ADVFN UK Market News

Author: Fiona Craig

  • US Jobs Data in Spotlight as Middle East Risks and Corporate Headlines Drive Markets: Dow Jones, S&P, Nasdaq, Wall Street Futures

    US Jobs Data in Spotlight as Middle East Risks and Corporate Headlines Drive Markets: Dow Jones, S&P, Nasdaq, Wall Street Futures

    US equity futures traded with little direction on Friday as investors awaited the release of July’s employment report, a key indicator that could shape expectations for the Federal Reserve’s next policy move. Markets were also monitoring renewed geopolitical tensions after another Houthi attack on Saudi Arabia, while negotiations between Iran and Oman over the Strait of Hormuz continued.

    Futures Trade Cautiously Before Payrolls Release

    As of 02:52 ET (06:52 GMT), Dow Jones futures were down 0.1%, S&P 500 futures were broadly unchanged and Nasdaq 100 futures edged 0.2% higher.

    Thursday’s session ended lower on Wall Street. The Nasdaq Composite slipped 0.06% after earnings from memory chip manufacturers Sandisk (NASDAQ:SNDK) and Western Digital (NASDAQ:WDC) failed to justify investors’ elevated expectations despite solid quarterly results.

    The Dow Jones Industrial Average declined 0.85%, snapping a five-day winning streak, while the S&P 500 lost 0.18%.

    Analysts at Vital Knowledge said it was “impressive the index didn’t fall more than it did considering a number of negatives,” pointing to rising Treasury yields, disappointing technology guidance, higher oil prices and renewed concerns over Federal Reserve independence.

    Labour Market Figures Could Shift Interest Rate Expectations

    The market’s main focus is now the US nonfarm payrolls report.

    Economists forecast that 88,000 jobs were created in July, up from 57,000 in June, while the unemployment rate is expected to remain at 4.2%.

    Although hiring has slowed in recent months, layoffs have remained limited. Labour force participation has also weakened as tighter immigration policies and demographic trends reduce the number of available workers.

    Recent economic reports have shown softer employment in the services sector, although broader indicators continue to suggest that domestic demand remains resilient.

    Investors will be assessing whether the latest employment figures strengthen the case for further Federal Reserve tightening or support expectations that interest rates will remain unchanged.

    Fresh Houthi Attack Raises Regional Concerns

    Saudi Arabia warned of escalating regional instability after an attack by Iran-backed Houthi forces left 11 civilians injured.

    The incident came despite reports that Iran and Oman are close to agreeing new arrangements for shipping through the Strait of Hormuz. However, uncertainty remains over whether any agreement can restore confidence in one of the world’s most important oil shipping routes.

    President Donald Trump said the waterway is “sort of open right now,” while Iranian officials described negotiations as being in the “final stage.”

    Brent crude climbed 1.2% to $83.46 a barrel as energy markets reacted to the latest developments.

    Meta Faces $942 Million Court Penalty

    Meta Platforms (NASDAQ:META) has been ordered to pay more than $900 million following a New Mexico court ruling over child safety on Facebook and Instagram.

    The judgement follows an earlier jury decision that found the company had breached consumer protection laws. Alongside the financial penalty, Meta has been instructed to strengthen safety measures for younger users.

    Berkshire Hathaway Set to Release Results

    Investors are also preparing for Berkshire Hathaway’s (NYSE:BRK.B) quarterly earnings announcement on Saturday.

    The results will provide another update on the investment group’s performance under Greg Abel, with markets also watching for changes to Berkshire’s investment portfolio following recent purchases and disposals.

  • European Shares Head for Strongest Weekly Performance Since June on Earnings Momentum: DAX, CAC, FTSE100

    European Shares Head for Strongest Weekly Performance Since June on Earnings Momentum: DAX, CAC, FTSE100

    European stock markets traded modestly higher on Friday and remained on course to deliver their best weekly performance since late June, as another strong round of corporate earnings continued to lift investor sentiment and pushed major regional indices to fresh record highs.

