Category: Market News

European equity markets fell on Tuesday as renewed U.S.–China trade tensions weighed on sentiment, while Michelin (EU:ML) shares tumbled to their lowest level in more than two years after the company issued a profit warning.

The pan-European STOXX Europe 600 index slipped 0.6% as of 07:18 GMT, retreating to a near two-week low after Monday’s brief rebound.

Global markets had already sold off sharply on Friday when U.S. President Donald Trump threatened to impose an additional 100% tariff on Chinese goods in response to Beijing’s rare earth export restrictions. Although Trump struck a more conciliatory tone over the weekend, both Washington and Beijing began imposing new port fees on Tuesday on ocean shipping firms moving goods ranging from holiday toys to crude oil.

Mining stocks led the decline in Europe, falling 2%, while automakers lost 1.5%. Michelin sank 9.3% after cutting its full-year outlook due to weaker-than-expected conditions in North America that have eroded sales volumes and profit margins. Continental AG (BIT:1CON) dropped 3.7%, and Pirelli & C. S.p.A. (BIT:PIRC) declined 2.1%.

In contrast, Ericsson (NASDAQ:ERIC) surged 12.4% after reporting stronger-than-expected quarterly earnings and downplaying the potential impact of U.S. tariffs.

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Robert Walters (LSE:RWA) reported a 12% year-on-year decline in third-quarter net fee income to £69.6 million, a slight improvement compared to the 13% drop recorded in the previous quarter.

The recruitment firm noted encouraging momentum in Asia Pacific and the UK, even as European markets continued to lag. Its specialist professional recruitment segment — the company’s largest revenue driver — saw net fee income fall 10% to £58.5 million. Permanent recruitment, which represents 67% of total fee income, declined 7%, while temporary recruitment fell 16%. Excluding Europe, permanent fees were down just 2% and temporary fees increased by 1%, highlighting stronger performance elsewhere.

“Our year-on-year fee income performance during the third quarter improved slightly compared to the second, albeit with some divergence across our geographic portfolio,” said Toby Fowlston, Chief Executive. “Whilst we are seeing signs of sustained improvement in a select number of hiring markets, overall conditions globally remain fragile.”

The company continued to tighten costs, reducing its monthly cost base to around £24 million in the third quarter from £24.5 million at the end of H1. It remains on track to achieve at least £10 million in annualized structural savings by 2027.

Regionally, Asia Pacific — the firm’s largest market — saw net fee income decline by just 2%, while the UK slipped 4%. Europe was the weakest region, falling 26% amid political uncertainty in France and legislative changes in the Netherlands that have impacted self-employment.

Robert Walters closed the quarter with net cash of £26.6 million, down slightly from £30.1 million at the end of June. Management plans to reassess the potential reinstatement of shareholder returns at the full-year results announcement in March 2026.

“Throughout our business we are highly focused on continuing to take the right actions to drive a return to profitability in 2026,” Fowlston added.

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Target Healthcare REIT Ltd (LSE:THRL) reported a strong 9.3% total accounting return for the year ended June 30, 2025, underscoring the resilience of its modern, purpose-built UK care home portfolio despite a challenging operating environment.

EPRA net tangible assets (NTA) per share rose 3.7% to 114.8 pence, while adjusted EPRA earnings per share reached 6.08 pence. This supported a fully covered dividend of 5.884 pence for the year, up 3.0% from the previous period.

Following the end of the financial year, the company sold nine care homes for £85.9 million — 11.6% above their carrying value. The transaction reduced exposure to its largest tenant from 16% to around 9% of contracted rent.

“The Group has delivered solid portfolio and financial performance against what has remained a challenging backdrop. This shows the resilience of our business model,” said Alison Fyfe, Chair of Target Healthcare REIT.

The company intends to reinvest the proceeds into higher-yielding, earnings-enhancing acquisitions at a net initial yield of roughly 6%, compared with 5.2% on the properties sold. In parallel, it completed a £130 million debt refinancing, extending the weighted average maturity of its borrowings to 5.9 years.

Its 93-property portfolio achieved like-for-like rental growth of 3.3%, with mature homes rent cover rising to 1.9x — the highest level since the company’s IPO. All properties are fully occupied and hold an A or B energy efficiency rating.

For FY 2026, the company set a dividend target of 6.032 pence per share, representing a 2.5% increase year on year.

