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Category: Market News

  • Tech Stocks Poised to Drive Wall Street Higher Following Wednesday’s Sharp Decline: Dow Jones, S&P, Nasdaq, Futures

    Tech Stocks Poised to Drive Wall Street Higher Following Wednesday’s Sharp Decline: Dow Jones, S&P, Nasdaq, Futures

    U.S. stock futures traded firmly higher ahead of Thursday’s opening bell, indicating Wall Street could recover some of the heavy losses suffered during the previous session.

    Technology shares looked set to lead the advance, with Nasdaq 100 futures gaining 1.6% in premarket trading.

    Microsoft Surges While Meta Weighs on Sentiment

    Investors appeared willing to buy back into beaten-down technology stocks after Wednesday’s steep sell-off sent the Nasdaq to its lowest closing level in three months. The Dow Jones Industrial Average and the S&P 500 also closed at their weakest levels in more than a month.

    Microsoft (NASDAQ:MSFT) jumped 9.2% before the opening after reporting quarterly earnings that topped expectations, supported by continued momentum in its Azure cloud computing business.

    Meanwhile, Meta Platforms (NASDAQ:META) slid 9.7% in premarket trading after issuing revenue growth guidance that disappointed investors.

    “This reporting season has become less about headline results and more about proving that unprecedented AI spending can generate sustainable profitability,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

    She added, “With Apple and Amazon still to report, the market’s verdict on the AI investment cycle remains far from settled.”

    Markets Reverse Late After Afternoon Recovery

    Stocks experienced sharp swings throughout Wednesday’s session. After erasing early losses and briefly trading in positive territory during the afternoon, the major indices turned lower again in the final hour.

    The Dow Jones Industrial Average fell 1,153.18 points, or 2.2%, to finish at 51,594.14.

    The Nasdaq Composite lost 433.97 points, or 1.7%, closing at 24,442.94, its weakest finish in three months.

    The S&P 500 dropped 112.63 points, or 1.5%, ending at 7,316.15, marking its lowest close in well over a month.

    Federal Reserve Decision Fails to Calm Investors

    Selling pressure intensified after Treasury yields climbed despite the Federal Reserve’s decision to leave interest rates unchanged.

    The central bank maintained the federal funds target range at 3.5% to 3.75%, marking the fifth straight meeting without a rate change.

    However, the decision divided policymakers, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan all favouring a quarter-point rate increase.

    Rising Oil Prices Add to Market Volatility

    Markets also contended with a sharp rebound in crude oil prices.

    U.S. crude futures rose more than 6% after losing 14% over the previous three sessions as concerns resurfaced over escalating tensions between the United States and Iran.

    According to U.S. Central Command, Iran launched multiple ballistic missiles at U.S. forces in the Middle East on Tuesday, although the projectiles were intercepted.

    Centcom later confirmed that U.S. and Saudi Arabian forces carried out precision strikes against Iran-backed militant targets in Iraq following more than 30 drone attacks over the previous 72 hours.

    President Donald Trump also warned of a strong U.S. response, telling a Fox News reporter: “They’re going to get a beating.”

    Chipmakers Among the Hardest Hit

    Semiconductor shares were among the weakest performers, with the Philadelphia Semiconductor Index tumbling 5.3% to its lowest closing level in three months.

    Housing stocks also fell sharply as higher Treasury yields pressured the sector, sending the Philadelphia Housing Sector Index down 4.3%.

    Networking, computer hardware, airline and banking stocks also posted notable losses, while energy companies outperformed as higher crude oil prices lifted the sector.

  • European Stocks Advance as Corporate Earnings Offset Interest Rate Uncertainty: DAX, CAC, FTSE100

    European Stocks Advance as Corporate Earnings Offset Interest Rate Uncertainty: DAX, CAC, FTSE100

    European equity markets traded higher on Thursday as investors assessed another wave of corporate earnings while weighing the implications of the U.S. Federal Reserve’s decision to leave interest rates unchanged following a closely divided 9-3 vote.

    Bank of England Holds Rates Steady

    In the latest monetary policy decision, the Bank of England kept its benchmark interest rate unchanged, in line with market expectations.

