Author: Fiona Craig

British stocks slipped Thursday afternoon, with the FTSE 100 falling 0.3% as Drax came under regulatory scrutiny while Softcat gained on stronger-than-expected earnings. The pound strengthened 0.2% against the dollar to 1.35. In Europe, Germany’s DAX dropped 0.1% and France’s CAC 40 rose 0.2%.

Drax Under FCA Investigation

Drax Group (LSE:DRX) shares fell more than 9% after the U.K.’s Financial Conduct Authority (FCA) announced an investigation into the company’s biomass pellet sourcing following whistleblower allegations. The probe will cover January 2022 to March 2024 and assess whether annual reports for 2021–2023 complied with listing, disclosure, and transparency regulations. Drax confirmed it will cooperate fully with the FCA.

Softcat Gains on Strong Results

Softcat PLC (LSE:SCT) climbed over 3% after posting better-than-expected fiscal 2025 results. Analysts noted, however, that a few large, irregular contracts supported the performance, leaving some uncertainty for 2026. The IT reseller expects adjusted EBIT for 2025 to reach approximately £177 million, slightly above consensus estimates of £174 million.

Chesnara’s H1 Cash Generation Beats Forecasts

Life and pensions consolidator Chesnara (LSE:CSN) reported a 26% increase in commercial cash generation for H1 2025, reaching £37 million versus £29.2 million a year earlier, exceeding RBC Capital Markets’ estimate of £22 million. The increase was driven by UK and Netherlands operations, while the Swedish business was negatively affected by a stronger U.S. dollar. The board declared an interim dividend of 7.70p, up 3% from 7.48p last year.

Hunting Posts Mixed H1 Results, Announces Buyback

Hunting PLC (LSE:HTG) reported first-half revenue of $529 million and EBITDA of $70.2 million, slightly below analyst forecasts. Contracts with Kuwait Oil Company supported margins, but results fell short of expectations. The company unveiled a $40 million share buyback plan, to be executed in three tranches, with the first two expected in early 2026 and the third in the second quarter of that year. Operating profit stood at $36 million and net income at $21 million.

GSK Gains U.K. Approval for Oral UTI Antibiotic

Pharmaceutical company GSK plc (LSE:GSK) received regulatory approval in the U.K. for its oral antibiotic treatment for uncomplicated urinary tract infections, the first new oral option for this condition in nearly 30 years.

Barclays to Sell Entercard Stake

Barclays PLC (LSE:BARC) announced it will sell its entire stake in Entercard Group AB to joint venture partner Swedbank AB (LSE:81BO) for approximately SEK 2.6 billion ($300 million). The sale involves Barclays Principal Investments Limited divesting its holding in the consumer credit provider at book value, equal to half of Entercard’s net assets as of March 31, 2025.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures suggest a flat open for Thursday, hinting at a quiet start after two sessions of gains. Investors may adopt a cautious stance as they await key earnings and economic data.

Nvidia (NASDAQ:NVDA) shares slipped 0.3% in pre-market trading, despite the company reporting second-quarter results that broadly beat expectations. Weakness in data center sales weighed on the AI leader, tempering enthusiasm.

Attention is now turning to Friday’s Commerce Department report on personal income and spending for July, which includes the Federal Reserve’s preferred measures of consumer price inflation. Analysts forecast a slight rise in the annual core inflation rate to 2.9% from June’s 2.8%, a development that could influence interest rate expectations.

CME Group’s FedWatch tool currently assigns an 85.3% probability of a quarter-point rate cut at the Fed’s September meeting.

Following a choppy session on Tuesday, U.S. equities extended modest gains on Wednesday. The S&P 500 reached a new record closing high, while the major indexes posted only moderate increases. The Dow Jones Industrial Average added 147.16 points, or 0.3%, to 45,565.23. The Nasdaq rose 45.87 points, or 0.2%, to 21,590.14, and the S&P 500 climbed 15.46 points, or 0.2%, to 6,481.40.

Despite Nvidia’s anticipated earnings, trading remained subdued, as investors hesitated without fresh economic data to guide positions.

Energy stocks led the day, boosted by rising oil prices. The Philadelphia Oil Service Index jumped 2.1%, while the NYSE Arca Oil Index increased 1.7%. Computer hardware stocks also performed well, with the NYSE Arca Computer Hardware Index gaining 1.3%.

