ADVFN UK Market News

Category: Market News

  • Oil Remains Above $100 as US Diesel Price Reaches Record

    Oil Remains Above $100 as US Diesel Price Reaches Record

    Oil prices moved lower on Friday but remained on track to close the week above $100 per barrel for the first time since mid-May, while the US national average diesel price moved above $6 per gallon for the first time.

    Brent crude futures declined $1.65, or 1.53%, to $105.98 per barrel by 07:58 GMT, while US West Texas Intermediate fell $1.36, or 1.33%, to $101.12.

    The benchmarks reversed earlier gains after the Financial Times reported that foreign ministers in the Middle East were seeking a temporary agreement with Iran to manage shipping through the Strait of Hormuz.

    Both Brent and WTI rose more than 6% on Thursday and remained more than 10% higher for the week.

    “Some headlines of possible new talks in the Middle East are weighing moderately on oil prices today,” UBS energy analyst Giovanni Staunovo said, adding: “I keep seeing near-term risks to the upside for oil prices, but we should expect ongoing high price volatility too”.

    Hormuz Ship Transits Decline to Seven

    Iran said it attacked 10 ships near the Strait of Hormuz on Wednesday following US strikes on five Iranian oil tankers. Iran’s Islamic Revolutionary Guard Corps said it would escalate its response if further attacks occurred.

    Preliminary tracking data showed seven vessels transited the Strait of Hormuz on Thursday, down from 11 a day earlier and below the 10-day average of 15.

    Before the Iran war began in late February, the Strait of Hormuz handled approximately one-fifth of global daily oil and liquefied natural gas supplies.

    Iran-aligned Houthi forces took control of Yemen’s port of Mocha on Thursday, adding another potential disruption to Red Sea shipping. The source also cited attacks from Yemen on Saudi energy facilities.

    The International Energy Agency said global oil supply and demand will decline by more than previously expected this year, with the continuation of the Iran war delaying a return to normal Middle East flows into 2027.

    Supply Disruptions Push US Diesel Above $6

    Supply disruptions associated with the Iran war, together with Ukrainian attacks on Russian refineries, contributed to the US national average diesel price moving above $6 per gallon for the first time on Thursday, according to GasBuddy.

    “Refined products, particularly diesel, are feeling a one-two punch right now,” KCM Trade chief market analyst Tim Waterer said.

    “As long as both the Gulf shipping constraints and Russian refining outages remain in play, diesel and other refined products are likely to show a higher upside tendency than the broader crude market,” he added.

    US President Donald Trump said the US may strike Iran’s Pickaxe Mountain near the damaged Natanz uranium enrichment facility. Trump also said he thought the war would end immediately after the November midterm elections.

    China’s state planner separately announced that retail price caps for petrol and diesel will rise from September 12 by 260 yuan ($38.76) and 250 yuan per metric ton, respectively.

  • US Futures Gain Ahead of Inflation Report as Oracle and Adobe Release Earnings: Dow Jones, S&P, Nasdaq, Wall Street

    US Futures Gain Ahead of Inflation Report as Oracle and Adobe Release Earnings: Dow Jones, S&P, Nasdaq, Wall Street

    US equity futures traded higher on Friday as markets awaited August consumer inflation figures that could influence expectations ahead of next week’s Federal Reserve policy meeting.

    At 02:57 ET (06:57 GMT), Dow futures rose 232 points, or 0.5%, while S&P 500 futures increased 33 points, or 0.4%. Nasdaq 100 futures were up 120 points, also representing a 0.4% gain.

    The moves followed a fourth consecutive decline for the S&P 500 on Thursday. Deutsche Bank analysts pointed to pressure in government bond markets, describing the session as “another terrible day for bonds.”

    The US 10-year Treasury yield continued moving towards 5% as investors considered whether higher oil prices could contribute to inflation and affect the interest-rate outlook. The European Central Bank raised borrowing costs on Thursday, while money markets were pricing in further increases over the next year.

    “The combination of higher energy prices and a hawkish ECB put fresh pressure on sovereign bonds across the board,” Deutsche Bank analysts said.

    August US Inflation Report Awaited

    Economists expect headline US consumer prices to have increased 0.4% in August from July, accelerating from the previous monthly rise of 0.1%. Annual inflation is forecast to remain at 3.4%.

    Core CPI, which excludes food and energy, is expected to rise 0.2% month on month and 2.4% from a year earlier. The corresponding July figures were 0.2% and 2.5%.

