ADVFN UK Market News

Category: Market News

  • European Stocks Advance Overall Despite Rising Middle East Tensions: DAX, CAC, FTSE100

    European Stocks Advance Overall Despite Rising Middle East Tensions: DAX, CAC, FTSE100

    European equities are mostly trading higher on Tuesday, with the notable exception of the U.K. market, even as geopolitical tensions escalate in the Middle East. Weak results from HSBC Holdings plc (LSE:HSBA) are weighing on London’s banking sector, contributing to the underperformance of the FTSE 100.

    Hostilities between the United States and Iran have intensified in the Gulf region, particularly around the Strait of Hormuz. Iran’s parliament speaker warned that recent U.S. actions are threatening the safety of shipping and energy flows through the critical waterway.

    “Shipping and energy transit security have been endangered by the United States and its allies through breaching the ceasefire and imposing a blockade,” said Mohammad Bagher Ghalibaf in a post on X.

    He added that a “new equation” is emerging in the strategic strait, stating, “We know well that the continuation of the status quo is unbearable for America, while we have not even started yet.”

    Major Indices Performance

    The pan-European Stoxx 600 is up about 0.5%. Germany’s DAX is leading gains with a rise of 1.5%, while France’s CAC 40 is up 0.7%. In contrast, the FTSE 100 in the U.K. is down 1.3%.

    Germany: Broad Gains Across Industrials

    In Frankfurt, Infineon Technologies AG is up 4.3%, while Commerzbank AG, Siemens AG and Siemens Energy AG are advancing between 2.7% and 3.5%.

    Rheinmetall AG is gaining around 3% after reporting a 7.7% year-on-year increase in first-quarter earnings to €1.94 billion.

    Scout24 SE is up nearly 2% after JPMorgan Chase & Co. maintained its Buy rating. Hugo Boss AG initially jumped close to 5% on strong results but later reversed into a slight loss of around 0.5%.

    Other gainers include Continental AG, Daimler Truck Holding AG, Heidelberg Materials AG, Deutsche Bank AG, Deutsche Telekom AG and SAP SE, all rising between 1% and 2%.

    Fresenius Medical Care AG is down more than 6% after reporting a sharper-than-expected drop in quarterly profit, while Fresenius SE & Co. KGaA and Deutsche Post AG are also lower.

    France: Telecoms and Industrials Lead

    In Paris, Teleperformance SE is up 4.3%, with Bouygues SA, Schneider Electric SE, Orange S.A. and Vinci SA gaining between 2% and 2.5%.

    Other stocks such as Airbus SE, ArcelorMittal, Thales Group, Bureau Veritas SA, Safran SA, STMicroelectronics N.V., Veolia Environnement SA, Legrand SA, Eurofins Scientific SE and BNP Paribas SA are also posting gains.

    On the downside, Sanofi S.A. is down 4.6%, while Danone S.A., EssilorLuxottica, Capgemini SE, Renault S.A. and Stellantis N.V. are also weaker.

    U.K.: Banks Drag Market Lower

    In London, HSBC Holdings plc is down nearly 6% after reporting a slight decline in first-quarter profit before tax to $9.38 billion, reflecting higher credit losses and impairment charges.

    Other banks including Lloyds Banking Group plc, Standard Chartered plc, NatWest Group plc and Barclays plc are also trading lower.

    Among other decliners, Entain plc is down more than 5%, while Weir Group plc, Legal & General Group plc, Aviva plc, Haleon plc, InterContinental Hotels Group plc, Unilever plc, Coca-Cola Europacific Partners plc, Standard Life Aberdeen plc, Marks and Spencer Group plc, Reckitt Benckiser Group plc and Fresnillo plc are down between 2% and 4%.

    On the positive side, Intertek Group plc is up more than 7%, while BT Group plc has gained 3.7%. BAE Systems plc, Spirax Group plc and Compass Group plc are also higher, along with Airtel Africa plc, Pearson plc, Endeavour Mining plc and The Sage Group plc.

