ADVFN UK Market News

Author: Fiona Craig

  • US futures trade mixed as investors assess Iran talks and fresh earnings: Dow Jones, S&P, Nasdaq, Wall Street

    US futures trade mixed as investors assess Iran talks and fresh earnings: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. equity futures were little changed on Thursday as markets balanced optimism over diplomatic progress in the Middle East against a busy corporate earnings calendar and awaited key labour market data due later this week.

    At 01:17 ET (05:17 GMT), Dow Jones futures were up 122 points, or 0.2%, while S&P 500 futures also gained 0.2%. Nasdaq 100 futures slipped 0.1%, as weakness in large technology stocks continued to weigh on sentiment.

    Wall Street ended Wednesday’s trading on a mixed note. The Dow Jones Industrial Average added 0.5%, while the S&P 500 declined 0.2% and the Nasdaq Composite lost 0.8%.

    Technology stocks remained under pressure after investors reacted to reports that SpaceX (NASDAQ:SPCX) plans to significantly increase spending on artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) also moved lower after Elon Musk said SpaceX would no longer use the company’s latest AI chips, despite AMD posting broadly encouraging quarterly results.

    Economic releases also painted a mixed picture. ADP data showed that private-sector hiring slowed more than expected in July, although wage growth remained strong for workers changing jobs. Separate figures pointed to stronger activity across the U.S. services sector, supported by rising new orders and production, while employment weakened and inflationary pressures accelerated. Investors are now looking ahead to Friday’s closely watched U.S. non-farm payrolls report.

    Diplomatic developments remain in focus

    Attention also remained fixed on negotiations between Washington and Tehran.

    Although President Donald Trump has repeatedly said discussions with Iran are progressing positively, no formal agreement has yet been announced.

    Reuters reported that U.S. officials continue to insist any deal must prevent Iran from controlling access to the Strait of Hormuz, the strategic waterway that previously handled around 20% of global oil and liquefied natural gas exports.

    However, the news agency also reported that a proposed arrangement between Iran and Oman would give Tehran oversight of vessels entering the Gulf through the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmail Baghaei said both countries have agreed on the geographic coordinates of a designated shipping corridor.

    A senior Iranian official also told Reuters that Tehran is seeking transit charges of up to 7% of the value of cargo carried by commercial vessels. Before the conflict, commercial shipping passed through the strait without paying such fees.

    Oil prices edged around 0.3% lower after a volatile session on Wednesday, with traders continuing to assess the implications for inflation and future central bank policy.

    Sandisk exceeds estimates but guidance prompts profit-taking

    Sandisk (NASDAQ:SNDK) reported quarterly results ahead of analysts’ forecasts, benefiting from stronger pricing and robust demand for memory products used in data centres.

    For the first quarter of fiscal 2027, the company forecast revenue of between $10.3 billion and $10.8 billion, broadly matching analysts’ expectations of $10.62 billion. Adjusted earnings per share are expected to range between $44.00 and $46.00, compared with a consensus estimate of $44.21.

    Despite expanding its share repurchase programme and delivering another quarter of exceptional growth, investors focused on guidance that largely met expectations rather than exceeding them. Shares fell about 2% in after-hours trading.

    Fourth-quarter revenue climbed to $8.97 billion, representing sequential growth of 51% and an increase of 372% from a year earlier. GAAP net income rose to $6.90 billion, or $43.97 per diluted share, compared with a loss of $23 million, or $0.16 per share, in the same period last year.

    Block upgrades annual outlook

    Block (NYSE:XYZ) reported quarterly revenue and earnings above market expectations and increased its forecast for adjusted profit for the full year.

    The financial technology company also issued stronger-than-expected adjusted profit guidance for the current quarter, although its Class A shares slipped slightly in premarket trading.

    Block’s portfolio includes the Square payments platform, the Afterpay buy-now-pay-later business and Cash App, its largest revenue-generating platform, which enables digital payments, personal finance services and bitcoin trading.

    Originally founded as Square in 2009 by Twitter co-founder Jack Dorsey, the company rebranded as Block in 2021 to reflect its broader ambitions in blockchain and digital technologies.

    Moderna wins FDA approval for first mRNA flu vaccine

    Moderna (NASDAQ:MRNA) announced that the U.S. Food and Drug Administration has approved mFLUSIVA for adults aged 50 and over, making it the company’s first mRNA influenza vaccine and its fourth product authorised by the regulator.

    The biotechnology company expects to begin shipping the vaccine to selected U.S. retailers in the coming weeks ahead of the 2026-2027 respiratory virus season. Worldwide, the approval makes mFLUSIVA Moderna’s fifth authorised product.

