Category: Market News

European energy and defense stocks pulled back on Tuesday after U.S. President Donald Trump announced a ceasefire between Israel and Iran, easing fears of an extended conflict in the Middle East.

Shares of oil majors TotalEnergies (EU:TTE), Shell (LSE:SHEL), and BP (LSE:BP.) all edged lower in early trade as crude prices slipped following the de-escalation. Defense firms also felt the impact, with Leonardo (BIT:LDO), Rheinmetall (TG:RHM), and BAE Systems (LSE:BA.) posting declines amid cooling expectations for sustained military activity.

Broader Indices Gain as Ceasefirea Lifts Market Mood

While oil and defense sectors weakened, broader European equities moved higher. The Stoxx 600 index rose 1.19%, Germany’s DAX climbed 1.8%, France’s CAC 40 added 1.2%, and the FTSE 100 in the U.K. gained 0.3%.

The overall market responded positively to Trump’s statement, in which he confirmed the ceasefire was “now in effect” and urged both sides to adhere to it. The agreement followed nearly two weeks of escalating hostilities, including deadly airstrikes and missile exchanges.

Oil and Safe Havens Decline on Reduced Tension

Global oil prices slumped in the aftermath of the announcement, reflecting waning fears of supply disruptions in the oil-rich region. The easing of tensions also weighed on traditional safe-haven assets, with both gold and the U.S. dollar declining as investor appetite for risk returned.

Trump indicated the ceasefire would be phased in, allowing ongoing operations to wind down. However, fresh violence occurred just before his announcement. Reuters reported that an Iranian missile strike killed four people in Israel on Tuesday, while Iranian authorities said an Israeli attack in northern Iran had left nine people dead.

Ceasefire Outlook Remains Fragile

Despite the diplomatic breakthrough, the truce’s long-term stability remains uncertain. Israeli Prime Minister Benjamin Netanyahu stated that Israel had achieved its key military objectives and was prepared to pause further operations.

Iranian Foreign Minister Abbas Araqchi echoed a similar stance, saying Iran does not intend to pursue more retaliatory strikes for now but remains ready to defend itself if provoked—an assertion Netanyahu matched.

With geopolitical risks momentarily eased, investor focus is likely to shift back to macroeconomic drivers, including upcoming central bank decisions and corporate earnings across Europe.

European equity markets posted solid gains on Tuesday, buoyed by easing geopolitical tensions in the Middle East and growing investor focus on U.S. monetary policy, as Federal Reserve Chair Jerome Powell prepares to address Congress.

As of 07:05 GMT, Germany’s DAX jumped 1.9%, France’s CAC 40 also added 1.9%, while the U.K.’s FTSE 100 rose a more modest 0.6%.

Middle East Truce Fuels Market Optimism

The rally was underpinned by renewed optimism over geopolitical stability after U.S. President Donald Trump confirmed that a ceasefire agreement between Israel and Iran had officially taken effect. The move potentially brings an end to nearly two weeks of hostilities that had stoked fears of broader regional escalation.

“The ceasefire is now in effect. Please do not violate it!” Trump posted early Tuesday on Truth Social, referring to what he had previously called the “12-Day War.”

According to earlier reports, Iran initiated a 12-hour ceasefire period, with Israel joining later—coinciding with heightened diplomatic pressure following recent U.S. airstrikes on Iranian nuclear targets. Tehran responded on Monday by launching missiles at a U.S. base in Qatar.

The de-escalation pushed oil prices sharply lower and encouraged traders to rotate into risk assets, lifting global equities.

Focus Shifts to Powell as Rate Debate Heats Up

Beyond geopolitics, market participants are bracing for Jerome Powell’s testimony before U.S. lawmakers, which begins Tuesday. Powell is expected to face tough questions over the Federal Reserve’s decision to maintain interest rates, despite mounting political pressure.

President Trump has been vocal in his disapproval, calling for significant rate cuts of “two to three percentage points” and accusing Powell of economic mismanagement. In a new post Tuesday, Trump wrote, “I hope Congress really works this very dumb, hard headed person over. We will be paying for his incompetence for many years to come.”

The Fed recently chose to hold rates steady amid concerns that Trump’s tariff policies could drive inflation higher, potentially limiting room for future rate cuts.

Meanwhile, central bank officials across Europe are scheduled to speak, including Andrew Bailey of the Bank of England and Christine Lagarde of the European Central Bank, adding more layers of monetary policy insight for investors to digest.