    The pan-European STOXX Europe 600 Index gained 0.2% in early trading and was on track for a weekly rise of around 1.4%, its strongest five-day advance in almost six weeks. Investors have become increasingly optimistic as stronger-than-expected company results have prompted a reassessment of corporate fundamentals and the outlook for interest rates.

    Germany’s DAX added 0.3%, while France’s CAC 40 and London’s FTSE 100 each advanced 0.2%.

    Strong Earnings Continue to Support Markets

    European equity markets have repeatedly reached new record levels this week, driven by robust second-quarter results from companies across sectors including pharmaceuticals, power infrastructure and telecommunications.

    Earnings for companies within the STOXX 600 are now expected to increase by nearly 21% compared with a year ago, a significant improvement from the 12.5% growth forecast at the beginning of the reporting season. The stronger earnings outlook has reinforced investor confidence in European equities.

    The week’s gains have also been helped by lower government bond yields as oil prices retreated from recent highs, easing inflation concerns and reducing cost pressures for energy-intensive industries.

    Middle East Developments Return to Focus

    Geopolitical uncertainty returned to the forefront on Friday after reports indicated that Iranian lawmakers are examining draft legislation that would formally prohibit US, Israeli and other designated “hostile” vessels from passing through the Strait of Hormuz, a critical route for around one-fifth of global oil shipments.

    The proposal could complicate ongoing diplomatic efforts led by Oman and Qatar to improve maritime security and reduce tensions in the region.

    Genel Jumps as Investors Await US Jobs Data

    Among individual stocks, shares in Genel (LSE:GENL) climbed 12% after the company rejected a takeover proposal.

    Investors are also awaiting the release of the US Labour Department’s July nonfarm payrolls report. Economists expect employment growth to recover while the unemployment rate remains unchanged at 4.2%, a combination that would reinforce the resilience of the US labour market while keeping inflation concerns firmly on the Federal Reserve’s agenda.

    Financial markets currently assign roughly equal odds to a 25-basis-point Federal Reserve interest rate increase at its 16 September meeting.

    European investors will be watching the US employment data closely for clues on whether continued economic strength in the world’s largest economy could influence global monetary policy and keep borrowing costs elevated through the autumn.

  • Hermès Shares Rally as Luxury Sector Gains Momentum

    Hermès Shares Rally as Luxury Sector Gains Momentum

    Shares in Hermès International (EU:RMS) climbed 5.17% on Thursday, 6 August, closing at €1,626 and extending their recovery from the more than three-year low of €1,465.50 reached on 29 July.

    The luxury goods maker was the strongest performer on France’s CAC 40 index, with its rebound helping to lift the benchmark to a record closing high of 8,699 points.

    Positive Broker Commentary Lifts Luxury Stocks

    The advance came as the wider European luxury sector benefited from an upbeat research note issued by Berenberg. The broker highlighted an encouraging improvement in second-quarter growth across the sector, while acknowledging that longer-term structural challenges remain.

    The positive sentiment also supported shares in Kering, LVMH, Christian Dior and Swatch, as investors responded to signs of improving trading conditions for luxury brands.

    China and Currency Headwinds Remain

    Despite the recent recovery, Hermès continues to face several challenges. Slower growth in the Chinese market and adverse foreign exchange movements remain key factors limiting short-term earnings visibility and continue to weigh on investor expectations.

  • Eutelsat Shares Slide as Higher Investment Plans Weigh on Outlook

    Eutelsat Shares Slide as Higher Investment Plans Weigh on Outlook

    Eutelsat Communications SA (LSE:ETL) shares fell around 5% on Thursday after the satellite operator unveiled a weaker-than-expected profitability outlook for fiscal 2026-27 and announced a substantial increase in planned capital expenditure. The cautious guidance overshadowed quarterly revenue that exceeded market forecasts.

    By 09:20 GMT, the shares were trading about 5% lower at €2.04, lagging the wider French market. Investors reacted negatively after Eutelsat projected an adjusted EBITDA margin broadly consistent with the 51.2% recorded in fiscal 2025-26, below analyst expectations of roughly 54%.