    The decision follows a unanimous recommendation from the FDA’s advisory committee and is supported by Phase 3 clinical trial data involving more than 40,800 participants across 11 countries.

    For adults aged 65 and older, the vaccine received accelerated approval based on immune response data from a separate U.S. study involving 2,992 participants. Moderna said further post-marketing studies will be conducted to confirm long-term clinical benefits in older adults.

    The company’s shares moved higher in extended trading.

  • European gas prices climb as supply concerns overshadow Middle East diplomacy

    European gas prices climb as supply concerns overshadow Middle East diplomacy

    European natural gas prices moved sharply higher on Thursday, recovering from recent declines as supply constraints and slow storage replenishment once again became the dominant drivers of the market, outweighing optimism surrounding diplomatic developments in the Middle East.

    Dutch front-month gas futures, the European benchmark, rose 2.2% to around €54.50 per megawatt-hour. In the UK, the equivalent wholesale gas contract advanced more than 2.4% to 134.20 pence per therm after falling to a three-week low during the previous trading session.

    The rebound highlights the ongoing fragility of Europe’s energy market. Although reports of a provisional agreement between Iran and Oman over safe shipping routes briefly reduced geopolitical risk premiums, liquefied natural gas (LNG) shipments through the Strait of Hormuz remain significantly disrupted.

    Delays to vessel movements continue to restrict summer exports from major Gulf suppliers, including Qatar, leaving global LNG supplies under pressure.

    These logistical challenges are also complicating Europe’s preparations for the winter heating season. European Union gas storage sites entered August at around 55% capacity, well below the average level typically seen over the past five years and representing one of the slowest seasonal storage refill rates in recent memory.

    Storage injections have also been hindered by unusually hot weather across central and southern Europe, where elevated electricity demand for air conditioning has increased gas-fired power generation instead of allowing additional supplies to be stored underground.

    At the same time, strong competition from Asian buyers for available spot LNG cargoes is expected to keep European gas prices well supported until storage levels begin to recover more rapidly ahead of the winter season.

  • European markets reach fresh highs as earnings and Middle East developments support sentiment: DAX, CAC, FTSE100

    European markets reach fresh highs as earnings and Middle East developments support sentiment: DAX, CAC, FTSE100

    European equities extended their recent rally on Thursday, reaching another record level as investors weighed the possibility of a U.S.-Iran agreement and monitored progress towards reopening the Strait of Hormuz. Market attention also remained firmly focused on the latest round of corporate earnings.

    By 07:18 GMT, the pan-European STOXX 600 index had advanced 0.4% to 660, building on record closing highs achieved during the previous two trading sessions.

    According to Reuters, a senior Iranian official and two regional sources said a proposed agreement involving Iran and Oman aimed at ending five months of conflict would give Tehran authority over vessels entering the Gulf through the Strait of Hormuz. The proposal represents one of the most significant concessions made to Iran so far during negotiations.

    Company earnings continued to drive market sentiment. Analysts have steadily revised profit forecasts higher throughout the reporting season, with second-quarter STOXX 600 earnings now expected to increase by almost 21%, according to data compiled by LSEG. That compares with growth expectations of roughly 12.5% at the beginning of May.

    Deutsche Telekom (TG:DTE) climbed 5.5% after the German telecommunications group expanded its 2026 share buyback programme by €3 billion to a total of up to €5 billion. The broader European telecommunications sector gained 1.6%.

    The food and beverages sector also performed strongly, rising 1%. Glanbia (LSE:GLB) jumped 8.4% after the Irish nutrition company reported a 7% year-on-year increase in first-half revenue.

    Meanwhile, investors largely brushed aside a recent pullback in global technology shares following the artificial intelligence-driven rally, with the STOXX 600 technology index edging 0.1% higher.

    Later in the day, market participants will monitor eurozone retail sales figures for further indications of consumer spending trends across the region.

  • Getlink records higher July truck traffic as freight demand remains resilient

    Getlink records higher July truck traffic as freight demand remains resilient

    Getlink SE (EU:GET) reported continued growth in freight activity during July, with truck shuttle traffic through the Channel Tunnel increasing 3.6% compared with the same month last year on a like-for-like basis using clean working day comparisons.

    Passenger shuttle volumes were broadly stable but edged 0.3% lower year over year during the month.

    The Channel Tunnel operator continues to benefit from a supportive operating backdrop. Fluctuating energy prices are helping to strengthen passenger yields while also underpinning demand for Eleclink, the group’s electricity interconnector business, with favourable market conditions expected to extend into 2027.

