Category: Market News

The U.S. dollar inched higher on Thursday, supported by safe-haven demand as tensions in the Middle East escalate shortly after the Federal Reserve’s recent policy meeting.

At 04:25 ET (08:25 GMT), the Dollar Index—which measures the greenback against six major currencies—rose 0.1% to 98.585. This puts it on track for a weekly gain of 0.9%, marking its best weekly performance since late January.

Safe-Haven Dollar Boosted by Middle East Conflict

Fresh air strikes between Israel and Iran continued on Thursday, fueling market speculation that U.S. involvement under President Donald Trump could be imminent in the ongoing conflict now entering its seventh day. Trump told reporters Wednesday that “nobody knows what I’m going to do” regarding U.S. entry into the fray. He also hinted at a missed opportunity for negotiations with Iranian officials.

Analysts at ING noted, “Geopolitical risks combined with elevated oil prices are external to the U.S., keeping the dollar more attractive than energy-dependent safe havens such as the euro.” They added, “Upside risks for the USD remain.”

The Federal Reserve held interest rates steady on Wednesday as expected, but Chair Jerome Powell cautioned that inflation pressures could rise over summer as Trump’s tariffs begin to affect consumers. While the Fed’s projection of two rate cuts in 2025 may sound dovish, ING pointed out the central bank appears less concerned about growth and unemployment.

Euro Faces Pressure, Poised for Weekly Loss

In Europe, the euro slipped 0.2% against the dollar to 1.1465, hitting a one-week low earlier in the session. It’s on track for its largest weekly drop since February, driven largely by geopolitical worries.

ING’s outlook suggests EUR/USD could decline further amid these risks, with a near-term target of 1.140. However, they cautioned that unless geopolitical tensions lead to sustained commodity price shifts, such effects are likely temporary. “We expect buyers to return to EUR/USD dips once de-escalation signs appear,” they added.

Other Currency Moves Ahead of BoE Decision

The British pound fell 0.1% to 1.3410 ahead of the Bank of England’s policy announcement later Thursday. The BoE is widely expected to keep rates unchanged after a 25 basis point cut to 4.25% in early May. Investors will focus on the vote split and forward guidance, with market expectations pointing to two additional rate cuts before year-end.

USD/CHF climbed 0.1% to 0.8185 following the Swiss National Bank’s 25 basis point rate cut to 0%, opening the door to possible future negative rates. The SNB said the move counters reduced inflationary pressures seen since last quarter.

Asia-Pacific FX Update

In Asia, USD/JPY gained 0.1% to 145.31, with limited safe-haven demand for the yen. USD/CNY held steady at 7.1912 ahead of the People’s Bank of China meeting later this week. Meanwhile, AUD/USD dropped 0.6% to 0.6473 after data showed unexpected weakness in Australia’s May labor market.

UK equities opened lower on Thursday amid cautious sentiment ahead of the Bank of England’s expected decision to hold interest rates steady. Investor nerves were also heightened due to ongoing speculation about potential U.S. military action in the Middle East.

By 07:19 GMT, the FTSE 100 index had slipped 0.4%, while the British pound weakened 0.2% against the U.S. dollar, trading just above 1.34. European markets followed suit, with Germany’s DAX down about 0.7% and France’s CAC 40 retreating 0.6%.

Middle East Tensions Escalate

Israel and Iran exchanged air strikes on Thursday, intensifying regional hostilities. Meanwhile, a Bloomberg report indicated that senior U.S. officials are preparing for a possible strike on Iran as soon as this weekend, though the situation remains fluid.

Vodafone Names Microsoft Executive as CFO

Vodafone Group (LSE:VOD) revealed that Pilar López, a senior executive from Microsoft (NASDAQ:MSFT), will join as Chief Financial Officer starting October 1, 2025. She will succeed Luka Mucic, who had announced his departure earlier this year on May 7.

Frasers Group Withdraws Interest in Revolution Beauty

Frasers Group (LSE:FRAS), owned by Mike Ashley, confirmed it will not pursue a bid for Revolution Beauty (LSE:REVB), a British cosmetics company facing financial difficulties. Following the announcement, Revolution Beauty’s shares plunged more than 21%, while Frasers Group shares declined 1.5%.

Whitbread Q1: UK Softness Offset by Strong German Growth

Whitbread PLC (LSE:WTB) reported mixed first-quarter results for fiscal 2026. While Premier Inn’s UK accommodation revenue fell 2% year-on-year and like-for-like sales dipped 3%, the company’s German operations delivered solid growth. Whitbread also cited limited visibility ahead due to ongoing economic and geopolitical uncertainties.

Hays Predicts £45 Million Profit as Recruitment Slows Globally

Hays Plc (LSE:HAS) forecasted a pre-exceptional operating profit of £45 million for FY 2025, attributing the slowdown to subdued activity in permanent recruitment markets worldwide. The firm noted that Q4, ending June 30, experienced weaker engagement from both clients and candidates amid persistent macroeconomic concerns.

