported an acceleration in sales momentum in the final quarter of 2025.

    Pharmaceuticals group AstraZeneca (LSE:AZN) traded higher after forecasting continued revenue and earnings growth in 2026, supported by strong demand for its cancer treatments.

    In contrast, BP Plc (LSE:BP.) shares came under pressure after the energy major suspended its share buyback programme and reported a wider replacement cost loss for the fourth quarter.

    Travel stocks were weaker as well, with TUI (TG:TUI1), Europe’s largest tour operator, sliding despite posting solid quarterly results and reaffirming its full-year targets.

  • European luxury shares advance as Kering update lifts sentiment across the sector

    European luxury shares advance as Kering update lifts sentiment across the sector

    European luxury stocks moved higher on Tuesday, supported by signs that trading at sector heavyweight Kering (EU:KER) held up better than expected in the fourth quarter, easing some concerns around the pace of its turnaround.

    Shares in fellow luxury names such as Salvatore Ferragamo (BIT:SFER) and Burberry (LSE:BRBY) were up more than 2% by mid-morning in Europe. Rival group LVMH, the diversified luxury conglomerate spanning fashion, wines and spirits, also edged higher, gaining around 0.8%.

    Kering itself led the gains, with its shares jumping more than 10%, extending a strong rally that began after the company announced the appointment of Luca de Meo as chief executive last June.

    The former Renault boss has been brought in to drive a broad restructuring of the group. Since taking the helm, de Meo has focused on reducing debt, streamlining governance and sharpening the portfolio. In October, Kering agreed a €4bn deal to sell its beauty business and certain brand licences to L’Oréal.

    In the fourth quarter — de Meo’s first full period as CEO — Kering reported a 3% decline in currency-adjusted sales year on year. That result compared favourably with a 5% drop expected by analysts, according to Visible Alpha forecasts cited by Reuters.

    Addressing analysts and investors, de Meo reiterated his ambition to return Kering to growth in 2026 and to improve margins across all of the group’s brands.

    Investor focus is now shifting to late February, when Gucci’s new creative director, Demna, is due to present his first collection at a Milan show. The performance of Gucci remains critical for Kering, as the brand accounts for a substantial share of the group’s profits.

    Gucci’s revenue fell 10% in the quarter, marking the tenth consecutive quarterly decline. However, the drop was less severe than many in the market had anticipated, Reuters noted, helping to underpin the positive reaction across the luxury sector.

  • Oil Slips as Markets Balance Geopolitical Risk Against Ample Supply

    Oil Slips as Markets Balance Geopolitical Risk Against Ample Supply

    Oil prices moved modestly lower on Tuesday as traders continued to assess the risk of supply disruptions tied to heightened U.S.–Iran tensions, while broader market fundamentals pointed to sufficient global supply.

    Brent crude futures fell 24 cents, or 0.35%, to $68.80 a barrel by 10:02 GMT. U.S. West Texas Intermediate declined 30 cents, or 0.47%, to $64.06.

    “The market remains focused on the tensions between Iran and the U.S., but without clear evidence of supply disruptions, prices are likely to drift lower,” said Tamas Varga, an oil analyst at PVM.

    “The market is range-bound — an oversupplied market colliding with geopolitics,” he added.

    Oil prices had climbed more than 1% on Monday after the U.S. Department of Transportation’s Maritime Administration advised U.S.-flagged commercial vessels to avoid Iranian territorial waters where possible and to refuse boarding requests from Iranian forces.

    Roughly 20% of global oil consumption passes through the Strait of Hormuz, the narrow chokepoint between Oman and Iran, making any escalation in the region a material threat to global energy flows.

    Iran and fellow OPEC producers Saudi Arabia, the United Arab Emirates, Kuwait and Iraq ship most of their crude exports through the strait, largely to Asian markets.

    The advisory was issued despite comments last week from Iran’s top diplomat, who said nuclear talks with the United States, mediated by Oman, had got off to a “good start” and were set to continue.

    Goldman Sachs analysts wrote on Tuesday that geopolitical uncertainty continues to underpin prices, noting increased oil volumes on vessels as buyers seek to secure supplies amid elevated risk.

    “While the Oman talks struck a cautiously constructive tone, lingering uncertainty around escalation risks, potential sanctions tightening or supply disruptions in the Strait of Hormuz has preserved a modest risk premium,” said Tony Sycamore, an analyst at IG.