    UK Auto Sales Rebound

    Data from Society of Motor Manufacturers and Traders showed that new car registrations in the U.K. rose 24% year-on-year in April 2026 to 149,247 units, reflecting a rebound from a weak comparison in April 2025.

  • Orange Shares Rise After Goldman Upgrade Highlights Organic Growth Potential

    Orange Shares Rise After Goldman Upgrade Highlights Organic Growth Potential

    Orange S.A. (EU:ORA) shares gained 2.5% on Tuesday after Goldman Sachs upgraded the stock to Buy from Neutral, assigning a 12-month price target of €21.60—suggesting about 22% upside from Monday’s close.

    The upgrade reflects Goldman’s view that market attention has been overly focused on potential consolidation in France, overshadowing a separate growth opportunity driven by Orange’s own operations.

    Consolidation Talks in Focus, but Not the Only Driver

    Orange is currently part of a consortium alongside Bouygues Telecom and Iliad’s Free, which entered exclusive talks in April to acquire SFR, France’s second-largest mobile operator, for €20.4 billion. While this possible transaction has dominated investor sentiment, Goldman believes Orange’s upside case stands even without the deal.

    Improving Returns and Lower Investment Needs

    Goldman now expects Orange to deliver an improvement of around 3 percentage points in return on invested capital (ROIC) over the next five years, compared with just 1 percentage point previously assumed in January and significantly above the sector average.

    The bank also anticipates a structural decline in capital expenditure intensity across the group, driven by the gradual completion of fibre network rollouts in key markets such as France and Spain.

    With fibre coverage reaching roughly 95% in France and advertising for ADSL banned from January 2026, analysts argue that the most capital-intensive phase of fixed-network investment is largely complete.

    Goldman projects French capex-to-sales to fall to 15.6% by 2028—slightly below both company guidance and market consensus—and to decline further to 13.8% by 2030. In Spain, it expects the ratio to reach 11%, also below consensus expectations of 12%.

    Positive Outlook for MasOrange

    The bank is also more optimistic than the market on MasOrange, Orange’s joint venture in Spain. It forecasts underlying EBITDA growth of around 3% annually, excluding synergies, supported by the venture’s strong competitive positioning in a more concentrated market environment.

    Spain’s mobile market is effectively composed of around 3.25 players, compared with an average of roughly four across Europe. Goldman also sees the fixed infrastructure segment potentially moving toward a more consolidated, duopoly-like structure through joint ventures, including arrangements with Vodafone Spain.

    “This has the potential to drive material efficiencies to both the JV and to MasOrange opex in the mid-term,” analysts led by Andrew Lee said in a note.

    Valuation Still Attractive

    The analysts added that even without factoring in any benefits from a potential French consolidation deal, Orange’s valuation “does not look stretched, even post recent share price outperformance on French consolidation news, and excluding the prospective growth and returns benefits of a finalised deal.”

    “We expect beats and raises at 1H26 to act as a catalyst,” they concluded.

  • Gold Edges Higher After Recent Lows as Hormuz Tensions Rise

    Gold Edges Higher After Recent Lows as Hormuz Tensions Rise

    Gold prices posted a modest rebound on Tuesday after dropping to a five-week low in the previous session, though upside remained limited as elevated oil prices continued to cloud the interest rate outlook.

    As of 05:59 ET (09:59 GMT), spot gold rose 0.7% to $4,556.35 per ounce, while gold futures also gained 0.7% to $4,566.35 per ounce. The metal had declined more than 2% a day earlier, marking its weakest level since late March.

    Geopolitical Risks Keep Pressure on Gold

    Despite the slight recovery, gold remained under pressure as tensions between the United States and Iran escalated again. Both sides launched fresh strikes on Monday in the Strait of Hormuz, a critical artery for global energy supplies, putting an already fragile truce at risk.

    The U.S. military said it destroyed six Iranian attack boats during clashes in the waterway. Iran expanded the conflict by striking the United Arab Emirates, where a key oil installation in Fujairah was set ablaze.

    These developments coincide with U.S. President Donald Trump’s “Project Freedom” initiative, which aims to escort ships and restore shipping activity through the strait. While the plan has raised hopes of easing supply bottlenecks, uncertainty persists over whether tensions could escalate further.

