Category: Market News

European equities opened in negative territory on Thursday, with weakness in the banking sector dragging markets lower after a sharp drop in HSBC (LSE:HSBA) shares. The decline followed the bank’s announcement of plans to privatise Hang Seng Bank. Gains in mining and tech stocks, however, helped soften the overall losses.

As of 07:11 GMT, the pan-European STOXX Europe 600 index was down 0.1% at 573.4 points but remained close to its all-time high reached the previous session.

HSBC shares tumbled 6.6% after the British bank unveiled its privatisation proposal for Hang Seng in a deal valued at HK$106.1 billion (US$13.64 billion), pushing the broader banking sector down by 1.2%.

Other major lenders also lost ground, with Lloyds Banking Group (LSE:LLOY) slipping 3.4% after warning it may need to allocate additional funds to cover compensation related to motor finance claims.

Outside of banking, Germany’s Gerresheimer AG (TG:GXI) plunged 10.7% after cutting its annual guidance, weighing further on sentiment.

By contrast, the basic resources sector advanced 1.4%, supported by rising copper and iron ore prices. Technology names gained 0.4%, led by French IT group Alten, which climbed after announcing plans to split the roles of chairman and CEO in a governance shake-up.

Luxury fashion brand Burberry (LSE:BRBY) rose 2.4% after Deutsche Bank upgraded its rating from “hold” to “buy,” providing a bright spot in an otherwise subdued session.

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.

European Commission President Ursula von der Leyen announced that the European Union plans to mobilize more than €400 billion by 2027 through its Global Gateway initiative, significantly increasing its original investment goal.

“Global Gateway originally aimed to invest €300 billion, half of it in Africa, between 2021 and 2027, as an alternative to the Chinese initiative,” von der Leyen said. The program is designed to boost investment in countries across the global South, offering a strategic counterweight to China’s infrastructure push.

The initiative focuses on key areas such as energy, transport, education, and research. It also includes efforts to strengthen partnerships that will help the EU secure critical raw materials needed for the green transition, thereby reducing reliance on Chinese supply chains.

Von der Leyen also announced the creation of a new mechanism to streamline investment proposals: “today the EU will launch a Global Gateway Investment Hub, a one-stop shop for companies’ proposals.”

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.

Johnson Matthey (LSE:JMAT) announced on Thursday that it anticipates its full-year underlying operating profit will land toward the upper end of its previously guided growth range. The improved outlook is supported by a £10 million tailwind from stronger platinum group metal (PGM) prices and favorable foreign exchange movements.

Excluding the Catalyst Technologies and Value Businesses segments, the company now expects underlying operating profit growth to reach the top end of its original mid-single-digit forecast, up from the earlier projection of around 2% growth. Management highlighted that performance will be weighted toward the second half of the fiscal year.

The company also expects free cash flow (FCF) to strengthen meaningfully. In the first half of fiscal 2026, FCF is projected to improve sharply year over year, reversing the £169 million outflow recorded in the prior-year period. For the full year, free cash flow is anticipated to rise materially from the £59 million inflow reported in fiscal 2025.

The Catalyst Technologies segment, which is in the process of being wound down, is expected to report a significantly lower underlying operating profit in the first half compared to the previous year, primarily due to softer demand for catalysts and delayed licensing wins.

Overall, Johnson Matthey expects group performance to be notably stronger in the second half of the fiscal year, supported by the positive pricing environment and operational execution.

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.

SSP Group PLC (LSE:SSPG) announced on Thursday that it expects full-year earnings per share to come in line with market forecasts despite a slowdown in passenger growth during the second half of the year. Alongside its earnings update, the company unveiled a £100 million share buyback program, signaling confidence in its growth trajectory.

For fiscal year 2025, SSP reported revenue of roughly £3.7 billion, an 8% increase year-on-year at constant currency. Operating profit is expected to reach approximately £230 million, representing an 11% rise. The company anticipates EPS of around 11.5p at actual exchange rates, a 15% improvement compared to the prior year, helped by lower-than-expected tax and interest costs.

“We have delivered a resilient Q4 performance against an unsettled macro-economic and softer demand environment in some of our key travel markets,” said Patrick Coveney, CEO of SSP Group. “Our UK and Asia Pacific businesses have traded particularly well and, taken in aggregate, our performance in the quarter across the portfolio leaves us on track to deliver earnings per share for FY25 in line with current market expectations.”

Fourth-quarter revenue climbed 4% year-over-year on a constant currency basis, below analyst forecasts of 6%, while like-for-like sales rose 2% against a 4% consensus estimate. The UK & Ireland and Asia Pacific segments outperformed, offsetting weaker results from Continental Europe and North America.

