Author: Fiona Craig

U.S. stock futures are signaling a modest rise at Wednesday’s market open, suggesting investors may push equities higher after a mostly flat and volatile session on Tuesday.

The cautious optimism on Wall Street appears linked to progress in trade talks between the United States and the European Union.

According to the Financial Times, EU negotiators are nearing an agreement with the U.S. that would establish tariffs higher than those currently applied to the U.K.

However, early trading could remain tentative due to renewed trade tensions, as President Donald Trump announced a hefty 50% tariff on copper imports and warned of even steeper tariffs on other sectors, including a possible 200% duty on pharmaceuticals.

In a post on Truth Social Tuesday night, Trump stated he will “be releasing a minimum of 7 Countries having to do with trade” this morning, with “an additional number of Countries being released in the afternoon.”

Attention also turns to the Federal Reserve, which will publish minutes from its latest policy meeting later today.

These minutes may provide further insights into the Fed’s interest rate outlook before its next gathering on July 29-30.

Currently, CME Group’s FedWatch Tool shows a 93.3% probability that the Fed will keep rates steady later this month.

After a sharp retreat on Monday, markets remained indecisive on Tuesday, oscillating around the unchanged line before closing mixed.

The Nasdaq inched up slightly by 5.95 points, less than 0.1%, to 20,418.46; meanwhile, the S&P 500 slipped 4.46 points (0.1%) to 6,225.52, and the Dow dropped 165.60 points (0.4%) to 44,240.76.

Investors held back from making bold moves amid ongoing uncertainty over Trump’s trade stance.

On Monday, Trump extended the suspension of reciprocal tariffs on U.S. trading partners through an executive order.

The order extends the 90-day tariff suspension, initially set to expire Wednesday, until August 1, citing “additional information and recommendations from various senior officials.”

Trump told reporters the new deadline is “not 100 percent firm,” but on Truth Social this morning he declared “No extensions will be granted,” adding to market uncertainty.

The deadline extension follows a series of letters Trump posted on Truth Social threatening higher tariffs on at least 14 countries.

With little major U.S. economic data expected before the Fed minutes release, some traders remained on the sidelines.

Despite the muted market tone, energy stocks showed notable strength, with the Philadelphia Oil Service Index surging 5.3% and the NYSE Arca Oil Index climbing 3.4%.

Semiconductor stocks also performed well, as the Philadelphia Semiconductor Index gained 1.8%.

Biotech and steel sectors demonstrated solid gains, while gold stocks dropped sharply, tracking the fall in precious metal prices.

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 equities largely gained ground on Wednesday amid growing anticipation over developments in the U.S.-EU trade negotiations.

Reports from the Financial Times suggest that the European Union and the United States are nearing a trade agreement, which would impose tariffs higher than those applied to the U.K.

Among major indices, the German DAX rose 1.2%, while France’s CAC 40 increased by 1.3%. The U.K.’s FTSE 100 also advanced modestly, up 0.2%.

In corporate updates, Galliford Try Holdings (LSE:GFRD) rallied following its projection that full-year 2025 revenue and adjusted pre-tax earnings will slightly surpass market expectations.

Energy services company Hunting Plc (LSE:HTG) surged after releasing robust half-year figures and announcing a $40 million share buyback initiative.

EssilorLuxottica (EU:EL) gained significantly after Meta Platforms (NASDAQ:META) acquired a minority stake in the global eyewear giant.

German manufacturer Renk (TG:R3NK) also climbed higher amid rumors it is exploring options for its civilian industrial business unit.

Conversely, shares of British advertising firm WPP (LSE:WPP) declined sharply after the company lowered its earnings outlook for both the first half and full fiscal year 2025.

Close Brothers (LSE:CBG) shares fell following the announcement of plans to downsize its premium finance division to reduce costs and sharpen its focus on business services.

