Category: Market News

Britain’s manufacturing sector saw activity decline in August as new orders softened, impacted by global trade frictions and recent increases in domestic taxes, according to Monday’s survey data.

The S&P Global/CIPS Manufacturing PMI fell to 47.0 in August from 48.0 in July, marking the first decrease in five months. The reading also came in below the preliminary estimate of 47.3 and remained below the 50 mark that separates expansion from contraction, extending the industry’s downturn to an 11th consecutive month.

Survey respondents highlighted weak demand, international tariff pressures, and rising client costs as key challenges. Additional headwinds included the April increase in the minimum wage and higher employer taxes, while both export orders and overall demand shrank at their fastest pace in four 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.

Domino’s Pizza Group (LSE:DOM) saw its shares climb more than 4% on Monday after unveiling a £20 million share repurchase plan.

The initiative, which started immediately, aims to reduce the company’s share capital by acquiring up to 39,471,274 ordinary shares, each valued at 25/48 pence. All repurchased shares will be canceled.

The buyback will take place on the London Stock Exchange under authority granted by shareholders at Domino’s annual general meeting in April. This authorization remains valid until the company’s next AGM in 2026, or earlier on July 24, 2026.

Domino’s has appointed Panmure Liberum Limited to oversee the transactions, ensuring they remain within program parameters, including during trading blackout periods.

The company also confirmed that its guidance for fiscal year 2025 is largely unchanged, with the exception of projected year-end net debt, now expected to fall between £280 million and £300 million.

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.

U.S. markets remain closed on Monday for Labor Day, but investors are preparing for a pivotal week, with fresh labor market data set to potentially cement expectations for a Federal Reserve rate cut later this month. Meanwhile, the legal battle over sweeping U.S. tariffs continues, with a federal appeals court recently rejecting the levies imposed during the Trump administration.

Holiday-thinned trading and mixed Asian equities

With the U.S. holiday thinning liquidity, Asian markets showed mixed movements: Japan’s Nikkei and South Korean stocks slipped, while Chinese equities extended their recent rally, boosted by stronger-than-expected manufacturing survey results. Shares of Alibaba (NYSE:BABA) jumped more than 10%, marking its biggest single-day rise since 2022, driven by optimism for its cloud business.

Wall Street has steadily rebounded since April’s tariff-driven selloff, supported by hopes that President Donald Trump’s tariffs will not derail the U.S. economy and by excitement over AI-related investment returns. Analysts note that this week’s economic data and the Fed’s rate decision could strongly influence sentiment heading into September.

Legal challenges to Trump-era tariffs

The Trump administration’s tariffs have faced multiple legal challenges, particularly regarding the president’s use of emergency powers. A decisive ruling came Friday when the U.S. Court of Appeals for the Federal Circuit rejected the tariffs, upholding a lower court decision. The White House has until mid-October to appeal to the Supreme Court or let the ruling take effect.

In a client note, Vital Knowledge analysts commented, “The appeals court decision is at best neutral for markets. It won’t come close come close to eliminating Trump’s import taxes, and it just creates more uncertainty for Corporate America as the White House searches for a studier legal scaffolding for its draconian trade policy[.]”

Labor market data in focus

Friday’s U.S. payroll report is set to offer insights into the broader economy and test whether investors’ expectations of a Fed rate cut are justified. Last month’s soft report reinforced bets on lower borrowing costs, even as policymakers remain cautious about inflation. Fed Chair Jerome Powell highlighted increasing risks to the job market at a Wyoming symposium. According to CME’s FedWatch Tool, there is currently more than an 87% chance that the Fed will reduce rates by 25 basis points at its Sept. 16-17 meeting. Economists expect nonfarm payrolls to rise by 74,000 in August, near July’s 73,000 figure.

China’s manufacturing activity

A private survey indicated that China’s factory activity grew at the fastest rate in five months in August, providing a positive signal amid weaker official data. The RatingDog China General Manufacturing PMI rose to 50.5 from 49.5 in July, surpassing the forecast of 49.7 and moving into expansion territory.

