Author: Fiona Craig

The U.S. dollar declined on Wednesday, extending its retreat after a modest inflation report strengthened expectations that the Federal Reserve could lower interest rates next month.

At 04:25 ET (08:25 GMT), the Dollar Index, which tracks the greenback against six major currencies, slipped 0.4% to 97.540, following a 0.5% drop in the previous session.

Markets Eye September Rate Cut

Data released Tuesday showed U.S. consumer prices rising only slightly in July, highlighting the limited effect of the Trump administration’s tariffs on inflation. This has boosted expectations that the Fed may cut rates at its next policy meeting.

Investors are now pricing in a 98% probability of a rate reduction in September, pressuring the dollar lower.

“At this stage, the dollar has few bullish arguments to hold onto. Upcoming surveys might paint a better activity picture, but it’s all about the jobs market now: a substantial recovery in the dollar from these levels appears realistic only if jobs figures turn significantly stronger,” analysts at ING said in a note.

The economic calendar is light for the day, though a producer prices gauge for final demand is scheduled for Thursday, followed by U.S. retail sales and consumer sentiment data on Friday.

“The proximity to the Trump-Russia summit on Friday and recent reassessment of the chances of an imminent ceasefire mean the dollar may not fall much further for now,” ING added.

Euro Rises Against Dollar

In Europe, the euro gained 0.3% to 1.1712 against the dollar, building on a roughly 0.5% rise in the prior session.

Spain’s EU-harmonized inflation for the past 12 months rose to 2.7% in July from 2.3% in June, while Germany’s equivalent remained at 1.8%.

“EUR/USD’s bullish case is stronger after yesterday’s US inflation report. However, a break above might be delayed until after the Trump-Putin meeting on Friday,” ING noted.

GBP/USD also climbed 0.4% to 1.3560, after data indicated that U.K. wage growth stayed elevated, reinforcing the Bank of England’s cautious stance on cutting rates.

Yen Strengthens Following PPI Data

Elsewhere, USD/CNY remained largely unchanged at 7.1763, after earlier declines this week following the U.S. and China’s announcement of a 90-day extension to their temporary trade agreement. U.S. officials said negotiations with Beijing will resume in the coming months.

USD/JPY fell 0.2% to 147.46, with the yen gaining after producer prices came in slightly stronger than expected, raising the possibility of additional rate hikes by the Bank of Japan.

AUD/USD advanced 0.4% to 0.6551, with the Australian dollar climbing despite the Reserve Bank of Australia cutting its benchmark rate on Tuesday—its third reduction this year.

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 rose Wednesday, pointing to further gains on Wall Street following soft inflation data that pushed the S&P 500 and Nasdaq Composite to record closing levels. Investors are awaiting Cisco Systems’ (NASDAQ:CSCO) earnings report, while Perplexity AI has launched a $34.5 billion bid to acquire Google’s Chrome browser.

Futures Signal Continuation of Rally

Futures tied to the main U.S. indexes climbed, suggesting Tuesday’s gains could continue. By 03:36 ET, S&P 500 futures were up 33 points (0.5%), Nasdaq 100 futures added 264 points (1.1%), and Dow futures increased 49 points (0.1%).

The prior session saw all three major indices rise over 1%, fueled by July’s consumer price growth matching June’s level. The data strengthened expectations that the Federal Reserve might cut interest rates next month, prioritizing labor market support over inflation containment.

“Inflation was broadly in line with expectations as tariffs continue to be largely absorbed within U.S. corporate profit margins. This gives the Fed the room to respond to the weaker jobs backdrop,” analysts at ING wrote.

The S&P 500 and Nasdaq set new closing highs, while yields on short-term Treasuries fell, reflecting the typical inverse relationship between yields and prices.

Cisco’s Earnings in Focus

Cisco Systems is first in a wave of companies reporting earnings for the quarter ending in July. Analysts expect results to exceed estimates, supported by “general strength” in Cisco’s firewalls and cybersecurity subscription business, according to Piper Sandler.

“Cisco is still experiencing net-momentum into the second half, with early networking prints a good signal for the space and 2026 likely a good refresh period,” said James Fish and his team.

Fiscal 2026 guidance will be “key,” particularly after Mark Patterson replaced Scott Herren as CFO. Herren retired in July, leaving after Cisco raised its fiscal 2025 outlook, counting on AI to maintain demand from cloud clients.

Analysts also highlighted that Splunk (NASDAQ:SPLK), acquired by Cisco for $28 billion in 2024, will now be included in organic results. The deal marked Cisco’s largest acquisition and a push to integrate AI more fully into operations.

Perplexity AI Targets Chrome

Perplexity AI has made a $34.5 billion all-cash offer to buy Google’s Chrome browser, aiming to leverage data from billions of users to train its AI models.

