Category: Market News

BAE Systems (LSE:BA.) has been chosen by the Air Force Research Laboratory (AFRL) to further enhance its technology aimed at improving medical care for injured military personnel on the battlefield.

As part of the new Force Optimization through Rapid-prototyping, Gear Enhancements & Innovative Technology (FORGE-IT) initiative, BAE Systems will continue the development and deployment of the Battlefield Assisted Trauma Distributed Operations Kit (BATDOK®).

Originally created with support from BAE Systems, BATDOK® replaces traditional paper records by digitally capturing detailed injury and treatment information from the moment a service member is wounded until recovery.

The FORGE-IT program plans to upgrade BATDOK® by integrating remote patient monitoring features and adding AI-powered clinical decision support to enhance medical care delivered in combat zones.

“At BAE Systems, our mission is to safeguard those who defend us,” said Nathaniel Wiesner, Vice President and General Manager of Ground Systems & Services for BAE Systems Space & Mission Systems. “Projects like FORGE-IT strengthen the capabilities of our military personnel to provide critical, life-saving treatment under dangerous conditions, ensuring wounded soldiers receive prompt and effective care right where they are.”

Information collected by BATDOK® will feed into the Department of Defense’s Joint Operational Medicine Information Systems (JOMIS), a comprehensive platform that supports health care delivery for U.S. Armed Forces across deployed environments and domestic medical facilities.

This integration is designed to improve medical decision-making and ensure accurate, continuous documentation of service members’ injuries throughout their treatment process.

European equities saw broad gains on Thursday, buoyed by upbeat U.S. employment figures and positive geopolitical developments.

Investor confidence was further supported by the announcement of a new trade agreement between the United States and Vietnam, alongside news that the Trump administration is loosening export controls on China related to chip design software and ethane.

In terms of major indices, the U.K.’s FTSE 100 rose 0.6%, Germany’s DAX increased by 0.4%, and France’s CAC 40 edged up 0.2%.

The British pound and government bonds strengthened after Prime Minister Keir Starmer expressed strong support for Rachel Reeves to remain Chancellor through the next election cycle and beyond.

On the corporate front, German wind turbine producer Nordex SE gained momentum with the announcement of new contracts secured across the U.K., Belgium, and France.

Meanwhile, Murray Income Trust rose following an unexpected strategic review initiated by its board.

3i Infrastructure also saw its shares rise after reporting first-quarter total income that met market expectations.

Conversely, shares of Swiss pharma giant Novartis AG declined after revealing that its drug Cosentyx did not meet endpoints in a late-stage trial targeting vascular inflammation.

British luxury watch retailer Watches of Switzerland dropped after cautioning investors about margin pressures stemming from U.S. tariffs.

Wall Street appeared ready to open slightly higher on Thursday, with futures pointing to early gains fueled by a surprisingly strong June jobs report and renewed optimism around international trade.

Pre-market momentum gained traction after the U.S. Labor Department reported that non-farm payrolls grew by 147,000 last month, exceeding economist projections of 110,000. This figure also beat May’s revised tally of 144,000 jobs, which was previously estimated at 139,000.

The unemployment rate showed unexpected improvement, dipping to 4.1% from May’s 4.2%. Analysts had forecast a modest increase to 4.3%.

The upbeat labor data suggests resilience in the U.S. job market, but it could also complicate the Federal Reserve’s path toward cutting interest rates in the short term, which might dampen some investor enthusiasm.

With U.S. markets scheduled for an early close ahead of the Independence Day holiday, trading activity is expected to remain somewhat muted later in the session.

On Wednesday, major indexes closed mostly higher. The Nasdaq and S&P 500 bounced back from Tuesday’s dip and ended the day at new all-time highs. The Nasdaq rose 190.24 points, or 0.9%, to 20,393.13, while the S&P 500 added 29.41 points, or 0.5%, to 6,227.42. The Dow Jones Industrial Average slipped 10.52 points, a fractional decline that left it at 44,484.42.

The positive mood was boosted by news from former President Donald Trump, who announced a trade agreement with Vietnam via his Truth Social account. According to Trump, the agreement imposes “a 20 percent tariff on goods sent to the U.S. and a 40 percent tariff on any transshipping.”

He continued, “In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade.”

“In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff,” Trump said.

