Category: Market News

The U.S. dollar edged slightly higher on Tuesday following progress toward ending the longest government shutdown in U.S. history, while the British pound slipped after soft wage growth data reinforced expectations for a Bank of England rate cut next month.

At 04:10 ET (09:10 GMT), the Dollar Index, which measures the greenback against six major currencies, rose 0.1% to 99.580.

Dollar finds modest support amid government funding progress
The dollar posted small gains after the U.S. Senate passed a bill late Tuesday to restore government funding and bring the prolonged shutdown to a close. The legislation now moves to the House of Representatives, where Speaker Mike Johnson said he hopes to pass it as early as Wednesday before sending it to President Donald Trump for approval.

“The government reopening trade has taken the shape of textbook risk-on moves in FX. The most equity-sensitive currencies are following gains across stock markets (AUD and NZD, leading) and the yen is under pressure,” said analysis at ING, in a note.

“On a broad level, the impact on the dollar has so far been neutral, which is in line with the reaction to the beginning of the shutdown in October.”

A resolution to the shutdown would also allow the U.S. government to resume publishing key economic reports, providing fresh insights into the state of the world’s largest economy. Last week, the University of Michigan’s consumer sentiment index fell to its lowest level in nearly three and a half years, reinforcing expectations for another Federal Reserve rate cut in December.

Sterling falls as U.K. wage growth eases

In Europe, GBP/USD dropped 0.4% to 1.3124 after data showed the U.K. labor market cooled more than expected in the third quarter. Unemployment rose to 5.0% from 4.8%, the highest since February 2021, while wage growth excluding bonuses slowed to 4.6% in the three months to September from 4.7% previously.

“These aren’t screamingly dovish figures, but they do endorse to some extent the ongoing dovish repricing of Bank of England rate expectations,” said ING. “Both inflation and jobs data are starting to point down, and we think the Autumn Budget’s tax hikes will provide the final argument for a cut in December.”

The euro was little changed, with EUR/USD steady at 1.1556, ahead of the ZEW economic sentiment release later in the day.

“We continue to look at 1.150 as a floor and see room for stabilisation close to 1.160 based on our short-term valuation indicators, but the probability of a major revamp in depressed EUR/USD volatility remains low this week,” said ING.

Yen at nine-month low amid risk-on sentiment

In Asia, USD/JPY traded 0.1% higher at 154.30, with the yen hovering near a nine-month low as risk appetite improved on optimism over the U.S. funding deal. The currency also softened after Japan’s new Prime Minister Sanae Takaichi urged policymakers to proceed cautiously with future interest rate increases.

Elsewhere, USD/CNY edged up to 7.1207, with the yuan remaining under pressure amid persistent worries about China’s slowing economy. Slightly better-than-expected October inflation data did little to bolster sentiment.

The Australian dollar also weakened, with AUD/USD slipping 0.2% to 0.6524, giving back some of its recent gains following the U.S. Senate’s breakthrough vote on Sunday.

European equities advanced on Tuesday, extending the week’s upbeat momentum as investors grew confident that the longest U.S. government shutdown on record was nearing its end.

By 08:10 GMT, Germany’s DAX rose 0.3%, France’s CAC 40 gained 0.6%, and the UK’s FTSE 100 climbed 1%. The positive session followed Monday’s broad rally, when all three indices posted gains of more than 1% on renewed optimism about a U.S. funding deal.

U.S. Senate Approves Funding Bill

Late Monday, the U.S. Senate passed a bipartisan bill to fund the federal government through January, ending the historic shutdown. The bill passed 60–40 with support from nearly all Republicans and several Democrats. It will now move to the House of Representatives, where Speaker Mike Johnson indicated he aims to pass it by Wednesday before sending it to President Donald Trump for approval.

The anticipated reopening of the U.S. government has boosted investor sentiment globally. The shutdown had caused nationwide disruptions, particularly in sectors like air travel, and had begun to weigh on confidence in the U.S. economy — the key engine of global growth.

