ADVFN UK Market News

Category: Market News

  • European markets edge higher as investors monitor possible U.S.-Iran negotiations: DAX, CAC, FTSE100

    European markets edge higher as investors monitor possible U.S.-Iran negotiations: DAX, CAC, FTSE100

    European equities traded mostly higher on Thursday as investors reacted to reports suggesting that the United States and Iran were working toward restarting negotiations aimed at ending the ongoing conflict between the two countries.

    By 07:10 GMT, the pan-European Stoxx 600 index had gained 0.1%, while Germany’s DAX rose 0.1% and France’s CAC 40 advanced 0.4%. In contrast, the UK’s FTSE 100 slipped 0.3%.

    Reports point to renewed diplomatic efforts

    According to reports, Washington and Tehran have been working with mediators on a one-page framework intended to relaunch discussions around a lasting peace agreement. The Wall Street Journal said negotiations are expected to begin next week in Pakistan.

    The report added that talks over the following month would aim to address disputes surrounding Iran’s nuclear programme and the potential easing of sanctions, although major disagreements remain over issues such as uranium enrichment and international inspections.

    President Donald Trump suggested that the U.S. military campaign against Iran, launched jointly with Israel in late February, could end if Tehran “agrees to give what has been agreed to.”

    Oil prices fall as hopes for de-escalation grow

    U.S. markets rallied strongly on Wednesday as expectations increased that the conflict could move toward a resolution.

    Oil prices also declined sharply amid hopes that tanker traffic through the Strait of Hormuz could resume. The key shipping route off Iran’s southern coast handles roughly one-fifth of global crude oil flows and has been heavily disrupted during the conflict.

    Brent crude futures, the global benchmark for oil prices, were last down 3.7% at $97.92 per barrel on Thursday.

    Corporate earnings influence market sentiment

    Company earnings releases across Europe also remained a focus for investors.

    Shares in Shell (LSE:SHEL) moved lower after the energy major reported quarterly earnings above market expectations but announced a reduction in the pace of share buybacks.

    Meanwhile, semiconductor designer Arm Holdings (NASDAQ:ARM) issued first-quarter revenue guidance ahead of analyst forecasts, reinforcing optimism that demand for artificial intelligence-related chips remains strong.

    European semiconductor stocks traded higher following the announcement.

  • Getlink (GET) reports weaker April traffic as truck and passenger volumes decline

    Getlink (GET) reports weaker April traffic as truck and passenger volumes decline

    Getlink SE (EU:GET) reported softer traffic activity in April, with truck shuttle volumes declining 1.9% year-on-year, compared with a 0.9% decline recorded in March.

    Passenger shuttle traffic also weakened during the month, falling 9.8% from the previous year after posting growth of 8.0% in March.

    Holiday calendar impacts passenger traffic

    The company said the decline in passenger shuttle activity was mainly linked to the timing of UK school holidays and unfavourable comparison effects related to the Easter calendar in the prior year.

    Energy market conditions provide some support

    Getlink noted that higher fuel prices and ongoing volatility in energy markets continue to provide short-term support for parts of its business operations.

    The company also highlighted recent increases in shareholdings by major investors.

  • FTSE 100 opens lower as investors monitor US-Iran negotiations

    FTSE 100 opens lower as investors monitor US-Iran negotiations

    London stocks opened slightly weaker on Thursday as investors weighed conflicting signals surrounding ongoing negotiations between the United States and Iran, despite increasingly optimistic comments from U.S. President Donald Trump regarding the possibility of a diplomatic agreement.

    By 07:14 GMT, the FTSE 100 had fallen 0.28%, while European markets showed a firmer tone, with Germany’s DAX rising 0.20% and France’s CAC 40 gaining 0.41%. Sterling was broadly stable against the dollar, with GBP/USD up 0.18% at 1.3621.

    Trump signals optimism over potential Iran agreement

    Market sentiment was influenced by comments from President Trump, who told reporters at the White House that discussions with Tehran over the previous 24 hours had been “very good” and that reaching a deal remained “very possible.”

    In later remarks to PBS, Trump said he believed an agreement could potentially be finalised before his scheduled visit to China next week, although he warned that military action could resume if negotiations fail.

    Iran’s Foreign Ministry stated that no formal response had yet been delivered to Washington’s latest proposal, with diplomatic communication continuing through Pakistani mediators.