Meanwhile, software and telecom sectors showed modest strength, whereas brokerage shares moved lower, reflecting investor caution ahead of the week’s key reports.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European markets opened mostly higher but turned mixed as the session progressed, with investors reacting to Nvidia’s (NASDAQ:NVDA) latest earnings report. U.K. stocks lagged, weighed down by declines in banking and utility sectors.

The French CAC 40 gained 0.4%, while Germany’s DAX hovered near the flatline, and the U.K.’s FTSE 100 fell 0.3%.

Technology stocks received a boost from Nvidia’s upbeat outlook, lifting shares of Infineon (TG:IFX) and ASM International (EU:ASM).

Thyssenkrupp Nucera (TG:TKA), the German electrolysis specialist, climbed after being chosen by Australia’s Progressive Green Solutions as the preferred supplier of 1.4 GW electrolyzers for the Mid-West Green Iron project.

Automotive supplier Continental (TG:CON) rose following the announcement of its sale of the ContiTech Original Equipment Solutions division to Regent. Car manufacturers BMW (TG:BMW), Volkswagen (TG:VOW3), and Mercedes Benz (TG:MBG) also advanced after industry data showed a 5.9% increase in new car sales across Europe in July. French automaker Renault similarly saw its shares jump.

Pernod Ricard (EU:RI) outperformed expectations, climbing after reporting a smaller-than-anticipated 3% decline in annual organic revenue.

Conversely, U.K.-based energy services company Hunting (LSE:HTG) dropped sharply after its first-half results fell short of forecasts.

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.

GSK plc (LSE:GSK) has obtained regulatory clearance in the U.K. for its oral antibiotic designed to treat uncomplicated urinary tract infections (UTIs), introducing the first new oral therapy for this condition in nearly three decades.

The Medicines and Healthcare products Regulatory Agency (MHRA) authorized gepotidacin, sold under the brand name Blujepa, for use in females aged 12 and older weighing at least 40 kg.

Urinary tract infections are the most prevalent bacterial infection among women, impacting roughly half of the female population in the U.K. The growing threat of antibiotic-resistant bacteria has made new treatment options vital to avoid treatment failure and prevent serious complications such as sepsis or permanent kidney damage.

“As the first new type of oral antibiotic to treat uncomplicated UTIs to be approved in nearly three decades, gepotidacin provides a new treatment option for women facing urinary tract infections that can severely impact daily life,” said Julian Beach, MHRA Interim Executive Director, Healthcare Quality and Access.

The approval follows two Phase 3 clinical trials with a total of 3,136 participants—1,572 received gepotidacin, while 1,564 were treated with nitrofurantoin, the current standard of care for uncomplicated UTIs.

Results demonstrated that gepotidacin was at least as effective as nitrofurantoin, showing consistent efficacy across patient subgroups, including individuals with recurrent infections or drug-resistant bacterial strains.

GSK had earlier secured approval for gepotidacin from the U.S. Food and Drug Administration earlier this year, marking a significant milestone in expanding treatment options for UTIs globally.

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.

Tesla Inc (NASDAQ:TSLA) experienced a sharp decline in both sales and market share across Europe in July, according to data released Thursday by the European Automobile Manufacturers’ Association (ACEA), even as overall electric vehicle demand in the region continued to grow.

Chinese rival BYD Co (USOTC:BYDDY), appearing in the ACEA monthly data for the first time, outperformed Tesla, capturing a larger share of the market.

ACEA reported that Tesla’s total new car registrations across the European Union, the Europe Free Trade Association, and the UK fell 40.2% year-on-year to 8,837 units. The association, comprising 15 major European automakers, serves as the primary lobbying and standards body for the region’s auto industry.

Tesla’s market share in Europe dropped further to 0.8% from 1.4% a year earlier, with cumulative January-to-July sales down 33.6% from the same period in 2024.

This decline came despite a 33.6% increase in total battery electric vehicle (BEV) sales in Europe during July. BEVs now represent roughly 15.6% of the European car market, trailing petrol vehicles at 28.3% and hybrid EVs at 34.7%.

The July data underscores Tesla’s ongoing struggles in the region as competition intensifies from European and Chinese manufacturers. BYD, for example, sold 13,503 units in Europe last month, securing a 1.2% market share. Its hybrid models appeal to more price-sensitive buyers, and high European import tariffs on Chinese vehicles have not significantly dampened consumer interest.