XPS Pensions Posts Strong Full-Year Performance

XPS Pensions Group PLC (LSE:XPS) reported robust full-year results ending March 31, 2025, with revenues rising 18% to £231.8 million, in line with prior guidance. Adjusted EBITDA increased 27% to £69.7 million, surpassing analyst expectations, while its EBITDA margin improved by 2.2 percentage points to 30.1%. Dividend growth also outpaced forecasts.

Eli Lilly to Appeal UK Rejection of Alzheimer’s Drug Reimbursement

Eli Lilly (NYSE:LLY) announced plans to appeal a U.K. health agency’s decision denying reimbursement for its Alzheimer’s treatment Kisunla, continuing its efforts to gain market access.

Bitcoin (COIN:BTCUSD) showed little movement on Thursday, trading within a narrow range as ongoing concerns about potential U.S. involvement in the Israel-Iran conflict kept investors cautious.

Market sentiment was further subdued by cautious remarks from the Federal Reserve, which opted to maintain interest rates without signaling any imminent rate cuts. The Fed also lowered its expectations for rate reductions in 2026, reinforcing a more hawkish stance.

By 01:27 ET, Bitcoin had dipped slightly by 0.3% to $105,124.1, continuing to fluctuate within a band of roughly $103,000 to $108,000 over the past week—largely shaped by renewed tensions in the Middle East.

A Bloomberg report on Thursday revealed that U.S. officials are preparing for the possibility of military action against Iran in the near future, though no final decision has been made. This news triggered risk-off moves across global markets, including losses in cryptocurrency.

Former President Donald Trump’s comments on the situation offered little clarity about potential U.S. military involvement. Meanwhile, Iran has consistently warned against direct U.S. engagement.

Trump Praises Stablecoin Legislation, Urges Swift Passage

Trump expressed support for the recent Senate approval of the GENIUS Act, legislation designed to regulate stablecoins. He urged the House of Representatives to approve the bill quickly and without amendments.

“The House will hopefully move LIGHTNING FAST, and pass a ‘clean’ GENIUS Act. Get it to my desk, ASAP,” Trump wrote on social media.

Although the bill’s progress boosted some crypto stocks, notably Circle Internet Group Inc (NYSE:CRCL), it did not significantly lift overall market confidence. Circle’s USDC and Tether’s USDT remain the leading stablecoins, vital for many crypto transactions.

Altcoins Drift Lower Amid Fed Caution

Other cryptocurrencies followed Bitcoin’s downward drift, pressured by the Fed’s cautious outlook. The central bank held rates steady at 4.25%–4.5%, with Chair Jerome Powell emphasizing a data-driven approach to any future monetary easing.

Powell reaffirmed the possibility of two rate cuts in 2025 but trimmed the expected reductions in 2026—a move seen as relatively hawkish. He also cautioned that Trump’s proposed tariffs could increase inflation pressures, reducing the likelihood of rate cuts.

Risk assets broadly retreated after these comments, dragging crypto prices down as well.

Ethereum, the world’s second-largest cryptocurrency, fell 0.5% to $2,525.37, while XRP held steady near $2.17. Cardano and Solana both declined by over 2.5%. Meme coins like Dogecoin slipped 0.3%, and $TRUMP token lost 1.3%.

A group of Democratic lawmakers from Texas has formally requested that Tesla (NASDAQ:TSLA) delay the planned rollout of its robotaxi service in Austin. The lawmakers’ letter, sent Wednesday, asks Tesla to hold off on the launch until September, when updated autonomous vehicle regulations come into force.

Tesla CEO Elon Musk had tentatively set the unveiling for this Sunday, but the lawmakers emphasized that postponing the launch would better ensure public safety and help foster trust in Tesla’s autonomous driving operations.

They argue that aligning the launch with the new legal framework will serve the community’s interests and support responsible deployment of self-driving technology.

Litigation Capital Management (LCM) (LSE:LIT) has disclosed a recent High Court ruling against one of its funded clients in a commercial litigation case, resulting in a £5.0 million investment write-down. The company is currently assessing the judgment and exploring possible responses. Alongside this, LCM provided a trading update revealing modest cash realisations during the second half of the fiscal year and a notable rise in net debt to A$73 million.

Due to ongoing uncertainty in the US litigation finance environment and related political factors, LCM has decided to suspend active marketing efforts for its Fund III, with plans to recommence fundraising activities in late 2025 or early 2026. Despite the recent trial loss, LCM remains confident in the underlying strength of the dispute finance market and its distinctive business model.

Financially, LCM faces headwinds from declining revenues that have affected growth projections. Technical indicators reflect bearish momentum, while valuation concerns persist, highlighted by a negative price-to-earnings ratio, even though the company offers a reasonable dividend yield. The recent legal setback weighs on market sentiment but does not significantly impact the overall portfolio’s performance.

About Litigation Capital Management

Litigation Capital Management (LCM) is an alternative asset manager specializing in global dispute finance. The firm operates through two main channels: direct investments from its permanent capital and third-party fund management. Its investment approach includes single-case funding, portfolio funding, and acquiring legal claims. Revenue streams come from direct investment returns and asset management performance fees. Headquartered in Sydney, LCM also maintains offices in London, Singapore, and Brisbane, and trades on AIM under the ticker LIT.