According to analysts at RBC, “Over the long term, we expect continued strong growth in Travel Retail, driven by further globalisation and growth in airport retailing capacity. We note a strong space growth story at SSP, although much of the expansion has been focused on the US, where the outlook for the travel segment looks tougher near term.”

RBC added that it expects European margins to gradually recover from a low base as SSP continues to restructure its operations. While labor cost inflation and emerging market currency risks remain concerns, analysts pointed to growing potential for operational leverage supported by investments in digital tools and data analytics.

The company acknowledged persistent margin challenges in its Continental Europe segment, particularly in France and Germany. Operating profit margin for FY25 in this region is expected to be about 2.0%, short of its 3% target. SSP aims to lift margins above 3% in FY26 through cost-saving measures, rent renegotiations, and more disciplined capital spending.

Financial leverage is also expected to improve meaningfully, with net debt to EBITDA projected to fall to around 1.6x at year-end from 2.2x at mid-year, supported by solid free cash flow generation. For fiscal 2026, SSP anticipates EPS will land within the current market range of 12.9p to 13.9p on a constant currency basis.

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.

The FTSE 100 pulled back slightly on Thursday morning after notching a record close in the previous session, while the pound weakened against the U.S. dollar, dipping below the $1.34 level once again.

As of 07:28 GMT, the blue-chip benchmark was down 0.4%, while GBP/USD fell 0.3% to just above 1.33. Meanwhile, Europe’s major equity markets posted modest gains, with Germany’s DAX up 0.2% and France’s CAC 40 also rising 0.2%.

UK Corporate Round-Up

Volution beats expectations:
Volution Group plc (LSE:FAN) delivered stronger-than-anticipated results for fiscal 2025, fueled by robust second-half performance. Organic revenue in the latter half climbed 7.2%, exceeding the company’s target range of 3% to 5%. Full-year revenue reached £419 million, up 21% year-on-year. Organic growth from ongoing operations was 5.7%, ahead of Jefferies’ 5.1% forecast.

Lloyds flags potential provision:
Lloyds Banking Group PLC (LSE:LLOY) said it may need to set aside additional provisions tied to the Financial Conduct Authority’s proposed scheme on motor finance mis-selling. The bank cautioned that the provision could have a material impact on its financials.

Grainger maintains momentum:
Residential landlord Grainger PLC (LSE:GRI) reported further strength in its portfolio, with occupancy reaching 98.1% ahead of its full-year results on November 20. That’s up from 96% at the March half-year. Like-for-like rental growth came in at 3.6%, aligning with its medium-term guidance of 3% to 3.5%.

SSP misses top-line forecasts:
SSP Group PLC (LSE:SSPG) reported fourth-quarter group sales growth of 4% year-on-year in constant currency, falling short of the 6% consensus. Like-for-like sales rose 2% versus an expected 4%. For FY25, revenue stood at £3.7 billion in constant currency, with pre-IFRS 16 constant currency operating profit of £230 million, at the lower end of its guidance.

Johnson Matthey lifts profit outlook:
Johnson Matthey PLC (LSE:JMAT) said Thursday it expects full-year underlying operating profit to reach the top end of its guidance range, with the second half of the fiscal year expected to drive results. The outlook is supported by a £10 million benefit from current platinum group metal prices and currency movements.

Regulatory and Political Developments

In the utility sector, the Competition and Markets Authority provisionally rejected close to 80% of the water price increases proposed by five companies. Its provisional redeterminations allow just £556 million of the £2.7 billion in additional revenue sought.

On the geopolitical front, UK Prime Minister Keir Starmer welcomed the agreement on the first stage of U.S. President Donald Trump’s Gaza peace plan, urging “its full and immediate implementation.”

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.

Anglo Asian Mining plc (LSE:AAZ) has revised its 2025 production guidance upward following the launch of operations at its new Gilar and Demirli mines in Azerbaijan. The company now anticipates copper output of between 8,100 and 9,000 tonnes and gold production in the range of 25,000 to 28,000 ounces for the year.

This marks a significant step in Anglo Asian’s strategic transformation into a multi-asset producer and supports its ambition to become a mid-tier mining company. The expansion of the Gedabek flotation plant, combined with the stockpiling of high-grade ore, is expected to boost processing capacity and provide a solid foundation for future production growth.

Despite the operational progress, the company continues to grapple with weak financial performance, including pressure on revenue, profitability, and cash flow. Although technical indicators point to some positive momentum, negative valuation metrics — driven by a lack of profitability and dividend yield — remain a headwind.

