Category: Market News

Oil prices edged up in Asian markets on Thursday, buoyed by data revealing a significant drop in U.S. crude inventories, while investors remained cautiously attentive to the progress of trade negotiations ahead of President Donald Trump’s looming deadline.

By 22:18 ET (02:18 GMT), September Brent crude futures had risen 0.3% to $68.69 per barrel, with West Texas Intermediate (WTI) contracts also up 0.3% at $65.45 per barrel.

Both benchmarks have experienced declines over the past four sessions, as concerns grow over the potential impact of tariffs set to take effect on August 1, which could dampen energy demand.

U.S. Crude Stocks Show Sharp Decline, EIA Reports

According to the Energy Information Administration (EIA) on Wednesday, U.S. crude inventories plunged last week as refinery output increased and exports stayed strong, providing upward momentum for oil prices.

Crude supplies shrank by 3.17 million barrels in the week ending July 19, significantly surpassing the anticipated 1.6 million-barrel reduction forecasted by analysts.

With commercial inventories now roughly 9% below the five-year seasonal average, hovering near 419 million barrels, the data indicates tightening supply conditions in the market.

Gasoline inventories also dropped by 1.7 million barrels, more than the expected decline of 900,000 barrels, while distillate stocks climbed by 2.9 million barrels as seasonal restocking continued.

Following the report, oil prices gained ground, supported by signs of constrained supply and sustained demand in the U.S.

Trade Talks Take Center Stage Following U.S.-Japan Agreement

President Trump announced a new trade agreement with Japan on Wednesday that set tariffs on Japanese imports at 15%, down from a previously proposed 25%.

Under the deal, Japan committed to invest $550 billion in the U.S. economy and opened its markets to a range of American exports, including automobiles, farm products, and energy resources.

This agreement marks the most substantial in a series of trade deals the White House has negotiated ahead of the August 1 tariff deadline, fueling optimism that other countries may reach similarly favorable terms.

Nevertheless, investors remain cautious, closely watching developments with the European Union, especially after the bloc signaled it may retaliate against U.S. tariffs.

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 continued to decline in Asian markets on Thursday, extending losses from earlier in the week as renewed optimism from a U.S.-Japan trade agreement and strong technology sector earnings encouraged investors to take on more risk, reducing the appeal of traditional safe havens like gold.

After climbing to over a one-month high earlier this week, gold gave back most of its gains on Wednesday and Thursday amid improving market sentiment. Spot gold dropped 0.3% to $3,378.93 per ounce, while gold futures slipped 0.4% to $3,384.60 per ounce by 01:50 ET (05:50 GMT).

Despite this pullback, gold has remained mostly confined within a $200 trading range throughout 2025, struggling to regain the record levels above $3,500 per ounce reached in April. However, demand for the precious metal remains relatively steady, supported by ongoing uncertainties in the U.S. economy.

Risk Appetite Rises on Trade Deal and AI Optimism, Weighing on Precious Metals

The surge in investor confidence, sparked largely by the newly announced trade deal between the U.S. and Japan, has pressured prices across gold and other precious metals. Under the agreement, Japanese exports will face a 15% U.S. tariff—a notable reduction from the 25% initially proposed by the Trump administration.

This breakthrough has heightened expectations that Washington may finalize additional trade agreements before the August 1 deadline for imposing higher tariffs on several major economies. Reports also indicate that the European Union is considering a similar 15% tariff trade pact, with India’s deal reportedly close to completion.

Spot platinum fell 0.4% to $1,416.99 per ounce, and silver dropped 0.6% to $39.06 per ounce, both retreating from earlier weekly gains.

Investor confidence also received a boost from strong earnings reports in the tech sector. Alphabet (NASDAQ: GOOGL), Google’s parent company, exceeded expectations in its Q2 results, driven by growing demand for artificial intelligence (AI) technologies.

AI optimism was further fueled by President Trump’s signing of three executive orders on Wednesday aimed at accelerating the industry’s growth in the U.S. Combined with trade deal optimism, this helped push Wall Street to record highs on Wednesday.

Industrial metals also gained momentum amid improved risk sentiment. On the London Metal Exchange, benchmark copper futures rose 0.1% to $9,942.75 per ton, while COMEX copper futures increased 0.7% to $5.88 per pound, both holding onto solid weekly gains.

China’s Gold Purchases Decline More Slowly Amid Safe Haven Demand

China’s gold consumption dipped 3.5% year-on-year in the first half of 2025, a slower decline compared to the 5.6% drop recorded during the same period last year, according to data from China’s state-backed Gold Association.