    Revenue Beats Expectations but Guidance Disappoints

    Morgan Stanley noted that fourth-quarter operating vertical revenue came in approximately 10% ahead of consensus estimates, while full-year adjusted EBITDA of €632 million also modestly exceeded market forecasts.

    Despite the stronger-than-expected results, attention shifted to the company’s outlook for the new financial year. Eutelsat expects adjusted EBITDA margins to remain broadly unchanged while forecasting gross capital expenditure of around €1.2 billion, significantly above analyst expectations of approximately €825 million.

    LEO Growth Offsets Weakness in Legacy Business

    For the financial year ended 30 June, Eutelsat reduced its share of the group’s net loss to €457.3 million from €1.08 billion a year earlier. Revenue edged down 0.6% to €1.24 billion, while adjusted EBITDA declined 6.5% to €632.4 million, with the EBITDA margin narrowing from 54.4% to 51.2%.

    The company’s low-Earth orbit (LEO) operations remained its strongest area of growth, with revenue increasing by nearly 70% to €297 million. This performance helped offset ongoing weakness in its traditional video broadcasting business. Connectivity services also delivered double-digit revenue growth across government, fixed broadband and mobility markets.

    Investment Programme to Accelerate OneWeb Expansion

    Looking ahead to fiscal 2026-27, Eutelsat expects modest growth in operating vertical revenue, supported by LEO revenue growth of more than 30%. However, continued declines in its geostationary (GEO) operations are expected to continue weighing on overall profitability.

    The company also plans to invest around €1.2 billion in gross capital expenditure as it accelerates the renewal and expansion of its OneWeb satellite constellation.

  • FTSE 100 Rises as Oil Prices Climb and Lloyds Warns of Renewed Mortgage Pressure

    FTSE 100 Rises as Oil Prices Climb and Lloyds Warns of Renewed Mortgage Pressure

    UK equities traded modestly higher on Friday as higher oil prices continued to support energy stocks, while fresh data from Lloyds highlighted renewed pressure on mortgage borrowers following the recent escalation in the Middle East.

    By 03:30 ET (07:30 GMT), the FTSE 100 was up 0.22%. Elsewhere in Europe, Germany’s DAX advanced 0.33% and France’s CAC 40 gained 0.26%. Sterling weakened slightly against the US dollar, with GBP/USD slipping 0.07% to 1.3449.

    Hormuz Shipping Slump Keeps Energy Markets on Edge

    Investors remained focused on developments in the Strait of Hormuz after shipping activity fell sharply. Reuters, citing Kpler data, reported that only 33 vessels transited the waterway between Monday and Thursday, compared with 50 during the same period a week earlier. Just six crude oil tankers departed the strait during the week, while traffic through the Bab al-Mandeb route increased to 26 vessels on Thursday, indicating that some shipping is being redirected.

    The disruption followed explosions near Iran’s Qeshm Island on Thursday evening, which the semi-official Fars news agency linked to reported military strikes. Brent crude surged almost 4% in the previous session before extending gains on Friday.

    Diplomatic Tensions Continue to Influence Markets

    Political developments remained mixed. Iranian Parliament Speaker Mohammad Bagher Ghalibaf criticised the United States, writing on X that “using bullying + broken promises + fake news as leverage is a failed strategy,” describing Washington’s approach as “theater diplomacy.”

    Mohit Kumar, an analyst at Jefferies, said investors could become “desensitized to the Middle East, as long as oil stays around of below $80,” arguing that broader market fundamentals remain supportive thanks to a resilient US labour market and strong global liquidity.

    However, Kumar identified higher US government bond yields as the primary concern, calling 10-year Treasury yields near 4.70% the “biggest worry.” He noted that oil prices between $75 and $80 remain around 25% to 30% above pre-conflict levels, warning this would “feed into inflation globally.”

    He also suggested that a potential agreement between Iran and Oman over shipping in the Strait of Hormuz would be unlikely to satisfy Washington because it would effectively hand Iran greater control over the strategic waterway. Referring to reports that Tehran wants to restrict US and Israeli vessels from using the strait, Kumar said “we are still some distance from a deal.”