    Inflation Concerns Limit Upside

    Renewed fighting has heightened fears of prolonged disruption in the Gulf, pushing oil prices higher. On Tuesday, Brent crude dipped slightly amid signs that U.S. efforts may be weakening Iran’s control over the passage, although prices remain significantly above pre-conflict levels.

    “Higher energy prices mean inflation concerns are only growing, suggesting that rates will remain higher than originally anticipated. This has weighed on non-yielding assets, such as gold,” ING analysts said in a note.

    “For now, the gold market appears less focused on the lingering geopolitical risk and more on rising Treasury yields,” they added.

    Precious Metals Show Mixed Moves

    Even with geopolitical tensions in focus, gold has struggled to regain strong upward momentum, with prices still more than 10% lower since the conflict began in late February. Inflation worries, expectations of sustained higher interest rates, and a stronger U.S. dollar have all reduced demand for bullion. A firmer dollar also makes gold more expensive for buyers outside the United States.

    Among other precious metals, silver climbed 1.3% to $73.7140 per ounce, while platinum advanced 1.8% to $1,980.86 per ounce.

  • Oil Slips but Stays Elevated Above $110 as Hormuz Risks Linger

    Oil Slips but Stays Elevated Above $110 as Hormuz Risks Linger

    Crude prices pulled back modestly on Tuesday after a sharp surge in the previous session, as investors weighed intensifying tensions in the Gulf against U.S. efforts to keep maritime traffic flowing through the Strait of Hormuz.

    As of 05:21 ET (09:21 GMT), Brent crude was down 1.1% at $113.16 per barrel, while U.S. West Texas Intermediate crude declined 1.9% to $104.37 per barrel.

    Rally Fueled by Escalation

    In the prior session, Brent advanced more than 4% and WTI rose roughly 6%, driven by a flare-up in hostilities between the United States and Iran, including strikes on energy assets and vessels transiting the strait.

    There are tentative signs that Iran’s hold over the chokepoint may be easing. Shipping major A.P. Moller-Maersk A/S said a U.S.-flagged car carrier operated by one of its subsidiaries exited the Gulf via the strait with U.S. military assistance.

    Ceasefire Fragility Keeps Markets Cautious

    Even so, sentiment remains fragile after fresh exchanges on Monday, with U.S. and Iranian forces launching new attacks in the Gulf as each side sought to assert control over the waterway.

    The flare-up has shaken an already tenuous ceasefire and amplified concerns about extended supply disruptions. Tensions escalated further after reported Iranian strikes on infrastructure in the United Arab Emirates, including an oil terminal in Fujairah.

    “A re-escalation of tensions in the Persian Gulf pushed oil and gas prices higher as the market once again reprices the duration of supply disruptions from the region,” ING analysts said in a note.

    Diplomacy vs. Military Moves

    Iranian Foreign Minister Abbas Araghchi said on Monday that military action would not resolve the Strait of Hormuz crisis, though he noted that talks in Pakistan were making progress.

    U.S. President Donald Trump has rolled out an initiative dubbed “Project Freedom,” aimed at assisting stranded vessels in the Gulf with military support.

    The effort is intended to steer commercial shipping along safer routes and partially restore flows through the strait, which handles about one-fifth of global crude supply. Oil has climbed markedly since the conflict began in February, heightening concerns about a global inflation shock.

    “Any relief from stranded vessels making their way through the Strait will be temporary, with very few inbound vessels moving into the Persian Gulf,” ING analysts wrote.

  • U.S.-Iran Ceasefire Uncertain; Markets Eye AMD Results: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S.-Iran Ceasefire Uncertain; Markets Eye AMD Results: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Futures for major U.S. indices moved higher on Tuesday, indicating a possible rebound after the previous session was weighed down by renewed tensions around the Strait of Hormuz. Investor sentiment had been rattled by fresh attacks, while uncertainty continues to surround the durability of the fragile ceasefire between the United States and Iran.

