Category: Market News

U.S. stock index futures suggest a modestly higher open on Tuesday, indicating that investors are likely to build on the solid gains seen in the previous trading session.

Tech shares look set to continue their upward momentum, boosted by Palantir’s (NASDAQ:PLTR) impressive quarterly earnings report. The software company’s shares jumped nearly 7% in pre-market trading after revealing a nearly 50% surge in sales during the second quarter, driven by strong demand for AI services.

DuPont (NYSE:DD) is also showing notable pre-market strength after posting better-than-expected Q2 results and raising its outlook.

In contrast, Caterpillar (NYSE:CAT) shares could face downward pressure following weaker-than-anticipated earnings for the quarter. Similarly, telehealth firm Hims & Hers Health (NYSE:HIMS) may see a decline after missing revenue estimates for Q2.

Trading volumes might be relatively light as market participants pause to digest recent volatility.

On Monday, stocks climbed sharply at the open and maintained gains throughout the session. The rally helped recover much of the losses from the previous two days. By the close, the major indexes hovered near session highs: the Nasdaq gained 403.45 points (2.0%) to finish at 21,053.58, the S&P 500 rose 91.93 points (1.5%) to 6,329.94, and the Dow added 585.06 points (1.3%) to close at 44,173.64.

This rebound came as investors snapped up shares following last week’s sell-off, which pushed the Nasdaq and S&P 500 significantly below their record highs. Friday’s drop was fueled by concerns over new tariffs announced by President Donald Trump, disappointing jobs data, and a sharp pullback in Amazon’s (NASDAQ:AMZN) stock.

Optimism that weaker employment figures could prompt the Federal Reserve to cut interest rates next month also supported buying. The CME Group’s FedWatch tool now shows a 91.9% probability of a 25-basis-point rate cut in September, up from 63.1% just a week ago.

On the economic front, the Commerce Department reported a sharp 4.8% decline in factory orders for June, reversing the revised 8.3% surge seen in May. Economists had predicted a 5% drop, following an initially reported 8.2% gain the previous month.

Networking stocks led the charge on Monday, with the NYSE Arca Networking Index soaring 10% to a record closing level. CommScope (NASDAQ:COMM) was a standout, rocketing 86.3% after announcing the sale of its connectivity and cable solutions division to Amphenol (NASDAQ:APH).

Gold miners also gained, buoyed by a rising gold price, pushing the NYSE Arca Gold Bugs Index up 4.7%. Other sectors such as software, brokerage, and computer hardware also experienced solid advances alongside most major market groups.

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.

New order volumes in the UK services industry fell in July at their steepest rate since November 2022, according to a Tuesday survey that may intensify the Bank of England’s worries over economic growth.

The S&P Global Purchasing Managers’ Index (PMI) for UK services dropped to 51.8 in July from 52.8 in June, a decline less severe than an earlier estimate of 51.2.

While the index remains above the 50 threshold that indicates expansion, the sector also saw the quickest pace of job cuts in six months.

This report comes ahead of the Bank of England’s interest rate announcement on Thursday, where a rate cut from 4.25% to 4% is widely anticipated, marking the fifth reduction in the current tightening cycle.

However, some members of the policymaking committee may favor holding rates steady due to inflation surging well beyond the 2% target.

The softer services data adds complexity to the bank’s balancing act between curbing inflation and supporting a slowing economy.

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.

Ryanair (LSE:0RYA) announced on Tuesday that its passenger traffic in July grew by 2.5%, totaling 20.7 million travelers, with a strong load factor of 96%.

The Irish budget airline remains confident about achieving its full fiscal year 2026 forecast of 206 million passengers, consistent with market expectations.

Analysts estimate that Ryanair will transport around 61 million passengers during the second quarter.

To meet its annual goal, the airline is expected to sustain roughly 2% passenger growth in August and September.

Supporting this outlook, aviation data from Cirium indicates seat capacity increases that align with anticipated growth rates of 2% in August and 1% in September.