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 edged higher early Wednesday, hovering near its strongest level in more than two weeks as global markets digested renewed trade tensions triggered by President Donald Trump’s tariff threats—including a potential 50% duty on copper imports.

As of 04:45 ET (08:45 GMT), the Dollar Index—which measures the greenback against six major currencies—was up 0.1% at 97.267, after hitting its highest level since June 25 during Tuesday’s session.

Greenback Buoyed by Safe-Haven Demand Ahead of Fed Minutes

The dollar gained ground after Trump signaled a more aggressive trade stance, announcing plans for new tariffs on copper and hinting that duties on semiconductors and pharmaceuticals could follow soon. In a social media post late Tuesday, the president said a list of countries facing new trade restrictions would be published Wednesday, with more names to come later in the day. He had already sent formal tariff letters to 14 countries—including Japan and South Korea—earlier this week.

While markets continue to monitor developments on trade, attention is also turning to the Federal Reserve, which is set to publish minutes from its June policy meeting later in the session. Investors are eager for clues about the Fed’s next steps on interest rates.

At the June meeting, policymakers left the benchmark rate unchanged in a range of 4.25%–4.50%, emphasizing caution amid growing uncertainty around how tariffs may impact the broader U.S. economy.

According to analysts at ING, “The consensus expectation is probably that two members, Bowman and Waller, will have flagged their dissent at the meeting before delivering dovish comments to the media a few days later. But if the minutes show a greater dovish front, then the dollar could take a hit as the bar for data to justify a summer cut would be lower.”

Euro Slides as Trade Uncertainty Looms

The euro slipped against the dollar, with EUR/USD falling 0.2% to 1.1703. The single currency came under pressure after Trump suggested a formal tariff notice targeting the European Union was imminent, adding tension to ongoing transatlantic trade talks.

ING strategists noted, “Tariffs on the EU would mark an important escalation that can also harm the dollar, offsetting the hit on the euro. Anyway, the market’s baseline will probably remain that a EU-US deal should be agreed by the 1 August deadline, and EUR/USD may not drift far from the 1.16-1.18 area unless U.S. data surprises in either direction.”

Sterling Rises on Trade Deal Advantage

The British pound saw modest gains, with GBP/USD up 0.2% to 1.3595. The U.K.’s existing trade agreement with the Trump administration has insulated it somewhat from the current tariff headlines, providing a slight lift to sterling.

Asian Currencies Mixed as CPI Data Hits

In Asia, the Japanese yen weakened slightly, with USD/JPY up 0.1% to 146.70, while the Chinese yuan also edged lower, with USD/CNY gaining 0.1% to 7.1813. China’s June consumer price index showed a modest rise, buoyed by government subsidies and easing trade concerns, which helped sustain consumer activity.

Meanwhile, the Australian dollar held its ground after a sharp rally on Tuesday, trading 0.1% higher. The Reserve Bank of Australia unexpectedly left interest rates unchanged, giving the currency a short-term boost.

The New Zealand dollar (NZD/USD) also moved 0.1% higher to 0.6002 after the Reserve Bank of New Zealand kept its benchmark rate steady, though officials suggested they could cut rates if inflation continues to trend lower.

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.

Tesco PLC (LSE:TSCO) revealed plans on Wednesday for a significant multi-million-pound investment to bolster its nationwide retail network.

The UK’s leading grocery retailer is set to construct a new, state-of-the-art distribution centre at DP World London Gateway, with operations slated to begin in 2029.

This initiative forms part of Tesco’s long-term strategy to scale up its logistics infrastructure in line with its growing number of stores throughout the UK.

The planned facility is designed to enhance the supermarket’s supply chain efficiency and support its ambitions for sustained expansion in the years ahead.

Tesco’s latest move underscores its commitment to modernizing its distribution framework and ensuring it remains resilient and adaptable well into the future.