    The report comes ahead of the Federal Reserve’s two-day meeting next week. Thursday’s data also showed faster increases in several price components used in the personal consumption expenditures price index, another measure of inflation monitored by the Fed.

    Brent Trades Above $100 Amid Middle East Developments

    Brent crude futures declined on Friday but remained above $100 per barrel as investors continued to monitor shipping conditions in the Middle East.

    “Once again, it is geopolitical fears driving everything,” Deutsche Bank analysts said.

    Iran-backed Houthi forces in Yemen captured a port city on Thursday, adding to concerns about shipping around the Bab el-Mandeb Strait between the Red Sea and Gulf of Aden.

    Shipping data cited by Reuters showed seven vessel transits through the Strait of Hormuz on Thursday, compared with a 10-day moving average of 15.

    Brent subsequently moved lower after the Financial Times reported that Gulf foreign ministers and Iranian authorities were discussing a temporary arrangement concerning shipping through the Strait of Hormuz.

    Oracle Reports More Than $30 Billion in New AI Cloud Contracts

    Oracle (NYSE:ORCL) reported quarterly earnings and revenue above analyst forecasts and raised its full-year profit guidance.

    The company, which operates cloud infrastructure alongside its database software and enterprise applications businesses, reported further contracting activity related to artificial intelligence.

    “Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply,” Oracle said in a statement.

    Oracle recorded more than $30 billion of additional AI cloud contracts during the quarter. Remaining performance obligations increased to $664 billion.

    The company said most of the revenue covered by the new contracts would not require substantial semiconductor expenditure and maintained its annual spending target of $90 billion to $95 billion.

    Oracle shares rose in extended-hours trading after the results.

    Adobe Q3 Revenue Reaches $6.76 Billion

    Adobe (NASDAQ:ADBE) reported third-quarter adjusted earnings of $6.13 per share, compared with an analyst consensus of $6.07.

    Quarterly revenue was $6.76 billion, above the $6.69 billion consensus estimate.

    Adobe forecast fourth-quarter revenue of $6.80 billion to $6.85 billion. The midpoint of $6.825 billion compares with an analyst consensus of $6.85 billion.

    The company expects fourth-quarter adjusted earnings of $6.30 to $6.35 per share. Adobe shares declined in extended-hours trading following the results.

  • Funding Circle: Strong First-Half Growth Highlights the Power of Profitable Expansion

    Funding Circle: Strong First-Half Growth Highlights the Power of Profitable Expansion

    For small businesses, access to fast and flexible finance can be critical to managing cash flow, investing for growth and navigating changing economic conditions. For lenders, however, growth only tells part of the story. The real measure of progress is whether that growth can be delivered profitably.

    For Funding Circle, the first half of 2026 provided plenty of evidence that its strategy is gaining momentum.

    Speaking on ADVFN’s Watch List, Tony Nicol, CFO of Funding Circle (LSE:FCH), outlined a period of strong financial and operational progress, with the company delivering significant increases in credit extended, revenue and profitability while continuing to scale its newer financial products.

    Revenue up 50% as profitability accelerates

    Funding Circle extended £1.7 billion of credit during the first half, representing growth of 52% year-on-year. Revenue increased by 50% to £138 million, while profit before tax rose four-fold to £24 million.

    A key contributor was the company’s established term-loans business, where originations increased 43% to just over £1 billion.

    Importantly, this growth is translating into stronger profitability. Term loans generated £29 million of profit during the period, compared with £13 million a year earlier, while margins increased to 26%.

    For investors, this combination of higher volumes, rising revenue and improving margins is particularly encouraging because it demonstrates the operating leverage within the Funding Circle model.

    As Nicol explained, the performance has been supported by strong customer demand, pent-up demand entering the year and the contribution from newer products launched during the previous year.

    The strength of the first-half performance has also given management greater confidence in the outlook. Funding Circle has upgraded its full-year guidance, moving from revenue of more than £235 million and profit of more than £35 million to revenue of more than £255 million and profit of more than £40 million.

    That represents a meaningful improvement in expectations and provides a clear indication of the momentum currently running through the business.

    New products broaden the opportunity

    While the performance of the core term-loans business remains important, perhaps one of the more interesting aspects of Funding Circle’s development is the progress being made by its newer products, including FlexiPay and its credit card offering.

    Transactions across these products increased 71% to £640 million, while revenue rose an impressive 83% to £30 million.

    The numbers suggest these products are increasingly becoming an important part of the wider Funding Circle proposition, helping the company address more of the day-to-day working-capital and cash-flow requirements of small businesses.