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.

BP (LSE:BP.) posted second-quarter earnings that exceeded analyst expectations on Tuesday, rebounding despite recent turbulence in the global oil and gas landscape.

The company’s underlying replacement cost (RC) profit for Q2 rose to $2.4 billion, up from $1.4 billion in the first quarter, driven by stronger results across its business units.

Although this represented a decrease from the $2.76 billion recorded in the same quarter last year, it outperformed the consensus estimate of $1.81 billion compiled by LSEG.

Operating cash flow reached $6.3 billion, a significant increase from $2.8 billion in Q1, despite factoring in a $1.1 billion payment related to a Gulf of Mexico settlement.

The oil production segment delivered an underlying RC profit of $2.3 billion, falling short of last year’s figures due to weaker prices realized and higher depreciation charges.

Production grew 2.5% year-over-year, reaching 1.52 million barrels of oil equivalent per day, while realized liquids prices declined to $59.74 per barrel from $73.05 a year earlier.

Gas and low carbon energy generated $1.5 billion in underlying RC profit, remaining largely flat year-on-year as reduced production was balanced by improved margins. Production in this segment dropped 13% following divestments in Egypt and Trinidad.

The customers and products division saw underlying RC profit climb to $1.5 billion from $1.1 billion a year ago, supported by stronger trading and midstream activities that offset softer refining margins. BP’s refining availability remained robust at 96.4%.

“We are delivering our plan with operational reliability above 96%,” said CEO Murray Auchincloss. “We remain fully focused on delivering safely and reliably, maintaining capital discipline and driving performance improvement.”

He added that BP is undertaking a strategic review of its portfolio to “ensure we are maximizing shareholder value.”

Capital expenditure for the quarter totaled $3.4 billion. Net debt decreased to $26.0 billion from $27.0 billion in Q1, aided by $1.4 billion in divestment proceeds.

BP also increased its dividend by 4% to 8.32 cents per share and announced a new $750 million share repurchase program.

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.

Spectris PLC (LSE:SXS) shares rose 1.7% on Tuesday following an announcement that KKR has raised its cash offer to acquire all outstanding and forthcoming shares of the company.

The updated bid values Spectris at £41.75 per share, consisting of £41.47 in cash plus an interim dividend of 28 pence per share.

This offer is 1.8% higher than Advent International’s previous bid of £41.00 per share, placing Spectris’s overall valuation at around £4.2 billion and implying an enterprise value of approximately £4.8 billion.

KKR’s increased proposal, to be executed via a court-approved scheme of arrangement, represents a substantial premium of 104.9% compared to Spectris’s closing price of £20.38 on June 6, 2025 — the last trading day before the offer period commenced.

In light of the improved offer, Spectris’s board has unanimously withdrawn its prior recommendation for Advent International’s bid and now urges shareholders to support the KKR scheme at the forthcoming court and general meetings set for August 27, 2025.

The deal is anticipated to complete by or before Q1 2026, pending satisfaction of all customary closing conditions.

KKR plans to fund the additional cash component through a mix of equity from its managed funds and debt financing. Some equity co-investors, including groups managed by Neuberger Berman and Pathway Capital Management, will hold passive minority stakes.

The bid values Spectris at 20.3 times adjusted EBITDA and 23.9 times adjusted EBIT for the fiscal year ended December 31, 2024.

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 Power Ltd (LSE:XPP) reported Tuesday an EBITA of £4.8 million for the first half of 2025, missing analyst forecasts by 42%, largely due to a £2.3 million foreign exchange headwind.

Revenue declined 11% year-over-year on a constant currency basis, totaling £111 million, and was down 13% on a reported basis.

Despite the headwinds, the company’s book-to-bill ratio improved to 1.02x for the period, up from 0.7x in the first half of 2024.

Order intake rose 28% year-over-year to £113 million across all sectors. By segment, semiconductors posted a book-to-bill of 0.88x, industrial technology led with 1.20x, and healthcare came in at 0.94x.