    Washington is pressing ahead with efforts to reopen the key shipping route, while attention also turns to corporate earnings, including results from chipmaker Advanced Micro Devices Inc. (NASDAQ:AMD), due after the close. At the same time, Apple Inc. (NASDAQ:AAPL) is reportedly exploring ways to broaden its semiconductor supply base.

    Futures Point to Gains

    At 03:34 ET, Dow futures were up 131 points, or 0.3%, while S&P 500 futures gained 19 points, also 0.3%. Nasdaq 100 futures advanced 112 points, or 0.4%.

    Wall Street had declined in the prior session as hostilities in the Gulf region intensified. Oil prices climbed back above $110 per barrel, as the U.S. stepped up attempts to reopen the largely blocked Strait of Hormuz.

    Energy stocks benefited from the rise in crude, while logistics names came under pressure. FedEx Corporation (NYSE:FDX) and United Parcel Service Inc. (NYSE:UPS) both fell after Amazon.com Inc. (NASDAQ:AMZN) introduced a new offering expected to intensify competition in deliveries.

    Rising Tensions Threaten Truce

    New attacks were reported on Monday, with Tehran responding to U.S. President Donald Trump’s push to reopen maritime traffic through the Strait of Hormuz, a crucial passage for roughly 20% of global oil supplies.

    Several merchant vessels in the Gulf reported fires or explosions. The U.S. said it had escorted two American-flagged ships through the strait while fending off attacks from Iranian drones and small armed boats.

    The unrest also appeared to spread further across the Middle East. In the United Arab Emirates, air defence systems intercepted missiles and drones launched from Iran, while an oil facility in Fujairah was targeted.

    Trump has shared limited details on the plan to reopen the route, known as “Project Freedom,” while Iran’s foreign minister cautioned that the U.S. risks becoming trapped in a “quagmire.”

    Oil Stays Elevated

    For much of the conflict, now stretching beyond two months, tanker traffic through the Strait of Hormuz has been heavily restricted due to the threat of Iranian attacks. This has pushed oil prices higher and heightened concerns over inflation and its potential impact on global growth.

    Still, some signs suggest U.S. efforts to escort vessels could be easing pressure in the region. Shipping group A.P. Moller-Maersk A/S said a U.S.-flagged vehicle carrier operated by one of its subsidiaries had successfully exited the Gulf with military support.

    Brent crude slipped 0.8% to $113.56 per barrel but remains well above levels seen before the conflict.

    AMD Earnings in Focus

    Investors are closely watching results from Advanced Micro Devices, which are due after the close. The update is expected to shed light on the company’s progress in challenging AI chip leader Nvidia.

    Earlier this year, AMD forecast first-quarter revenue of about $9.8 billion, plus or minus $300 million, slightly down from $10.27 billion in the previous quarter. The cautious outlook came despite improved sales in China, highlighting ongoing competitive pressures.

    Elsewhere, Palantir Technologies Inc. (NASDAQ:PLTR) beat quarterly expectations and raised its revenue forecast, though its shares declined in extended trading after finance chief David Glazer indicated costs are set to rise in 2026.

    Overall, the earnings season has offered some reassurance to investors unsettled by geopolitical risks, driven largely by strong performance from AI-related companies. S&P 500 firms are expected to report aggregate profit growth of around 28% year-on-year for the first quarter, well above initial projections.

    Apple Looks to Diversify Chip Supply

    Apple Inc. (NASDAQ:AAPL) has reportedly held early-stage discussions with Intel Corporation (NASDAQ:INTC) and Samsung Electronics Co. Ltd. (USOTC:SSHNZ) about manufacturing processors for its devices, according to Bloomberg.

    The talks reflect Apple’s effort to reduce dependence on long-time partner Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which currently produces its custom chips.

    While discussions remain preliminary and no decisions have been finalised, any change would mark a notable shift in Apple’s supply chain strategy.

  • European Stocks Stabilise as U.S.-Iran Tensions Keep Markets on Edge: DAX, CAC, FTSE100

    European Stocks Stabilise as U.S.-Iran Tensions Keep Markets on Edge: DAX, CAC, FTSE100

    European equities steadied on Tuesday after early losses, as concerns grew that a fragile ceasefire between the United States and Iran could be breaking down into renewed conflict.