“New export orders are still in contraction, but the pace of decline has eased. That’s encouraging, yet we shouldn’t get carried away, because external demand looks partly pulled forward while domestic demand stays soft, so the upside to output may be limited unless domestic demand firms up,” said Yao Yu, Founder at RatingDog. Employment remained constrained, falling for the fifth consecutive month, with rising input costs and supply delays tempering optimism.

Oil prices higher amid geopolitical concerns

Oil markets moved higher on Monday, with traders balancing potential supply disruptions from Russia-Ukraine airstrikes against OPEC+ output increases and the effects of U.S. tariffs on demand. By 03:41 ET, Brent October futures gained 0.5% to $67.81 per barrel, while WTI rose 0.6% to $64.36 per barrel. Both contracts fell over 7% in August amid concerns of a supply glut from ongoing production increases.

“Oil prices settled lower last week despite growing European calls for secondary sanctions on buyers of Russian oil and gas. The mild reaction may suggest the market is becoming increasingly numb towards sanction risks,” analysts at ING said. Meanwhile, Ukraine’s president warned Sunday that the country would retaliate against Russian drone attacks on power facilities, following weeks of airstrikes targeting energy infrastructure that threaten Russian oil exports.

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.

Gold prices surged to their highest level in over four months during Asian trading on Monday, buoyed by expectations of a Federal Reserve rate cut and safe-haven demand triggered by U.S. tariff uncertainty and political developments affecting the central bank.

Spot gold advanced 0.9% to $3,480.56 an ounce, marking its strongest level since mid-April, while December gold futures jumped 1% to $3,551.82/oz by 01:55 ET (05:55 GMT). This move extends bullion’s recent rally, with gold poised for a fifth consecutive day of gains after climbing nearly 5% in August. Silver also rose sharply, reaching a 14-year high.

Rate Cut Bets and Jobs Data Support Gold

Investor interest in gold increased after the latest U.S. personal consumption expenditures (PCE) price index largely matched expectations, reinforcing expectations for a September Fed rate cut. The CME FedWatch tool shows nearly a 90% probability of a 25-basis-point reduction. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making bullion more appealing. Market attention now turns to U.S. nonfarm payrolls later this week, which could influence near-term rate cut expectations.

Trade and Political Risks Boost Safe-Haven Demand

Safe-haven flows into gold were also supported by trade policy uncertainty. Last week, a U.S. appeals court ruled many Trump-era tariffs unlawful but kept them in place until October 14 to allow time for a Supreme Court appeal. Meanwhile, political pressure on the Fed added to caution after President Donald Trump attempted to remove Federal Reserve Governor Lisa Cook over alleged mortgage fraud. Cook has rejected the move and filed a lawsuit challenging her dismissal.

Other Metals Follow Bullion Higher

Precious metals broadly advanced Monday, with platinum futures up 1.3% to $1,346.65/oz and silver futures climbing 1.5% to $41.32/oz, the highest since August 2024. Copper markets were largely stable, with London Metal Exchange copper futures at $9,934.65 a ton and U.S. copper futures slipping 0.2% to $4.60 per pound.

A private survey in China, the world’s largest copper consumer, showed factory activity expanded at its fastest pace in five months in August amid easing U.S.-China trade tensions. These results contrasted with official data reporting a fifth consecutive month of contraction, hinting at early signs of industrial recovery.

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.

Most Asian currencies and the U.S. dollar remained relatively steady on Monday as investors cautiously weighed the likelihood of a Federal Reserve rate cut later this month, with key U.S. payroll data due at the end of the week.

With U.S. markets closed for a public holiday, market participants focused on regional economic indicators, including factory activity from Japan and China. The U.S. Dollar Index, which tracks the greenback against a basket of major currencies, slipped 0.1% during Asian trading hours after finishing largely flat last week. U.S. Dollar Index futures were largely unchanged as of 04:59 GMT.

