Category: Market News

European shares climbed on Thursday, extending gains from the previous session amid growing expectations of further U.S. Federal Reserve monetary easing.

At 07:05 GMT, Germany’s DAX advanced 0.5%, France’s CAC 40 added 0.9%, and the U.K.’s FTSE 100 rose 0.2%.

Market Expectations for Fed Action

The three major European indices posted roughly 1% gains on Wednesday, ahead of a positive close on Wall Street. Investor sentiment was boosted by a weaker-than-expected ADP employment report, which reinforced expectations of quarter-point rate cuts at the remaining Federal Reserve policy meetings this year.

In the U.S., much of the government shut down Wednesday after an eleventh-hour Republican-backed spending bill failed to pass the Senate. This pause in operations will halt the release of official data for the immediate term, including Friday’s closely watched nonfarm payrolls report, focusing attention on the weak ADP numbers.

Eurozone Economic Data

Later in the session, a series of central bankers, including ECB Vice-President Luis De Guindos and ECB board member Patrick Montagner, are scheduled to speak at various forums. The eurozone unemployment rate for August is also due, expected to remain steady at 6.2%. Recent data showed eurozone inflation rising to 2.2% in September from 2.0% in August, supporting the European Central Bank’s decision to hold rates for a third consecutive meeting on 30 October.

Corporate News

Renault (EU:RNO) drew attention after Bloomberg reported discussions with China’s Chery Automobile regarding a potential partnership in South America. The talks reportedly cover Colombia and Argentina, where Chery could access Renault’s factories in exchange for capital investment and product design support.

Oil Markets

Oil prices edged higher Thursday, rebounding from near four-month lows amid renewed concerns over tighter sanctions on Russian crude. Brent futures rose 0.1% to $65.41 a barrel, while U.S. West Texas Intermediate crude advanced 0.1% to $61.83 a barrel. Both benchmarks had fallen about 1% in the previous session, with Brent closing at its lowest since 5 June and WTI since 30 May.

The Group of Seven finance ministers said Wednesday they will increase pressure on Russia by targeting those continuing to buy Russian oil and entities facilitating circumvention. Additionally, the Wall Street Journal reported that the U.S. plans to provide Ukraine with intelligence for long-range missile strikes on Russian energy infrastructure, aiming to reduce Kremlin revenue from oil sales.

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.

Shares of SSE Plc (LSE:SSE) fell over 2% on Thursday after the energy company projected a decline in first-half earnings per share for the 2025–26 fiscal year.

The UK-based utility forecast H1 2025–26 EPS of 33p to 37p, consistent with typical seasonal averages but placing the midpoint at roughly 23% of Jefferies’ full-year EPS estimate of 156p, which the brokerage described as “a small negative.”

SSE indicated that full-year performance is expected to remain broadly unchanged, though no formal guidance was provided. Adjusted first-half capital expenditure is projected to rise approximately 60% year-on-year to £1.1 billion, reflecting continued acceleration of Networks spending. Total H1 capex is expected to reach around £1.5 billion, while net debt and hybrid capital are forecast at about £11.5 billion, slightly below Jefferies’ FY25/26 projection of £11.8 billion.

In the renewables segment, the company reported strong second-quarter output, offsetting weaker first-quarter performance due to adverse weather. SSE expects total first-half renewable generation of approximately 5.3 TWh, down 2% year-on-year, with second-quarter output flat at 2.8 TWh.

The company also provided updates on its investment program. SSE submitted the final major ASTI consent application and received planning approval for the Netherton Hub in Aberdeenshire. Major consent was also secured for the Berwick Bank offshore wind farm, clearing the way for potential participation in the UK AR7 auction round.

Jefferies maintained its full-year EPS range for 2026/27 at 175p–200p. Analysts described the first-half midpoint as “on the low end,” reflecting modest near-term earnings pressure despite ongoing capital deployment.

SSE’s guidance highlights continued investments in networks and renewables, alongside weather-driven variability in output. The company reiterated that first-half results are in line with seasonal trends, which typically account for 20–30% of annual earnings in the first six months.

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.

National Grid Plc (LSE:NG.) reported on Thursday that its first-half fiscal 2026 trading results are in line with expectations, reiterating the guidance provided at the end of fiscal 2025.

The pre-close statement from the electricity and gas utility company confirms performance consistent with previously communicated targets, with full-year EPS guidance positioned at the lower end of a 6–8% growth range. Consensus forecasts currently suggest around 5% year-over-year growth, slightly below National Grid’s guidance.