    Market expectations also remain constructive, with analyst consensus for 2026 currently sitting above the upper end of the company’s own guidance range.

  • UK construction downturn eases to four-month low in July, PMI data shows

    UK construction downturn eases to four-month low in July, PMI data shows

    The UK construction industry remained in contraction during July, although the pace of decline slowed to its weakest level in four months, according to the latest survey from S&P Global.

    The S&P Global UK Construction Purchasing Managers’ Index (PMI) rose to 44.7 in July from 38.4 in June, reaching its highest reading since March. Despite the improvement, the index remained below the 50.0 mark that separates expansion from contraction. Construction activity has now declined every month since January 2025, marking the sector’s longest uninterrupted downturn since the global financial crisis.

    Conditions improved across all three major areas of the industry during July, with each recording a slower pace of contraction. Commercial construction remained the strongest-performing segment, posting a reading of 46.8. Civil engineering continued to experience the sharpest decline, with an index of 38.3, while housebuilding showed further signs of stabilisation, recording its least severe contraction since October 2025 with a reading of 41.8.

    New business also showed signs of recovery, with incoming orders falling at the slowest rate in 10 months. Survey participants reported an increase in tender activity across commercial developments, residential construction and transport infrastructure projects. However, many firms continued to cite geopolitical tensions and subdued domestic economic conditions as factors weighing on customer demand.

    Employment levels continued to decline, although job losses eased to their slowest pace since February. Businesses said they were generally choosing not to replace employees who left voluntarily because of reduced workloads. At the same time, subcontractor availability improved to its strongest level since April 2025.

    Purchasing activity also weakened at a slower pace, reaching its strongest level since September 2025. Softer demand for construction materials and fewer transport disruptions helped improve supplier delivery times for the first time in five months.

    Cost pressures eased during the month, with input price inflation falling to its lowest level in five months after reaching almost a four-year high in May. Companies that continued to face rising costs pointed to higher fuel surcharges and increasing raw material prices.

    Looking ahead, sentiment across the sector remained positive. Around 38% of businesses expect activity to increase over the coming year, while 17% anticipate a decline. Overall confidence improved to its highest level since February, suggesting firms are becoming more optimistic about the outlook despite ongoing challenges.

  • Market Open: Wizz Air Capacity Expansion, Persimmon First-Half Earnings

    Market Open: Wizz Air Capacity Expansion, Persimmon First-Half Earnings

    FTSE 100 edges higher as Wizz Air and Persimmon lead company news, while Brent crude declines and European markets remain near record highs.

    Market Overview

    The FTSE 100 opened marginally higher after gaining 0.01 per cent from the previous close, while the Euronext 100 added 0.04 per cent and Germany’s DAX rose 0.21 per cent at the open. Overnight, the Nasdaq closed lower at 26,363.44 and the S&P 500 finished lower at 7,723.55 as technology shares remained under pressure. European sentiment remained supported by corporate earnings and optimism surrounding progress on a Hormuz shipping agreement despite weaker US technology performance and continued focus on company results.

    Commodity markets reflected a softer risk backdrop, with copper and natural gas edging higher while gold and Brent crude moved lower. Bitcoin rose against sterling. Sterling strengthened modestly against the US dollar and euro, while remaining broadly unchanged against the Swiss franc and Japanese yen, as lower oil prices and easing geopolitical concerns continued to influence broader market sentiment.

    Market Numbers

    FTSE 100: Up (+0.01%), 10,888.45

    Euronext 100: Up (+0.04%), 1,958.56

    DAX: Up (+0.21%), 26,182.21

    NASDAQ: Down, 26,363.44

    S&P 500: Down, 7,723.55

    In the Headlines

    Capacity growth – Wizz Air (LSE:WIZZ)

    Wizz Air expanded passenger capacity and traffic during the first quarter despite reporting a wider loss as higher fuel costs and pricing pressure weighed on earnings. The results underline continued demand growth but highlight the profitability challenges facing European airlines.

    Housing demand – Persimmon (LSE:PSN)

    Persimmon reported higher first-half earnings as home completions increased and operational performance improved. The update reinforces signs of a stabilising UK housing market and supports expectations for continued growth in deliveries.