    The Monetary Policy Committee, chaired by Governor Andrew Bailey, voted 6-3 to maintain the bank rate at 3.75%, its lowest level since June 2023.

    French Economy Returns to Growth

    Fresh economic data showed that France avoided slipping into recession during the second quarter as stronger consumer spending and exports supported economic activity.

    Preliminary figures from INSEE showed gross domestic product expanded by 0.2% compared with the previous quarter, reversing the 0.1% contraction recorded in the first quarter and matching economists’ forecasts.

    Separate data also indicated that French household spending accelerated in June, helped by increased expenditure on food and energy.

    Major European Indices Trade Higher

    The French CAC 40 gained 0.9%, while the UK’s FTSE 100 advanced 0.4%. Germany’s DAX also moved higher, rising 0.1%.

    Rolls-Royce Leads UK Market Higher

    Among individual stocks, Rolls Royce Holdings (LSE:RR.) climbed more than 4% after the engineering group upgraded its full-year profit outlook following a strong first-half operating and financial performance.

    Shell (LSE:SHEL) added around 1% after reporting that second-quarter profit more than doubled.

    BAE Systems (LSE:BA.) rose 1.1% after lifting its full-year guidance for sales, profitability and cash flow following a strong first half.

    Lloyds Banking Group (LSE:LLOY) gained nearly 2% after unveiling further cost-cutting measures, increasing its interim dividend and announcing a new £1 billion share buyback following a 23% rise in first-half profit.

    European Companies Deliver Mixed Results

    Dutch banking group ING (EU:INGA) advanced 2% after posting better-than-expected second-quarter earnings and improving its outlook.

    Stellantis (BIT:STLAM) fell 5.3% after adjusted operating income for the second quarter missed market expectations.

    French infrastructure company Vinci (EU:DG) jumped nearly 5% after exceeding forecasts for first-half profit and free cash flow, supported by strong momentum in its Energy Solutions division.

    Veolia (EU:VIE), a global environmental services provider, gained 1.7% after reporting solid first-half earnings and raising its full-year profit guidance.

    Capgemini (EU:CAP) declined 1.7% after announcing a sharp drop in first-half net profit.

    Air France-KLM (EU:AF) rose 1.5%, while Deutsche Lufthansa edged higher after both airlines submitted offers to acquire a controlling interest in TAP Air Portugal.

    Hotel operator Accor (EU:AC) slipped 1.3% after reporting a slight decline in second-quarter revenue per available room.

    Bouygues (EU:EN) surged 7% after publishing improved first-half financial results.

    Schneider Electric (EU:SU) rallied 6.4% after delivering record first-half revenue and free cash flow.

    Sanofi (EU:SAN) fell 3.6% despite raising its full-year sales guidance.

    Societe Generale (EU:GLE) climbed 2.4% after announcing plans to begin a €1.5 billion share buyback programme as early as August 3.

    Adidas Slides While BMW Gains

    Adidas (TG:ADS) plunged more than 17% after higher marketing spending related to the football World Cup weighed on quarterly profit.

    Meanwhile, BMW (TG:BMW) gained 1.7% after reporting a second-quarter automotive profit margin that came in slightly ahead of expectations.

  • Renault Reports Strong First-Half Revenue Growth as Earnings Fall Short of Forecasts

    Renault Reports Strong First-Half Revenue Growth as Earnings Fall Short of Forecasts

    Renault (EU:RNO) shares traded little changed in European markets on Thursday after the French automaker reported robust first-half revenue growth, although net profit came in below analysts’ expectations.

    The company continued to benefit from strong demand for its electric vehicle lineup, with EV sales climbing 47.6% compared with the same period last year. Sales of the Renault 5 played a key role in offsetting growing competition from Chinese manufacturers, and electric vehicles accounted for one in every five Renault models sold during the period.

    Electric Vehicle Demand Drives Revenue Growth

    Higher pricing for the new Clio 6 also supported the group’s performance, helping first-half revenue increase 9.4% year over year to €30.25 billion.

    Renault generated net income of €700 million during the first six months of the year, a sharp improvement from the €11.18 billion net loss reported in the first half of 2025, when results were heavily affected by a one-off charge linked to the company’s investment in Nissan.