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EasyJet PLC (LSE:EZJ) shares jumped sharply on Tuesday after unconfirmed media reports suggested that shipping giant MSC Group may be exploring a potential takeover offer.

The stock rose 3.5% by 07:55 GMT, after an early rally of more than 7%. Despite the spike, EasyJet shares remain down 11% year to date, compared with a 2% decline in the broader European travel and leisure index.

According to Corriere della Sera, citing market sources, MSC is considering a bid for the low-cost airline as part of a broader strategy to integrate its transport operations. The deal could provide strategic synergies with MSC’s cruise business, leveraging EasyJet’s strong presence in key European markets.

A formal offer would likely value EasyJet at around £4 billion, with MSC expected to partner with an investment fund to finance the transaction, following a similar structure to its past deals. At current market prices, the airline’s valuation stands at approximately £3.6 billion.

MSC has a track record of strategic investments, including the acquisition of Italo – Nuovo Trasporto Viaggiatori in partnership with Global Infrastructure Partners and port infrastructure investments alongside BlackRock.

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discoverIE Group PLC (LSE:DSCV) saw its shares rise 1.4% on Tuesday after reporting interim earnings that met the Board’s adjusted forecasts, supported by steady revenue growth and strong cash generation.

For the six months ended September 30, 2025, group sales increased 3% at constant exchange rates (CER) and 2% on a reported basis. Organic growth came in at 0.5% for the half-year, strengthening to 1% in the second quarter, reflecting improving trading momentum.

Order intake also outperformed, climbing 5% year-on-year at CER and 0.5% organically. In Q2, orders surged 13% at CER and 8% organically, exceeding sales growth and building a solid backlog for the remainder of the year.

Three of the company’s four divisions — Sensing, Connectivity, and Magnetics — achieved healthy organic growth, while the Controls segment experienced softer demand from some major customers.

“The Group delivered strong operational and cash performance through the period with improving growth trends,” the company stated in its trading update. “We are well positioned to continue our through-cycle growth both organically and inorganically as market conditions further stabilise.”

The company highlighted resilient gross margins and disciplined working capital management. Strong operating cash flow allowed it to lower gearing to 1.3x as of September 30, 2025 — below its target range of 1.5x to 2.0x — creating additional headroom for future acquisitions.

M&A activity contributed 2.5% to overall growth during the period, complementing steady organic expansion and supporting top-line performance.

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Publicis Groupe SA (EU:PUB) reported organic growth of 5.7% in the third quarter of 2025, exceeding analyst forecasts of 5.1%. The stronger-than-expected performance was driven by continued demand for the group’s AI-powered products and services.

Growth was particularly strong in the U.S., where organic revenue rose 7.1%. The company noted it saw “no material cuts in marketing spend” and, instead, experienced increased appetite for its AI-led offerings.

On the back of these results, Publicis raised its full-year 2025 organic growth guidance to between 5.0% and 5.5%, up from its previous forecast of “close to 5%.” All major regions contributed positively to the quarter’s performance, with the U.S. leading the acceleration. The company’s AI-driven strategy has helped it widen its lead over peers by around 700 basis points, according to consensus estimates.

“We are demonstrating that artificial intelligence at Publicis is not a future promise, it is a reality today that is driving our growth,” said Arthur Sadoun, Chairman and CEO of Publicis Groupe. “Not only did we not experience any material cuts in marketing spend, but we also saw an acceleration in demand for our AI-led products and services.”

Connected Media activities, supported by Epsilon, grew at a high single-digit rate as clients sought integrated solutions linking paid media with commerce and influencer marketing through AI. The company’s AI production platform posted double-digit growth, reflecting rising demand for personalized content, while Publicis Sapient delivered positive growth for the second consecutive quarter.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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Michelin (EU:ML) shares tumbled more than 9% on Tuesday after the French tire manufacturer issued a significant profit warning for 2025, blaming deteriorating market conditions, particularly in North America.

The company cut its Segment Operating Income (SOI) forecast to a range of €2.6 billion to €3.0 billion at constant exchange rates — a sharp drop from its previous guidance of more than €3.4 billion. It also lowered its outlook for free cash flow before mergers and acquisitions to between €1.5 billion and €1.8 billion, down from the earlier projection of above €1.7 billion.