Later in the session, the June IFO business climate index for Germany—the eurozone’s largest economy—is expected to show a slight uptick in business confidence.

Corporate Highlights: AstraZeneca and Bunzl in Focus

In corporate news, AstraZeneca (LSE:AZN) received U.S. regulatory approval for Datroway, a targeted therapy for a form of lung cancer, marking another step forward in its oncology portfolio.

Sthree (LSE:STEM), a U.K.-based recruitment firm, reported a year-over-year decline in net fees for the first half of its fiscal 2025, citing a challenging hiring environment. However, the company noted sequential improvement in Q2.

Distribution and outsourcing firm Bunzl (LSE:BNZL) reported that trading remains in line with expectations for the first half of 2025. It also announced a strategic acquisition in Brazil and reaffirmed its full-year outlook.

Oil Prices Retreat as Supply Fears Ease

Crude oil prices continued their steep decline, retreating further from recent highs as the ceasefire in the Middle East eased concerns about potential supply disruptions from one of the world’s most critical oil-producing regions.

By 03:05 ET, benchmark Brent crude had dropped 3.9% to $67.79 per barrel, while WTI futures fell 3.9% to $65.84.

This follows Monday’s over 7% drop in both benchmarks, a sharp reversal from last week’s surge to five-month highs following the U.S. strikes on Iran. With Iran—OPEC’s third-largest crude producer—potentially able to ramp up exports again, markets are reassessing short-term supply dynamics.

Gold prices declined sharply during Asian trading hours on Tuesday, as a ceasefire agreement between Israel and Iran cooled geopolitical fears and prompted a shift toward riskier investments.

By 02:00 ET (06:00 GMT), spot gold had fallen 1.1% to $3,332.57 per ounce, touching its lowest level since June 11. Gold futures for August delivery also slid, down 1.4% to $3,346.02 per ounce.

Risk Appetite Strengthens Following Trump’s Ceasefire Declaration

The move out of safe-haven assets came after former U.S. President Donald Trump announced late Monday that a full ceasefire had been agreed upon between Israel and Iran, potentially concluding what he referred to as “THE 12 DAY WAR.” In a post on Truth Social, Trump confirmed, “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”

Despite the declaration, some local reports noted explosions near Tel Aviv and Beersheba shortly beforehand. Iran has acknowledged the truce but emphasized that its continuation depends on Israel ceasing military operations.

The ceasefire follows a series of military escalations, including U.S. strikes on Iranian nuclear facilities and retaliatory missile attacks by Tehran targeting an American airbase in Qatar.

Markets responded optimistically. U.S. equity futures climbed, oil prices tumbled more than 3%, and geopolitical risk premiums faded—pressuring demand for traditional safe-haven assets like gold.

Metal Markets Mixed Amid Dollar Weakness

While gold and other precious metals dipped, some industrial metals gained ground, supported by a weaker U.S. dollar, with the Dollar Index down 0.3% during Asian hours.

• Silver futures eased 0.6% to $35.99 per ounce,
• Platinum edged up 0.9% to $1,280.15 per ounce.
• On the industrial side, London copper futures rose 0.3% to $9,693.35 per ton, while U.S. copper futures slipped 0.7% to $4.90 per pound.

Market participants are now turning their attention to Federal Reserve Chair Jerome Powell’s congressional testimony, which begins Tuesday. His remarks are expected to shed light on the Fed’s interest rate outlook amid ongoing political and economic pressures.

The U.S. dollar retreated on Tuesday as global markets responded positively to a ceasefire agreement between Israel and Iran, fueling a broad risk-on rally. The Dollar Index slipped 0.3% to 97.752 as of 08:00 GMT, though it remains up for the week.

Former U.S. President Donald Trump confirmed the ceasefire, calming geopolitical tensions that had recently supported the greenback and driven oil prices higher. The resulting drop in crude oil prices contributed to the dollar’s pullback, while lifting risk-sensitive currencies.

Analysts at ING noted that “moderate” dollar strength built on geopolitical fears had “faltered” following the oil price correction. Markets now shift focus to Fed Chair Jerome Powell’s testimony before Congress, where political pressure from Trump to cut rates by “two to three points” may raise concerns about central bank independence.

Sterling and Euro Advance

• GBP/USD surged 0.7% to 1.3596, with sterling buoyed by rising domestic grocery inflation. Data from Kantar showed food prices rose 4.7% in the four weeks to June 15—the highest since March 2024—driven by increases in essentials like butter, chocolate, and meat. This may complicate the Bank of England’s path to rate cuts.
• EUR/USD edged up 0.1% to 1.1591, helped by cheaper energy prices and improved German business sentiment. The Ifo business climate index rose to 88.4 in June, beating forecasts, with firms growing more optimistic about future conditions.