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 showed little movement early Wednesday as investors processed a flood of tariff updates and awaited the Federal Reserve’s June meeting minutes. President Donald Trump reaffirmed his firm stance on the new tariff deadline, while signaling plans to expand his trade restrictions with a proposed 50% tariff on imported copper. Meanwhile, White House economic advisor Kevin Hassett is emerging as a leading candidate to succeed Jerome Powell as Fed Chair.

Futures Quiet Ahead of Fed Minutes

As of 03:31 ET (07:31 GMT), Dow futures remained flat, S&P 500 futures dipped marginally by 3 points (0.1%), and Nasdaq 100 futures slipped 14 points (0.1%). Wall Street’s main indexes closed mixed Tuesday despite numerous trade-related announcements. Markets welcomed the White House’s decision to push back the tariff implementation deadline to August 1, a delay from the original date set for Wednesday.

“Investors appear to be taking President Trump’s latest tariff threats in stride, focusing on the extension of today’s deadline for reinstating reciprocal tariffs,” said Jonas Goltermann, Deputy Chief Markets Economist at Capital Economics.

Trump Confirms Tariff Deadline, Eyes Copper Duties

At a recent cabinet meeting, Trump emphasized that the August 1 tariff deadline is final, despite earlier comments describing it as “not 100% firm.” He reported positive progress in talks with the European Union and China but warned that the EU would soon receive its own tariff notice.

In a significant development, Trump proposed slapping a 50% tariff on copper imports, underscoring his trade policy’s sector-specific ambitions. Copper plays a vital role in vehicle manufacturing, military equipment, and power infrastructure.

The president also hinted at forthcoming tariffs on other sectors, including pharmaceuticals and semiconductors.

Treasury Secretary Scott Bessent highlighted that tariffs have generated $100 billion in revenue for the U.S. so far this year, with projections reaching $300 billion by year-end. The bulk of collections began in Q2 following Trump’s imposition of a 10% baseline duty and higher tariffs on steel, aluminum, and automobiles.

Analysts note that tariff revenues have become increasingly important for the administration to offset costs associated with recent tax cuts and spending packages.

Focus Turns to Fed Meeting Minutes

Investors are now closely monitoring the upcoming release of the Federal Open Market Committee’s June meeting minutes for clues on the future path of interest rates. Policymakers held rates steady at 4.25%-4.5%, adopting a cautious “wait-and-see” approach amid the evolving tariff landscape.

Chair Jerome Powell has reiterated the rationale for patience but acknowledged that, without tariff uncertainties, rate cuts may have already been initiated.

Market consensus anticipates two rate reductions before the end of 2025, potentially beginning in September, followed by another in December. However, uncertainty persists as Trump intensifies pressure on Powell, labeling him “terrible” and demanding his resignation to appoint a rate-cutting replacement.

Kevin Hassett Emerging as Top Fed Chair Candidate

The Wall Street Journal reported Tuesday that White House economic adviser Kevin Hassett is a frontrunner to replace Powell. Once considered a secondary choice behind former Fed governor Kevin Warsh, Hassett has reportedly met with Trump multiple times regarding the Fed role.

Speculation grows that Trump may accelerate the nomination process, possibly announcing a successor later this year. Powell has held the chair position since 2017.

Oil Prices Flat Amid Rising U.S. Inventories

Oil prices remained steady Wednesday following data revealing a sharp increase in U.S. crude inventories, raising concerns that tariffs might dampen demand.

At 03:30 ET, Brent crude futures inched up 0.1% to $70.19 per barrel, while West Texas Intermediate futures held steady at $68.36 per barrel.

Both contracts had climbed to two-week highs Tuesday on supply disruption fears after recent Houthi attacks targeted shipping lanes in the Red Sea.

The American Petroleum Institute reported an unexpected 7.1 million barrel increase in U.S. crude stocks for the week ending July 4, vastly surpassing the anticipated 2.8 million barrel drawdown.

Market participants now await official data from the Energy Information Administration later Wednesday, with Independence Day travel expected to boost fuel demand.