The bid comes amid ongoing antitrust scrutiny over Google’s search dominance. A U.S. judge ruled last year that Google had illegally monopolized search, paving the way for remedies including a Chrome sale, which could reshape digital advertising.

Perplexity, which previously bid for TikTok US amid U.S. regulatory concerns, has not disclosed how it would fund the offer. The startup was last valued at $14 billion and has raised around $1 billion from investors including SoftBank (USOTC:SFTBY) and Nvidia (NASDAQ:NVDA).

Ether Approaches All-Time High

Bitcoin (COIN:BTCUSD) inched higher, while Ether (COIN:ETHUSD) surged as much as 8.5% to $4,683, nearing its November 2021 peak of $4,861. Corporate buyers are increasingly stockpiling Ether, mirroring strategies used by Michael Saylor’s Strategy for Bitcoin accumulation.

Gold Rises Modestly

Gold prices climbed in early European trading on hopes of Fed easing and ahead of U.S.-Russia talks. Spot gold rose 0.3% to $3,359.54 per ounce, and December futures increased 0.3% to $3,408.22/oz by 03:35 ET.

Markets now see a 96% chance of a September rate cut, according to CME’s FedWatch Tool. Geopolitical developments moderated gains, as traders monitor Friday’s summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska to discuss Ukraine and potential ceasefire proposals.

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.

British equities edged higher on Wednesday, supported by a stronger pound against the dollar and key earnings reports from U.K. firms such as Persimmon and Evoke.

By 0800 GMT, the FTSE 100 had risen 0.1%, while the British pound gained 0.3% against the dollar, surpassing the 1.35 mark. In continental Europe, Germany’s DAX climbed 0.5% and France’s CAC 40 advanced 0.3%.

Persimmon Exceeds Margin Expectations

U.K. homebuilder Persimmon (LSE:PSN) posted an underlying operating margin of 13.1% for H1 2025, surpassing Jefferies’ estimate of 12.3%.

The company delivered 4,605 homes, in line with guidance for a second-half weighted year, while maintaining £123 million in cash. Its return on capital employed reached 11.2%, which Jefferies described as sector-leading.

Persimmon confirmed its full-year 2025 completions guidance of 11,000–11,500 homes, compared with Jefferies’ forecast of 11,553. The company also projected an underlying operating margin of 14.2%–14.5% for the full year.

Evoke Affirms FY25 Outlook

Evoke (LSE:EVOK) reiterated its 2025 revenue growth target of 5%–9% and forecasted EBITDA margins of at least 20%.

At the low end, this translates to around £368 million, roughly 3% above market expectations of £356 million. The company’s last-12-month EBITDA totaled £363 million. Q2 revenue grew 5%, supported by a 6% increase in online sales (7% at constant currency) and a return to growth in retail.

Beazley Shares Fall on Reduced Premium Growth Guidance

Shares of Beazley PLC (LSE:BEZ) fell over 8% after the U.K. insurer lowered its full-year premium growth forecast, citing weaker demand in cyber and property risk insurance.

The firm now expects gross written premiums to rise in the low-to-mid single digits, down from prior guidance of mid-single-digit growth. Profit before tax for H1 fell to $502.5 million from $728.9 million a year earlier.

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.

Persimmon Plc (LSE:PSN) reported a strong performance for the first half of 2025, with new home completions rising 4% and underlying operating profit increasing by 13%. The company has sustained its growth by expanding its sales outlets and refining planning and operational strategies. Despite a challenging market, Persimmon remains on track to achieve its full-year completion targets and continues to invest in future growth, including land acquisitions and building safety enhancements. Operational discipline and a focus on self-help have contributed to higher sales and improved profitability, supporting the company’s ongoing growth trajectory.

About Persimmon

Persimmon Plc is a leading residential construction company in the UK, specializing in building new homes. The company emphasizes quality housing and operational efficiency, with strategies centered on land acquisition, planning, and vertical integration. Recent strategic actions, such as the sale of FibreNest, combined with financial stability, a reasonable valuation, and an attractive dividend yield, reinforce Persimmon’s strong position in the housing market and its potential for long-term growth.

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.

Shoe Zone (LSE:SHOE) reported a challenging trading period for June and July 2025, driven by reduced consumer confidence and lower discretionary spending following the government’s October 2024 budget. As a result, footfall, revenue, and profits have declined, with the company now forecasting an adjusted profit before tax of £2.5 million, down from the previously expected £5 million. In response, Shoe Zone is pausing its current dividend policy. Despite these headwinds, the company remains committed to its strategy, marked by the opening of its 200th new format store, and maintains a debt-free balance sheet with higher cash reserves than the previous year.