Yen Recovers, Yuan Holds Steady

• USD/JPY fell 0.8% to 144.97 as the yen rebounded from prior losses. Traders now await Tokyo inflation data for insights into the Bank of Japan’s monetary stance.
• USD/CNY dipped slightly to 7.1780 after China’s central bank left its key lending rate unchanged, signaling continued caution amid soft economic data.

The FTSE 100 opened higher on Tuesday, climbing 0.4% by 07:22 GMT, as global markets welcomed news of a ceasefire between Israel and Iran. The British pound also strengthened, rising 0.6% against the dollar to surpass $1.35. Germany’s DAX and France’s CAC 40 followed suit, gaining 1.8% and 1.4%, respectively.

Former U.S. President Donald Trump confirmed the ceasefire via a Truth Social post, signaling an end to recent hostilities, while Israel stated it had achieved its objectives. The truce fueled optimism among investors seeking geopolitical stability.

UK Corporate Updates

• Bunzl plc (LSE:BNZL) shares gained 2% after the distribution group confirmed its first-half 2025 performance was in line with expectations. The company reaffirmed full-year guidance, citing stable margins and revenue growth of around 4% at constant exchange rates. Bunzl also announced a strategic acquisition in Brazil, further expanding its footprint in Latin America.
• AstraZeneca (LSE:AZN) received U.S. approval for its Datroway lung cancer treatment for patients previously treated with chemotherapy. The regulatory win strengthens the company’s oncology portfolio.
• Telecom Plus (LSE:TEP) posted an 8.1% rise in adjusted pre-tax profit to £126.3 million, meeting forecasts despite a 9.9% decline in revenue. Adjusted EPS increased 9.4% to 119.2p, reflecting stronger profitability and operational efficiency.
• Sthree Plc (LSE:STEM) reported a 14% drop in group net fees in H1 FY25 but maintained its full-year profit guidance of £25 million. Improved demand in the U.S. engineering sector helped stabilize its Q2 performance.
• Policymaking & Government Spending: Prime Minister Keir Starmer pledged to raise UK defense and security expenditure to 5% of GDP by 2035. The government also announced a £1 billion investment in a national biosecurity center.
• Amazon (NASDAQ:AMZN) unveiled plans to invest £40 billion in the UK over the next three years, supporting AI innovation, logistics upgrades, and the creation of 4,000 new jobs. The investment could add an estimated £38 billion to UK GDP.
• Rio Tinto (LSE:RIO) and Hancock Prospecting committed $1.61 billion to develop the Hope Downs 2 iron ore project in Western Australia, furthering their resource ambitions in the Pilbara region.
• Regulatory Watch: The UK’s Competition and Markets Authority (CMA) proposed designating Google’s parent company, Alphabet Inc. (NASDAQ:GOOGL), with “strategic market status” under new digital regulations aimed at fostering competition in online search.

Bunzl plc (LSE:BNZL) confirmed on Tuesday that its performance for the first half of 2025 is tracking in line with internal projections, providing reassurance following a more cautious Q1 outlook. The international distribution and services group also revealed the acquisition of Solupack, a Brazilian packaging distributor, as part of its ongoing expansion strategy.

For the six-month period ending 30 June 2025, Bunzl expects group revenue to rise approximately 4% year-on-year at constant exchange rates and up to 1% at actual exchange rates. The growth is largely attributable to recent acquisitions, while core (underlying) revenue remains broadly unchanged. The operating margin for H1 is projected at around 7%, consistent with previous guidance.

The company reiterated its full-year guidance, expecting modest revenue growth at constant exchange rates in 2025, primarily fueled by acquisitions. Underlying revenue is anticipated to stay relatively flat. Bunzl forecasts the full-year operating margin to land just below 8%, down from 8.3% in 2024, with performance improvements anticipated in the second half.

In an update on its acquisition strategy, Bunzl announced the signing of an agreement in May to acquire Solupack, a Brazilian provider of own-brand food packaging products. Solupack posted revenue of BRL 106 million (around £15 million) in 2024. The deal, pending regulatory clearance, is expected to enhance Bunzl’s footprint in Brazil and complement its existing local operations. This marks the third acquisition for Bunzl so far in 2025.

Financially, Bunzl expects leverage to stand at roughly 2.0x adjusted net debt to EBITDA by mid-year, aligning with the lower end of its target range of 2.0 to 2.5x as it manages acquisition-related capital deployment.