    That gives Funding Circle the opportunity to move beyond a traditional lending relationship and become a more regular financial partner for its customers.

    Recurring customer usage provides an attractive model

    One of the most compelling elements of the FlexiPay opportunity is the recurring nature of customer usage.

    Nicol highlighted that more than 90% of the revenue generated in the first half came from customers who had been onboarded in previous years.

    That is an important characteristic of the model. Rather than continually relying on new customer acquisition to drive revenue, Funding Circle can build value from relationships that have already been established.

    The company describes this as a “J-curve” economics model, where marketing and credit costs are incurred upfront, while the benefits of repeat customer usage develop over time.

    Assets under management for the newer products reached £300 million, up from £206 million at the beginning of the year.

    Perhaps even more importantly, Nicol said the business would already be profitable at around £10-12 million if it stopped growing today, while the earlier customer cohorts are already cash generative.

    That provides an encouraging foundation from which to continue investing in future growth.

    From recovery to profitable growth

    Taken together, the first-half numbers point towards a Funding Circle business that has moved well beyond simply pursuing top-line expansion.

    The company is growing credit volumes, increasing revenue, expanding margins and delivering substantially higher profitability, while simultaneously developing newer products that could broaden its relationship with small-business customers.

    The progress of FlexiPay and the credit card offering could prove particularly significant over the longer term. Their recurring usage characteristics create the potential for customer relationships to become increasingly valuable as they mature.

    With full-year revenue guidance now above £255 million and profit guidance above £40 million, Funding Circle enters the second half of the year with increased confidence and a growing platform from which to build.

    For small businesses looking for flexible access to finance, the opportunity is clear. For Funding Circle, the first-half performance suggests the company is increasingly demonstrating that growth and profitability can go hand in hand.

    For more information visit –   https://corporate.fundingcircle.com

  • European Natural Gas Prices Ease but Head for Fifth Weekly Gain

    European Natural Gas Prices Ease but Head for Fifth Weekly Gain

    European and British wholesale natural gas prices declined on Friday following several sessions of gains, while both benchmarks remained on course for a fifth consecutive weekly increase amid concerns over Middle East supply routes.

    The benchmark Dutch front-month gas contract fell 2.5% to around €77.60 per megawatt-hour. The decline followed five consecutive sessions of gains, with the contract reaching €79.64 per MWh on Thursday, its highest level since 2023.

    The Dutch benchmark was up 12.1% for the week.

    In Britain, the equivalent NBP wholesale gas contract declined 1.5% to 195.00 pence per therm after previously reaching around 198 pence. The UK benchmark was up 12.6% for the week, also marking a fifth consecutive weekly increase.

    Middle East Shipping Risks Remain in Focus

    Natural gas markets continued to assess the potential effect of military developments in the Middle East on global energy supplies.

    Military exchanges between US forces and Iran have restricted tanker traffic through the Strait of Hormuz, which handles approximately 20% of global liquefied natural gas flows, primarily from Qatar.

    The source also cited US strikes on Iranian oil tankers and an Iranian missile attack on a US base in Jordan. Iran-aligned Houthi forces seized the Yemeni port of Mocha, adding to concerns over shipping through the Red Sea.

    Crude oil remained above $108 per barrel. The source said restrictions in the Persian Gulf have increased competition between European and Asian buyers for alternative LNG cargoes from the Atlantic basin.

    European Gas Storage at Around 67%

    Data from Gas Infrastructure Europe showed European underground gas storage at approximately 67% of capacity, below the five-year seasonal average.

    The source attributed slower storage replenishment during August and early September to summer heatwaves, Norwegian pipeline maintenance and market pricing that reduced the economic incentive for near-term storage injections.

    Higher European energy prices were also cited in connection with Thursday’s European Central Bank policy decision.

    The ECB raised its deposit facility rate by 25 basis points to 2.50%, its second increase of the year, citing inflation risks associated with higher energy input costs.

  • European Stocks Head for Worst Week Since April After ECB Rate Increase: DAX, CAC, FTSE100

    European Stocks Head for Worst Week Since April After ECB Rate Increase: DAX, CAC, FTSE100

    European equities traded near two-month lows on Friday and were heading for their largest weekly decline since April as investors assessed higher interest rates and rising energy prices.

    The Stoxx Europe 600 gained 0.3% but remained around its lowest level in eight weeks. The index was on course to decline more than 2% for the week, which would represent its weakest weekly performance in five months.