    According to a Reuters consensus based on estimates from 21 analysts, the market had expected first-half revenue of €29.4 billion and group share net profit of €770 million.

    Margin Target Maintained Despite Industry Challenges

    Competitive pricing pressure across the European automotive market continued, particularly as low-cost Chinese manufacturers such as BYD and Chery expanded their presence.

    Despite those headwinds, Renault reaffirmed its 2026 operating margin target of 5.5%. The company reported an operating margin of 6.3% in 2025.

    Chief Executive François Provost nevertheless warned that rising raw material costs are likely to weigh on profitability across the automotive sector next year.

  • Market Open: Lloyds Profit Beats Estimates, LSEG Shares Slip

    Market Open: Lloyds Profit Beats Estimates, LSEG Shares Slip

    FTSE 100 steady at the open as Lloyds beats profit forecasts with a new 2030 plan and LSEG shares slip despite raised guidance, amid US-Iran tensions.

    Market Overview

    European and US equity markets opened on a cautious footing on Thursday, with the FTSE 100 easing marginally to 10,907.37, down 0.01 per cent, and the Euronext 100 slipping to 1,899.63, also down 0.01 per cent, both broadly flat after Wednesday’s session. Germany’s DAX was down 0.19 per cent at 25,411.24 shortly after the Frankfurt open. Wall Street set a weaker overnight tone, with the Nasdaq Composite closing down 1.74 per cent at 24,442.94 and the S&P 500 down 1.52 per cent at 7,316.15, as investors weighed the escalating conflict between the United States and Iran following fresh US strikes, and awaited the Bank of England’s latest interest rate decision.

    Among commodities, copper and natural gas edged higher while gold and Brent Crude eased back, even as Middle East tensions continue to underpin energy prices. Bitcoin was firmer against sterling. Sterling itself was broadly steady, edging higher against the US dollar, Australian dollar and euro while easing slightly against the yen and Swiss franc, leaving the currency largely rangebound as markets braced for the Bank of England’s rate call.

    Market Numbers

    FTSE 100: Down (-0.01 per cent), 10,907.37
    Euronext 100: Down (-0.01 per cent), 1,899.63
    DAX: Down (-0.19 per cent), 25,411.24
    NASDAQ: Down (-1.74 per cent), 24,442.94
    S&P 500: Down (-1.52 per cent), 7,316.15

    In the Headlines

    Profit beat, new 2030 plan – Lloyds Banking Group (LSE:LLOY)
    Lloyds Banking Group posted a second-quarter profit of £2.3 billion, ahead of analyst forecasts, and unveiled an “Accelerate 2030” strategy targeting a 20 per cent return on tangible equity alongside a new £1 billion share buyback. The results and growth plan reassure investors on the health of the UK banking sector ahead of this week’s Bank of England rate decision.

    Shares slip despite guidance raise – London Stock Exchange Group (LSE:LSEG)
    London Stock Exchange Group beat first-half earnings expectations and raised its full-year revenue guidance, yet its shares slipped as investors focused on the long-dated timeline of its round-the-clock trading initiative. The move highlights how execution timing, rather than headline earnings, is currently driving sentiment towards UK financial services stocks.

    Currencies (vs GBP)

    USD: Up (0.00 per cent), $1.3368
    CHF: Down (0.00 per cent), Fr.1.0873
    EUR: Up (0.01 per cent), €1.1658
    JPY: Down (-0.02 per cent), ¥218.2905
    AUD: Up (0.00 per cent), $1.9207
    Bitcoin (BTC/GBP): Up, (0.30 per cent), £47,956.56

    Commodities

    Copper: Up
    Gold: Down
    Brent Crude: Down
    Natural Gas: Up

  • Gold Retreats as Stronger Dollar and Fed Commentary Weigh on Prices

    Gold Retreats as Stronger Dollar and Fed Commentary Weigh on Prices

    Gold prices slipped on Thursday after an initial rally faded, as investors reconsidered the Federal Reserve’s inflation outlook following the latest policy meeting. A firmer U.S. dollar and a rebound in Treasury yields also reduced demand for the safe-haven metal.