About Anglo Asian Mining

Anglo Asian Mining is a copper and gold producer with a diversified portfolio of production and exploration assets in Azerbaijan. The company is executing a strategy to transition into a mid-tier producer by 2030, with copper as its primary focus. Its growth plan includes the development of multiple new mines, including the recently commissioned Gilar and Demirli operations.

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.

Central Asia Metals PLC (LSE:CAML) has released its operational update for the third quarter of 2025, reporting stable production levels across both its Kounrad copper operation and Sasa zinc-lead mine. The company reaffirmed its full-year production guidance and highlighted ongoing efficiency improvements at Sasa aimed at reducing costs and boosting operational performance.

Both operations recorded zero lost time injuries during the quarter, underscoring the company’s strong commitment to safety. Alongside its production achievements, Central Asia Metals continues to advance its exploration activities in Kazakhstan and Scotland, with key investment decisions expected before the end of the year.

The company’s financial outlook remains positive, supported by strong fundamentals, an attractive valuation with a low P/E ratio, and a healthy dividend yield. While technical signals are mixed, management’s focus on operational efficiency and growth opportunities has reinforced investor confidence. Monitoring cost pressures at Sasa and other operational challenges remains a priority.

About Central Asia Metals

Central Asia Metals is an AIM-quoted UK-based mining company that operates the Kounrad SX-EW copper operation in Kazakhstan and the Sasa zinc-lead mine in North Macedonia. In addition, the company is progressing exploration projects in Kazakhstan and Scotland, with a strategic focus on base metals development.

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.

Treatt PLC (LSE:TET) has announced a difficult trading year ending 30 September 2025, marked by revenue declines across its Heritage, Premium, and New product categories. The company cited elevated citrus oil prices and weaker consumer confidence in North America as the main factors weighing on performance.

Despite these market headwinds, Treatt expects to deliver results in line with revised guidance, forecasting revenue of approximately £130.6 million and profit before tax of around £10 million. Management has emphasized a continued focus on operational efficiencies and disciplined cost control to help stabilize performance.

In a parallel development, Treatt also revealed that it has received and recommended a cash offer from Natara UK Bidco Limited, an entity controlled by Exponent Private Equity LLP, potentially paving the way for a change in ownership.

The company’s solid profitability and healthy balance sheet remain bright spots, with technical indicators pointing toward positive momentum, albeit with some signs of overbought conditions.

About Treatt PLC

Treatt is a global, independent producer of natural extracts and ingredients for the flavour, fragrance, and consumer goods sectors, with a particular focus on beverages. The company operates manufacturing sites in the UK and US and employs around 350 people across Europe, North America, and Asia. Its expertise in sourcing and ingredient knowledge underpins its competitive position in the market.

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.

Lloyds Banking Group (LSE:LLOY) has confirmed that it is assessing the potential financial implications of a new consultation paper issued by the Financial Conduct Authority (FCA) on motor finance. The bank indicated that the consultation may require an additional financial provision, though the full impact will depend on how the proposals are ultimately interpreted and implemented.

This development could influence Lloyds’ broader financial strategy, particularly as it navigates an evolving regulatory environment. Management noted that a clearer understanding of the potential cost impact will emerge as the consultation process progresses.

Despite these uncertainties, Lloyds maintains a generally positive market outlook, supported by strong technical indicators, fair valuation levels, and a steady dividend yield. However, challenges related to declining profitability and cash flow remain areas of concern for the bank’s long-term financial resilience.

About Lloyds Banking Group

Lloyds Banking Group is one of the UK’s largest financial services organizations, providing a wide range of retail and commercial banking products, insurance services, and wealth management solutions. It serves millions of customers nationwide through its well-known brands and extensive branch network.

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.

Grainger plc (LSE:GRI) has reported solid financial and operational results for the year ending September 2025, underpinned by high occupancy levels and steady rental growth. Occupancy rates reached 98.1%, while like-for-like rental growth stood at 3.6%, reflecting strong tenant demand across the company’s portfolio.

Grainger generated around £169 million through capital recycling via disposals, with proceeds being reinvested into higher-yielding Build to Rent (BTR) assets. This strategy supports the company’s target of achieving 50% earnings growth between FY24 and FY29. Management highlighted that a supportive regulatory backdrop and Grainger’s planned transition to REIT status further enhance its ability to deliver sustainable income growth and improve shareholder returns.

While the company’s fundamentals are strong and valuation attractive, technical indicators show some weakness, and its high leverage remains a key financial risk. Overall, the outlook balances solid performance with cautious risk management.

About Grainger plc

Grainger is the UK’s largest listed provider of private rental homes and a leading BTR operator, managing a portfolio of over 11,000 units. The company focuses on delivering high-quality, mid-market rental homes in desirable urban locations, leveraging its operational platform to sustain strong occupancy and rental performance.

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.