About Shoe Zone

Shoe Zone is a UK-based footwear retailer offering affordable, quality shoes for the whole family. The company operates 271 stores, including 74 high street locations and 198 larger format outlets, employing around 2,150 people. Shoe Zone also provides a multi-channel shopping experience through its stores and online platform, shoezone.com, selling approximately 13.3 million pairs of shoes annually.

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.

Gulf Keystone Petroleum Ltd. (LSE:GKP) is set to publish its half-year 2025 results on 28 August, accompanied by a presentation for analysts and investors. The company has restarted production at the Shaikan Field following a security review and is in talks with the Kurdistan Regional Government to resume pipeline exports, pending formal agreements.

About Gulf Keystone Petroleum

Gulf Keystone Petroleum Ltd. is an independent oil and gas operator active in the Kurdistan Region of Iraq, with a focus on exploration and production. The company’s outlook reflects strong operational performance and positive analyst sentiment, though high valuation levels and operational risks remain important considerations.

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.

ITM Power (LSE:ITM) has entered a supply agreement with MorGen Energy for the 20MW West Wales Hydrogen project in Milford Haven, UK, marking a key step in the UK’s Hydrogen Allocation Round 1. The project will deploy ITM’s POSEIDON electrolyser platform, expected to commence by year-end, supplying industrial clusters and supporting green transport initiatives in Wales. This partnership highlights ITM Power’s leadership in green hydrogen and its potential to generate jobs, strengthen supply chains, and position Wales as a hub for the green hydrogen economy.

About ITM Power

Founded in 2000 and AIM-listed since 2004, ITM Power is based in Sheffield, England, and specializes in designing and manufacturing proton exchange membrane (PEM) electrolysers for producing green hydrogen from renewable electricity and water. MorGen Energy, a Trafigura subsidiary, focuses on developing large-scale, cost-efficient hydrogen production, aiming to make clean hydrogen commercially viable.

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.

Cornish Metals Inc. (LSE:CUSN) has advanced work on the New Cook’s Kitchen shaft at its South Crofty tin project, completing dewatering and refurbishment up to the mid-shaft pump station. Full completion is anticipated by Q4 2025. This milestone is critical for resuming dewatering and refurbishing the shaft down to the lower pump station by mid-2026, supporting the company’s strategic objective of moving the project closer to production.

About Cornish Metals

Cornish Metals Inc. is a dual-listed mineral exploration and development company focused on the South Crofty tin project in Cornwall, UK. The company aims to become Europe’s or North America’s only primary tin producer. South Crofty is a historic, high-grade underground tin mine with existing infrastructure and strong local and governmental support. The project is fully permitted for underground mining and the construction of a new processing facility, with the potential to create over 300 direct jobs.

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.

Thor Energy PLC (LSE:THR) has finalized a Sale and Purchase Agreement to sell a 75% stake in its US subsidiaries, which hold uranium and vanadium projects in Colorado and Utah, to Metals One PLC. The deal enables Thor to concentrate on its HY-Range natural hydrogen and helium project in South Australia, while retaining a 25% interest in the US projects and receiving Metals One shares, potentially providing substantial non-dilutive funding for future initiatives.

Thor Energy faces significant financial challenges, including a lack of revenue and liquidity constraints. Nonetheless, positive developments in the clean energy sector offer potential growth opportunities. The stock’s technical indicators remain bearish, and valuation metrics are negative, reflecting current investor caution.

About Thor Energy PLC

Thor Energy PLC is focused on hydrogen and helium exploration, critical resources in the transition to a clean energy economy. The company also maintains a portfolio of uranium and other energy metals projects.

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.

Hill & Smith PLC (LSE:HILS) posted strong unaudited results for the six months ending 30 June 2025, reporting a 4% increase in revenue and an 11% rise in underlying operating profit on a constant currency basis. The company also announced a £100 million share buyback, underscoring its robust balance sheet and financial flexibility. Performance was particularly strong in the US Engineered Solutions and Galvanizing Services divisions, fueled by sustained infrastructure demand in the US, while the UK market experienced challenges, especially in road infrastructure. Hill & Smith remains confident in its medium-term growth, supported by its solid positions in structurally growing infrastructure and built environment markets.

The company’s stock benefits from its strong financial results and strategic initiatives. Technical indicators suggest bullish momentum, although overbought signals warrant caution. Valuation appears reasonable, while the dividend yield anomaly should be monitored. Overall, Hill & Smith is well-positioned for growth, with short-term volatility possible due to technical factors.

About Hill & Smith PLC

Hill & Smith PLC is a leading provider of infrastructure and built environment solutions, focusing on enhancing resilience and sustainability. The company operates through three divisions: US Engineered Solutions, UK & India Engineered Solutions, and Galvanizing Services, manufacturing and supplying steel and composite solutions for markets including power transmission, water management, and transport infrastructure. Listed on the London Stock Exchange, Hill & Smith employs around 4,500 people across the UK, USA, and India.

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.