    Separately, the European Union has proposed widening sanctions on Russia to cover ports in Georgia and Indonesia that handle Russian oil, according to a document seen by Reuters. The proposal would mark the first time the bloc targets ports in third countries.

    The move is part of broader efforts to clamp down further on Russian oil exports, a key source of revenue for Moscow as the war in Ukraine continues.

    Meanwhile, traders said Indian Oil Corp purchased six million barrels of crude from West Africa and the Middle East, as India scaled back purchases of Russian oil while pursuing a trade agreement with Washington that both sides aim to finalise in March.

  • Bitcoin Slips Back Below $70,000 as Markets Brace for Key U.S. Data

    Bitcoin Slips Back Below $70,000 as Markets Brace for Key U.S. Data

    Bitcoin (COIN:BTCUSD) fell under the $70,000 threshold during Asian trading on Tuesday, struggling once again to extend its recent rebound from lows near $60,000 as traders turned more defensive ahead of upcoming U.S. employment and inflation reports.

    The largest cryptocurrency by market value was down 2.2% at $69,392.7 as of 05:58 GMT.

    Bitcoin trapped in a narrow range

    In recent days, Bitcoin has largely oscillated between $68,000 and $72,000, following a volatile period last week when prices sank to roughly $60,000—levels not seen since October 2024—before a relief rally pushed the token back above $70,000.

    That sell-off was exacerbated by liquidation-driven pressure, with leveraged positions being unwound rapidly during sharp market declines.

    Attention has now shifted to U.S. macroeconomic releases that could reset expectations around Federal Reserve policy. Monthly U.S. jobs data, postponed due to a brief government shutdown, is scheduled for release on Wednesday.

    Later in the week, Friday’s U.S. Consumer Price Index (CPI) figures will offer fresh insight into inflation trends and could influence market expectations around interest-rate cuts.

    Investors are also watching developments at the Federal Reserve closely after President Donald Trump nominated Kevin Warsh as the next Fed chair. Traders are assessing how a potentially more hawkish leadership approach could affect liquidity conditions and risk-sensitive assets, including Bitcoin.

    South Korean exchange mishap raises regulatory alarms

    Separately, South Korean cryptocurrency exchange Bithumb mistakenly distributed approximately $44 billion worth of bitcoin to users during a promotional campaign, reigniting calls for tighter oversight of digital asset platforms.

    The incident occurred on Friday when the exchange accidentally credited accounts with 620,000 bitcoins instead of modest cash rewards. The error triggered a brief bout of selling before it was identified, and 99.7% of the misplaced coins were ultimately recovered.

    Lee Chan-jin, governor of the Financial Supervisory Service, said the episode exposed structural vulnerabilities in virtual asset systems and underscored the need for stronger supervisory frameworks and updated legislation to bring cryptocurrencies under firmer regulatory control.

    Altcoins also weaken

    Most major alternative cryptocurrencies also traded lower.

    Ethereum slid 2% to $2,052.92, while XRP fell 1% to $1.43.

    Solana declined 1.6%, and both Cardano and Polygon dropped 2.5%. Among meme-themed tokens, Dogecoin lost 1.8%.

  • Tech Shares Rebound as Earnings Accelerate; U.S. Retail Sales in Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Tech Shares Rebound as Earnings Accelerate; U.S. Retail Sales in Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures were little changed on Tuesday, as markets weighed a recent rebound in technology stocks against a heavy flow of corporate earnings and closely watched U.S. economic data due later in the week. Results are expected from several large companies, including CVS Health (NYSE:CVS) and Coca-Cola (NYSE:KO). Elsewhere, Japan’s Nikkei climbed to a fresh record high, while gold prices edged lower.

    Futures pause after tech-driven rally

    Stock futures in the United States hovered near unchanged levels, pointing to a cautious start to trading after technology shares led gains in the previous session.

    At 03:04 ET, futures on the Dow Jones Industrial Average and the S&P 500 were broadly flat, while Nasdaq 100 futures slipped by 18 points, or 0.1%.

    Wall Street’s main indices advanced on Monday, extending gains from the end of last week as investor appetite returned to technology names benefiting from the rapid expansion of artificial intelligence and data-centre infrastructure.

    Sentiment was further boosted by a CNBC report that OpenAI chief executive Sam Altman told employees that ChatGPT had resumed growth. The update strengthened confidence in a company seen as a key hub in the AI ecosystem. Analysts at Vital Knowledge said optimism around OpenAI also prompted DA Davidson to upgrade its view on Oracle (NYSE:ORCL), which has a $300bn data-centre agreement with the ChatGPT developer.