This development helped counterbalance disappointing data from payroll company ADP, which revealed private-sector job losses in June. According to the report, U.S. businesses cut 33,000 jobs, compared to a downwardly revised gain of 29,000 in May. Forecasts had predicted an increase of 95,000 positions.

Despite that miss, sector-specific gains drove markets higher. Steel companies saw notable strength, pushing the NYSE Arca Steel Index up 4.3% to its highest close in seven months. Hardware stocks also surged, with the NYSE Arca Computer Hardware Index gaining 2.5%.

Meanwhile, energy, airline, and semiconductor shares posted solid gains, while utility and healthcare stocks lagged behind the broader rally.

U.S. stock futures showed modest gains Thursday ahead of the highly anticipated June nonfarm payrolls data. Meanwhile, investors were analyzing the initial trade agreement announced between the U.S. and Vietnam, as the White House pushes to secure bilateral deals ahead of the looming expiration of delayed reciprocal tariffs. In Washington, Republican leaders in the House are working to finalize President Donald Trump’s signature tax and spending legislation before the self-imposed July 4 deadline.

Futures move upward

By early Thursday morning, Dow futures were up by 39 points (0.1%), S&P 500 futures climbed 6 points (0.1%), and Nasdaq 100 futures gained 33 points (0.1%). This marks the final trading day before the U.S. market closes for the Independence Day holiday.

Wall Street’s main indexes mostly closed higher on Wednesday. Both the S&P 500 and Nasdaq Composite set new record highs, while the Dow remained flat but near its all-time peak. Investor confidence was buoyed by Trump’s announcement of a trade deal with Vietnam, a key supplier of goods like footwear and sports apparel. Tech giants such as Nvidia and Apple also saw their shares rise.

Markets initially reacted negatively to a surprise decline in private payrolls data released earlier in the week, but many interpreted this as increasing the chances the Federal Reserve will aggressively cut interest rates soon.

Focus on the June jobs report

The spotlight now shifts to Thursday’s official U.S. jobs report from the Bureau of Labor Statistics. Economists forecast an addition of 111,000 jobs in June, down from May’s 139,000, while the unemployment rate is expected to tick up slightly to 4.3%.

Wednesday’s ADP employment report suggested companies are hiring cautiously amid tariff-related uncertainty, with workers less willing to change jobs. However, the ADP numbers don’t always align with the official government data.

Fed officials, tasked with promoting maximum employment, will be closely watching these labor market trends, especially given concerns about tariffs’ impact on the broader economy. Fed Chair Jerome Powell has faced mounting pressure from President Trump to cut rates quickly but has signaled a measured approach, noting the Fed could reduce borrowing costs at upcoming policy meetings later this year.

Trump unveils Vietnam trade agreement

Stocks erased early losses Wednesday following Trump’s announcement of a new trade deal with Vietnam that sets a 20% tariff on imports from the Southeast Asian nation. Analysts noted this rate is lower than the harsher reciprocal tariffs Trump had proposed in April.

Shares of companies like Nike, which source products from Vietnam, rose on the news. The agreement also imposes a 40% tariff on “transshipping,” a tactic used to reroute Chinese goods through Vietnam to avoid U.S. tariffs. The White House sees this deal as a step forward in reining in such practices.

Although still preliminary and less comprehensive than usual trade agreements, the pact suggests progress by the Trump administration in securing new trade deals ahead of the planned reinstatement of reciprocal tariffs later this month. Trump has also struck similar trade pauses with China and the U.K. and hinted at potential talks with India.

U.S. eases chip export controls to China

In related trade news, the U.S. Commerce Department has lifted restrictions on exports of chip design software to China, according to statements from companies like Synopsys and Cadence Design Systems. Both firms’ shares surged following the announcement.

Synopsys confirmed the U.S. government had rescinded export limitations imposed in late May and that it was working to restore product access in China.

House Republicans race to pass Trump’s budget plan

Back in Washington, Republican leaders in the House of Representatives are scrambling to secure enough votes for a sweeping tax and spending package championed by Trump. The legislation aims to extend and expand 2017 tax cuts while increasing defense and border security funding.

However, some conservatives worry the bill would worsen the national debt and have criticized proposed Medicaid cuts. With narrow Republican majorities and unified Democratic opposition, leaders face a tight margin. Trump’s July 4 deadline adds urgency to the negotiations.