    Reuters separately reported that any reopening of the Strait of Hormuz may require concessions from Washington, as the United States opposes any arrangement granting Iran control or the right to collect transit fees, while Tehran continues to insist on retaining influence over the route.

    Meanwhile, US President Donald Trump acknowledged that certain American weapons stockpiles were “a little bit tighter” than others, while dismissing reports that the ongoing five-month conflict had significantly depleted US military supplies. His comments followed media reports, denied by the White House, that he had questioned Defence Secretary Pete Hegseth over ammunition levels.

    Lloyds Reports Slower UK House Price Growth

    In the UK, Lloyds’ latest House Price Index showed property prices were unchanged in July after rising 0.2% in June. The average UK home was valued at £299,253, while annual house price growth slowed to 0.1%, the weakest reading since November 2023.

    “The UK housing market remained steady in July, with the average property price effectively unchanged over the month,” said Amanda Bryden, Head of Mortgages at Lloyds. She added that mortgage rates “have edged higher again after easing earlier in the summer” following the recent escalation in Middle East tensions.

    Oil and Gold Extend Gains

    Oil prices continued to move higher, with Brent crude rising 0.70% to $83.08 a barrel and US West Texas Intermediate adding 0.36% to $77.57.

    Safe-haven demand also lifted precious metals. Gold futures climbed 1.04% to $4,345.47 an ounce, while spot gold gained 1.1% to $4,286.50.

    UK Corporate News

    • JD Sports (LSE:JD.) has appointed former IKEA chief executive Peter Agnefjäll as its new chair, with the appointment taking effect on 1 September.
    • Goodwin (LSE:GDWN) is in discussions over the sale of its defence business following order delays, according to a report by the Financial Times.

  • DNO Makes £202 Million Takeover Proposal for Genel Energy

    DNO Makes £202 Million Takeover Proposal for Genel Energy

    DNO ASA has revealed that its wholly owned subsidiary, DNO Iraq AS, submitted a non-binding proposal on 28 July 2026 to acquire the entire issued and to be issued share capital of Genel Energy (LSE:GENL). The indicative offer values the London-listed oil producer at approximately £202 million. Genel’s board rejected the proposal on 4 August. Under the terms of the approach, shareholders would be offered either 69 pence in cash for each share or an equivalent combination of cash and newly issued DNO shares. The proposal represents a premium of 38% to Genel’s closing share price before the announcement and 30% above its three-month average share price.

    DNO Highlights Strategic Benefits of Potential Acquisition

    DNO said the proposed acquisition would provide Genel shareholders with an opportunity to realise value despite uncertainty surrounding the company’s only revenue-generating asset. The Norwegian producer also argued that its proposal offers greater certainty for investors regardless of Genel’s ongoing bid for Capricorn Energy, while potentially improving liquidity for shareholders who have faced relatively limited trading volumes in Genel’s shares. If completed, the transaction would strengthen DNO’s position in the Kurdistan Region of Iraq by increasing production scale and diversification. The company also noted that shareholder approval from DNO investors would not be required to complete the acquisition.

    Firm Offer Remains Uncertain

    Despite disclosing the proposal, DNO emphasised that there is no guarantee a formal takeover offer will ultimately be made. Under the UK’s takeover regulations, the company has until 4 September 2026 to announce either a firm intention to proceed with an offer or confirm that it does not intend to make one.

    About DNO ASA

    DNO ASA is a Norwegian oil and gas exploration and production company with core operations in the Kurdistan Region of Iraq. The business focuses on developing hydrocarbon resources in politically and commercially complex markets while pursuing growth through a combination of exploration, acquisitions and operational expansion. DNO has also established a track record of returning capital to shareholders through regular dividend payments.