Adjusted earnings per share fell sharply to 0.4p, a 98% drop compared to last year. Net debt was reduced by 44% to £57.9 million, aided by a share placement, with the net debt to EBITDA ratio at 1.8x.

On a brighter note, gross margin improved by 80 basis points year-on-year despite revenue pressures. The company also announced new cost-saving measures expected to deliver £5.5 million in savings in the second half of 2025.

Management expects “healthy sequential progress” during the second half, highlighting early signs of improvement in key markets.

However, they cautioned that full-year results will depend on the strength of the fourth-quarter order book, with a “range of outcomes” possible.

Shares of XP Power are currently priced at 851.00p. Jefferies analysts maintain a hold rating and set a price target of 900.00p, implying about 6% upside.

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.

Smith & Nephew (LSE:SN.) announced an 11.2% increase in trading profit for the first half of 2025 on Tuesday, driven by effective cost-cutting measures and a rebound in its U.S. business, which helped counterbalance softer demand from China.

The medical devices company posted a trading profit of $523 million for the six months ending June 28, surpassing analysts’ forecast of $496 million. The trading profit margin rose to 17.7%, up from 16.7% in the same period last year.

Revenue climbed to $2.96 billion compared to $2.82 billion a year earlier. Operating profit grew 30.6% year-over-year, reaching $429 million, while earnings per share increased to 33.5 cents.

Smith & Nephew also revealed plans for a new $500 million share repurchase program scheduled for the second half of 2025.

“This additional return of value will be undertaken in the second half of 2025 and reflects strong cash generation and balance sheet resulting from the 12-Point Plan transformation,” the company said in a statement.

Underlying revenue growth accelerated to 6.7% in Q2, with reported growth of 7.8% boosted by a 110 basis point positive impact from currency fluctuations.

Smith & Nephew confirmed its full-year guidance for 2025 remains unchanged.

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 Capita plc (LSE:CPI) increased by 2.6% on Tuesday following the company’s report of robust results in its public sector division, alongside confirmation of its full-year outlook despite ongoing challenges in its contact center segment.

For the first half of 2025, Capita posted adjusted revenues of £1,154.8 million, a 4% decrease from £1,198.6 million in the same period last year, aligning closely with analysts’ consensus estimate of £1,161 million.

Nonetheless, adjusted operating profit surpassed expectations, reaching £42.6 million versus the forecasted £34.9 million, despite registering a 22% year-on-year decline.

The public sector business, which represents 62% of the group’s total revenue, experienced 4% growth driven by contract wins and expansions. This helped counterbalance a 20% drop in revenue within the contact center division, which has faced contract losses and lower telecommunications volumes.

“We are pleased to see good signs of momentum in the ongoing transformation of Capita, with a particularly strong performance in our Public Sector business, underscoring our important role in bringing innovation and fresh thinking to the challenge of delivering efficient public services,” said Adolfo Hernandez, Chief Executive Officer.

The value of contracts secured rose by 17% to £1,044.4 million compared to the first half of 2024, while the book-to-bill ratio improved from 0.7x to 0.9x.

Capita also reported an unweighted opportunity pipeline totaling £11.7 billion, which includes £4.4 billion related to higher technology-based projects.

The firm upheld its full-year guidance, anticipating flat adjusted revenues overall. However, it raised its growth outlook for the public sector to mid-single digits, while forecasting a mid-teen percentage revenue decline in the contact center segment.

Progress on cost reduction initiatives was highlighted, with £205 million in annualized savings achieved by July 31, 2025. The company remains on course to reach its £250 million savings target by December 2025.

Capita anticipates generating positive free cash flow by the end of 2025.

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 showed little movement during Tuesday’s Asian trading session, stabilizing after a recent steep decline driven by worries over growing supply and weakening demand as global economic challenges intensify.

Despite threats of additional U.S. sanctions targeting buyers of Russian oil, crude continued to face downward pressure, compounded by a firmer U.S. dollar.