    Currencies (vs GBP)

    USD: Up (+0.10%), $1.3470

    CHF: Down (-0.01%), Fr.1.0866

    EUR: Up (+0.04%), €1.1655

    JPY: Up (+0.03%), ¥212.298

    AUD: Down (-0.01%), $1.9086

    Bitcoin (BTC/GBP): Up, £48,157.45

    Commodities

    Copper: Up

    Gold: Down

    Brent Crude: Down

    Natural Gas: Up

  • FTSE 100 edges higher as Hormuz developments and earnings dominate investor focus

    FTSE 100 edges higher as Hormuz developments and earnings dominate investor focus

    UK equities traded modestly higher on Thursday as investors monitored developments surrounding the Strait of Hormuz while digesting another busy day of corporate earnings releases.

    By 03:13 ET (07:13 GMT), the FTSE 100 had gained 0.19%. Germany’s DAX was up 0.06%, while France’s CAC 40 led major European markets with a 0.71% advance. Sterling slipped 0.06% against the US dollar to trade at $1.3460.

    Attention remained focused on geopolitical developments after U.S. President Donald Trump dismissed reports suggesting the conflict with Iran had significantly depleted American military stockpiles. In a Truth Social post, Trump said the United States had “massive amounts” of munitions and warned that anyone responsible for leaking military inventory information could face prosecution.

    His comments followed a CNN report citing sources who claimed the U.S. had consumed around 80% of its pre-conflict THAAD interceptor inventory and roughly half of its Patriot missile interceptors since fighting began. According to the report, the situation has also raised concerns among Gulf allies that depend on U.S. air defence systems.

    Separately, The Washington Post reported that Trump challenged Defense Secretary Pete Hegseth over the reported shortages during a meeting at Camp David last Friday. However, both the White House and the Pentagon rejected the report as “fake news,” with Press Secretary Karoline Leavitt and Pentagon spokesman Sean Parnell denying that any confrontation had occurred.

    Meanwhile, Vice President JD Vance told Fox News that negotiations with Tehran would be “messy” and unlikely to conclude quickly. He said Washington would rely on “military, economic and diplomatic” measures to secure a favourable outcome, adding that oil prices, which he said were at “$79 today,” were expected to “come down and stay down.”

    Brent crude rose 0.50% to $79.85 per barrel, while US West Texas Intermediate gained 0.25% to $75.41. Gold futures increased 0.35% to $4,320.50 an ounce, with spot gold also rising 0.35% to $4,261.92.

    UK company news

    Quilter (LSE:QLT) posted first-half earnings below market expectations after a higher policyholder tax charge offset record client inflows and stronger revenue growth.

    Wizz Air (LSE:WIZZ) reported a larger-than-anticipated quarterly loss as higher fuel prices and weaker unit revenues outweighed strong capacity growth, while also warning of a softer outlook for the current quarter.

    Persimmon (LSE:PSN) increased its forecast for 2026 home completions to the upper end of its previous guidance, although it cautioned that rising construction costs may not be fully recoverable in 2027.

    Harbour Energy (LSE:HBR) upgraded its full-year production and free cash flow guidance following record first-half output and stronger oil and gas prices, while also unveiling a $250 million share buyback programme.

    Michael Page (LSE:PAGE) reported higher first-half profit, with growth across Asia-Pacific and the Americas helping to offset continued macroeconomic uncertainty in global recruitment markets.

  • Quilter shares fall as higher tax charge overshadows strong operating performance

    Quilter shares fall as higher tax charge overshadows strong operating performance

    Quilter (LSE:QLT) shares fell around 4.5% after the FTSE 250 wealth manager released its interim results for 2026, with a higher UK policyholder tax rate weighing heavily on reported earnings despite solid underlying business performance.

    For the six months ended 30 June, the company reported IFRS profit after tax of £45 million, broadly unchanged from £46 million a year earlier but well below analyst expectations of roughly £61.6 million. The weaker-than-expected bottom-line performance prompted a sharp decline in the share price during early trading.

    The results highlighted a clear contrast between operating momentum and reported earnings. Revenue increased 12% to £379 million, exceeding market forecasts, while Quilter delivered record client inflows during the period. Pre-tax profit reached £222 million, but a significantly higher policyholder tax charge reduced the final after-tax figure, creating the earnings shortfall that disappointed investors.

    Alongside the results, the company announced an interim dividend of 2.1 pence per ordinary share, which will be paid in September. However, the dividend announcement was insufficient to offset concerns over the weaker reported earnings and the impact of taxation on profitability.

    The market reaction was particularly notable given the strength of the wider UK mid-cap market. The FTSE 250 had recently reached record levels after moving above the 24,000-point mark, but the positive backdrop offered little support as investors focused on Quilter’s earnings miss.