Markets Digest Fed Easing Prospects After PCE Data

Currency movements remained muted as traders assessed the potential for Fed policy easing next month. According to the CME FedWatch tool, there is an 89% probability of a 25-basis-point rate cut at the September 16–17 meeting. Expectations were supported by Fed Chair Jerome Powell’s comments at the Jackson Hole symposium, where he emphasized that policymakers are ready to adjust policy if inflation continues to ease and the labor market shows signs of slowing.

Data released Friday showed the U.S. core PCE price index, the Fed’s preferred inflation gauge, rose 0.3% month-on-month, bringing the annual rate to 2.9%, the highest in five months. The figures were in line with expectations, suggesting that U.S. President Donald Trump’s broad tariffs have not significantly passed through to consumer prices, despite recent surprises in producer inflation. Attention now turns to Friday’s August nonfarm payrolls report, which will be critical in shaping bets for a rate cut.

Asian Currencies Show Limited Moves; PMIs Mixed

The Indian rupee edged up 0.1% to 88.25 per dollar, staying near Friday’s record high of 88.31. The Japanese yen was largely unchanged. A private survey indicated Japan’s factory activity contracted in August, hit by declining export orders as U.S. tariffs weighed on export-focused manufacturers.

In China, the onshore yuan (USD/CNY) remained steady, while the offshore yuan (USD/CNH) ticked 0.1% higher. A RatingDog survey showed factory activity expanded at its fastest pace in five months, reflecting easing U.S.-China trade tensions. This contrasted with the official PMI, which reported a fifth consecutive contraction in August, but offered some optimism for a potential rebound in industrial demand.

Elsewhere, the South Korean won rose 0.3% versus the dollar, the Singapore dollar traded flat, and the Australian dollar gained 0.1% against the greenback.

Investors are also monitoring concerns over Fed independence after President Trump attempted last week to dismiss Federal Reserve Governor Lisa Cook over alleged mortgage fraud in 2021. Cook has rejected the move and filed a lawsuit challenging her removal.

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.

Oil prices declined in Asian markets on Monday, continuing a downward trend following August losses, as investors appeared less concerned about immediate supply disruptions from potential secondary sanctions on Russian crude. Attention shifted instead to new Chinese factory data for indications of demand.

At 23:01 ET (03:01 GMT), Brent crude for October delivery fell 0.4% to $67.21 per barrel, while West Texas Intermediate (WTI) crude also declined 0.4%, settling at $63.78 per barrel. Both benchmarks recorded drops of more than 7% during August, pressured by concerns over oversupply amid steady OPEC+ production increases.

Market Shows Little Reaction to Russian Supply Sanction Risks

Hopes for a Russia-Ukraine peace deal have waned following U.S. President Donald Trump’s call last month for Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin to hold direct talks before considering a trilateral summit in Washington. Despite this, worries about potential sanctions on Russian oil buyers have eased.

“Oil prices settled lower last week despite growing European calls for secondary sanctions on buyers of Russian oil and gas. The mild reaction may suggest the market is becoming increasingly numb towards sanction risks,” ING analysts said in a note.

“And that to be effective, sanctions would likely need US backing. Up until now, the US has only imposed secondary tariffs on India for its purchases of Russian oil, not other key players like China,” they added.

In connection with India’s continued purchases of Russian crude, an additional 25% U.S. tariff on Indian imports came into effect last week, doubling the total duty to 50% as of August 27.

Traders Weigh Demand Outlook; China PMI in Focus

Seasonal trends are also under scrutiny, with U.S. fuel consumption expected to ease as the summer driving season winds down. Rising OPEC+ output in the coming months may increase supply further, potentially boosting inventories if economic growth remains slow.

Demand projections remain mixed following contrasting economic readings from China. The official manufacturing purchasing managers’ index (PMI) showed a contraction in August, while a private RatigDog survey indicated that factory activity rebounded at the fastest pace in five 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.