Chief Executive Frank van Zanten noted that despite ongoing macroeconomic uncertainty, Bunzl is performing as anticipated, with a focus on operational enhancements in North America and Europe. He emphasized the company’s commitment to disciplined growth and highlighted that the acquisition pipeline remains active.

Analysts at RBC welcomed the stable trading update, commenting that although execution will be key in H2, the report offers a measure of relief after previous profit warnings.

Mobico Group (LSE:MCG) has made notable strides in divesting its North America School Bus business to I Squared Capital for up to $608 million. The transaction is awaiting final approval from the US Surface Transportation Board, expected by early July 2025, with the deal anticipated to close later that month.

The sale is set to provide Mobico with substantial funds to address upcoming debt maturities and bolster its liquidity position. Meanwhile, the company forecasts its Adjusted Operating Profit for FY 2025—excluding contributions from the School Bus division—between £180 million and £195 million.

Despite ongoing financial challenges marked by sustained losses and elevated leverage, Mobico’s strategic divestment and recent contract wins offer pathways toward recovery. However, bearish technical trends and valuation pressures continue to weigh on investor sentiment.

About Mobico Group

Mobico Group is a major global shared mobility operator delivering bus, coach, and rail services across regions including the UK, North America, continental Europe, North Africa, and the Middle East. The company focuses on providing efficient and sustainable transportation solutions worldwide.

Polarean Imaging (LSE:POLX) has formalized a Representative Agreement with Ascend Imaging to promote and distribute its cutting-edge Xenon MRI platform across four US states. This collaboration is set to boost Polarean’s commercial presence and support its strategic growth ambitions in the competitive American healthcare market.

By tapping into Ascend Imaging’s radiology expertise and established customer base, Polarean aims to increase adoption of its innovative MRI technology designed for enhanced lung function visualization.

About Polarean Imaging

Polarean Imaging specializes in advanced medical imaging solutions with a focus on pulmonary health. Its flagship product, the FDA-cleared XENOVIEW®, utilizes hyperpolarized Xenon gas as a contrast agent to enable non-invasive, radiation-free lung MRI scans. The technology addresses the needs of over 500 million patients worldwide suffering from chronic respiratory conditions, representing a major advancement in pulmonary diagnostics.

Bluebird Mining Ventures Ltd (LSE:BMV) is approaching the completion of a key agreement concerning a gold project in the Philippines. Under the terms, the company is set to receive a 10% share of profits alongside additional bonus royalty payments, reinforcing its foothold in the region’s mining sector.

This move is part of Bluebird’s innovative strategy to convert future cash flows from mining operations into Bitcoin, positioning the company at the forefront of a unique transition from physical gold assets to digital gold holdings—a first among UK-listed mining firms.

The finalized agreement is anticipated to boost Bluebird’s revenue streams and deliver enhanced returns to investors as it strengthens its presence in the Asian gold market.

About Bluebird Mining Ventures Ltd

Bluebird Mining Ventures Ltd is a pan-Asian gold exploration and development company with a strong focus on projects in the Philippines. The firm leverages its expertise and regional market presence to advance gold mining opportunities across Asia.

Intercede Group PLC (LSE:IGP) has released its preliminary financial results for the year ending 31 March 2025, recording revenues of £17.7 million. While this represents a decline compared to the previous year—largely due to a one-off perpetual license sale in 2024—the company posted a healthy net profit of £4.1 million, reflecting strong operational performance and prudent financial management.

During the year, Intercede continued to invest in product innovation and IT infrastructure, highlighted by the successful launch of MyID SecureVault. The firm also secured several key new contracts and sustained high customer satisfaction, as evidenced by a Net Promoter Score of +55.

Looking ahead, Intercede is well positioned to capitalize on expanding cybersecurity demands, driven by regulatory shifts across Europe and the United States. The company’s expertise in digital identity solutions remains crucial for sectors such as government, defense, telecommunications, and finance.

Investor confidence is supported by robust revenue management, positive technical trends, and recent corporate developments, despite a moderate valuation and no dividend payout. Notably, the lack of earnings call data did not affect the overall assessment.

About Intercede Group PLC

Intercede Group PLC is a cybersecurity software provider specializing in advanced digital identity solutions. Serving critical industries globally—including government, defense, telecoms, and financial services—the company operates across the UK, Europe, Middle East, Asia-Pacific, and the US, delivering secure, innovative technologies that protect digital access and identities.