    The results have also renewed attention on the effect of UK tax policy on wealth managers offering policyholder products. While the company’s underlying business continues to perform well, supported by strong revenue growth and record net inflows, investors are reassessing the potential for higher policyholder tax rates to continue weighing on reported earnings in future reporting periods.

    About Quilter

    Quilter is a UK-based wealth management and financial advice group providing investment management, financial planning and platform services to advisers and individual clients. The company offers a broad range of savings, investment and retirement solutions, helping customers build and manage long-term wealth.

    With a nationwide adviser network and integrated investment platform, Quilter focuses on growing assets under management, attracting new client inflows and delivering long-term value through a combination of advice, investment expertise and technology.

  • Wizz Air expands capacity despite higher costs weighing on first-quarter earnings

    Wizz Air expands capacity despite higher costs weighing on first-quarter earnings

    Wizz Air (LSE:WIZZ) delivered strong passenger growth during the first quarter, with traffic increasing 25% year on year as the airline continued to expand capacity through its predominantly Airbus A321neo fleet. Despite the increase in demand, higher fuel prices and pressure on ticket yields resulted in a net loss of €198.2 million. The airline nevertheless maintained one of the strongest liquidity positions in the European aviation sector, continued returning aircraft affected by Pratt & Whitney GTF engine inspections to service, expanded its network with new bases in Spain and Kosovo, and confirmed plans to introduce satellite-based in-flight internet to enhance the customer experience.

    Operational performance also improved during the period, with stronger on-time performance and a completion rate close to 100%. While higher fuel costs increased unit costs (CASK) and rapid capacity expansion weighed on unit revenues, management continued to focus on disciplined cost control and careful capacity allocation. Wizz Air remains committed to further double-digit capacity growth, supported by extensive fuel hedging, a substantial aircraft order book and a strategy designed to capture additional market share as European airline supply and demand continue to rebalance.

    The investment outlook remains mixed. Recent profitability has been affected by higher operating costs, while the company’s relatively high debt levels increase financial risk within the cyclical airline industry. However, improving cash generation, an attractive valuation based on earnings multiples and technical indicators pointing to a moderately positive share price trend provide support for the longer-term investment case.

    About Wizz Air Holdings

    Wizz Air Holdings is one of Europe’s leading ultra-low-cost airlines, operating short- and medium-haul routes across Central and Eastern Europe as well as major Western European markets. The company operates one of the youngest and most fuel-efficient fleets in the industry, centred on the Airbus A321neo aircraft.

    Its business model focuses on maintaining low operating costs through high aircraft utilisation, efficient point-to-point networks and disciplined capacity management, enabling the airline to offer competitive fares while pursuing long-term market share growth.

  • Serco delivers higher first-half profit as defence growth supports margins and shareholder returns

    Serco delivers higher first-half profit as defence growth supports margins and shareholder returns

    Serco Group plc (LSE:SRP) reported a solid first-half performance, with revenue increasing 4% to £2.5 billion and underlying operating profit rising 9% at constant currency to £157 million. The improvement was driven by 10% organic growth in the Defence division and a more favourable mix of higher-margin contracts. Underlying operating margin increased to 6.2%, while the company maintained a strong balance sheet with leverage of 0.75 times EBITDA. Reflecting confidence in its financial position, Serco increased its 2026 share buyback programme to £150 million and raised its interim dividend by 10%.

    Management reaffirmed its full-year guidance, forecasting revenue of around £5 billion, organic growth of approximately 3% and underlying operating profit of about £300 million. Free cash flow is expected to reach around £160 million for the full year despite lower cash generation during the first half. Serco also highlighted a £12.8 billion bid pipeline, with significant opportunities across the defence sector and North America. The company continues to simplify its operations by focusing on its three core markets—Defence, Justice & Immigration, and Citizen Services—while making progress on major contracts that are expected to support long-term profitability and sustainable growth.

    The investment outlook remains positive, supported by strong cash generation, a healthy balance sheet and an attractive valuation based on a low price-to-earnings ratio. Technical indicators also remain favourable, with the shares continuing to trade in an upward trend. Management’s outlook is supported by a robust pipeline and expectations for further profit growth, although exposure to immigration-related contracts, higher financing costs and the execution of large projects remain potential risks.

    About Serco Group plc

    Serco Group plc is an international provider of outsourced public services, employing more than 50,000 people across sectors including defence, space, migration, justice, healthcare, transport and customer services. The company partners with governments around the world to deliver essential public services through long-term contracts.

    Its capabilities include programme management, systems integration, engineering, advisory services, asset management and operational support, enabling governments to improve service delivery while managing complex infrastructure and public sector operations.