Tower Resources (LSE:TRP) has expanded its Bridge Loan by £250,000, raising the total facility to £1,000,000. The additional funds will provide working capital for drilling the NJOM-3 well on the Thali license in Cameroon. This financing aligns with the company’s strategy to keep its drilling schedule on track while ongoing license extension and farm-out approvals are processed, underlining its commitment to advancing energy operations in Africa.

About Tower Resources

Tower Resources plc is an AIM-listed energy company focused on building a diversified portfolio of oil and gas assets across Africa. The company is advancing operations in Cameroon to generate cash flow through short-cycle development and rapid production, while mitigating exploration risks in Namibia and South Africa through the acquisition of 3D seismic data.

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.

Kainos Group plc (LSE:KNOS) has released a trading update highlighting robust sales, with full-year revenues for March 2026 expected at the top of forecasts. Growth is being driven across multiple divisions, particularly Workday Products, which surpassed $100 million in annual recurring revenue. Revenue increases are also supported by new projects and significant contracts in healthcare and public sectors, while Workday Services continues expanding in Europe, North America, and other regions. Despite macroeconomic uncertainty, Kainos remains confident in its strategy, backed by a solid project backlog and a healthy pipeline, positioning the company for sustainable long-term shareholder value.

The company’s outlook reflects strong financial fundamentals and positive corporate developments, including share buybacks and strategic board appointments. However, some technical indicators are bearish and the P/E ratio remains relatively high, suggesting cautious monitoring. The dividend yield provides additional appeal, with a focus on tracking revenue growth and market trends.

About Kainos Group plc

Kainos Group plc is a UK-based IT provider specializing in Digital Services, Workday Services, and Workday Products. Serving public sector, commercial, and healthcare clients, Kainos delivers custom digital platforms, implements Workday finance, HR, and planning products, and enhances system security and compliance. The company operates in over 20 countries and is listed on the London Stock Exchange.

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.

XP Factory PLC (LSE:XPF) announced a 19% increase in group revenue to £57.8 million for the year ending March 2025, fueled by strong performance from its Escape Hunt and Boom Battle Bar brands. The company recorded a pre-IFRS 16 Group Adjusted EBITDA of £6.6 million, supported by solid site-level EBITDA margins and returns on capital. Growth was driven by new site openings, acquisitions, and the signing of a £10 million revolving credit facility with Barclays to underpin its accelerated expansion strategy. Investments in technology and data analytics are enhancing decision-making and customer experiences, with positive momentum in corporate bookings and a cautiously optimistic outlook for meeting market expectations.

About XP Factory PLC

XP Factory PLC is a UK-based experiential leisure company operating two fast-growing brands: Escape Hunt and Boom Battle Bar. Escape Hunt delivers immersive escape-the-room experiences through owner-operated UK sites and international franchises, complemented by digital games. Boom Battle Bar blends competitive social experiences with themed cocktails and street food, featuring games such as augmented reality darts and axe throwing. The company aims to expand both domestically and internationally, offering high-quality entertainment and interactive experiences.

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.

ValiRx PLC (LSE:VAL) reports that its subsidiary, Cytolytix Limited, has received a notice of allowance for a key European patent related to its nanoparticle technology for anti-cancer peptides, bolstering the company’s intellectual property portfolio. Cytolytix is also advancing its second-generation delivery platform and collaborating with partners to assess efficacy in cancer models, including triple-negative breast cancer and prostate cancer, with encouraging preliminary outcomes. These developments are expected to enhance ValiRx’s standing in the oncolytic peptide field and open avenues for partnerships and funding.

Financial challenges continue to influence ValiRx’s outlook, with significant losses and dependency on external financing weighing heavily. Technical indicators show a neutral to slightly positive trend, but the company’s negative valuation due to unprofitability remains a limiting factor. The lack of recent earnings calls or corporate events provides limited additional insight.

About ValiRx PLC

ValiRx PLC is a life sciences company focused on early-stage cancer therapeutics and women’s health. The company accelerates the translation of innovative science into impactful medicines, providing the scientific, financial, and commercial framework to advance promising drug candidates through optimized clinical development pathways.

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.