U.K. Labour Data Supports Rate-Cut Expectations

In the UK, new labour market data released Tuesday showed that unemployment rose while wage growth softened, adding weight to expectations of a potential Bank of England interest rate cut next month.

According to the Office for National Statistics (ONS), the unemployment rate increased to 5.0% in the three months to September, up from 4.8% in the previous period. Wage growth excluding bonuses eased slightly to 4.6% from 4.7%.

The central bank, which held rates steady at 4% last week, has signaled growing openness to policy easing if domestic inflation pressures continue to subside.

Corporate Highlights: Vodafone, Munich Re, SoftBank

In corporate news, Vodafone Group (LSE:VOD) raised its full-year outlook after reporting higher first-half revenue and earnings, driven by strong performance in the UK, Türkiye, and Africa, alongside the completion of its merger with Three UK.

German reinsurer Munich Re (TG:A289EQ) reported a third-quarter profit of €2 billion, boosted by lower major-loss costs in its property-casualty reinsurance segment. The result brought its nine-month profit to €5.2 billion, underscoring strong profitability in a stable reinsurance market.

Meanwhile, SoftBank (USOTC:SFTBF) delivered a stronger-than-expected fiscal second-quarter profit, benefiting from sizable gains tied to its artificial intelligence investments. The results highlight the Japanese tech giant’s ongoing recovery following prior years of volatility in its Vision Fund portfolio.

Oil Prices Edge Lower

Crude prices slipped on Tuesday, reversing modest gains from the prior session amid renewed concerns about a potential supply glut.

Brent crude futures fell 0.4% to $63.83 a barrel, while U.S. West Texas Intermediate (WTI) declined 0.5% to $59.86. Both benchmarks had advanced slightly on Monday as optimism grew over the U.S. shutdown resolution, though traders remain cautious about rising output.

Earlier this month, OPEC+ agreed to increase December production targets by 137,000 barrels per day, maintaining the pace set for October and November, while planning a pause in output hikes during the first quarter of next year.

Overall, optimism about the U.S. funding deal and stabilizing European data helped lift market sentiment, though inflation pressures and oil market uncertainty continue to temper risk appetite.

Vodafone Group Plc (LSE:VOD) raised its full-year guidance on Tuesday following a stronger-than-expected first-half performance for fiscal 2026, driven by growth in the UK, Türkiye, and Africa, along with the successful completion of its merger with Three UK.

Total revenue rose 7.3% year-on-year to €19.6 billion for the six months ended September 30, 2025, compared with €18.3 billion a year earlier. Service revenue increased 8.1% to €16.3 billion on a reported basis (up 5.7% organically), while adjusted EBITDAaL climbed 5.9% to €5.7 billion. Operating profit fell 9.2% to €2.2 billion, reflecting higher depreciation and amortization following the consolidation of Three UK.

Chief Executive Margherita Della Valle said: “Based on our stronger performance, we are now expecting to deliver at the upper end of our guidance range for both profit and cash flow, and as our anticipated multi-year growth trajectory is now under way.”

Vodafone now expects adjusted EBITDAaL between €13.3 billion and €13.6 billion and adjusted free cash flow between €2.4 billion and €2.6 billion for the full year. The company also introduced a new dividend policy, planning to raise its FY26 dividend per share by 2.5%, with an interim dividend of 2.25 eurocents (ex-dividend November 20, payable February 7, 2026).

Regional performance was led by robust growth in multiple markets:

• Germany, accounting for one-third of group service revenue, returned to growth in Q2 with a 0.5% rise in service revenue.
• UK service revenue increased 1.2% organically, while total revenue surged 27.9% to €4.4 billion following the merger with Three UK.
• Africa delivered 13.5% organic service revenue growth in Q2, supported by strong data and mobile financial service demand.
• Türkiye posted standout growth, with service revenue up 55.6% organically and total revenue up 15.1% to €1.6 billion.