Tesla’s refreshed Model Y, released earlier this year, failed to meaningfully lift sales, while European automakers — many of whom have ramped up their EV offerings in recent years — further increased competitive pressure.

Tesla’s brand image has also faced challenges this year, reportedly affected by CEO Elon Musk’s support for U.S. President Donald Trump and his links to a German far-right party, triggering consumer boycotts across Europe and the U.S.

During Tesla’s Q2 earnings call in late July, Musk acknowledged the hurdles, stating the EV maker faces a “few rough quarters,” with the phase-out of U.S. EV tax credits adding to the challenges.

Still, Musk emphasized Tesla’s future growth areas, highlighting artificial intelligence, autonomous driving, and robotics as key drivers moving forward.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar faced headwinds against major currencies on Thursday as traders increased wagers on a potential Federal Reserve interest rate cut next month, following comments from New York Fed President John Williams suggesting such a move could occur.

The greenback is also under added pressure from President Donald Trump’s intensified efforts to influence monetary policy, including his attempt to remove Fed Governor Lisa Cook and replace her with an ally.

Against the euro, the dollar remained on the defensive even after France’s prime minister unexpectedly announced a confidence vote for next month, which is expected to topple his minority government.

The dollar index, which tracks the currency against six major peers, held steady at 98.145 after two days of declines. The euro was largely unchanged at $1.1640, while sterling inched up to $1.3505.

The U.S. currency slipped 0.14% to 0.8015 Swiss franc and fell 0.19% to 147.11 yen.

Japan’s top trade negotiator, Ryosei Akazawa, canceled a last-minute trip to Washington Thursday, delaying the disclosure of Japan’s $550 billion investment pledge in the U.S. as part of a tariff agreement. A government spokesperson explained that the decision came after discussions with the U.S. side revealed issues that required further discussion “at the administrative level.”

Speaking on U.S. monetary policy, Williams told CNBC Wednesday that “every meeting is, from my perspective, live.”

He added, “Risks are more in balance. We are going to just have to see how the data play out.”

Investors are now focused on key economic indicators ahead of the Fed’s September 16-17 policy meeting, notably the PCE price index on Friday—the central bank’s preferred inflation measure—and the monthly payrolls report a week later.

Traders currently assign roughly an 89% probability to a 25-basis-point rate cut next month and have priced in cumulative easing of 55 basis points by year-end, according to LSEG data. This has contributed to a drop in two-year Treasury yields, which are highly sensitive to policy expectations, sending them to their lowest levels since May 1 overnight and adding pressure to the dollar.

Trump’s drive to install hand-picked, dovish-leaning members on the Fed’s decision-making committee has also pushed short-term yields lower, though his attempt to remove Cook could trigger a lengthy legal battle after she sued to retain her position.

As DBS analysts noted, “The crux of the issue lies with whether Trump can remove Cook before March,” when the 12 reserve bank presidents must be reappointed by the board of governors.

They added, “In such a case, Trump could install his own, dovish picks, and as a result, ‘a more aggressive rate cut pace—one every meeting or even jumbo cuts—50 bps at a go—may be in the offing.’”

In offshore trading, the dollar dipped 0.03% to 7.1495 yuan. The Australian dollar held steady at $0.6507 after a 0.4% gain over the previous two sessions. Bitcoin rose 0.4% to around $112,913.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices remained near a two-week peak in Asian trading Thursday, supported by growing speculation that the Federal Reserve may cut interest rates in September amid ongoing tensions between President Donald Trump and the central bank.

Spot gold edged close to $3,400 per ounce this week but stalled just below that mark as the dollar gained some traction and U.S. Treasury yields stabilized.

Heightened concerns over the Fed’s independence have been a key factor driving gold, following Trump’s attempt to remove Governor Lisa Cook. Both Cook and the Fed challenged the move, with Cook signaling potential legal action to retain her position.

Spot gold slipped 0.2% to $3,389.96 per ounce, while October gold futures advanced 0.4% to $3,445.32 per ounce by 01:37 ET (05:37 GMT).

Fed Rate Cut Speculation Accelerates Amid Trump Dispute

Gold’s gains this week coincided with rising worries about the Fed’s autonomy after Trump’s attempted firing of Cook, setting the stage for a potential legal showdown during which she is expected to remain in her role.