    At 00:44 ET (04:44 GMT), spot gold (XAU/USD) was down 0.4% at $4,049.99 an ounce after earlier touching a one-week high of $4,100.42. Gold Futures gained 0.3% to $4,047.20, while silver (XAG/USD) declined 0.6% to $57.32. Platinum (XPT/USD) fell 1.3% to $1,597.87.

    Fed Decision Sparks Brief Gold Rally

    Bullion initially strengthened after the Federal Reserve kept interest rates unchanged, as lower Treasury yields and a weaker U.S. dollar immediately following the announcement boosted demand for assets that do not generate interest income.

    The rally proved short-lived, however, as investors focused on comments from Federal Reserve Chair Kevin Warsh, who reaffirmed the central bank’s determination to return inflation to its long-term 2% target despite leaving monetary policy unchanged.

    The U.S. Dollar Index remained broadly steady near 100.9, while benchmark Treasury yields recovered from their post-meeting declines, limiting further upside for gold.

    According to CME FedWatch data, markets now assign roughly a 64% probability to a September interest rate increase, compared with around 81% before the Fed’s latest policy announcement.

    Geopolitical Risks Continue to Support Inflation Concerns

    Traders also monitored renewed tensions in the Middle East after the United States carried out additional strikes against Iran overnight. U.S. Central Command described the operation as “a powerful response” to what it said were attempted Iranian attacks on American forces a day earlier.

    President Donald Trump had previously pledged a strong response against Tehran, saying the United States would retaliate after the military intercepted what it described as a surprise Iranian attack targeting U.S. personnel.

    The renewed conflict helped keep oil prices elevated as markets assessed the potential for further disruption to global energy supplies.

    Shipping risks also increased after the Iran-backed Houthi movement warned it would target Saudi vessels travelling toward the Indian Ocean, prompting some tanker operators to consider alternative routes.

    Persistently high energy prices have reinforced expectations that inflation could remain elevated for longer, potentially delaying any move by the Federal Reserve to ease monetary policy.

    Focus Turns to Inflation Data

    Investors are now awaiting Thursday’s release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation measure, for fresh signals about inflation and the future direction of interest rates.

    Attention will also shift to upcoming monetary policy announcements from the Bank of England and the Bank of Japan, both of which are widely expected to leave borrowing costs unchanged.

  • Oil Advances Again as Middle East Tensions Raise Supply Risks

    Oil Advances Again as Middle East Tensions Raise Supply Risks

    Oil prices moved higher for a second consecutive day on Thursday as renewed military action between the United States and Iran heightened concerns over crude exports moving through critical global shipping routes.

    Brent crude futures rose $1.06, or 1.17%, to $91.80 a barrel by 0812 GMT after earlier falling to an intraday low of $89.02.

    U.S. West Texas Intermediate (WTI) crude climbed 39 cents, or 0.46%, to $84.85 a barrel after touching a session low of $83.21.

    Renewed Military Action Supports Oil Prices

    Energy markets remained focused on developments in the Middle East after the U.S. military confirmed strikes on dozens of Islamic Revolutionary Guard Corps facilities across Iran, including command centres and drone sites. The operation followed ballistic missile attacks launched by Tehran against U.S. forces stationed in the region.

    U.S. Central Command (CENTCOM) said the operation began at 0000 GMT and concluded at 0200 GMT on Thursday.

    “Until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil is not going anywhere — hope for diplomacy is welcome, but the market is pricing the reality of ongoing strikes,” said Tim Waterer, chief market analyst at KCM Trade.

    Markets Monitor Key Shipping Routes

    The Strait of Hormuz, through which around 20% of the world’s oil and natural gas supplies typically pass, has remained a major focus for traders since fighting erupted on February 28.

    On Wednesday, the United States and Saudi Arabia carried out strikes against Iran-backed paramilitary groups in Iraq. The action marked the first publicly acknowledged Saudi participation in U.S. air operations and followed drone attacks on Saudi energy facilities launched from Iraq.

    Despite the military escalation, analysts said investors remain focused on whether oil shipments continue to move through the region and whether diplomatic efforts could reduce tensions.