By segment, adjusted EBITDAaL rose 11% to €1.3 billion in Africa (margin 34.1%), 58% in Türkiye to €485 million, and 25% in the UK to €884 million. In contrast, Germany’s EBITDAaL declined 4.3% to €2.2 billion due to lower TV revenue and prior-year investments.

Cash flow from operating activities fell 9.8% to €5.1 billion, while adjusted free cash flow showed an outflow of €583 million, improving from the prior year. Net debt increased to €25.9 billion from €22.4 billion at March 31, reflecting merger-related costs, €1 billion in share buybacks, and €0.6 billion in dividends.

Since May 2023, Vodafone has executed €3 billion in share buybacks and launched a €500 million tranche concurrent with its results. Strategic progress also included the acquisition of Telekom Romania Mobile Communications S.A. for €30 million and an agreement to acquire German cloud and cybersecurity firm Skaylink GmbH for €175 million.

Commenting on the company’s performance, Della Valle added: “Following the progress of our transformation, Vodafone has built broad-based momentum. Whilst we have more to do, we delivered good strategic progress in the half year.”

More about Vodafone Group Plc

Vodafone Group Plc is a global telecommunications company headquartered in the UK, operating mobile and fixed networks across Europe and Africa. The company provides mobile, broadband, and digital financial services to over 300 million customers worldwide. Listed on the London Stock Exchange and part of the FTSE 100, Vodafone continues to focus on operational simplification, 5G expansion, and digital transformation to drive long-term shareholder value.

Ashmore Group plc (LSE:ASHM) shares fell around 3% on Monday after Deutsche Bank downgraded the emerging markets asset manager to Sell from Hold, citing concerns over future net inflows and elevated valuation levels.

Deutsche Bank analysts expressed doubts about consensus expectations for a sustained recovery in net inflows, given the current market environment and outlook for emerging markets. The bank now projects net outflows of $0.5 billion for fiscal year 2026 — equivalent to 1% of opening assets under management (AuM) — compared with consensus forecasts of $0.8 billion in net inflows (2%). The divergence widens for fiscal 2027, where Deutsche Bank anticipates continued outflows of $0.5 billion, while consensus estimates assume $3.0 billion in inflows (6%).

Valuation concerns were another key factor behind the downgrade. Analysts noted that Ashmore trades at a price-to-management fee earnings ratio of 21x for FY2027 based on Deutsche Bank’s estimates (or 20x on a headline P/E basis), versus sector peers trading around 10–12x. Even under the most optimistic consensus scenario — assuming $4.8 billion in net inflows (9% of opening AuM) — the stock would still trade at 18x price-to-management fee earnings or 16x headline P/E, levels viewed as unjustifiably high relative to the broader asset management sector.

Deutsche Bank concluded that the shares currently trade at a “material and unjustified premium” to traditional asset management peers, reflecting limited upside potential in the near term.

More about Ashmore Group plc

Ashmore Group plc is a London-based emerging markets-focused investment manager, offering strategies across fixed income, equities, alternatives, and multi-asset classes. Listed on the London Stock Exchange and a member of the FTSE 250, Ashmore manages global portfolios emphasizing emerging market debt and equities, serving institutional and retail clients worldwide.

Informa plc (LSE:INF) shares gained about 2% on Tuesday after the company reaffirmed its 2025 guidance, following a robust trading update covering the first ten months of the year. The British events and academic publishing group reported 6.6% like-for-like (LFL) revenue growth, or 7.6% when including its stake in TechTarget, reflecting strong operational momentum across all divisions.

The company’s B2B Events division, which contributes roughly two-thirds of total revenue, saw growth accelerate to 8.7%, exceeding market expectations. Meanwhile, its Academic Publishing arm, Taylor & Francis, delivered a solid 3% increase over the same period. TechTarget — in which Informa holds a 57% stake — returned to positive growth in the third quarter after a weak first half and reiterated its guidance for flat full-year revenues. Analysts noted that this suggests a stronger fourth quarter, following a 2.7% decline in the first ten months.