    By 08:37 GMT, the pan-European Stoxx Europe 600 was up 0.6%, while Germany’s DAX gained 0.8% and France’s CAC 40 rose 0.7%, all recovering from earlier declines. The UK’s FTSE 100 lagged behind, falling 0.8%.

    Escalation Raises Concerns Over Global Oil Supply

    Fresh hostilities erupted on Monday, with both sides launching attacks after Tehran responded to efforts by U.S. President Donald Trump to reopen shipping lanes through the Strait of Hormuz, a key route for around 20% of global oil flows.

    Reports emerged of fires and explosions affecting merchant vessels in the Gulf. The U.S. said it had successfully escorted two American-flagged ships through the strait, despite facing attacks from Iranian drones and small armed boats.

    The situation also escalated across the wider Middle East. In the United Arab Emirates, air defence systems intercepted missiles and drones launched from Iran, while an oil terminal in Fujairah was targeted.

    Oil Prices Remain Elevated

    For much of the conflict, now spanning more than two months, tanker traffic through the Strait of Hormuz has been severely disrupted due to the threat of Iranian strikes. This has driven oil prices sharply higher, raising concerns about inflation and its potential impact on global economic growth.

    Brent crude futures slipped 0.8% to $113.56 per barrel but remain significantly above pre-conflict levels.

    Trump, facing mounting domestic pressure over the situation, has provided limited details about efforts to reopen the shipping route under the plan known as “Project Freedom,” while Iran’s foreign minister warned against the U.S. becoming entangled in a “quagmire.”

    Stock Movers

    Among individual stocks, HSBC Holdings plc (LSE:HSBA) fell more than 5% after reporting first-quarter profit below expectations, largely due to a $400 million charge linked to a fraud case in the UK.

    In contrast, Anheuser-Busch InBev SA/NV (EU:ABI) gained ground after posting quarterly earnings that exceeded forecasts.

  • FTSE 100 Opens Lower as Middle East Tensions Drive Oil Higher

    FTSE 100 Opens Lower as Middle East Tensions Drive Oil Higher

    The FTSE 100 fell 1.05% at the open on Tuesday, as escalating tensions in the Middle East weighed on investor sentiment.

    At 07:10 GMT, sterling was broadly unchanged against the dollar at 1.3539, while European markets showed mixed performance. Germany’s DAX edged up 0.05%, and France’s CAC 40 gained 0.13%.

    Oil Prices Surge Amid Escalating Conflict

    Brent crude climbed sharply, reaching $114.44 on Monday before easing to around $113 in early Tuesday trading. The move reflects heightened fears of a broader conflict following renewed instability around the Strait of Hormuz.

    Tensions escalated after missile and drone strikes targeted the UAE, with Abu Dhabi reporting it intercepted 15 missiles and four drones. A fire was later reported at an oil facility in Fujairah port. Iran denied involvement, attributing the incident to U.S. actions, while the UAE condemned the attack and signalled it could respond.

    Naval Activity Intensifies in Strait of Hormuz

    The situation at sea also deteriorated, with U.S. naval forces escorting vessels through the Strait of Hormuz under reported attack conditions. Helicopters and additional military assets were deployed as part of a broader effort to secure commercial shipping routes.

    U.S. President Donald Trump indicated a firm stance, highlighting the availability of military resources and suggesting further escalation if necessary. He also called on South Korea to support the mission after an attack on a Seoul-operated cargo vessel near the UAE coast.

    Iranian officials issued strong warnings, with parliamentary leadership suggesting a shift in the strategic balance around the strait, while the country’s foreign minister emphasised that the crisis ultimately requires a political resolution.

    UK Market Round-Up

    Vodafone Group Plc (LSE:VOD) agreed to acquire CK Hutchison’s 49% stake in its VodafoneThree joint venture for £4.3 billion, taking full control of the UK’s largest mobile operator, serving more than 28 million customers.