    By the close, the Nasdaq Composite had risen 0.9%, leaving it just shy of record territory, while the S&P 500 also finished close to all-time highs.

    Earnings season gathers momentum

    A busy earnings calendar is set to drive markets on Tuesday, as investors look for fresh insight into corporate performance at the start of 2026.

    Before the opening bell, reports are due from Marriott International (NASDAQ:MAR), Spotify (NYSE:SPOT), CVS Health and Coca-Cola. Gilead Sciences (NASDAQ:GILD) is scheduled to publish its results after the market close.

    In after-hours trading, shares of Onsemi (NASDAQ:ON) fell after the semiconductor group posted weaker-than-expected fourth-quarter revenue, citing a lingering inventory overhang. Customers continue to draw down chip stockpiles built up during earlier supply-chain disruptions.

    Onsemi also pointed to headwinds for its silicon carbide business from slowing electric vehicle demand and intensifying competition from China. Its midpoint sales outlook for the current quarter came in below Wall Street expectations.

    U.S. retail sales in the spotlight

    On the macro side, attention is turning to December U.S. retail sales data.

    Consumer spending accounts for more than two-thirds of U.S. economic output and was a major contributor to the 4.4% annualised GDP growth recorded in the third quarter.

    Core retail sales, which exclude autos, fuel, building materials and food services and closely track the consumer component of GDP, are expected to rise by 0.3% in December, slowing from a 0.5% increase in November.

    Some analysts have flagged a cooling labour market as a potential drag on spending, although Federal Reserve officials described employment conditions as “stabilizing” in January. Analysts at ING said the data should still point to “reasonably healthy” growth and support the view that “the U.S. consumer is alive and well.”

    Nikkei hits record on “Takaichi trade”

    Asian equities extended gains on Tuesday, led by Japan, where the Nikkei index reached a new all-time high as investors embraced the so-called “Takaichi trade” following Prime Minister Sanae Takaichi’s decisive election victory over the weekend.

    Markets expect Takaichi’s policy agenda to favour growth, investment and corporate profitability, reinforcing optimism around pro-business reforms, fiscal support and measures aimed at boosting innovation and strategic industries.

    Gold eases as caution prevails

    Gold prices slipped on Tuesday, giving back some of Monday’s gains as markets remained cautious ahead of several key U.S. economic releases.

    Silver and platinum also edged lower. Precious metals have seen sharp swings over the past week as profit-taking and stretched positioning pulled prices back from record highs.

    Safe-haven demand for gold was further tempered by mixed signals in U.S.-Iran relations. While both sides reported progress in weekend talks on Iran’s nuclear programme, Washington nevertheless issued a warning to U.S.-flagged vessels transiting the Strait of Hormuz.

  • European Shares Trade Mixed as Earnings Season Rolls On; BP Halts Buybacks: DAX, CAC, FTSE100

    European Shares Trade Mixed as Earnings Season Rolls On; BP Halts Buybacks: DAX, CAC, FTSE100

    European equity markets were mixed on Tuesday, with investors sifting through a fresh wave of quarterly results from some of the region’s largest corporates, set against a backdrop of improving global risk appetite.

    By 08:05 GMT, Germany’s DAX was down 0.2% and the UK’s FTSE 100 had slipped 0.2%, while France’s CAC 40 was outperforming, up 0.3%.

    Global risk appetite improves

    Confidence has firmed across global equity markets, supported by a rebound in technology and artificial intelligence-related stocks following last week’s sell-off.

    U.S. markets extended their rally for a second consecutive session, with the Dow Jones Industrial Average reaching a new all-time high. In Asia, Japan’s Nikkei 225 closed at a record level after Prime Minister Sanae Takaichi secured a landslide victory in the Lower House.

    European indices have also started the year positively, with the DAX and CAC 40 both up more than 2% year to date and the FTSE 100 gaining over 4%, helped by generally supportive corporate earnings.

    Earnings updates dominate

    The flow of company results continued on Tuesday as the reporting season gathered pace.

    Philips (EU:PHIA) delivered a better-than-expected fourth quarter, reporting sales of €5.10bn as the Dutch health technology group benefited from broad-based demand despite the impact of higher tariffs.