The downgrade followed a nearly 10% year-on-year drop in third-quarter sales volume in North America. Michelin cited “plummeting demand” from truck and agriculture equipment manufacturers, weaker replacement truck tire sales linked to economic softness, and additional pressure on consumer demand.

“The current business environment is chaotic with near-term uncertainties weighing on demand,” Michelin’s management said, pointing to challenges across both B2B and B2C segments.

While other regions reported year-on-year volume growth in the third quarter, tariffs have weighed on the company’s global competitiveness. A weaker-than-expected U.S. dollar further reduced free cash flow.

Analysts at Barclays said that although they had expected a profit warning, “the magnitude came far above our expectations and those of even the most bearish investors.” The bank lowered its 2025 estimates for Michelin’s sales, SOI, and free cash flow by 1%, 9%, and 5% respectively.

Michelin is scheduled to provide further details on its third-quarter performance and updated 2025 outlook during a conference call on October 22, 2025.

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THG PLC (LSE:THG) reported its best quarter of organic sales growth in nearly four years, with Q3 2025 revenue rising 6.3% year-on-year. The strong performance was led by momentum in both THG Beauty and THG Nutrition, signaling a return to year-to-date revenue growth following strategic operational shifts and targeted brand investments.

THG Beauty delivered a 4.2% revenue increase, supported by a successful advent launch campaign and resilient UK retail performance. Meanwhile, THG Nutrition achieved a 10.0% year-on-year sales jump—the segment’s highest growth in more than two years—driven by expansion in the US and Middle East markets. These gains helped offset the impact of asset disposals and discontinued operations.

Looking ahead, the company remains optimistic about meeting its full-year performance targets as it enters its most profitable trading period.

THG’s outlook reflects a mix of challenges and opportunities. While valuation concerns and high leverage remain, the company’s strategic execution and balance sheet improvements provide grounds for cautious optimism. Technical indicators currently point to a bearish trend, and the absence of dividend payments continues to weigh on investor sentiment.

About THG PLC

THG PLC is a global e-commerce company headquartered in Manchester, UK, operating through two core divisions: THG Beauty and THG Nutrition. THG Beauty manages leading online platforms such as Lookfantastic and Cult Beauty, offering access to more than 1,000 third-party brands alongside its own. THG Nutrition, anchored by Myprotein—the world’s largest online sports nutrition brand—covers a wide range of health and wellness categories with global online and offline reach.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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Empire Metals Limited (LSE:EEE) has unveiled a maiden Mineral Resource Estimate (MRE) for its Pitfield Project in Western Australia, identifying one of the largest and highest-grade titanium resources globally. Reported in accordance with the JORC Code (2012), the estimate outlines 2.2 billion tonnes at a grade of 5.1% TiO₂.

This major discovery marks a transformative milestone for the company, positioning it as a significant emerging player in the global titanium market. Empire Metals plans to advance exploration and resource development to further expand the deposit and strengthen its commercial potential, leveraging its strategic access to international markets.

About Empire Metals Limited

Empire Metals Limited is a natural resources exploration and development company focused on discovering and advancing high-potential mineral projects. Listed on AIM and OTCQX, the company is building a portfolio aimed at unlocking significant value in the global minerals sector.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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Rio Tinto (LSE:RIO) delivered strong operational results for the third quarter of 2025, setting a new production record in its bauxite business and achieving meaningful progress in copper output at Oyu Tolgoi mine. In light of this performance, the company raised its bauxite production guidance and reaffirmed that it remains on track to meet full-year production targets.

The quarter also saw the implementation of key strategic initiatives, including a new operating model and leadership structure aimed at simplifying operations and enhancing efficiency. These efforts are expected to drive additional shareholder value over the long term.

Despite external economic pressures and a tragic incident at the SimFer mine, Rio Tinto continues to prioritize safety and operational excellence as it targets a strong year-end finish.

The company’s outlook remains supported by robust financial performance, strong cash flow, and attractive valuation metrics. A low P/E ratio and high dividend yield add to its investment appeal. While potential revenue fluctuations and market volatility pose some risks, technical indicators point to a broadly positive trend.

About Rio Tinto

Rio Tinto is one of the world’s leading mining groups, specializing in the exploration, extraction, and processing of mineral resources. Its core operations span iron ore, aluminum, copper, and lithium. The company’s strategy focuses on operational excellence, disciplined capital allocation, and sustainable value creation for shareholders.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.