The reduced demand was primarily driven by weaker jewelry sales, as higher bullion prices deterred some consumers. However, this was partially offset by strong institutional buying, as ongoing trade tensions and economic uncertainties prompted investors to increase bullion purchases.

China remains one of the world’s largest gold consumers, with the People’s Bank of China also reportedly increasing its gold reserves in recent 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.

On Thursday, the U.S. dollar inched higher but remained near recent lows, whereas the euro eased as investors awaited the upcoming European Central Bank policy announcement.

At 04:40 ET (08:40 GMT), the Dollar Index, which measures the greenback against six major currencies, edged up 0.1% to 97.002, hovering close to its lowest level in two weeks.

Over the past week, the index has declined nearly 1.5%, as the dollar struggled to gain traction despite positive developments like the U.S.-Japan trade agreement and talks of a potential deal between the U.S. and the European Union.

Is a short-term dollar rebound on the horizon?

Analysts from ING noted in a report, “If the greenback is indeed due a short-term recovery (we still think it is), then that will need to be triggered by data rather than tariff news. But this week has been quiet on data, and that has seemingly allowed some rebuilding of USD shorts.”

Upcoming economic releases include new home sales, S&P Global purchasing managers’ indices, and weekly jobless claims.

“Initial claims have been on a five-week downward trend and continuing claims have plateaued since mid-June. With only eight days until the U.S. jobs report, another strong print today can drive nonfarm payrolls expectations a bit higher,” ING added.

They also highlighted, “Markets still price in 16bp of easing for September, which is the contract where we see the greatest potential for a hawkish repricing driving some dollar recovery.”

Market participants are also closely watching the Federal Reserve, especially as U.S. President Donald Trump — a vocal critic of Fed Chair Jerome Powell — is scheduled to visit the central bank later Thursday.

It remains unclear if Trump, who has frequently criticized Powell for not cutting interest rates aggressively enough, will meet with the Fed chief.

Euro weakens ahead of ECB meeting

In Europe, EUR/USD slipped 0.1% to 1.1767, with the euro near its highest level in almost four years as investors prepared for the ECB’s latest policy session.

The ECB is widely expected to keep interest rates unchanged after cutting them eight consecutive times, as officials await developments in the trade negotiations between the European Commission and the United States.

ING analysts commented, “If the ECB is feeling confident that a trade deal is coming, the risks of a dovish surprise are indeed lower. However, the currency discussion remains a wildcard that poses downside risks for the euro.”

Meanwhile, GBP/USD declined 0.2% to 1.3549, after a 0.4% gain the previous day.

The UK government has already secured a trade agreement with the Trump administration, and with inflation remaining high, the UK’s base interest rate is expected to stay among the highest in major economies.

Yen continues rally

Elsewhere, USD/JPY fell 0.2% to 146.24, extending the yen’s gains for the fourth day in a row following news of a comprehensive trade deal between Washington and Tokyo that includes a 15% tariff on imported Japanese goods — reduced from an earlier proposal of 25%.

AUD/USD rose 0.2% to 0.6615, while USD/CNY dipped 0.1% to 7.1522, reflecting the broader optimism sparked by the Japan trade agreement across the region.

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. stock futures showed little movement Thursday as investors digested rumors of potential trade agreements alongside quarterly earnings from major companies. Alphabet (NASDAQ:GOOGL) posted strong revenue growth driven by its search and cloud divisions, with the tech giant planning hefty capital investments this year to fuel its artificial intelligence ambitions. Meanwhile, Tesla (NASDAQ:TSLA) shares declined following disappointing auto sales that pressured its net income. Market participants also awaited key U.S. business activity data and the European Central Bank’s upcoming interest rate announcement.

Mixed Movements in Futures

By 3:35 a.m. ET, Dow futures were down 152 points (-0.3%), S&P 500 futures were unchanged, and Nasdaq 100 futures had edged up 51 points (+0.2%). After a strong rally on Wednesday, with the S&P 500 hitting its 12th record close this year and the Nasdaq Composite surpassing 21,000 for the first time, investors remain cautious.

The gains followed reports in the Financial Times that the U.S. and European Union were advancing toward a trade deal setting a 15% tariff floor on goods imported from the bloc. This came shortly after President Donald Trump announced a trade agreement with Japan, which also included a 15% import tariff for the U.S.