    Kering (EU:KER) said fourth-quarter sales fell by slightly less than anticipated, as new chief executive Luca de Meo worked to stabilise the luxury group in his first quarter at the helm.

    AstraZeneca (LSE:AZN) forecast growth in both revenue and profit for 2026, citing continued demand for its cancer therapies and newer medicines as it expands further in the United States and China.

    Barclays (LSE:BARC) reported a 12% rise in annual profit and set out new performance targets through to 2028, as the lender focuses on its core UK market and increased use of technologies such as AI to reduce costs.

    On the downside, BP (LSE:BP.) announced it would suspend share buybacks and redirect surplus cash toward strengthening its balance sheet. The move followed a fourth-quarter loss of $3.4bn, compared with a $1.2bn profit in the previous quarter.

    UK political uncertainty in focus

    The European economic calendar was relatively light, with the main data point showing France’s unemployment rate rising to 7.9% in the fourth quarter from 7.7% in the prior three months.

    Investor attention in the UK is likely to remain fixed on domestic politics, as Prime Minister Keir Starmer faces mounting pressure amid ongoing controversy surrounding the appointment of Peter Mandelson as ambassador to the United States.

    Anas Sarwar, leader of the Scottish Labour Party, called on the prime minister to resign on Monday, a request Starmer rejected, following renewed scrutiny of Mandelson’s links to the late US sex offender Jeffrey Epstein.

    According to Ruth Gregory, deputy chief UK economist at Capital Markets, any replacement of Starmer and/or Chancellor Rachel Reeves could initially push gilt yields higher and weaken sterling. Over the longer term, she said “the most likely longer-lasting influence is a loosening in fiscal policy that leads to higher gilt yields than otherwise and a weaker pound than otherwise.”

    Oil edges lower as geopolitical risks persist

    Oil prices eased slightly on Tuesday, although tensions between the United States and Iran remained elevated, keeping concerns about potential supply disruptions from the Middle East firmly in place.

    Brent crude futures slipped 0.3% to $68.86 a barrel, while U.S. West Texas Intermediate crude fell 0.3% to $64.18 a barrel. Both benchmarks had gained more than 1% on Monday after the U.S. Department of Transportation’s Maritime Administration advised U.S.-flagged vessels to keep their distance from Iranian waters when transiting the Strait of Hormuz and the Gulf of Oman.

    Roughly one-fifth of the world’s oil consumption passes through the Strait of Hormuz between Oman and Iran, making any escalation in the region a significant risk to global energy supplies.

    The warning came despite signs of progress in recent weekend talks between Washington and Tehran, with both sides agreeing to continue discussions over Iran’s nuclear programme.

  • Michelin Shares Drift Lower After Weak Goodyear Results Weigh on Sector Sentiment

    Michelin Shares Drift Lower After Weak Goodyear Results Weigh on Sector Sentiment

    Michelin (EU:ML) came under mild pressure early on Tuesday, following disappointing fourth-quarter earnings and a cautious volume outlook from Goodyear Tire and Rubber Co (NASDAQ:GT). The update from the US peer dampened sentiment across the global tyre sector.

    By mid-morning European trading, Michelin shares were down around 0.3%. In contrast, Italy’s Pirelli (BIT:PIRC) edged up 0.4%, while Germany’s Continental (TG:CON) gained 0.2%.

    In a sector note, analysts at Citigroup said Michelin is the “most exposed” of the European tyre makers to the US market and “have sizeable exposure to the still weak U.S. truck market, albeit more diversified across regions versus Goodyear.”

    “Hence any negative read to Michelin we think should not take shares more that 2% lower today,” the Citi analysts added. They also noted that Pirelli has the lowest exposure among the group, partly because it lacks exposure to the US truck segment.

    In US premarket trading, Goodyear shares fell more than 8% after the company reported fourth-quarter earnings per share of $0.39, missing Bloomberg consensus expectations of $0.49.

    According to analysts at Wolfe Research, Goodyear’s implied outlook for the current quarter reflects expectations that global tyre volumes will decline by 10% year on year due to an “industry inventory build-up and adverse weather.”

    They added that while Goodyear did not issue detailed guidance for its 2026 fiscal year or quantify expected volumes, its broader assumptions suggest the group “would need to be able to bring its volumes back to flat year-on-year for 2026 or announce new deep cost savings” for segment operating income to match 2025 levels and for this year’s free cash flow “to be just above breakeven.”