Morgan Stanley noted that consensus EPS of 76.9p remains under the lower bound of the company’s guided range of 77.7p. “We see consensus already reflecting a cautious ~1.35 FX assumption (vs company assumed 1.3 for the year),” the brokerage said.

The analysts explained that the difference between consensus and guidance largely reflects translation effects and could put upward pressure on estimates if foreign exchange rates move closer to the company’s assumption.

In the UK, electricity distribution and transmission are expected to be roughly evenly split between H1 and H2. In the U.S., a typical second-half skew is anticipated, although less pronounced than last year due to a reduced impact from storms, Morgan Stanley added. The company’s ET-3 Final Determination is anticipated in early December.

Morgan Stanley indicated that they do not expect revisions to full-year consensus EPS at this stage. “We would not expect any revisions to street estimates on average at this stage given consensus mean EPS already below bottom end of 6-8%/yr EPS growth range,” the analysts said. They added that any future adjustments would likely be influenced by foreign exchange developments rather than operational performance.

Full-year guidance remains unchanged from the FY25 close in May. Analysts also pointed out that the gap between consensus and company guidance is fully accounted for by translation effects. “We see scope for potential upward pressure on consensus should FX trend closer to 1.3 and hence translation impact less than consensus currently reflecting. Note this is purely a translation impact.”

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.

Hochschild Mining (LSE:HOC) is a notable mid-cap player in the precious metals sector, operating three high-grade underground mines across Peru and Argentina. Included in the FTSE 350 Companies index and listed on dividend-focused indices such as FTSE Dividend Yield, the company maintains a structured approach to operations and shareholder returns.

Operations and Production

The company’s three primary mines—two in southern Peru and one in southern Argentina—employ the cut and fill mining method, ideal for extracting ore from high-grade silver and gold veins. This technique allows precise ore recovery, minimizes dilution, and adapts to variable vein structures. The Peruvian operations focus mainly on silver with supplemental gold, while the Argentine mine combines silver and gold production, providing geographic and operational diversification. Advanced equipment and process optimisation ensure consistent operational performance and ore quality.

Strategic Positioning in Precious Metals

Hochschild Mining differentiates itself through operational efficiency, resource quality, and structured production processes. Underground mining operations grant access to high-grade veins while enabling controlled extraction. This model supports sustainable practices, operational continuity, and a focus on maximizing ore recovery compared with open-pit operations.

Corporate Structure and Governance

As a FTSE 350 entity, Hochschild Mining upholds disciplined capital allocation, careful debt management, and liquidity oversight. Its inclusion in dividend-focused indices highlights a consistent approach to shareholder returns. Corporate governance emphasizes accountability, regulatory compliance, and alignment of management incentives with long-term operational goals.

Environmental, Safety, and Reporting Practices

Hochschild Mining prioritizes safety and environmental responsibility across all sites. Measures include controlled underground access, emergency preparedness, and sustainable resource management. Production reporting emphasizes transparency, covering ore grade, extraction methods, and site-specific outputs without implying future performance forecasts.

Historical Milestones and Dividend Practices

The company’s development includes establishing underground mines in Peru and Argentina, achieving high-grade silver and gold extraction, and maintaining structured dividend distributions. These milestones underline decades of operational expertise and commitment to disciplined management of resources and shareholder returns.

Summary

Hochschild Mining stands out as a specialized, mid-cap precious metals producer with structured operations, high-quality resources, and a focus on sustainable, efficient underground mining. Its FTSE 350 inclusion and consistent dividend practices reinforce its position as a reliable and operationally disciplined mining company.

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.

Tesco PLC (LSE:TSCO) has posted robust interim results for 2025/26, driven by strategic initiatives focused on value, quality, and service, which have led to notable market share gains, particularly in the UK. The company’s efforts to enhance customer satisfaction, expand its online offerings, and leverage technology for personalized engagement have contributed to higher sales and improved financial outcomes. Despite competitive pressures and cost inflation, Tesco remains committed to delivering value to both customers and stakeholders, supported by its share buyback program and investments in distribution and AI capabilities.

Tesco’s solid financial performance and strategic buyback initiatives are key drivers of its strong outlook. Technical analysis and valuation point to a stable market position, although the absence of recent earnings call data limits additional insights.

About Tesco PLC

Tesco PLC is a leading UK-based multinational retailer of groceries and general merchandise. The company offers a broad range of products, including food, clothing, and financial services, with a focus on value, quality, and customer satisfaction. Tesco operates in multiple markets, including the UK, Republic of Ireland, and Central Europe, and continues to grow its online and rapid delivery services.