Analysts noted that these developments have helped alleviate persistent worries around Trump’s tariff policies as the August 1 deadline for elevated “reciprocal” tariffs approaches.

With about 25% of S&P 500 companies having reported Q2 earnings, results have generally exceeded expectations: 67% beat revenue estimates and 88% surpassed EPS forecasts.

Alphabet’s Revenue Climbs

Alphabet and Tesla led the batch of earnings released Wednesday after market close. Alphabet posted a 14% year-over-year jump in Q2 revenue to a record $96.4 billion, buoyed by strong performance in search and cloud computing.

However, the company’s heavy investment in AI tempered profitability. Alphabet is integrating AI into its search platform to compete with emerging rivals like OpenAI and Perplexity, while also leveraging AI to boost ad campaign effectiveness.

Advertising revenue grew 10.4% to $71.3 billion, and the core search segment expanded 11.7%. The cloud division delivered an impressive 32% sales increase to $13.6 billion.

Investors are watching closely to see how Alphabet will capitalize on its substantial AI spending. The company projects capital expenditures to rise 13% this year to about $85 billion, up from $52.5 billion in 2024.

Alphabet’s shares climbed over 2% in after-hours trading.

Tesla Warns of “Rough Quarters” Ahead

Tesla continues to focus on automation, aiming to develop self-driving cars and robotics as new revenue streams amid softening vehicle demand.

CEO Elon Musk acknowledged looming headwinds from the impending expiration of a federal EV tax credit. Speaking to analysts, he said, “I’m not saying we will, but we could — you know, Q4, Q1, maybe Q2, but once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I think I’d be surprised if Tesla’s economics are not very compelling.”

In an interview with the Wall Street Journal, Musk emphasized Tesla remains in the “early stages” of autonomous driving development.

Tesla’s overall revenue declined 12% to $22.5 billion, with net income falling to $1.17 billion from $1.4 billion a year prior. Shares dropped more than 4% in extended trading.

Focus on U.S. Economic Data and ECB Policy

Markets await the release of preliminary U.S. manufacturing and services purchasing managers’ indexes (PMIs) for July. Economists forecast a slight dip in manufacturing PMI to 52.7 from 52.9, while services PMI is expected to edge up to 53.0.

Readings above 50 signal expansion.

Despite uncertainty around Trump’s tariff measures, the U.S. economy shows resilience. The stock market has reached record levels, retail sales have beaten forecasts, and consumer sentiment has improved. Inflation fears tied to tariffs have not yet materialized, though analysts warn potential impacts could arise in coming months.

The European Central Bank is set to announce its next rate decision on July 24, with consensus pointing to a hold at 2%.

Following a 25-basis-point cut in June — the eighth reduction this year amid slowing inflation and weak eurozone growth — the ECB signaled a likely pause in July due to tariff-related uncertainties.

As Erste Group analysts noted, “[T]he ECB’s next steps will be heavily influenced by developments in the tariff dispute and its impact on growth expectations.”

On Wednesday, the Financial Times reported that an EU-U.S. trade deal would include a 15% tariff on European imports but also a mutual waiver of levies on certain products like spirits, medical devices, and aircraft. However, if no agreement is reached by August 1, the EU is prepared to enact retaliatory duties totaling up to €93 billion.

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.

ITV plc (LSE:ITV) reported its half-year results for 2025, surpassing market expectations despite a 3% decrease in total revenue and a 31% decline in group adjusted EBITA compared to the prior year. The company noted that the drop was partly due to an exceptionally strong advertising period in 2024, driven by the Men’s Euros event. Digital advertising on ITVX grew by 12%, and ITV Studios is poised for robust full-year revenue growth. ITV announced further cost-cutting measures and a reduction in content expenditure, aiming to enhance the full-year financial outlook. The company remains focused on accelerating digital growth, controlling costs, and leveraging its market leadership to fuel future success.

ITV’s outlook balances strengths in cost management, operational efficiency, and an attractive valuation with a favorable P/E ratio and dividend yield. However, challenges remain in revenue growth and free cash flow generation. Positive corporate actions like share buybacks and strategic growth initiatives provide a supportive foundation for long-term prospects.

About ITV plc

ITV plc is a major player in the media and entertainment sector, specializing in television broadcasting and content production. Its services include traditional linear broadcasting, digital streaming via ITVX, and content creation through ITV Studios, serving audiences in the UK and internationally.

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.