British equities started Wednesday’s trading session on a positive note, with the FTSE 100 rising nearly 1% by 07:36 GMT. Meanwhile, the British pound regained ground against the dollar, climbing 0.2% to approximately $1.36 after previously dipping amid renewed worries about tariffs.

Across Europe, Germany’s DAX index gained 0.4%, while France’s CAC 40 also rose by 0.4%.

WPP Shares Tumble Over 12% Following Revenue Forecast Downgrade

Advertising giant WPP (LSE:WPP) saw its shares fall sharply after the company reduced its full-year revenue and profit guidance. Weak trading during June led to a steeper than anticipated decline in the first half of 2025.

WPP now expects its 2025 like-for-like revenue, excluding pass-through costs, to decline between 3% and 5%, a marked revision from its earlier forecast of flat to a 2% decrease. The company cited challenging macroeconomic conditions and reduced net new business wins as primary drivers of the weaker outlook.

Hunting PLC Raises Dividend Growth Target and Announces Buyback Plan

Engineering group Hunting PLC (LSE:HTG) reported a robust H1 2025, with EBITDA up around 16% year-on-year, reaching approximately $68-$70 million. The growth was largely fueled by strong performance in its OCTG product segment.

Hunting boosted its targeted annual dividend growth from 10% to 13% and revealed plans for a $40 million share buyback program, following the publication of its half-year results on August 28. The company maintained its full-year EBITDA forecast of roughly $135-$145 million and expects year-end cash between $65 million and $75 million prior to the buyback and any acquisitions.

Jet2 Posts 12% Increase in Pre-Tax Profits

Jet2 (LSE:JET2) announced a 12% rise in pre-tax profits for the year, driven by strong demand for its competitively priced holiday packages and flights. The company noted that bookings remain steady, although customers tend to arrange travel closer to departure dates.

Jet2 emphasized that consumer enthusiasm for relaxing overseas vacations in sunny destinations remains high.

Young & Co Benefits from Warm UK Weather with 7% Sales Growth

Pub operator Young & Co (LSE:YNGA) experienced a boost in like-for-like sales of 7% over the 14 weeks ending July 8, benefiting from prolonged warm and sunny weather in the UK. This increase was particularly noticeable in pubs located by riversides and with outdoor gardens. The growth comes despite tough comparisons with last year’s Euro 2024 football tournament period.

New Report Urges Chancellor Reeves to Reform Fiscal Rules

A recent report from the Productivity Institute and the National Institute of Economic and Social Research suggests that Chancellor Rachel Reeves should overhaul fiscal policy to improve productivity. The analysis argues current rules hinder essential investment for sustainable economic growth and tax revenue expansion.

The report advises setting a minimum public investment threshold of about 4%-5% of GDP and establishing a clear plan for government consumption in the upcoming autumn budget.

Competition Regulator Approves £100 Million Contribution from Homebuilders

In a separate development, the U.K.’s Competition and Markets Authority (CMA) has accepted a £100 million pledge from seven major homebuilders to support affordable housing initiatives. This follows an investigation into possible antitrust violations by these companies.

Apple Inc. (NASDAQ:AAPL) is reportedly exploring the acquisition of U.S. broadcasting rights for Formula 1, according to a Financial Times report on Wednesday. The tech giant aims to challenge Disney-ESPN’s current F1 broadcast contract in the U.S. once it becomes available for renewal next year, sources familiar with the matter revealed.

This potential bid follows the strong box office performance of Apple’s Formula 1-themed movie starring Brad Pitt, marking the company’s first major theatrical success since venturing into original film production for its Apple TV+ platform. The film grossed just over $300 million globally, aligning closely with its estimated production budget of $200 to $300 million.

Apple’s growing enthusiasm for Formula 1 ties into its broader strategy to expand its presence in the live sports streaming arena. In recent years, the company has secured broadcast agreements with Major League Baseball for Friday night games and with Major League Soccer in North America.