Markets have increased their bets on a September rate cut, particularly after Fed Chair Jerome Powell hinted last week that such a move was possible. CME FedWatch data showed futures pricing in an 84.9% likelihood of a 25-basis-point cut, up from 78.4% a week ago.

Powell noted some easing in the labor market but refrained from making firm commitments on future rate adjustments, citing uncertainty over how Trump’s policies might affect inflation.

The dollar’s retreat this week on expectations of a rate cut helped support gold and other metals. While the greenback recouped some losses, most commodity prices remained buoyant.

Spot platinum held at $1,349.08 per ounce, and spot silver rose 0.3% to $38.6975 per ounce.

Among industrial metals, benchmark London Metal Exchange copper futures rose 0.3% to $9,789.60 per ton, while COMEX copper futures dipped 0.2% to $4.4915 per pound. Lower interest rates generally boost metals by reducing the opportunity cost of holding non-yielding assets.

Investors Await Key U.S. Economic Data

Attention now turns to upcoming U.S. economic indicators. A revised estimate of second-quarter GDP is expected later Thursday, likely showing strong quarter-on-quarter growth of 3%.

The more closely watched measure will be the July PCE price index, due Friday. As the Fed’s preferred gauge of inflation, it is anticipated to show inflation remaining steady and above the central bank’s 2% annual target, providing fresh signals on the outlook for monetary policy.

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 eased in Asian trading on Thursday, as investors balanced the effects of a slightly larger-than-expected U.S. crude inventory draw with the implementation of new tariffs on imports from India.

As of 21:34 ET (01:34 GMT), October Brent futures fell 0.5% to $67.71 per barrel, while West Texas Intermediate (WTI) futures slipped 0.6% to $63.80 per barrel.

U.S. Crude Stocks Drop More Than Anticipated

According to the Energy Information Administration, U.S. crude inventories fell by 2.4 million barrels in the week ending August 22, exceeding analysts’ expectations of a 1.9 million-barrel decline. Gasoline inventories dropped 1.2 million barrels, and distillates fell 1.8 million barrels. Meanwhile, implied gasoline demand rose to 9.24 million barrels per day from 8.84 million bpd a week earlier, indicating strong seasonal consumption.

While the draw reflects robust end-of-summer driving, it also raises concerns that demand could slow once the seasonal peak ends, potentially squeezing refining margins and limiting the upside for oil prices.

Market Eyes 50% U.S. Tariff on India

Investors are also digesting the impact of U.S. tariffs on India. In response to India’s continued imports of Russian crude, an additional 25% duty on Indian oil imports came into effect Wednesday, doubling the total U.S. tariff to 50% from August 27.

Although Indian refiners paused purchases of Russian oil briefly after the secondary tariffs were imposed, they have since resumed imports, suggesting that the measures have not significantly curtailed flows. Analysts expect markets to continue monitoring Russian crude shipments to India to gauge potential effects.

Geopolitical tensions remain a key driver of sentiment. U.S. President Donald Trump has positioned himself as a mediator in the Ukraine conflict but warned last week that additional sanctions on Moscow could be imposed if progress toward a peace deal is not made within two weeks.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equity markets advanced on Thursday after Nvidia (NASDAQ:NVDA) posted robust results, alleviating fears of a slowdown in AI demand, though uncertainty over its China operations tempered sentiment.

The pan-European STOXX 600 index rose 0.3% to 556.53 as of 07:04 GMT.

Semiconductor shares showed a mixed performance as investors digested Nvidia’s data center guidance, which came in slightly below some analysts’ projections. ASML (EU:ASML) and Be Semiconductor Industries (EU:BESI) edged lower, while Infineon (TG:IFX) and ASM International (EU:ASM) climbed nearly 1% each. Although Nvidia’s forecast remains substantial in dollar terms and marginally above analyst estimates, it fell short of the outsized gains some investors had expected.

Corporate earnings across Europe were largely positive. Delivery Hero (TG:DHER) gained 3.8% after reporting slightly stronger-than-expected revenue growth for Q2. Pernod Ricard (EU:RI) advanced 4% following its fourth-quarter results, with Remy Cointreau (EU:RCO) rising close to 2%.

In France, the CAC 40 index added 0.7%, recouping part of a 2.8% decline earlier in the week amid political uncertainty over a potential collapse of the minority government in a confidence vote.