Lloyds Banking Group (LSE:LLOY) delivered a solid financial performance in the first half of 2025, announcing a 15% rise in its interim ordinary dividend alongside a statutory post-tax profit of £2.5 billion. The group experienced income growth and maintained strong asset quality, supported by targeted strategic initiatives and expanded digital capabilities. Lloyds reaffirmed its full-year guidance for 2025 and expressed confidence in achieving its 2026 goals, emphasizing ongoing growth in lending, deposits, and capital generation aimed at boosting shareholder returns.

The company benefits from favorable technical indicators and valuation metrics, bolstered by positive investor sentiment from recent earnings calls and strategic corporate moves. Nevertheless, certain financial risks, particularly regarding cash flow and leverage, moderate the overall outlook.

About Lloyds Banking Group

Lloyds Banking Group PLC is a leading UK financial institution offering services across retail banking, commercial banking, and insurance. The group prioritizes delivering differentiated customer experiences and harnessing technology to strengthen its market position.

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.

Treatt PLC (LSE:TET) has updated its financial expectations for the fiscal year ending September 2025, projecting lower revenue and pre-tax profit as a result of several trading obstacles. These include softer sales in the latter half of the year, intensified competition, and adverse impacts from a weaker US dollar on earnings. Despite these challenges, Treatt remains focused on driving growth through customer-focused initiatives and innovation, highlighted by plans to launch a new innovation centre in Shanghai and a strengthened sales pipeline aimed at future opportunities.

Treatt plc continues to demonstrate solid financial health, supported by strong profitability and prudent balance sheet management. While technical indicators point to a bearish trend that may restrict near-term share price gains, valuation metrics indicate the stock is reasonably priced. A healthy dividend yield adds to its attractiveness, and ongoing share buyback programs reflect management’s confidence in capital allocation, already factored into current valuations.

About Treatt plc

Treatt is an independent global producer and supplier of natural extracts and ingredients, serving primarily the flavour, fragrance, and multinational consumer goods sectors, with a particular emphasis on the beverage industry. The company operates manufacturing sites in the UK and US and employs around 350 people across Europe, North America, and Asia, known for its strong technical expertise.

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.

BT Group (LSE:BT.A) has kicked off the year on a positive note, significantly expanding its full fibre broadband and 5G network reach, now covering over 19 million homes and businesses and connecting 87% of the UK population, respectively. Robust demand for BT’s broadband and mobile offerings is reflected in record uptake of Openreach fibre services, alongside ongoing investments in network infrastructure. Although the company saw a slight dip in overall revenue and profits—impacted by softer handset sales and challenges in international markets—BT remains on course to achieve its full-year goals. Cost transformation initiatives have helped offset rising expenses, while improvements in customer experience are demonstrated by a higher Net Promoter Score.

BT Group plc exhibits strong financial health, supported by solid cash flow and operational efficiency. Technical indicators point to a bullish trend, albeit approaching overbought territory. Valuation remains reasonable, complemented by a competitive dividend yield. Recent earnings discussions highlighted encouraging strategic progress but also acknowledged ongoing difficulties in certain business segments.

About BT Group plc

BT Group stands as the UK’s foremost provider of fixed and mobile telecommunications, offering a broad range of secure digital products, solutions, and services. The company operates through three main customer segments: Consumer, Business, and Openreach. Listed on the London Stock Exchange, BT serves a diverse customer base including individuals, families, corporations, and public sector organizations.

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.

Reach plc (LSE:RCH) revealed its half-year results for the period ending June 30, 2025, reporting a 3.4% decrease in revenue to £256.0 million. Print revenue fell by 4.8%, while digital revenue experienced a modest 1.8% rise. The company is prioritizing growth through new initiatives, including expanding video content offerings, boosting technology and AI capabilities, and diversifying income through subscription models. Despite ongoing market challenges, Reach sustained a strong operating profit margin and remains optimistic about its growth strategy aimed at engaging new audiences, accelerating tech adoption, and broadening revenue sources. The firm also continues to focus on effective cost control and anticipates meeting its adjusted operating cost savings targets.

Reach plc’s outlook is supported by a solid financial foundation and appealing valuation. Although technical indicators suggest potential short-term softness, recent corporate developments and a high dividend yield offer encouraging signs for long-term investors.

About Reach plc

Reach plc is the UK and Ireland’s largest commercial news publisher, operating 120 trusted brands including national newspapers like the Mirror and Express, alongside regional titles such as MyLondon and BelfastLive. The company reaches over 70% of the UK’s online population and about 10% of the US online audience every month.

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.