    Iran’s Fars news agency reported that a Qatari LNG tanker successfully sailed through the Iranian-designated route in the Strait of Hormuz after receiving approval from Iranian authorities.

    According to shipping data from Kpler and LSEG, the Al Areesh tanker, which loaded cargo at Qatar’s Ras Laffan terminal between July 4 and July 6, exited the strait overnight on July 29.

    Supply Concerns Extend Beyond Hormuz

    The conflict has also disrupted shipping through the Bab el-Mandeb Strait, adding another area of concern for global energy markets.

    Regional sources told Reuters that Yemen’s Houthi movement is considering charging commercial vessels using the southern Red Sea, one week after announcing a naval blockade targeting Saudi Arabia.

    “For Brent to break convincingly above recent highs and sustain a move higher, we would need clearer evidence of prolonged physical disruption — either a sustained reduction in flows through Hormuz or confirmed damage to key energy infrastructure,” Waterer added.

    Adding to supply concerns, the Caspian Pipeline Consortium said, according to Russia’s Interfax news agency, that it had suspended oil loading operations after a drone attack involving a tanker.

  • Markets Watch Fed Outlook as Tech Giants Kick Off Key Earnings Wave: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets Watch Fed Outlook as Tech Giants Kick Off Key Earnings Wave: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures traded modestly higher on Thursday as investors digested the Federal Reserve’s latest policy announcement and a fresh round of earnings from some of the world’s largest technology companies. Although the central bank left interest rates unchanged, a split vote among policymakers and ongoing inflation concerns kept markets on edge. Meanwhile, Microsoft (NASDAQ:MSFT) rallied after its results, while Meta Platforms (NASDAQ:META) moved sharply lower as investors scrutinised each company’s artificial intelligence spending strategy.

    Futures Recover Following Wall Street Decline

    By 01:55 ET (05:55 GMT), futures linked to the Dow Jones Industrial Average were up 27 points, or 0.1%. S&P 500 futures gained 15 points, or 0.2%, while Nasdaq 100 futures rose 133 points, or 0.5%.

    The modest gains followed a weaker session on Wall Street, where investors focused on comments from Federal Reserve Chair Kevin Warsh after the conclusion of the central bank’s latest policy meeting.

    Semiconductor stocks remained under heavy selling pressure. The Philadelphia Semiconductor Index dropped 5.33%, extending its losses over the past five trading sessions to more than 14%. The Nasdaq 100 also slipped into correction territory after falling over 10% from its recent high.

    Market sentiment has been weighed down by concerns that the enormous investment flowing into AI infrastructure—including advanced chips and data centres—may take longer than expected to generate meaningful returns. Increased competition from Chinese technology companies has added to investor caution.

    Those concerns came into sharper focus after Microsoft and Meta became the first major AI-focused technology companies to publish quarterly earnings.

    Geopolitical developments also remained in focus after renewed U.S. military action involving Iran. Brent crude futures rose 1.4% to $92.01 per barrel after surging roughly 7% during Wednesday’s session.

    Fed Signals Readiness Despite Holding Rates

    The Federal Reserve kept its benchmark interest rate unchanged within a target range of 3.5% to 3.75%, although three members of the policy committee voted in favour of a rate increase.

    Officials continue to face elevated inflation, which remains well above the central bank’s 2% objective, largely due to higher energy prices linked to the conflict involving Iran.

    While June inflation figures were softer than expected, persistent volatility in oil markets has complicated the inflation outlook.

    Although raising interest rates could help contain price pressures, policymakers must also consider the potential impact on a labour market that has shown limited hiring and subdued layoffs.

    Kevin Warsh, who was overseeing only his second policy decision as Federal Reserve Chair, stressed that leaving rates unchanged should not be interpreted as a lack of willingness to act.

    “There was nothing inertial about our discussions,” Warsh said.

    Asked whether additional rate increases could help reduce inflation, Warsh responded that they remained an available policy tool but added, “I wouldn’t say it’s in isolation.” He also suggested that higher long-term Treasury yields since the June meeting were already helping tighten financial conditions.

    U.S. Treasury yields rose following his remarks as investors searched for signals about the Fed’s next policy move.