Formula 1 has yet to finalize its future U.S. broadcasting arrangements, and ESPN remains a contender for retaining the rights. Last year, ESPN had an exclusive negotiation period with the racing series, but no agreement was reached during that window.

European equity markets saw modest gains on Wednesday, as investors remained cautious while assessing the impact of U.S. President Donald Trump’s evolving trade tariff policies.

By 07:05 GMT, Germany’s DAX had risen by 0.4%, France’s CAC 40 climbed 0.4%, and the U.K.’s FTSE 100 increased by 0.3%.

Trade Discussions Take Center Stage

This week, market participants in Europe have been closely monitoring developments coming out of Washington regarding ongoing trade negotiations. President Trump extended the deadline for finalizing trade agreements from July 9 to August 1 via an executive order, granting negotiators an additional three weeks to reach a deal.

Despite this extension, Trump indicated there would be “no more extensions” beyond August 1. However, he also described the deadline as “firm, but not 100% firm,” leaving some uncertainty lingering.

Further adding to market jitters, the U.S. president unveiled a 50% tariff on copper imports and hinted at upcoming tariffs targeting other specific sectors. He also threatened pharmaceutical exports with duties as high as 200%, though he plans to delay their implementation by approximately one to one and a half years.

Amid these developments, investors are awaiting potential progress on a U.S.-EU trade agreement, although skepticism remains, especially as Trump mentioned preparing a new tariff notification.

ECB Officials and Fed Minutes in Focus

With limited significant European economic releases scheduled for Wednesday, attention will likely turn to speeches from European Central Bank officials Luis de Guindos and Philip Lane.

Meanwhile, data from China showed a slight improvement in consumer prices for June, surpassing expectations but still remaining relatively subdued. Producer prices, however, contracted for the 33rd month in a row and recorded their lowest level since July 2023.

Later in the day, the U.S. Federal Reserve is set to publish the minutes from its most recent policy meeting. Investors are eager for clues about the central bank’s outlook on interest rates for the remainder of the year.

Renault Poised to Appoint Interim CEO

On the corporate front, no major earnings reports are scheduled for Wednesday, but Renault (EU:RNO) is attracting attention after reports that the French automaker plans to name an interim CEO next week. This follows the impending departure of Luca de Meo, who will move on to lead luxury group Kering (EU:KER).

According to the Financial Times, Renault’s shortlist includes internal candidates Denis Le Vot and François Provost, alongside former Stellantis (NYSE:STLA) executive Maxime Picat.

Oil Prices Dip After U.S. Inventory Surge

Crude oil prices eased from recent two-week highs Wednesday, as data revealed a sharp rise in U.S. crude stockpiles, raising concerns that trade tariffs might suppress demand for oil.

At 03:05 ET, Brent crude futures fell 0.1% to $70.10 per barrel, while West Texas Intermediate futures also dropped 0.1%, settling at $68.28 per barrel.

Prices had surged to two-week peaks on Tuesday, driven by worries over supply disruptions after renewed attacks by Houthi forces on Red Sea shipping routes.

The American Petroleum Institute reported an unexpected build of 7.1 million barrels in U.S. crude inventories for the week ending July 4, far surpassing the anticipated drawdown of 2.8 million barrels.

Market participants are now awaiting confirmation from the Energy Information Administration’s official inventory report later in the day, especially as the Independence Day holiday weekend typically fuels strong travel demand.

In Wednesday’s Asian trading session, gold prices eased slightly as traders showed limited interest in the metal as a safe haven. Market uncertainty around U.S. trade tariffs and interest rate policies fueled demand for the U.S. dollar instead, putting downward pressure on gold.

Meanwhile, copper prices in the United States bucked the trend by climbing to record levels following President Donald Trump’s announcement of a potential 50% tariff on copper imports. This sharp tariff threat boosted domestic copper prices, even as London copper futures experienced declines on Tuesday and Wednesday.