    Reuters, citing both a Pakistani source and an individual briefed on the talks, reported that the two sides were nearing agreement on a short memorandum aimed at formally ending the conflict. Meanwhile, Axios reported that a proposed 14-point framework included commitments from Iran not to pursue nuclear weapons development and to suspend uranium enrichment activities for at least 12 years.

    Iranian officials issue warnings amid ongoing talks

    Despite the diplomatic progress, tensions remained elevated. A senior official from the IRGC Navy warned that any renewed US military action would trigger a response “beyond the enemy’s calculations.”

    Iran’s parliamentary speaker also criticised Washington’s strategy around the Strait of Hormuz, describing it as “Operation Trust Me Bro” and claiming the approach had failed.

    UK market movers and corporate updates

    JD Sports warns on profits

    JD Sports (LSE:JD.) said profits are expected to decline further in the 2026/27 financial year, citing subdued consumer demand and uncertainty linked to Middle East tensions. The retailer also reported a 2.3% decline in first-quarter like-for-like sales.

    BAE Systems maintains strong outlook

    BAE Systems (LSE:BAE) reiterated guidance for earnings growth of between 9% and 11% in 2026 as elevated geopolitical tensions continue to support defence spending and order activity. The company’s order backlog has expanded significantly since Russia’s invasion of Ukraine in 2022.

    M&G returns to positive inflows

    M&G (LSE:MNG) reported £600 million of net inflows during the first quarter, reversing outflows recorded a year earlier. Demand from Japanese partner Daiichi Life and external institutional clients supported the improvement.

    Hiscox posts premium growth

    Hiscox (LSE:HSX) announced a 10.2% increase in first-quarter insurance contract written premiums, driven by strong retail insurance performance across the UK, Europe and the United States.

    IHG beats expectations despite regional risks

    InterContinental Hotels Group (LSE:IHG) exceeded market forecasts with first-quarter RevPAR growth of 4.4%, ahead of expectations for 3.3%. Strong US leisure demand supported performance, although management warned that Middle East tensions could affect future travel activity.

    Shell beats earnings forecasts

    Shell (LSE:SHEL) reported first-quarter adjusted earnings of $6.92 billion, ahead of analyst expectations of $6.36 billion. However, the company reduced its quarterly share buyback programme to $3 billion from $3.5 billion and noted a higher debt ratio following conflict-related disruption at its Pearl gas facility in Qatar.

    BP receives licence extension

    BP (LSE:BP.) was granted an extension to a US licence allowing the use of a payment mechanism involving sanctioned Iranian and Russian entities tied to a major Azerbaijani gas development, according to Bloomberg.

    Intertek likely to reject takeover approach

    Intertek (LSE:ITRK) is reportedly preparing to reject an improved £58-per-share takeover proposal from Swedish private equity firm EQT, according to the Financial Times.

    UK economic data points to slower activity

    Separate economic surveys released on Thursday indicated that UK construction activity contracted at its fastest pace in nearly six years during the three months to March.

    Meanwhile, a separate labour market survey showed that private sector pay settlements remained unchanged in March, with median annual pay offers holding steady from the previous month.

  • BAE Systems (BAE) maintains guidance after strong start to 2026

    BAE Systems (BAE) maintains guidance after strong start to 2026

    BAE Systems (LSE:BAE) reaffirmed its full-year financial guidance after reporting a strong operational and financial performance during the opening four months of 2026. The defence and aerospace group said rising military spending across its major markets continues to support robust demand for its products and services.

    Management highlighted approximately £4.5 billion in new orders secured so far this year, more than double the level reported during the equivalent period in 2025.

    Major defence contracts strengthen order book

    Among the new business secured was a £2.5 billion training and support agreement linked to Turkey’s recent Eurofighter acquisition, alongside £1.1 billion of new orders for MBDA missile systems.

    BAE Systems said it continues to see additional opportunities emerging across several high-priority defence sectors, including missile and air defence systems, space technologies, drone and counter-drone capabilities, and electronic warfare solutions.

    The company noted that increasing global security threats are driving governments to raise defence budgets, creating favourable long-term conditions across its core markets.

    Full-year targets remain unchanged

    The group maintained its 2026 guidance, continuing to expect sales growth of between 7% and 9%, underlying EBIT growth of 9% to 11%, and underlying earnings per share growth within the same range.

    BAE also reiterated expectations for free cash flow to exceed £1.3 billion during the year.

    Analysts said the company remains well positioned to benefit from sustained increases in defence spending globally, particularly due to its exposure to strategically important areas such as air defence, naval platforms, drones, space systems and electronic warfare.