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.

UK Oil & Gas PLC (LSE:UKOG) has secured £3 million through a share placing to support its transition into clean energy, with a focus on hydrogen projects. The funds will be used for engineering studies and collaborations necessary for government revenue support applications, helping the company progress its hydrogen storage and generation efforts and strengthen its position in the renewable energy sector.

About UK Oil & Gas PLC

UK Oil & Gas PLC is evolving from traditional petroleum operations to focus on clean energy, particularly hydrogen storage and generation. The company is shifting its market focus toward renewable solutions, with key projects located in South Dorset and Yorkshire.

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.

Morgan Sindall Group PLC (LSE:MGNS) expects its 2025 financial results to surpass earlier forecasts, driven largely by robust performance in its Fit Out division. The company’s secured order book has grown, signaling confidence in continued growth, while the balance sheet remains strong with higher-than-expected average daily net cash. Strategic partnerships and targeted investments continue to underpin the Group’s growth, though some divisions face rising investment costs.

The company’s outlook is primarily supported by solid financial performance, stable revenue growth, and effective cash flow management. Technical indicators suggest a neutral market position, while reasonable valuation and dividend yield further enhance its appeal. The lack of recent earnings calls or corporate event updates does not materially affect the assessment.

About Morgan Sindall

Morgan Sindall Group PLC operates in the construction services sector, specializing in partnerships, fit out, and broader construction services. The company maintains long-term public sector collaborations, including housing projects, and has a strong presence across the UK.

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.

AdvancedAdvT Limited (LSE:ADVT) posted a strong performance for the first half of 2025, with revenue expected to reach at least £25 million and adjusted EBITDA of no less than £7 million, reflecting operational efficiency and growing customer demand. The company completed strategic acquisitions of GOSS and HFX, strengthening its market position, and plans to invest in product development and infrastructure expansion to support growth in AI, automation, and SaaS solutions.

About AdvancedAdvT Limited

AdvancedAdvT Limited is an international software solutions provider, specializing in business solutions, compliance, and human capital management. The company focuses on AI, data analytics, and business intelligence, aiming to drive growth through digital transformation and innovation across its target industries.

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.

Supermarket Income REIT plc (LSE:SUPR) has declared an interim dividend of 1.545 pence per ordinary share for the July–September 2025 period, payable on 21 November 2025. The dividend will be issued as a Property Income Distribution, with no scrip option available, reflecting the company’s focus on delivering cash returns to shareholders. This move highlights the REIT’s strategy of generating consistent rental income from grocery property investments, reinforcing its role in the essential food infrastructure sector.

The company’s performance is supported by an attractive valuation and positive technical indicators, despite profitability challenges. Strategic actions, including refinancing initiatives and a joint venture, enhance financial flexibility and future growth prospects. Combined with a solid balance sheet, these factors position Supermarket Income REIT as a strong choice for income-focused investors.

About Supermarket Income REIT Plc

Supermarket Income REIT plc is a FTSE 250-listed company on the London Stock Exchange and Johannesburg Stock Exchange, specializing in grocery property investments critical to national food infrastructure. Its portfolio includes omnichannel stores leased to major supermarket operators across the UK and Europe. As of June 2025, the portfolio was valued at £1.6 billion, generating long-term, secure, inflation-linked rental income. The company aims for progressive dividends and sustainable capital growth.

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.

Avation PLC (LSE:AVAP) reported a 19.2% increase in revenue, reaching $110.1 million for the year ending 30 June 2025, alongside a 20.3% rise in EBITDA to $107.1 million. Despite these improvements, the company posted a loss after tax of $7.7 million due to lower operating profit and other financial factors.

The company made notable progress in fleet management, including the acquisition of an Airbus A320-200, the sale of two ATR 72-600 aircraft, lease extensions, and the onboarding of new customers. Net indebtedness was reduced by 7.3%, improving the net debt to total assets ratio to 54.8%. Avation is actively refinancing its outstanding unsecured notes and plans to pursue strategic growth through its ATR 72-600 order book.

Avation’s outlook is underpinned by a solid financial base and operational enhancements. Positive technical indicators and strategic corporate actions, such as debt reduction and asset sales, support market positioning. Nonetheless, high leverage and revenue volatility remain key risks that require careful management.

About Avation

Avation PLC is a commercial aircraft leasing company specializing in narrowbody and turboprop aircraft. It operates a fleet including Airbus and Boeing models and serves airlines across 14 countries. The company focuses on fleet optimization and growth through strategic acquisitions, sales, and lease management.

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.