    “[T]he vague and arguably counterproductive communications from […] Warsh during the press conference make forecasting the Fed’s next move even trickier than it already was,” said Thomas Ryan, Senior North America Economist at Capital Economics.

    Microsoft Delivers Another Strong Quarter

    Microsoft exceeded market expectations after reporting continued strength across its cloud computing operations and growing adoption of its AI services.

    Revenue for the quarter ended in June climbed 18% to $90 billion, while net income surged 31% to $35.8 billion.

    Chief Executive Satya Nadella also disclosed that annual revenue generated by Microsoft’s AI-powered Azure cloud platform exceeded $100 billion for the first time.

    Because Microsoft rarely reports Azure’s revenue separately, the announcement attracted considerable attention from investors comparing its performance with Google’s cloud business.

    The software company also reaffirmed its commitment to AI investment. Capital expenditure reached $41 billion during the quarter, up nearly 70% year over year, lifting annual capital spending to $145.3 billion.

    The strong Azure performance reassured investors that the company’s aggressive AI investment strategy continues to deliver results, sending Microsoft’s shares more than 7% higher in after-hours trading.

    Meta Falls as Spending Plans Concern Investors

    Meta Platforms posted record second-quarter revenue of $60.8 billion, but its shares fell more than 7% after the results were released.

    The decline reflected investor concern over higher spending expectations. Meta increased its minimum capital expenditure forecast for the year to $130 billion from $125 billion previously, while maintaining the upper end of its guidance at $145 billion.

    Although executives were expected to provide greater clarity around AI monetisation during the earnings call, investors remained cautious.

    Meta also reported free cash flow of less than $1 billion, while quarterly net income declined 14% to $18.3 billion.

    Its revenue outlook for the current quarter also disappointed expectations, and the company warned that ongoing legal proceedings related to the impact of social media on younger users could result in material financial losses.

    Attention now shifts to Apple and Amazon, which are both scheduled to report quarterly earnings later on Thursday.

    Qualcomm, Starbucks and Chipotle Also Update Investors

    Elsewhere, Qualcomm (NASDAQ:QCOM) shares moved lower in extended trading after the semiconductor company issued weaker-than-expected guidance.

    Chief Executive Cristiano Amon said the business intends to raise product prices to offset rising manufacturing and memory costs, adding that the wider semiconductor industry continues to experience supply chain challenges driven by strong demand for AI-related data centres.

    Qualcomm posted adjusted third-quarter earnings per share of $2.21, narrowly missing FactSet estimates. Revenue declined 4% to $9.95 billion but still came in ahead of analyst forecasts.

    Starbucks (NASDAQ:SBUX) delivered quarterly earnings above expectations, supported by improving customer traffic across North America and continued progress in its turnaround strategy. Its shares rose approximately 4% in after-hours trading.

    Chipotle Mexican Grill (NYSE:CMG) also reported stronger-than-expected revenue and earnings, helped by continued restaurant expansion and branding initiatives. The company raised its full-year comparable sales outlook, sending its shares higher after the market closed.

  • L’Oréal Shares Rise After Strong Second-Quarter Results and Record Operating Margin

    L’Oréal Shares Rise After Strong Second-Quarter Results and Record Operating Margin

    L’Oréal SA (EU:OR) shares climbed more than 4% on Thursday after the world’s largest beauty company reported second-quarter results that exceeded market expectations, supported by broad-based organic sales growth and a record operating margin for the first half of the year.

    The group generated second-quarter revenue of €11.6 billion, an increase of 8.2% on a reported basis. Like-for-like sales growth, excluding IT phasing effects, reached 6.3%, outperforming the consensus estimate of 5.7% by 60 basis points and exceeding BofA Securities’ forecast by 30 basis points.

    Broad-Based Growth Supports Performance

    L’Oréal delivered growth across nearly all of its businesses, outperforming listed beauty sector peers by roughly three times during the quarter.

    First-half EBIT increased 6.8% year over year to €5.063 billion, resulting in a record operating margin of 21.3%. The margin improved by 20 basis points from the same period last year and exceeded market expectations by 0.9%.