European stock markets edged higher on Thursday, buoyed by optimism over trade developments, though gains were somewhat restrained as investors awaited the release of the crucial U.S. monthly employment figures.

By 07:05 GMT, Germany’s DAX rose 0.4%, France’s CAC 40 added 0.3%, and the UK’s FTSE 100 climbed 0.5%.

Trade hopes lift sentiment after U.S. gains

European shares took cues from Wall Street’s strong performance overnight, where the S&P 500 and NASDAQ Composite both hit record levels. The positive mood was sparked by President Donald Trump’s announcement that a trade deal had been reached with Vietnam, though details remain limited.

This announcement has raised expectations that further agreements may be finalized ahead of the July 9 deadline. This follows the earlier trade deal with China, which led the Trump administration to ease restrictions on chip design software sales to China.

The European Commission, acting on behalf of the EU, is scheduled to hold discussions with U.S. officials later this week.

Focus on U.S. payroll data

While eurozone services sector data are due later Thursday, all eyes remain on the U.S. payroll report. Analysts forecast an increase of around 110,000 jobs in June, down from May’s 139,000, with the unemployment rate expected to tick up slightly to 4.3%. However, there is uncertainty, as a private sector payroll report on Wednesday showed the first drop in over two years.

The U.S. labor market’s resilience has reassured many Federal Reserve officials that interest rates can remain steady while the impact of tariffs on inflation becomes clearer.

Currently, the market prices in roughly a 25% chance of a rate cut in July, but a weaker-than-expected jobs report could increase those odds substantially.

UK political jitters affect markets

In the UK, investors remain cautious following a sharp rise in gilt yields Wednesday, triggered by concerns over the government’s handling of welfare reform. Chancellor Rachel Reeves appeared visibly distressed in Parliament, with the government citing a “personal matter.” Prime Minister Keir Starmer later affirmed his full support for Reeves.

Corporate news highlights

Currys (LSE:CURY) reported annual results surpassing expectations, with strong sales growth and disciplined cost management helping the retailer navigate inflationary pressures and higher wage expenses.

Meanwhile, Watches Of Switzerland (LSE:WOSG) forecasted full-year revenue growth between 6% and 10%, buoyed by its U.S. business surpassing $1 billion in revenue for the first time, driven by robust consumer demand.

Oil prices pull back amid supply concerns

Oil prices declined on Thursday, giving back some of Wednesday’s sharp gains following an unexpected rise in U.S. crude inventories and ahead of an OPEC+ meeting anticipated to result in increased output.

At 03:05 ET, Brent crude futures fell 0.8% to $68.58 per barrel, while U.S. West Texas Intermediate futures dropped 0.8% to $66.90.

Wednesday’s jump in oil prices was linked to Iran’s suspension of cooperation with the U.N. nuclear watchdog, stoking fears of supply disruptions in the Middle East.

However, U.S. government data revealed a 3.85 million barrel build in inventories last week, raising questions about fuel demand strength during the summer.

OPEC+ producers are expected to meet over the weekend and likely agree to raise output by around 411,000 barrels per day starting in August.

After a slight downturn in May, the eurozone’s services industry bounced back into growth territory in June, according to a recent report.

The S&P Global HCOB Eurozone Services Purchasing Managers’ Index (PMI) rose to 50.5 in June, up from 49.7 the previous month. This final figure also surpassed the earlier preliminary estimate of 50.0.

Since a PMI above 50 signals expansion and below 50 indicates contraction, the latest data confirms a modest recovery for the eurozone’s key services sector.

While activity rebounded, overall demand within the sector remained subdued. Nevertheless, business confidence showed some positive momentum during the month, hinting at a cautiously improving outlook.

The U.S. dollar remained relatively stable on Thursday, hovering near multi-year lows as investors awaited the release of the pivotal U.S. monthly employment report. This key data could heavily influence the Federal Reserve’s upcoming policy decisions.

At 04:00 ET (08:00 GMT), the Dollar Index—which measures the greenback against six major currencies—was largely unchanged at 96.420, lingering close to its lowest point in over three years. The dollar is on track to finish the week down about 0.5%.

Market Focus Shifts to Payrolls

Despite recent news including President Donald Trump’s announcement of a trade deal with Vietnam and Republican efforts in the House to advance a major tax cut package, the dollar’s movement was muted. The market’s attention is squarely fixed on the jobs report due later Thursday, as its results could be decisive for whether the Fed opts for a rate cut at its July meeting.