  • Oxford Biomedica Lowers 2026 Guidance Despite Strong Client Growth

    Oxford Biomedica Lowers 2026 Guidance Despite Strong Client Growth

    Oxford Biomedica PLC (LSE:OXB) has reported approximately 9% revenue growth to around £80 million for the first half of 2026, supported by continued demand for its cell and gene therapy manufacturing services and a record 17 new client contract wins. The company said its customer portfolio continues to mature, with a growing number of programmes progressing into late-stage development and commercial manufacturing. It also highlighted a revenue backlog of approximately £193 million and a broader non-risk-adjusted opportunity pipeline valued at around $713 million, providing visibility for future growth.

    Delayed Orders Prompt Lower Full-Year Forecast

    Despite strong commercial activity, Oxford Biomedica has reduced its revenue guidance for 2026 to between £180 million and £200 million. The revision reflects changes in customer ordering patterns, delays to client programmes and a six-month postponement to the planned ramp-up of its manufacturing facility in Durham, North Carolina. The company now expects EBITDA margins for the current year to remain in the mid-single digits, excluding one-off items. However, management reaffirmed its expectation of returning to stronger growth in 2027, forecasting revenue growth of between 25% and 30%, double-digit EBITDA margins and maintaining its long-term objective of generating around £500 million in annual revenue by 2030.

    Outlook Reflects Strong Commercial Pipeline but Ongoing Profitability Challenges

    Oxford Biomedica’s outlook continues to be shaped by a robust pipeline of commercial opportunities and increasing demand for its manufacturing capabilities. However, the business remains loss-making, with negative operating and free cash flow continuing to weigh on the investment case. Technical indicators also remain weak, with the shares trading below key moving averages and negative momentum signals. Valuation offers limited support given the absence of positive earnings and a dividend.

    About Oxford Biomedica

    Oxford Biomedica PLC is a UK-based contract development and manufacturing organisation (CDMO) specialising in cell and gene therapies. Listed on the FTSE 250, the company develops and manufactures viral vectors using lentiviral, adeno-associated virus (AAV) and adenoviral technologies for pharmaceutical and biotechnology customers worldwide. Its manufacturing network spans facilities in the UK, France and the United States, supporting therapies from early-stage development through to commercial production.

  • Amaroq Begins Maiden Drilling at High-Grade Minturn Prospect in Northwest Greenland

    Amaroq Begins Maiden Drilling at High-Grade Minturn Prospect in Northwest Greenland

    Amaroq Ltd. (LSE:AMRQ) has commenced its first diamond drilling programme at the Minturn iron-copper-gold prospect in Inglefield Land, Northwest Greenland, marking the initial effort to test the mineralised system below surface. The campaign follows encouraging surface sampling completed in 2025, which returned iron grades of up to 69.5% Fe. The company is targeting what it believes to be Greenland’s strongest regional magnetic anomaly, associated with a magnetic body extending for around nine kilometres within a broader 80-kilometre mineralised corridor.

    Drilling to Accelerate Understanding of Mineral System

    Amaroq has opted to prioritise drilling ahead of previously planned ground geophysical surveys in order to overcome the logistical challenges of operating in the remote region and obtain direct geological information more quickly. The initial drill holes are designed to evaluate both the high-grade iron mineralisation and the associated copper and gold potential. Results will be combined with existing geophysical datasets to refine the geological model, assess the scale of the mineral system and determine whether it shares characteristics with IOCG or Kiruna-style deposits, helping to guide future exploration across the project.

    Exploration Expands Company’s Greenland Strategy

    The Minturn programme represents an important step in Amaroq’s strategy to expand exploration activities into northern Greenland while building technical knowledge and operational experience in the region. The work also supports the company’s broader objective of developing a diversified portfolio of mineral assets across Greenland, strengthening its long-term growth pipeline beyond its existing mining operations.

    About Amaroq Ltd.

    Amaroq Ltd. is an independent mining company focused on the exploration, development and production of gold and strategic metals in Greenland. Its flagship asset is the producing Nalunaq Gold Mine in southern Greenland, while its wider exploration portfolio includes projects targeting gold, copper, nickel, rare earth elements, zinc, lead, silver, germanium and gallium across South and West Greenland, in addition to the Minturn iron-copper-gold prospect in the country’s northwest.