    HSBC Holdings plc (LSE:HSBA) reported first-quarter pre-tax profit of $9.4 billion, slightly below expectations after a $400 million hit linked to a UK fraud case pushed expected credit losses up to $1.3 billion.

  • Intertek Shares Surge as EQT Raises Takeover Offer to £8.93bn

    Intertek Shares Surge as EQT Raises Takeover Offer to £8.93bn

    EQT AB (NYSE:EQT) has submitted an improved third takeover proposal for Intertek Group plc (LSE:ITRK), increasing its bid to £58 per share and valuing the business at approximately £8.93 billion ($12.08 billion).

    Market Reacts to Improved Bid

    Intertek shares rose nearly 7% in London trading following the announcement. The revised offer represents a 54% premium to the company’s closing price of 3,770 pence on April 9, the day before EQT’s initial approach became public.

    The new proposal surpasses EQT’s earlier £54-per-share bid, which was rejected last month. EQT stated that its latest offer delivers “certain and accelerated cash value” for shareholders and presents a more attractive outcome than Intertek continuing independently.

    Deadline Looms Under Takeover Rules

    Under UK takeover regulations, EQT must meet a “put up or shut up” deadline of 14 May, requiring it to either confirm a firm intention to proceed with an offer or withdraw its interest.

    Strategic Review Adds Context

    The approach comes as Intertek continues a strategic review announced last month, which includes evaluating a potential separation of its Energy & Infrastructure division. Options under consideration include a sale or demerger, which could result in two independent global businesses.

  • Auction Technology Group Shares Jump on CEO Appointment

    Auction Technology Group Shares Jump on CEO Appointment

    Auction Technology Group PLC (LSE:ATG) saw its shares rise around 7% on Tuesday after announcing the appointment of Duncan Painter as Chief Executive Officer, effective immediately.

    Leadership Transition Underway

    The company confirmed that Painter has taken up the role without delay, marking a swift leadership transition.

    John-Paul Savant, the outgoing CEO, will remain with the business until 20 May to support the handover process and ensure continuity.

  • HSBC Q1 Profit Edges Lower as Costs and Credit Losses Rise

    HSBC Q1 Profit Edges Lower as Costs and Credit Losses Rise

    HSBC Holdings plc (LSE:HSBA) reported a slight decline in first-quarter profit, as higher credit charges and operating costs offset solid revenue growth driven by its wealth division and net interest income.

    Europe’s largest lender posted profit before tax of $9.4 billion for the three months to March 31, down 1% from the same period last year. The bank attributed the decline to increased expected credit losses, higher expenses, and the impact of one-off items.

    Shares Fall Despite Revenue Growth

    HSBC shares dropped more than 5% in London trading following the results.

    Revenue increased 6% to $18.6 billion, supported by strong fee income from wealth management and improved net interest income. Net interest income rose 8% to $8.9 billion, benefiting from deposit growth and reinvestment at higher yields.

    Credit Losses and Costs Climb

    Expected credit losses rose by $400 million to $1.3 billion, partly linked to a fraud-related exposure in the UK and a more uncertain economic backdrop tied to conflict in the Middle East.

    Operating expenses increased 8% to $8.7 billion, reflecting inflationary pressures, higher investment in technology, and performance-related compensation.

    HSBC reported an annualised return on tangible equity of 17.3%, or 18.7% excluding notable items.

    Outlook: Strong Returns but Rising Risks

    Looking ahead, the bank reaffirmed its target of achieving a return on tangible equity of at least 17% over the 2026–2028 period. It also slightly raised its 2026 net interest income guidance to around $46 billion, while cautioning that macroeconomic conditions remain uncertain.

    “Q1 26 results contained a fair amount of noise across revenue and cost lines, but the underlying picture is one of a mildly stronger banking NII print and ongoing strength in Wealth. On this point, ’26E banking NII guidance has been raised to $46bn (in-line with street),” Jefferies analysts commented.

    The bank now expects credit losses to reach around 45 basis points of loans this year, higher than previous guidance, highlighting continued exposure to global economic risks.