Economists forecast an increase of 110,000 new jobs in June, a slight slowdown from May’s 139,000. However, concerns linger due to Wednesday’s private payrolls report showing the first drop in over two years.

With inflation pressures appearing moderate and the labor market remaining a focal point, investors are closely watching for signs on whether the Fed will continue its cautious approach.

“Fed Chair Jerome Powell, who favors keeping rates steady, points to persistent inflation and a robust labor market as reasons to maintain a restrictive rate range of 4.25%-4.50% for now,” analysts at ING commented. “Any downside surprise in the jobs data would strengthen the case for a rate cut in July, currently priced in at a 26% probability by the market.”

Sterling Recovers Following Previous Selloff

In European markets, the euro edged up 0.1% against the dollar to 1.1806, approaching the high levels seen in September 2021. Eurozone services PMI figures are due later and may influence sentiment, but the U.S. payroll report remains the key driver.

Last month, the European Central Bank reduced interest rates for the eighth time in a year, lowering the deposit rate to 2%, and signaled it may hold steady at its next meeting. Alfred Kammer, head of the IMF’s European Department, noted on Wednesday that the ECB should maintain its current stance unless new developments significantly alter inflation expectations.

“Inflation risks in the eurozone are balanced,” Kammer said at the ECB Forum in Sintra, Portugal. “We believe the ECB should stay on course and keep the deposit rate at 2% unless there’s a major shock to inflation projections—which we do not currently foresee.”

Meanwhile, the British pound rebounded 0.2% to 1.3665 after dropping nearly 1% the day before amid concerns over UK fiscal policy following government delays on welfare reforms.

“Markets briefly feared that Chancellor Rachel Reeves might resign amid fiscal uncertainties,” ING analysts said. “In hindsight, Prime Minister Keir Starmer may have misread the mood of Parliament and the market by hesitating to fully support her—but he has now done so.”

They added, “The UK faces significant fiscal challenges ahead of the November budget.”

Asian Currencies Show Limited Movement

In Asia, the dollar was steady against the yen at 143.88, with traders cautious amid ongoing talks around U.S. trade deals. The dollar also slipped slightly against the Chinese yuan, trading at 7.1621, following a softer-than-expected private services sector reading for June—though growth continues for the 30th month in a row.

The yuan remained relatively unaffected by recent announcements from major chipmakers that the U.S. has eased some export restrictions to China, effective immediately. This development signals an improvement in Sino-American trade relations, just weeks after both sides agreed on a framework trade deal.

Gold prices remained steady during Thursday’s Asian trading session after climbing over the past three days, with investors adopting a cautious stance ahead of the crucial U.S. non-farm payroll report that could signal the Federal Reserve’s next moves.

The precious metal found support amid ongoing concerns about the U.S. fiscal deficit, as House Republicans worked to advance President Trump’s ambitious tax reform package. Uncertainty surrounding upcoming U.S. trade negotiations before the July 9 tariff deadline also helped maintain positive investor sentiment toward gold.

Spot gold hovered around $3,352.75 per ounce, showing little change, while August gold futures edged up slightly by 0.1% to $3,363.70 per ounce as of early Thursday (01:43 ET).

Gold has rallied nearly 2.5% so far this week, recouping losses from the previous session.

US Jobs Report Seen as Key Indicator for Fed Policy

All eyes are on Thursday’s employment data release to better gauge the Federal Reserve’s interest rate outlook. Fed Chair Jerome Powell’s recent remarks signaled a more cautious and potentially dovish approach, with the possibility of a rate cut next month not ruled out.

While markets largely anticipate a rate cut in September, softer inflation figures and early signs of a slowdown in the U.S. economy have raised expectations that easing could come sooner and be more substantial.

Tensions have escalated as President Trump threatened to replace Powell over his push for immediate rate reductions, adding to speculation about a more aggressive shift in monetary policy.

Expectations of lower rates combined with a weakening U.S. dollar have provided a boost to gold prices this week.

Fiscal Deficit Worries and Trade Deal Uncertainty Support Gold

On the political front, efforts to pass Trump’s extensive tax-cut legislation hit roadblocks in the House on Wednesday, with Republican lawmakers struggling to secure enough support ahead of the July 4 deadline.