Kenmare Resources (LSE:KMR) has officially ended negotiations with a consortium led by Oryx Global Partners concerning a possible takeover. The company’s board declined the consortium’s revised offer, citing that it undervalued Kenmare’s business and future potential. Instead, Kenmare is concentrating on its independent growth strategy, advancing key initiatives such as the upgrade of the Wet Concentrator Plant A and ongoing talks with the Mozambique government to extend the Implementation Agreement, which aim to ensure sustained production and cash flow over the long term.

Kenmare’s outlook presents a mix of positive corporate developments and valuation strengths, tempered by some financial performance challenges. The company benefits from a solid equity base and an appealing dividend yield, but improving tightening margins and cash flow remains essential to drive future growth. Technical indicators suggest a stable outlook with the possibility for positive momentum ahead.

About Kenmare Resources

Kenmare Resources plc is a prominent global producer of titanium minerals and zircon, operating the Moma Titanium Minerals Mine located in northern Mozambique. The company specializes in extracting titanium minerals critical for numerous industrial uses and holds a strong market position thanks to its extensive mineral deposits and cost-efficient production capabilities.

Revolution Beauty Group Plc (LSE:REVB) has confirmed that Frasers Group plc has pulled out of the formal sale process and will not be submitting an offer. Despite this setback, Revolution Beauty continues to engage with other interested parties and is actively pursuing potential bids. The company is also in discussions with shareholders regarding an equity fundraising initiative, underlining its ongoing efforts to bolster its financial footing.

While Revolution Beauty’s outlook benefits from signs of improving profitability and cash flow, challenges remain due to elevated financial leverage and a fragile equity structure. Technical analysis points to moderate short-term strength, but valuation concerns around overpricing persist. Navigating this balance between growth opportunities and financial risk will be key moving forward.

About Revolution Beauty Group Plc

Revolution Beauty Group Plc operates within the cosmetics sector, offering a broad range of innovative and affordable beauty products. The company prides itself on inclusivity and accessibility, catering to a diverse customer base with its dynamic portfolio.

Hays plc (LSE:HAS) expects to report a pre-exceptional operating profit near £45 million for fiscal year 2025, reflecting ongoing headwinds in the permanent recruitment sector. The company saw a 9% drop in group net fees year-over-year during Q4, with steep declines in both permanent and temporary hiring activities. Regional results were mixed: while Germany and the UK experienced notable setbacks, North America showed signs of growth.

Despite these difficulties, Hays is focused on executing strategic plans aimed at boosting net fee productivity and streamlining back-office operations. These initiatives are designed to position the company for profit recovery once market conditions stabilize.

Hays faces considerable challenges, including weakening financial metrics and a negative valuation outlook due to unprofitable segments. Market sentiment remains cautious to bearish according to technical indicators, impacting overall confidence. Still, the company’s internal share buybacks and strategic efforts suggest some optimism for a turnaround.

About Hays plc

Hays plc is a global recruitment firm offering workforce solutions across multiple sectors. The company specializes in both permanent and temporary staffing services, serving clients worldwide.

NCC Group plc (LSE:NCC) announced a marked rise in pre-tax profits for the first half of 2025, largely driven by the sale of its Fox Crypto unit, which helped the company eliminate its net debt position. The Cyber Security division is refocusing its efforts on cultivating strategic client partnerships, even as revenues decline from high-volume, lower-margin contracts.

The firm is also considering divesting its Escode business, which has demonstrated steady revenue growth. Proceeds from a potential sale could be returned to shareholders or reinvested to strengthen the Cyber Security segment. These results underscore NCC Group’s shift towards operational efficiency and strategic repositioning, setting the stage for future growth and targeted acquisitions.

Positive technical indicators and recent corporate developments reflect growing investor confidence in the company’s leadership and strategy. However, financial challenges such as a negative price-to-earnings ratio suggest areas for improvement remain.

About NCC Group

NCC Group plc is a global leader in cyber security and software escrow services, employing around 2,200 professionals across Europe, North America, and Asia Pacific. The company delivers cyber resilience solutions to a diverse client base spanning public and private sectors, focusing on sustainable approaches to today’s evolving cyber threats.

Harvest Minerals Limited (LSE:HMI) is ramping up its rare earth element (REE) exploration at the Arapuá Project in Brazil, following encouraging technical results. Recent findings revealed notable total rare earth oxide (TREO) levels and elevated titanium concentrations, underscoring the project’s potential.

To fast-track progress, the company is partnering with PVW Resources for specialized technical support. The next exploration phase is scheduled to begin in the third quarter of 2025, reflecting Harvest’s broader strategy to solidify its role within the mining and resource development sector.

About Harvest Minerals

Harvest Minerals Limited is an AIM-listed company focused on the production of natural fertilizers and the exploration of mineral resources. Operating primarily in Brazil, the company’s key interests include the Arapuá Project, where it is developing rare earth element prospects alongside its established fertilizer operations.