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 were mixed Thursday as Nvidia’s earnings weighed on technology shares. Meanwhile, Tesla’s European sales continued to decline in July, and doubts emerged over the U.S.-Japan trade deal after Tokyo’s lead negotiator canceled a planned Washington visit.

Nvidia Retreats Amid China Concerns

Nvidia (NASDAQ:NVDA) reported strong quarterly results after Wednesday’s market close, surpassing analysts’ estimates and forecasting third-quarter revenue above Wall Street expectations.

However, weaker-than-expected data center revenue and uncertainty over China projections caused investors to question the company’s lofty valuation, sending shares lower in after-hours trading. The drop erased roughly $110 billion from Nvidia’s $4.4 trillion market capitalization.

Nvidia posted second-quarter earnings of $1.04 per share, beating the $1.01 forecast, with revenue at $46.7 billion. The company projected third-quarter revenue of $54 billion, plus or minus 2%, exceeding analysts’ $52.76 billion expectations. Yet data center revenue, Nvidia’s largest segment, came in at $41.1 billion, below the $41.34 billion estimate, largely because no H20 chips were sold in China during the quarter.

CEO Jensen Huang expects permission to resume selling Nvidia chips to China after reaching an agreement with U.S. President Donald Trump to pay commissions to the U.S. government. “But with no formal U.S. rules in place and questions about whether Chinese regulators will discourage purchases of Nvidia chips,” the company excluded potential China sales from its current-quarter forecast.

Nvidia CFO Colette Kress added, “the company will ship between $2 billion and $5 billion in H20 revenue in the current quarter, if geopolitical issues were to subside.” She noted, however, that the outlook for China remains highly uncertain.

U.S. Futures Mixed as Tech Sector Feels Pressure

Thursday morning, S&P 500 futures rose 2 points (0.1%), Dow futures added 127 points (0.3%), while Nasdaq 100 futures fell 17 points (0.1%). Wednesday had been a strong session, with the S&P 500 hitting a record close. The indices are on track for monthly gains, with the S&P 500 and Nasdaq Composite each up more than 2%, and the Dow Jones Industrial Average rising over 3%.

Investors are also monitoring earnings from Snowflake (NYSE:SNOW) and NetApp (NASDAQ:NTAP), along with weekly initial jobless claims and Q2 GDP figures.

Tesla Sales Drop Sharply in Europe

Tesla (NASDAQ:TSLA) experienced a steep decline in European sales and market share in July, according to data from the European Automobile Manufacturers’ Association (ACEA). Despite overall EV sales increasing in the region, Tesla lagged behind Chinese competitor BYD, which captured a larger market share.

ACEA data showed Tesla’s total new car registrations in the EU, EFTA, and the U.K. fell over 40% year-on-year. Market share also dropped to 0.8% from 1.4% last year, with January–July sales down 33.6%. Meanwhile, total battery EV sales in Europe rose 33.6% in July, representing 15.6% of the car market compared with petrol at 28.3% and hybrid EVs at 34.7%.

Tesla’s updated Model Y has had little impact, while European competitors continue to challenge the market. CEO Elon Musk’s support of U.S. President Trump and ties to a German far-right party have further affected Tesla’s image in Europe.

Japan Trade Talks Delayed

Japan’s chief trade negotiator, Ryosei Akazawa, canceled a U.S. visit, postponing talks aimed at finalizing a $550 billion investment package tied to tariff relief.

“It was found that there are points that need to be discussed at the administrative level during coordination with the American side. Therefore, the trip has been cancelled,” Japan’s government spokesperson Yoshimasa Hayashi said Thursday.

In July, Washington and Tokyo agreed on a 15% tariff on imports from Japan in exchange for investment via government-backed loans and guarantees. President Trump described it as “our money to invest” and said the U.S. would retain 90% of profits, while Japanese officials emphasized that investments must also benefit Japan.

Oil Prices Retreat

Oil fell on expectations of lower U.S. fuel demand as the summer driving season winds down. At 02:55 ET, Brent crude dropped 0.5% to $66.91 per barrel, and WTI fell 0.9% to $63.59 per barrel.

Both benchmarks had climbed the previous session after the Energy Information Administration reported a 2.4 million-barrel drop in U.S. crude inventories, above analysts’ 1.9 million-barrel forecast. While this reflected strong demand ahead of Labor Day, the end of summer typically signals slower U.S. fuel consumption.

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.