    Dividend increased following strong trading momentum

    The company also announced a final dividend for 2025 of 22.8 pence per share, up from 20.6 pence in the previous year, reflecting confidence in cash generation and ongoing earnings growth.

    More about BAE Systems

    BAE Systems is a UK-based multinational aerospace, defence and security company supplying advanced military technology, weapons systems and support services to governments and defence organisations worldwide. The group operates across air, maritime, land, cyber and space domains, with major programmes spanning combat aircraft, naval vessels, missile systems, electronic warfare and defence electronics.

  • InterContinental Hotels (IHG) delivers stronger-than-expected first-quarter growth

    InterContinental Hotels (IHG) delivers stronger-than-expected first-quarter growth

    InterContinental Hotels Group (LSE:IHG) reported first-quarter revenue per available room (RevPAR) growth of 4.4% compared with the same period last year, outperforming analyst expectations of 3.3%.

    The company said performance was supported by both higher occupancy and room pricing. Occupancy increased by 1.5 percentage points during the quarter, while average daily room rates rose 2.0%.

    Growth recorded across key global regions

    The Americas division achieved RevPAR growth of 3.6%, with the United States market contributing a 3.4% increase. The EMEAA region — covering Europe, the Middle East, Asia and Africa — recorded growth of 5.6%, while Greater China delivered a 5.7% increase.

    Management noted that trading in the Americas strengthened further during March and April, indicating improving momentum in the company’s largest operating region.

    Hotel pipeline and system expansion continue

    IHG expanded its net system size by 5.0% during the quarter, opening approximately 14,900 rooms globally. Gross system growth reached 6.6%.

    The company also signed agreements for an additional 21,400 rooms during the period, representing 6% growth, bringing its total development pipeline to roughly 343,000 rooms worldwide.

    Management said continued expansion of the hotel network reflects ongoing demand from owners and franchise partners across multiple brands and regions.

    Middle East conflict affects EMEAA trading in April

    The company reported softer trading conditions in the EMEAA region during April, with RevPAR declining 7% year-on-year. Within that figure, the Middle East experienced a sharp 50% drop, reflecting the impact of ongoing regional conflict and wider international travel disruption. The Middle East accounts for around 19% of the EMEAA division.

    Despite the short-term weakness, group booking trends suggest improving performance in the region during May and June.

    Full-year outlook remains unchanged

    IHG said it remains confident in meeting full-year market expectations, including consensus forecasts for RevPAR growth of 2.2% and adjusted earnings per share of 566 cents.

    Management pointed to continued booking growth across the group and improving trends in several regions as supporting factors for the remainder of 2026.

    More about InterContinental Hotels Group

    InterContinental Hotels Group is a global hospitality company operating a portfolio of hotel brands across luxury, premium, midscale and lifestyle segments. The group manages, franchises and owns hotels worldwide under brands including InterContinental, Holiday Inn, Crowne Plaza, Six Senses and Kimpton, serving both leisure and business travellers across more than 100 countries.

  • JD Sports (JD.) signals weaker profit outlook amid soft consumer demand

    JD Sports (JD.) signals weaker profit outlook amid soft consumer demand

    JD Sports (LSE:JD.) has warned that profits could decline further in the coming financial year as weak consumer spending, difficult footwear market conditions and wider geopolitical uncertainty continue to weigh on trading.

    The retailer forecast profit before tax and adjusting items (PBTAI) of between £750 million and £850 million for fiscal 2027. The upper end of the range would only broadly match the £852 million reported for the year ended January 2026, which itself represented a 6.4% decline on the previous year at constant currency.

    Management said the wide guidance range reflects ongoing uncertainty surrounding consumer demand, industry trading conditions and the broader macroeconomic environment.

    Management remains cautious on short-term market conditions

    Chief Executive Régis Schultz said the company remains focused on operational discipline while preparing for continued subdued market growth in the near term.

    He added that although current consumer and industry indicators remain challenging, management continues to hold a more positive view of the group’s medium-term growth prospects.

    Revenue growth driven by acquisitions despite weaker like-for-like sales

    For the financial year just completed, total sales increased 11.7% at constant currency to £12.66 billion. However, excluding contributions from the acquisitions of Hibbett and Courir, underlying organic growth was a more modest 2.1%.

    Group like-for-like sales declined 2.1%, reflecting softer trading conditions across several regions and categories.