    The company is working to establish an integrated mining business in Greenland through investments in mining services and infrastructure, including its Suliaq logistics business and Imeq ApS, Greenland’s first privately developed hydroelectric project. Amaroq is listed on the London Stock Exchange and Nasdaq Iceland under the ticker AMRQ, and also trades on the OTCQX market in the United States under the symbol AMRQF.

  • Stelrad Delivers Higher Profits and Margins Despite Weaker Market Conditions

    Stelrad Delivers Higher Profits and Margins Despite Weaker Market Conditions

    Stelrad Group PLC (LSE:SRAD) reported resilient interim results for the six months ended 30 June 2026, with higher profitability despite lower sales as challenging construction markets continued to weigh on demand. The radiator manufacturer, which operates across the UK, Europe and Turkey, benefited from its broad geographic presence, disciplined cost management and strong market position in European steel panel radiators.

    Margin Improvement Offsets Lower Revenue

    Group revenue declined 9.1% to £124 million as sales volumes fell 14.6%, reflecting weaker construction activity, the planned withdrawal from a loss-making customer contract and lower sales in Turkey. Despite the softer top-line performance, adjusted operating profit increased 4.9% to £16.7 million, with the operating margin improving to 13.5% as a result of tighter cost controls and a more favourable product mix. The company also reduced net debt, increased its return on capital employed to 29% and raised its interim dividend by 5%. Management said trading during the early part of the second half has been in line with expectations and maintained its full-year guidance despite ongoing market weakness and inflationary pressures.

    Outlook Supported by Strong Balance Sheet

    Stelrad’s outlook is underpinned by a stronger financial position, supported by significant debt reduction and solid cash generation. These strengths help offset weaker earnings quality following the sharp decline in net margins during 2025 and continued pressure on revenue. Technical indicators remain constructive, with the shares trading in a positive long-term trend, although valuation remains demanding due to a relatively high price-to-earnings ratio despite an attractive dividend yield.

    About Stelrad Group PLC

    Stelrad Group PLC is one of Europe’s leading manufacturers and distributors of steel panel radiators and other heating products. Its portfolio includes designer radiators, hydronic, hybrid, dual-fuel and electric heat emitters, alongside towel rails and low surface temperature solutions. The company markets its products under brands including Stelrad, Henrad, Termo Teknik, DL Radiators and Hudevad, supplying more than 500 customers in over 40 countries while holding leading market positions across several European regions.

  • Pan African Resources Reports Lower ASX Depositary Interest Holdings in July

    Pan African Resources Reports Lower ASX Depositary Interest Holdings in July

    Pan African Resources PLC (LSE:PAF) has announced a notable reduction in the number of CHESS Depositary Interests (CDIs) quoted on the Australian Securities Exchange during July 2026. The balance declined from 102,641,421 at the end of June to 71,610,794 by 31 July, representing a net decrease of 31,030,627 CDIs over the month.

    Transfers Reflect Movement Between Listing Venues

    The company said the reduction was the result of investors transferring holdings between ASX-listed CDIs and ordinary shares traded on the London Stock Exchange and the Johannesburg Stock Exchange. Pan African Resources emphasised that the movement does not affect its total issued share capital, instead reflecting changes in where investors choose to hold and trade their shares across the group’s multiple listing venues.

    Outlook Supported by Strong Operations Despite Technical Weakness

    Pan African Resources continues to benefit from strong profitability and a healthy balance sheet, supported by recent operational updates highlighting rapid debt reduction and expectations for further production growth. However, these strengths are partly offset by weaker free cash flow generation and negative technical indicators, with the share price continuing to trade below key moving averages.

    About Pan African Resources

    Pan African Resources is a precious metals producer with primary listings in London, Johannesburg and the Australian Securities Exchange, where it trades under the ticker PAF. The company operates gold mining assets in South Africa through Pan African Resources Funding Company and provides investors with access to its shares across multiple international markets.