    The expansion came despite a 70-basis-point increase in advertising and promotional spending, which reached 32.6% of sales. The higher investment was offset by improved leverage in selling, general and administrative expenses, together with a 10-basis-point improvement in gross margin to 74.8%.

    Earnings Per Share Misses Estimates

    Adjusted first-half earnings per share came in at €7.40, slightly below the consensus estimate of €7.52 and BofA Securities’ forecast of €7.48.

    The shortfall was primarily attributed to a weaker-than-expected contribution from Galderma, in which L’Oréal owns a 20% stake that is now accounted for using the equity method.

    Dermatological Beauty Delivers Standout Growth

    Among the group’s business segments, Dermatological Beauty recorded the strongest organic growth at 11.1%, followed by Professional Products with growth of 10.1%.

    Consumer Products posted organic growth of 4.6%, while L’Oréal Luxe, the only division to fall short of consensus expectations, grew 4.7%.

    By region, SAPMENA led with organic growth of 12.2%, ahead of Europe at 6.7%, North America at 5.9%, Latin America at 5.3% and North Asia at 4.5%.

    “L’Oréal delivered a strong first half,” said Chief Executive Nicolas Hieronimus. “At +6.5% adjusted like-for-like growth, L’Oréal maintained its strong momentum and expanded its outperformance of the global beauty market.”

    Analysts See Further Upside

    BofA Securities, which maintains a “buy” rating and a €440 price target on the shares, described the quarter as “a good hair day,” adding that the earnings beat could support a re-rating of the stock, which currently trades at around 26 times forward 12-month earnings compared with a mid-cycle valuation closer to 30 times.

    The brokerage raised its 2026-2028 EBIT forecasts by between 0.7% and 1.5%, while lowering its earnings per share estimates by 0.6% to 1.9% to reflect purchase price amortisation associated with the Galderma investment.

    BofA also identified the third quarter as an important catalyst, as L’Oréal will be compared against a stronger performance from the same period last year.

    The company also confirmed a 50-year licensing agreement with Kering for Gucci fragrances and beauty products, effective from July 2027, one year earlier than previously planned. BofA expects the agreement to become modestly accretive to earnings once it makes a full contribution from 2028.

  • Airbus Posts Strong Second-Quarter Profit Growth as Aircraft Deliveries Accelerate

    Airbus Posts Strong Second-Quarter Profit Growth as Aircraft Deliveries Accelerate

    Airbus (EU:AIR) delivered significantly stronger second-quarter results, with earnings rising sharply on the back of higher commercial aircraft deliveries and improved performances across its major business units. The aerospace group also reaffirmed its financial and operational targets for 2026.

    Despite the strong earnings report, Airbus shares were down 2.5% in early trading in Paris.

    Revenue and Profit Surge

    Second-quarter revenue increased 28% year over year to €20.5 billion as aircraft deliveries gathered pace during the period.

    Adjusted EBIT rose 54% to €2.43 billion, while reported EBIT climbed to €2.52 billion, more than double the level recorded a year earlier. Net income reached €1.66 billion, representing a 126% increase, with earnings per share of €2.10.

    “The results further support Airbus’ €12-13bn 2029 EBIT ambition,” Barclays analysts said in a note.

    Commercial Aircraft Business Leads Performance

    The Commercial Aircraft division remained the group’s primary growth engine, generating revenue of €15.4 billion, up 37% compared with the second quarter of 2025.

    Reported EBIT for the division jumped 150% to €1.95 billion.

    Airbus Defence and Space also delivered a solid performance, with revenue rising 10% to €3.48 billion and reported EBIT more than doubling to €408 million.

    The Helicopters business recorded revenue of €2.08 billion, broadly unchanged from the previous year, while reported EBIT edged 2% higher to €175 million.

    Guidance Reaffirmed Despite Earlier Production Challenges

    Chief Executive Guillaume Faury said the company’s strong second-quarter deliveries reflected steady execution as Airbus ramps up production to meet growing demand for civil and military aircraft. He added that the performance supports confidence in the group’s medium-term outlook.

    Airbus left its full-year guidance unchanged, continuing to target approximately 870 commercial aircraft deliveries during 2026 while maintaining its existing earnings outlook.