    Gross margin remained stable at 47%, as controlled pricing investments — particularly within online channels — were balanced by increased marketing support from major brand partners.

    Margins pressured despite stronger cash flow

    Operating profit before adjusting items declined 5.4% to £886 million, while operating margin narrowed by 120 basis points to 7.0%. The company attributed the decline to inflationary cost pressures and weaker like-for-like sales performance.

    Despite the earnings pressure, free cash flow rose 36% to £462 million, supported by tighter capital discipline and lower capital expenditure, which fell to £401 million from £515 million in the previous year.

    JD Sports ended the period with net cash before lease liabilities of £311 million, a significant improvement from £52 million a year earlier. The group expects free cash flow for FY27 to range between £460 million and £520 million.

    North America improves while UK remains challenging

    North America, now JD Sports’ largest market accounting for 38% of total sales, recorded a 1.8% decline in like-for-like sales over the full year. However, trading improved progressively throughout the year, with positive like-for-like growth achieved during the fourth-quarter peak trading period.

    The UK delivered the weakest performance, with organic sales falling 2.5% and like-for-like sales down 3.9%, impacted by softer footwear demand and weaker online trading.

    Asia Pacific was the strongest-performing region, generating organic growth of 8.5% alongside improving like-for-like sales momentum toward the end of the year.

    More about JD Sports

    JD Sports Fashion plc is a UK-based international sportswear retailer operating stores and digital platforms across multiple global markets. The company specialises in branded athletic footwear, apparel and accessories, partnering with major sportswear brands while expanding through acquisitions and international growth initiatives across Europe, North America and Asia Pacific.

  • Rathbones (RAT) reports first-quarter net outflows despite revenue growth

    Rathbones (RAT) reports first-quarter net outflows despite revenue growth

    Rathbones Group plc (LSE:RAT) reported total net outflows of £0.8 billion during the first quarter of 2026, with the majority attributed to its Wealth Management division, which recorded £0.5 billion of net outflows.

    The company noted that Wealth Management flows were broadly flat when excluding execution-only activity and a £0.2 billion tax-related outflow linked to measures introduced in the 2024 UK budget.

    Revenue rises ahead of market expectations

    Operating income increased 9.4% year-on-year to £241 million, slightly exceeding analyst consensus forecasts for the quarter. Total net operating income rose by £20.6 million compared with the previous year to reach £240.7 million.

    Growth was primarily driven by higher fee income, which contributed an additional £14.8 million, alongside a £7.1 million increase in net interest income. Other income categories declined by £5.6 million over the same period.

    Management’s revenue performance outpaced market expectations despite lower-than-anticipated funds under management and administration levels, indicating that previous consensus margin assumptions may have been overly cautious.

    Asset Management division also records outflows

    Within the Asset Management business, net flows were negative £0.4 billion excluding intra-group adjustments, or negative £0.3 billion including those adjustments. The Wealth Management division experienced gross outflows totalling £3.2 billion during the quarter.

    Total funds under management and administration ended the period at £113.6 billion, approximately 2% below Visible Alpha consensus estimates. Market movements reduced overall asset values by £1.14 billion during the quarter.

    More about Rathbones Group

    Rathbones Group plc is a UK-based wealth and asset management company providing investment management, financial planning and advisory services to private individuals, charities, trustees and professional intermediaries. The group oversees a broad range of investment strategies and wealth solutions through its Wealth Management and Asset Management divisions across the UK.

  • Hiscox (HSX) delivers double-digit premium growth in first quarter

    Hiscox (HSX) delivers double-digit premium growth in first quarter

    Hiscox Ltd (LSE:HSX) reported a 10% increase in insurance contract written premiums for the first quarter of 2026, with total premiums reaching $1.72 billion. On a constant currency basis, growth was 7%, reflecting continued expansion across several key business areas.

    Retail division leads performance across major markets

    The company’s retail business produced particularly strong growth, with premiums rising 15% to $847.2 million, or 8% in constant currency terms. Hiscox UK recorded a 17% increase in premiums to $244.3 million, while Hiscox Europe grew 20% to $328.2 million. Hiscox USA also delivered solid performance, reporting 9% growth to $274.7 million.

    Management highlighted continued momentum across its retail operations as demand remained strong in core personal and commercial insurance markets.

    London Market and reinsurance operations remain resilient

    Hiscox’s London Market division reported premium growth of 4% to $342.8 million, supported primarily by casualty business where pricing conditions remained favourable despite broader softening trends across parts of the insurance market.