    Germany’s DAX rose 0.3%, France’s CAC 40 gained 0.5% and the UK’s FTSE 100 was 0.1% higher.

    Brent crude reached a four-month high of $109.97 per barrel and was on track for a weekly gain of almost 13%. Oil markets remained affected by restrictions on tanker traffic through the Persian Gulf following military exchanges between US forces and Iranian naval assets.

    Iran-aligned Houthi forces also seized the Yemeni port of Mocha overnight, adding to concerns over shipping routes in the Red Sea and Saudi Arabian oil exports.

    ECB Raises Deposit Rate to 2.50%

    European markets continued to assess Thursday’s European Central Bank decision to increase its deposit facility rate by 25 basis points to 2.50%, its highest level since April 2025.

    Eurozone headline inflation increased to 3.3% in August, with the energy component rising 14.3%.

    Money markets were pricing in a probability of more than 90% that the ECB would raise rates again before the end of the year. This represents market expectations rather than a confirmed policy decision.

    Higher government bond yields and increased input costs coincided with declines during the week in rate-sensitive growth stocks, industrial companies and consumer discretionary shares.

    US Inflation Data in Focus

    Investors were also awaiting Friday’s US Consumer Price Index report for further indications about the Federal Reserve’s next policy decision.

    The inflation report follows US nonfarm payroll data showing an increase of 162,000 jobs.

    A higher-than-expected inflation reading could increase market expectations for a Federal Reserve rate rise at its September 15-16 meeting. The outcome of that meeting remains dependent on the Fed’s assessment of economic conditions.

  • Eurozone Bond Yields Head for Fifth Weekly Rise After ECB Rate Increase

    Eurozone Bond Yields Head for Fifth Weekly Rise After ECB Rate Increase

    Eurozone government bond yields remained near multi-year highs on Friday, with Germany’s benchmark 10-year yield heading for its largest weekly increase since March following the European Central Bank’s latest interest-rate decision.

    The move put European bond yields on course for a fifth consecutive weekly increase as markets assessed energy-related inflation pressures and fiscal conditions across the region.

    Germany’s 10-year Bund yield traded at 3.505%, close to levels last seen in 2011.

    Longer-dated French government bonds also recorded higher yields, with the 30-year yield reaching its highest level since 2003. The source attributed the move to higher regional interest rates and concerns over France’s structural budget deficit.

    Short-Term Yields Rise Following ECB Decision

    The ECB raised its deposit facility rate by 25 basis points to 2.50% on Thursday.

    The policy-sensitive German two-year yield recorded its largest one-day increase in two months following the decision and traded at 3.181% on Friday.

    Brent crude moved above $109 per barrel amid Middle East supply restrictions and Houthi activity in the Red Sea. Money markets were pricing in a high probability of another ECB rate increase before the end of the year.

    Market pricing also reflected expectations that European borrowing costs could remain at restrictive levels into late 2026 as policymakers monitor potential secondary effects from higher prices.

    US Inflation Data in Focus

    European fixed-income markets were also awaiting August US Consumer Price Index data from the Bureau of Labor Statistics.

    The report follows Thursday’s US Producer Price Index data, which showed wholesale inflation rising to 5.4%.

    A higher-than-expected CPI reading could increase market expectations for a Federal Reserve interest-rate increase at its September 15-16 meeting, potentially affecting government bond yields internationally.

  • ECB May Need Further Rate Increase, Nagel Says

    ECB May Need Further Rate Increase, Nagel Says

    The European Central Bank may need to raise interest rates further to a level that slightly restricts economic activity, ECB policymaker Joachim Nagel said on Friday.

    Nagel, who is also president of Germany’s Bundesbank, made the comments in an interview with CNBC.

    He said the ECB’s future interest-rate decisions will depend on developments in energy prices.

    Nagel added that it was too early to predict specific monetary policy decisions, leaving the outlook dependent on incoming economic conditions.

  • Mario Draghi Calls for More AI Data Centres in Europe

    Mario Draghi Calls for More AI Data Centres in Europe

    Former European Central Bank President Mario Draghi said Europe needs to increase its artificial intelligence data-centre capacity to support economic sovereignty and productivity growth.

    Writing in the Financial Times on Friday, Draghi said the productivity gap between the euro area and the US increased from $9 per hour in 2018 to $21 in 2025.

    He cited European Central Bank scenarios indicating that rapid AI adoption could add between 0.3 and 0.4 percentage points annually to total factor productivity growth, which has been approximately zero since 2022.