The stronger dollar, recovering from recent three-year lows, weighed on most other metals, causing broad-based price retreats across the sector. The dollar’s rally was supported by rising expectations that the Federal Reserve would hold off on cutting interest rates after recent robust U.S. employment data.

Spot gold slipped 0.2% to $3,294.88 per ounce, while September gold futures declined 0.4% to $3,303.20 per ounce as of 00:55 ET (04:55 GMT). Gold hovered near its lowest point in over a week, as trade tensions failed to ignite typical safe-haven buying.

Investors shifted their focus to the heavily discounted dollar, which gained traction amid ongoing concerns about Trump’s tariff plans. The president began issuing official tariff notices this week targeting several major trading partners, adding to market uncertainty.

The Federal Reserve has cautioned that the tariffs, if fully implemented, could increase inflation pressures in the U.S., making interest rate cuts less likely in the near term. This dynamic contributed to subdued gold demand and pressure on other metals.

Precious metals saw some profit-taking after strong performances in June, with platinum futures down 1.1% at $1,376.35 per ounce and silver futures inching up slightly to $36.84 per ounce.

Copper prices in the U.S. surged on hopes of reduced supply due to tariffs. U.S. copper futures gained 2.6% to $5.6457 per pound on Wednesday, after reaching a record $5.8955 per pound the day before. The tariff threat is expected to benefit domestic producers such as Freeport-McMoRan, as the administration aims to boost local mining and reduce reliance on imports.

Copper’s strategic importance has grown amid the shift to green technologies, given its key role in electrical infrastructure and electric vehicles.

However, copper prices outside the U.S. declined amid concerns over softer import demand, especially from China, the world’s largest copper consumer. London Metal Exchange copper futures dropped 1.6% to $9,644.45 per ton, approaching a three-week low, as mixed inflation data from China fueled demand worries.

Oil prices slipped from a two-week high during Asian trading on Wednesday after industry data revealed a sharp increase in U.S. crude inventories. Investors remained cautious ahead of further trade tariff announcements expected from President Donald Trump.

As of 21:44 ET (01:44 GMT), Brent Oil Futures for September delivery fell 0.3% to $69.91 per barrel, while West Texas Intermediate (WTI) crude futures declined 0.4% to $68.10 per barrel. Both contracts had reached a two-week peak on Tuesday, driven by concerns over supply disruptions following recent attacks by Houthi forces on shipping lanes in the Red Sea.

A Reuters report on Tuesday detailed that four crew members aboard the Liberian-flagged, Greek-operated bulk carrier Eternity C were killed in a drone and speedboat attack off the coast of Yemen.

US crude stocks jump sharply

The American Petroleum Institute (API) reported on Tuesday a sharp and unexpected rise in U.S. crude oil inventories for the week ending July 4, with a build of 7.1 million barrels—far exceeding the forecasted drawdown of 2.8 million barrels. This followed a previous week’s modest increase of 0.68 million barrels.

Gasoline inventories fell by 2.2 million barrels, while distillate stocks declined by 800,000 barrels. The data suggests weakening demand and potential oversupply challenges in the U.S. market.

Market watchers now await confirmation from the Energy Information Administration (EIA), whose report is due later in the day. If the EIA data mirrors the API trend, it would mark the largest increase in crude inventories since January.

Trump announces copper tariff and more duties incoming

President Trump stated on Tuesday he would impose a 50% tariff on imported copper and plans to soon implement long-promised tariffs on semiconductors and pharmaceuticals.

The day before, he began sending tariff letters notifying 14 countries that sharply higher tariffs would take effect starting August 1. These letters outlined a 25% tariff on all goods from Japan and South Korea, with some countries facing levies as high as 40%.

Late Tuesday, Trump tweeted: “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon.” He provided no further details, leading investors to adopt a cautious stance amid expectations of a new wave of tariffs.