    Within the Re & ILS division, gross written premiums increased 7% to $527.1 million. However, net written premiums declined 6% as the company reduced net exposure to property catastrophe risks.

    Pricing trends varied across the group during the quarter. Retail lines recorded average rate increases of 2%, while London Market pricing declined by 4% and Re & ILS rates fell by 13%.

    Investment portfolio remains stable

    Hiscox ended the quarter with invested assets of $9.3 billion, carrying an average duration of 2.0 years and maintaining an A credit rating profile. The company generated an investment return of $34.1 million during the period, equivalent to a positive year-to-date return of 0.4%.

    More about Hiscox

    Hiscox Ltd is an international specialist insurer operating across retail insurance, London Market underwriting and reinsurance. The company provides a range of products covering commercial, property, casualty and specialty risks, serving businesses and individuals across the UK, Europe, the United States and international markets.

  • Auto Trader (AUTO) shares rise after activist investor takes stake

    Auto Trader (AUTO) shares rise after activist investor takes stake

    Auto Trader Group (LSE:AUTO) shares climbed more than 6% on Thursday following reports that activist investment firm Palliser Capital has acquired a stake in the company.

    According to a report from Sky News, Palliser Capital has built a holding estimated at between 1% and 2% in the UK-based automotive marketplace operator. The investment marks the activist firm’s entry into the shareholder register of one of Britain’s largest online vehicle trading platforms.

    Investor interest focuses attention on growth potential

    The development is likely to increase market attention on Auto Trader’s strategic direction and future growth opportunities, as activist investors typically seek to influence operational performance, capital allocation or shareholder returns. No further details regarding Palliser Capital’s intentions have been disclosed publicly.

    The share price reaction reflected investor optimism that increased shareholder engagement could support further value creation within the business.

    More about Auto Trader Group

    Auto Trader Group operates the UK’s largest digital automotive marketplace, providing an online platform that connects vehicle buyers and sellers across new and used car markets. The company generates revenue through advertising, retailer services and digital automotive solutions, serving dealers, manufacturers and private sellers throughout the UK automotive sector.

  • M&G (MNG) reports positive first-quarter inflows despite volatile markets

    M&G (MNG) reports positive first-quarter inflows despite volatile markets

    M&G plc (LSE:MNG) delivered a resilient first-quarter performance in 2026, reporting £0.6 billion of net inflows from open business compared with net outflows during the same period last year. Total assets under management and administration remained broadly stable at £371 billion despite heightened market volatility.

    The improvement was largely driven by Asset Management, which generated £0.7 billion of net inflows supported by strong wholesale demand and continued investor interest in European equities, structured credit products and impact-focused investment funds.

    New with-profits annuity business supports growth strategy

    Within the Life division, expected outflows from legacy with-profits products were partly offset by the completion of the group’s first With-Profits bulk purchase annuity transaction, valued at £0.3 billion. Management said the launch of the with-profits BPA offering represents an important strategic development, with expectations for transaction volumes to increase further later in 2026.

    The company also highlighted a strong pipeline of new business opportunities and continued institutional demand supported by solid investment performance across its strategies.

    PruFund flows affected by volatility but outlook remains positive

    PruFund recorded modest net outflows during the quarter as increased market volatility in March weighed on investor activity after a stronger start to the year. However, M&G said flows stabilised during April and expects a return to positive inflows, supported in part by plans to expand PruFund distribution onto third-party financial adviser platforms.

    Management reiterated confidence in achieving further growth during 2026 as it continues to broaden distribution channels and expand product offerings across both investment management and insurance operations.

    Mixed financial profile balanced by attractive dividend yield

    The company’s outlook reflects a mixed financial picture. While M&G delivered a strong recovery during 2025, profitability margins remain relatively thin and earnings performance has shown volatility over multiple years. Leverage also remains comparatively elevated.

    Technical indicators currently suggest weaker short-term momentum, although valuation remains supported by an attractive dividend yield. However, the stock’s price-to-earnings ratio of roughly 22.8 moderates some of that valuation appeal.

    More about M&G Plc

    M&G plc is a UK-based international savings and investment company combining asset management and insurance operations. The group manages approximately £371.4 billion in assets on behalf of around 4.2 million retail customers and more than 1,000 institutional clients across 38 offices globally. Operating under the M&G and Prudential brands in the UK and Europe, and M&G Investments internationally, the company provides a broad range of investment, savings and retirement solutions.