By 21:23 ET (01:23 GMT), September Brent futures edged down 0.1% to $68.72 per barrel, while West Texas Intermediate (WTI) crude futures also slipped 0.1% to $65.23 per barrel.

Supply Glut and Slowing Demand Weigh on Oil

Brent and WTI prices fell to their lowest levels in a week, pressured by ongoing concerns about rising production volumes. Over the weekend, OPEC+ confirmed another production increase, adding 547,000 barrels per day for the second month running.

This marks the latest in a series of output hikes this year, as the coalition seeks to reverse the cuts implemented over the past three years and regain greater market share.

These production boosts signal higher supply levels ahead, even as worries mount over declining global demand due to slower economic growth.

The market’s anxiety was heightened by disappointing U.S. nonfarm payroll figures, suggesting a potential drop in fuel consumption from the world’s largest oil user. Additional uncertainty stemmed from concerns about the impact of President Donald Trump’s trade tariffs on the U.S. economy.

Adding to bearish sentiment, China — the world’s biggest oil importer — reported a sharper-than-expected slowdown in manufacturing activity last week, as indicated by weak purchasing managers index (PMI) data.

Although a stronger dollar exerted some downward pressure on crude, this was somewhat balanced by the weak U.S. economic indicators.

Sanctions on Russian Oil Buyers Keep Market on Edge

Last week saw some price support following President Trump’s threats to expand sanctions on countries importing Russian oil amid the ongoing Ukraine conflict.

Trump recently targeted Russia’s largest oil purchasers, China and India, with a 25% tariff imposed on India and warnings of harsher penalties if India did not halt its Russian crude imports immediately. He reiterated these threats on Monday.

The looming possibility of more stringent U.S. sanctions on Russian oil buyers has added a layer of support to oil prices, as such measures could tighten global supply even further.

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 remained steady during Tuesday’s Asian session, pausing after a three-day rally, as investors weighed rising expectations of a Federal Reserve interest rate cut and ongoing global trade disruptions.

Spot gold hovered near recent highs at $3,372.25 per ounce, showing little movement, while December gold futures held flat around $3,425.02/oz as of 01:00 ET (05:00 GMT).

Gold Benefits from Rate Cut Optimism, Trade Tensions

The precious metal extended gains over the past three sessions, with a sharp 2% surge on Friday, triggered by disappointing U.S. labor market data.

The July nonfarm payrolls report showed only 73,000 jobs added, far below market estimates. Additionally, earlier figures for May and June were revised downward, while the unemployment rate ticked up to 4.2%, amplifying concerns about a cooling U.S. economy.

In response, markets have ramped up expectations for Fed easing, now pricing in a 92% chance of a rate reduction in September, according to data from the CME FedWatch Tool.

With interest rates expected to drop, the appeal of non-yielding assets like gold typically increases, as the opportunity cost of holding them declines.

Although the U.S. dollar regained some ground following two sessions of sharp losses, gold remained attractive for international buyers due to the relatively weaker greenback.

Concerns over trade policies also bolstered bullion’s safe-haven demand. U.S. Trade Representative Jamieson Greer indicated that the broad tariffs targeting imports from nearly 70 countries—first introduced by President Trump—are unlikely to be rolled back, stoking fears of inflationary pressures.

Further unsettling markets were renewed tariff threats on India, sparked by its ongoing oil trade with Russia. These developments added to global economic uncertainty and supported safe-haven flows into gold.

Other Metals Mixed; Platinum Falls, Silver Inches Higher

In other metals trading, platinum futures slipped 0.5% to $1,335.65/oz, while silver futures rose slightly by 0.2% to $37.415/oz.

On the industrial side, benchmark copper futures on the London Metal Exchange climbed 0.3%, reaching $9,720.65 per ton. However, U.S. copper futures stayed mostly flat at $4.454 per pound.

Notably, U.S. copper prices plunged 20% last week, after Trump’s decision to exclude refined copper from a proposed 50% import tariff, sending shockwaves through 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.