    According to figures cited by Draghi, the European Union accounts for less than 5% of global AI computing capacity, compared with 75% for the US. He said the gap between European demand and installed supply is currently approximately 3GW, equivalent to around a quarter of existing capacity, and is expected to reach 14GW by 2030.

    “Being cut off from AI, once the economy runs on it, would be more like being cut off from the US financial system. The effects would be catastrophic,” Draghi said.

    Draghi, who also served as Italy’s prime minister, said Europe controls a limited share of the AI value chain but has an opportunity to retain sovereignty over its data. European Commission estimates cited by Draghi put the value of Europe’s data economy at more than €800 billion, or over 5% of GDP, by 2030.

    He also highlighted differences in data-centre construction times. According to Draghi, a facility takes approximately 24 months to build in the US compared with 42 months in Germany, reflecting longer permitting and grid-connection processes. He added that building an AI data centre in Sweden costs approximately 10% more than in China.

    Draghi proposed that European companies combine their purchasing commitments into contracts of sufficient scale to support financing for new data centres.

    He cited a group of European companies, including ASML, Capgemini and Amadeus, that have committed to multiyear purchases of Mistral’s European Compute Units. The initiative is intended to support 1GW of capacity by 2030.

  • Alstom Wins Contracts Worth More Than €1.2 Billion for TransPennine Express Trains

    Alstom Wins Contracts Worth More Than €1.2 Billion for TransPennine Express Trains

    Alstom (EU:ALO) has secured contracts worth more than €1.2 billion ($1.4 billion) to supply and maintain 29 battery-electric trains for TransPennine Express in the UK.

    The rolling stock order represents approximately €930 million of the total contract value.

    Delivery of the new fleet is scheduled to begin in 2032. The trains will support the Transpennine Route Upgrade in northern England.

    Alstom said the contracts will create more than 350 jobs in Derby and support 5,500 positions across its UK supply chain.

  • FTSE 100 Flat as UK GDP Growth Offsets Strait of Hormuz Concerns

    FTSE 100 Flat as UK GDP Growth Offsets Strait of Hormuz Concerns

    The FTSE 100 was little changed on Friday as stronger-than-expected UK economic growth data was balanced by continued concerns over disruption in the Strait of Hormuz.

    The FTSE 100 was down 0.03% at 03:25 ET (07:25 GMT). Elsewhere in Europe, Germany’s DAX gained 0.28% and France’s CAC 40 rose 0.55%. Sterling was 0.09% higher against the US dollar at $1.3524.

    UK gross domestic product increased 0.4% in July, exceeding expectations and extending growth recorded during the first half of the year, according to the Office for National Statistics. The economy expanded 1.6% from a year earlier, the fastest annual rate since February 2025.

    “Ongoing strength in the services sector was only partially offset by falls in both production and construction,” ONS Director of Economic Statistics Liz McKeown said, adding that artificial intelligence appeared to be supporting software development.

    Geopolitical developments remained in focus after Iran’s Revolutionary Guard Corps said its navy had struck a US “Saildrone-type” unmanned vessel in the Strait of Hormuz, claiming it had “thwarted its aggressive mission.”

    The statement followed a resolution by the International Atomic Energy Agency accusing Iran of “noncompliance” with its nuclear non-proliferation commitments and referring the issue to the UN Security Council. Iran’s UN envoy, Gholamhossein Darzi, described the accusations as “political and not technical in nature.”

    Preliminary ship-tracking data showed seven vessels transited the Strait of Hormuz on Thursday, compared with 11 a day earlier and a 10-day average of 15, according to Reuters.

    Analysts at ING said oil’s performance “reflects a market now repricing both the duration and severity of the conflict, along with a clearer recognition of the mounting threat to regional supply.” They also cited risks to Saudi energy infrastructure and Red Sea crude exports as Houthi forces target Saudi Arabia following their seizure of the Yemeni port of Mokha.

    Brent crude declined 2.12% to $105.35 a barrel, while WTI fell 1.76% to $100.69. Gold futures were down 0.38% at $4,390.25, while spot gold rose 0.76% to $4,349.24.

    UK Round-Up

    Berkeley Group (LSE:BKG) said buyer caution and UK political uncertainty were affecting housing demand while calling for changes to stamp duty and planning regulations. The housebuilder has maintained its target of £1.4 billion in pre-tax profit over four years.

    Trainline (LSE:TRN) reported first-half net ticket sales of £3.3 billion and underlying revenue of £233 million. The company reaffirmed its FY2027 guidance and announced a new £100 million share buyback programme.