Informa maintained its full-year guidance for underlying revenue growth above 6% and adjusted EPS expansion of at least 10%, alongside a 2025 revenue target of around £4 billion. Analysts at Kepler Cheuvreux, led by Conor O’Shea, described the results as “a very reassuring trading update” that could prompt upgrades to 2025 forecasts and further share price appreciation. O’Shea also highlighted that, after a strong year-to-date share performance driven by robust organic growth and resilience against AI-related disruption in its core B2B business, valuation multiples of about 17x 2025 earnings appear fair but fully priced.

More about Informa plc

Informa plc is a UK-based international events, publishing, and business intelligence group, operating through divisions including Informa Markets, Informa Connect, and Taylor & Francis. The company delivers data-driven insights, specialist content, and large-scale B2B events across global industries. Listed on the London Stock Exchange and a constituent of the FTSE 100, Informa continues to capitalize on the recovery of the global events market while strengthening its position in academic and digital information services.

Blue Star Capital (LSE:BLU) announced that its portfolio company SatoshiPay has achieved a major milestone with its Vortex fiat-to-crypto infrastructure platform, which has now onboarded its first major API partners and surpassed $2 million in transaction volumes. The platform’s growth marks a significant step in expanding SatoshiPay’s market presence by improving liquidity access and enhancing settlement efficiency across digital asset ecosystems.

The expansion is particularly impactful in Latin America, where SatoshiPay has partnered with IaCrypto, a leading digital asset payment processor based in Brazil. This collaboration aims to streamline fiat-to-crypto conversions and strengthen cross-border payment solutions in one of the world’s fastest-growing crypto markets.

More about Blue Star Capital plc

Blue Star Capital plc is a UK-based investment company specializing in emerging technology sectors, including blockchain, esports, and digital payments. Its portfolio includes SatoshiPay Ltd, known for pioneering blockchain-based payment infrastructure; Dynasty Media & Gaming, a full-stack gaming ecosystem; and Paidia, an inclusive gaming platform designed to empower female gamers. Through these investments, Blue Star seeks to capitalize on transformative digital trends shaping the future of finance and entertainment.

Team Internet Group plc (LSE:TIG) has begun a strategic review aimed at enhancing shareholder value through potential divestments or strategic partnerships across its portfolio of market-leading digital platforms. The initiative comes as the company adapts to structural shifts in the digital advertising landscape, including policy changes introduced by Google. In response, Team Internet is accelerating the growth of its direct-to-advertiser and commerce media operations to strengthen its competitive position.

The review seeks to highlight the distinct value of each business segment, particularly the Domain, Identity & Software (DIS) division, which continues to deliver strong financial results and could command a valuation exceeding the group’s current market capitalization. Management expects a return to double-digit earnings growth from 2026, driven by sustained momentum in DIS, a recovery in the Comparison segment, and the scaling of RSOC and commerce media initiatives within the Search division.

Despite this strategic progress, Team Internet faces ongoing financial headwinds, including declining revenues and elevated leverage. Technical indicators point to bearish momentum, with the stock trading below key moving averages and in oversold territory. Profitability remains under pressure, and while the company offers a moderate dividend yield, valuation challenges persist.

More about Team Internet Group

Team Internet Group plc is a global internet solutions provider specializing in domain name management, identity services, and digital advertising technologies. The company operates through three key segments: Domain, Identity & Software (DIS), Comparison, and Search. Team Internet enables businesses to connect with consumers and advertisers through privacy-focused, AI-driven digital ecosystems, helping brands and publishers optimize online engagement and monetization across multiple channels.

DCC plc (LSE:DCC) has reported continued strategic progress following the completion of the sale of its Healthcare and Info Tech divisions. The company returned £100 million to shareholders and announced plans for a £600 million tender offer, underscoring its commitment to capital efficiency and shareholder returns. While continuing adjusted operating profit declined by 5.4%, reflecting strong prior-year comparatives and milder weather conditions, trading improved during the second quarter, positioning the group for solid profit growth in the full year.