The bill, which aims to reduce taxes, cut social spending, and boost military and immigration enforcement funding, is expected to increase the national debt by $3.3 trillion.

Meanwhile, the approaching July 9 deadline for key trade deals remains a source of uncertainty, with only three agreements finalized so far — with the UK, China, and Vietnam — and no indication that the deadline will be extended.

Other Metals Show Mixed Movements

The U.S. Dollar Index inched up 0.1% during Asian hours but stayed near its lowest levels since February 2022.

Silver futures traded flat around $36.46 per ounce, while platinum futures slipped 1.2% to $1,417.80.

Copper prices showed mixed trends: London Metal Exchange futures fell 0.2% to just under $10,000 a ton, whereas U.S. copper futures climbed 0.6% to $5.187 per pound.

Oil prices retreated in Asian trading on Thursday, reversing sharp gains from the previous session after US data revealed an unexpected rise in crude inventories, fueling concerns about weaker fuel demand.

• Brent crude for September delivery dropped 0.6% to $68.68 per barrel.
• West Texas Intermediate (WTI) futures declined 0.7% to $65.58 per barrel as of 21:19 ET (01:19 GMT).

Prices had surged 2.5% to 3% on Wednesday following Iran’s suspension of cooperation with the UN nuclear watchdog, heightening fears of renewed tensions in the Middle East. However, these gains were tempered by concerns over rising supply and slowing demand.

US Inventory Data Highlights Demand Worries

US crude oil inventories unexpectedly increased by 3.85 million barrels in the week ending June 27, defying forecasts of a 3.5 million barrel drawdown. Gasoline stocks also saw a substantial build of 4.19 million barrels, raising questions about summer fuel demand strength.

Attention now turns to the upcoming US nonfarm payrolls report for June, expected later Thursday, which could signal further cooling in the labor market and broader economic challenges for the world’s largest fuel consumer.

OPEC+ Plans Production Boost

The Organization of Petroleum Exporting Countries and allies (OPEC+) is scheduled to meet over the weekend, with reports indicating a planned output increase of 411,000 barrels per day starting in August. This production hike follows similar increases in recent months as the group gradually rolls back two years of deep cuts.

The production increase aims to balance economic pressures from sustained low oil prices and address concerns about overproduction within OPEC members. Meanwhile, US President Donald Trump continues to pressure the cartel to raise production and keep prices low, also urging US producers to boost output.

British stocks started Thursday’s trading session on a positive note, with the FTSE 100 rising 0.5% as of 07:32 GMT. Meanwhile, the British pound slipped below the $1.37 mark after holding above that level for two days, trading around $1.36, up 0.3% against the dollar. European markets also saw modest gains, with Germany’s DAX and France’s CAC 40 rising about 0.3%.

Currys Beats Profit Expectations

Currys PLC (LSE:CURY) reported annual adjusted pre-tax profits of £162 million for the year ended May 3, surpassing analyst forecasts of £159 million. This strong result was driven by steady sales growth and effective cost control, which helped mitigate inflation and rising wage pressures. Group revenue increased 3% to £8.71 billion, while free cash flow surged 82% to £149 million. The company also proposed a final dividend of 1.5p per share and outlined plans to boost margins and reduce capital and cash costs in the coming years.

Chesnara to Acquire HSBC’s UK Life Insurance Business

Chesnara (LSE:CSN) announced its agreement to acquire HSBC Bank’s UK life insurance arm for £260 million ($355 million). The acquisition is expected to generate over £800 million in lifetime cash flow, with annual cash generation exceeding £140 million during the first five years. Chesnara plans to fund the purchase through a mix of cash reserves, revolving credit facilities, and a rights issue.

Baltic Classifieds Reports Strong Profit Growth

Baltic Classifieds Group Plc (LSE:BCG) posted a 40% jump in operating profit to €53.5 million for the year ended April 30, supported by growth in core classifieds segments offsetting a downturn in Estonia’s auto market. Revenue rose 15% to €82.8 million, EBITDA increased 17% to €64.4 million (78% margin), and adjusted net income grew 21% to €54.4 million. Profit for the year reached €44.8 million.

Ryanair Cancels Flights Due to French ATC Strike

Ryanair (LSE:0RYA) announced the cancellation of 170 flights due to a nationwide air traffic controller strike in France affecting Thursday and Friday, impacting over 30,000 passengers.