    Earlier this year, the manufacturer lowered its monthly A320 production plan and adopted more cautious delivery assumptions because of ongoing engine supply constraints.

    Second-Quarter Recovery Offsets Weak Start to the Year

    Airbus delivered 351 commercial aircraft during the first half of 2026, with the majority handed over during the second quarter.

    The company’s commercial aircraft business had been affected earlier in the year by delays in deliveries to China, which weighed on first-quarter earnings.

    Airbus also continued to navigate supply chain challenges, including engine availability issues and component shortages, particularly involving RTX’s Pratt & Whitney business.

  • European Stocks Hold Steady as Strong Earnings Counter Middle East Tensions: DAX, CAC, FTSE100

    European Stocks Hold Steady as Strong Earnings Counter Middle East Tensions: DAX, CAC, FTSE100

    European equity markets traded with little overall direction on Thursday as another wave of stronger-than-expected corporate earnings, led by a standout performance from Shell (LSE:SHEL), helped offset uncertainty surrounding U.S. monetary policy and renewed military tensions between the United States and Iran.

    The pan-European STOXX 600 index was broadly unchanged in early trading. Germany’s DAX eased 0.2%, while France’s CAC 40 advanced 0.6%, with robust earnings from several major European companies helping to cushion the impact of geopolitical risks and macroeconomic uncertainty.

    Shell Leads Earnings Momentum

    Shell provided one of the strongest boosts to regional markets after more than doubling adjusted second-quarter profit to $9.8 billion, comfortably surpassing analyst expectations thanks to solid operational performance and stronger trading results.

    Despite the positive earnings season, investor sentiment remained cautious after the U.S. Federal Reserve kept interest rates unchanged on Wednesday while offering little clarity over the future path of monetary policy.

    Although Federal Reserve Chair Kevin Warsh reiterated the central bank’s commitment to tackling persistent inflation, his comments following the policy decision left investors uncertain about whether additional rate increases remain possible or whether interest rates will stay elevated for an extended period.

    Geopolitical Risks Remain in Focus

    Market sentiment was also affected by renewed U.S. military strikes inside Iran, marking another escalation in the conflict that has continued for five months and maintaining pressure on global energy markets.

    Attention in Europe was also turning toward the Bank of England’s upcoming interest rate decision, alongside several key economic releases including second-quarter Eurozone GDP, July economic sentiment indicators and preliminary German inflation figures.

    Technology Sector Mixed After Global Earnings

    Technology shares continued to trade cautiously following a mixed batch of earnings from major technology companies in the United States and Asia.

    Results from Samsung (USOTC:SSNHZ) and Microsoft (NASDAQ:MSFT) helped ease some investor concerns over artificial intelligence spending and elevated market valuations. However, Meta Platforms (NASDAQ:META) unsettled markets after reporting a 91% decline in quarterly free cash flow, highlighting the significant investment required to expand AI infrastructure.

    Financials and Industrials Support European Markets

    Outside the energy sector, a busy earnings calendar continued to support European indices.

    Societe Generale (EU:GLE) gained 2% after reporting record quarterly profit, while Spain’s BBVA (TG:BBVA) rose 2.6% following higher second-quarter earnings. French asset manager Amundi (EU:AMUN) also exceeded expectations for core earnings.

    Among industrial and technology companies, Airbus (EU:AIR) traded broadly unchanged after reaffirming its full-year aircraft delivery targets following a solid second quarter. Schneider Electric (EU:SU) surged 7.3% after raising its annual guidance on strong demand for energy infrastructure, while ArcelorMittal (EU:MT) reported earnings ahead of expectations as European trade protection measures continued to support the business.

    Capgemini (EU:CAP) slipped 0.6% despite increasing its revenue growth outlook, while Sanofi (EU:SAN) raised its full-year sales guidance.

    Automakers Deliver Mixed Performance

    The automotive sector produced mixed results.

    Renault (EU:RNO) fell 2.9% despite returning to profitability on the back of strong electric vehicle sales, while Germany’s BMW (TG:BMW) traded little changed after reporting a decline in second-quarter profit.