The company’s ongoing focus on expanding its liquid gas operations across Europe and streamlining its portfolio is expected to reinforce its market position and create new growth avenues. These efforts align with DCC’s broader strategy to strengthen its energy platform, simplify operations, and build resilience in evolving market conditions.

DCC’s outlook remains supported by its stable financial performance and disciplined capital allocation, though slower revenue and profit momentum present challenges. Technical indicators point to a positive short-term trend, while a moderate valuation and attractive dividend yield enhance its appeal to income-focused investors.

More about DCC plc

DCC plc is a Dublin-headquartered international energy solutions company listed on the London Stock Exchange and a constituent of the FTSE 100. The group specializes in the sales, marketing, and distribution of cleaner and more efficient energy solutions to commercial, industrial, domestic, and transport customers. For the financial year ended March 2025, DCC reported revenues of £16.1 billion and an adjusted operating profit of £609.7 million, reflecting its scale and strong presence across multiple European energy markets.

Hilton Food Group PLC (LSE:HFG) reported a resilient performance for the third quarter of 2025, navigating a challenging inflationary environment that continues to weigh on consumer demand and operating costs. The company achieved solid volume growth across its red meat and convenience categories, demonstrating operational strength and market adaptability. However, the UK seafood division remained under pressure from elevated raw material costs and cautious consumer spending, while the Foppen smoked salmon business in Europe faced temporary disruptions stemming from U.S. regulatory restrictions.

Hilton Food expects net debt to rise modestly by the end of the year as it continues to invest strategically in growth initiatives, including its new Canadian production facilities and Saudi Arabian joint venture, both progressing on schedule. The board reaffirmed its full-year pre-tax profit guidance in the range of £72 million to £75 million, reflecting stable profitability despite global cost headwinds. A comprehensive business review, aimed at optimizing operations and enhancing efficiency, is nearing completion with outcomes expected in January 2026.

While the company’s strong operational base and consistent earnings performance provide a solid foundation, bearish technical trends and persistent supply chain and inflation challenges continue to exert short-term pressure. The valuation remains fair, supported by steady fundamentals but tempered by broader market uncertainties.

More about Hilton Food Group PLC

Hilton Food Group PLC is a global multi-category food producer supplying high-quality meat, seafood, vegan, and vegetarian products to major retailers and foodservice partners. Operating from 21 advanced production facilities across Europe, Asia Pacific, and North America, the company serves more than 19 markets and employs over 7,300 people. Hilton Food focuses on sustainability, long-term customer partnerships, and innovation, driving value creation through responsible growth and operational excellence.

Pulsar Helium Inc. (LSE:PLSR) has announced the successful completion of drilling operations at the Jetstream #3 appraisal well within its Topaz Project in Minnesota, achieving a total depth of 3,507 feet. The well recorded strong pressure readings, suggesting a highly promising reservoir. Following this milestone, drilling has commenced on Jetstream #4, targeting a depth of approximately 3,000 feet.

The company’s ongoing drilling campaign, which includes up to 10 appraisal wells, is designed to map the geometry and productivity of the helium-bearing reservoir. The results will inform a Preliminary Economic Assessment (PEA) expected in the first half of 2026. These operational advances strengthen Pulsar’s position as a key emerging player in the North American helium market and underscore its potential to deliver a new, non-hydrocarbon source of helium supply.

More about Pulsar Helium Inc.

Pulsar Helium Inc. is a multi-listed helium exploration and development company with assets in the United States and Greenland. Its flagship Topaz Project in Minnesota represents one of North America’s most promising primary helium discoveries, while the Tunu Project in Greenland expands its exploration footprint. Listed on the AIM (London Stock Exchange), TSX Venture Exchange, and OTCQB, Pulsar is pioneering sustainable helium production independent of hydrocarbon activity, supporting the critical supply chain for medical, space, and high-tech industries.