Category: Market News

Gold prices inched higher in Asian trading on Wednesday, recovering slightly from steep losses the previous day. A softer U.S. dollar lent support, although risk appetite returned as the fragile ceasefire between Israel and Iran appeared to hold.

• Spot gold rose 0.2% to $3,329.93/oz
• Gold futures (August) gained 0.3% to $3,344.70/oz (as of 06:16 GMT)

Gold had slumped more than 1% on Tuesday after President Donald Trump announced a multi-stage ceasefire between the two Middle Eastern rivals. Though Trump later criticized both sides for violating the deal, markets are cautiously optimistic the worst of the conflict may be over.

Gold Pressured by Truce, Buoyed by Dollar Weakness

While gold’s traditional safe-haven appeal was dampened by the truce, lingering uncertainty and a weaker U.S. dollar helped stabilize prices. The Dollar Index slipped 0.1% in Asian trading, hovering near a one-week low.

Further supporting gold was speculation that recent U.S. strikes failed to neutralize Iran’s nuclear capabilities—raising the risk of renewed tensions in the future.

Federal Reserve Chair Jerome Powell added to market caution, telling Congress that the Fed remains data-dependent as it monitors the inflationary effects of U.S. tariffs.

Other Metals Gain on Softer Dollar

Broader metals saw modest gains:

• Silver futures climbed 0.5% to $35.93/oz
• Platinum futures held steady at $1,318.15/oz
• LME copper rose 0.5% to $9,723.35/ton
• U.S. copper futures were flat at $4.9015/lb

A softer dollar made commodities more attractive to international buyers, but the broader risk-on sentiment limited upside for precious metals.

The U.S. dollar edged higher early Wednesday but remained near multi-week lows as easing geopolitical tensions in the Middle East dampened demand for the safe-haven currency. At 08:20 GMT, the Dollar Index rose 0.2% to 97.665.

Markets Watch Powell’s Second Testimony

The dollar’s recent strength faded following President Donald Trump’s announcement of a ceasefire between Israel and Iran. Although both sides initially violated the truce, hostilities appeared to subside by Wednesday morning, boosting global risk appetite.

Markets now turn to Federal Reserve Chair Jerome Powell, who is scheduled to testify before the Senate—his second appearance this week. On Tuesday, Powell downplayed the urgency for interest rate cuts, citing inflation risks related to Trump’s trade tariffs. However, he acknowledged that a softening labor market and cooling inflation could justify cuts later this year.

ING analysts warned of a “sharply USD-negative scenario” if the Fed adopts a more aggressively dovish stance or if concerns grow over the Fed’s independence.

Euro and Pound Ease Slightly

• EUR/USD dipped 0.1% to 1.1599, just shy of a multi-year high. ECB Chief Economist Philip Lane noted that the central bank would only react to “material” shifts in inflation, signaling policy stability after the latest rate cut.
• GBP/USD edged down 0.1% to 1.3613, near Tuesday’s high of 1.3648—its strongest level since January 2022.

ING analysts believe the euro’s rally may stall unless new macroeconomic catalysts emerge, particularly from the U.S.

Yen Weakens, Aussie Pressured by Inflation Data

• USD/JPY rose 0.3% to 145.31, with the yen softening as Middle East tensions eased. Bank of Japan officials have also suggested holding rates steady amid uncertainty over the effects of U.S. tariffs.
• USD/CNY slipped slightly to 7.1708.
• AUD/USD fell 0.1% to 0.6495 after Australia’s headline CPI hit a seven-month low, and trimmed mean inflation dropped to a three-year low—adding pressure on the Aussie.

European markets opened slightly higher on Wednesday as investors welcomed signs of stability in the Middle East and awaited further guidance from Federal Reserve Chair Jerome Powell. As of 07:05 GMT, Germany’s DAX, France’s CAC 40, and the UK’s FTSE 100 each rose 0.2%.

Middle East Ceasefire Offers Relief

Markets found some support as a fragile ceasefire between Israel and Iran—announced late Monday by U.S. President Donald Trump—appeared to hold, despite early violations by both sides. Hopes are growing that the 12-day conflict may be nearing an end.

Attention now shifts to a NATO summit in The Hague, where allies are expected to endorse a new defense spending goal of 5% of GDP. The increase is seen as a strategic move to secure renewed U.S. commitment to the alliance.

Powell Returns to Capitol Hill

Fed Chair Jerome Powell will testify before the Senate later today, following Tuesday’s session with the House Financial Services Committee. Powell reaffirmed the Fed’s cautious stance on rate cuts, noting expectations for inflation to rise, but acknowledged that weaker economic data could accelerate a potential rate cut later this year.

Economic and Corporate Highlights

• Spanish Q1 GDP figures are due later today, but the European data calendar remains light.
• Babcock International (LSE:BAB) reported a 51% increase in statutory operating profit for FY25 and announced a £200 million share buyback for FY26, driven by growth in its Nuclear and Marine divisions.
• Tesla (NASDAQ:TSLA) saw a 27.9% drop in May vehicle registrations across the EU, EFTA, and UK, despite strong regional demand for EVs. Overall, European car registrations rose 1.9% year-on-year, with EVs outperforming while petrol and diesel sales slumped by 19.5% and 27.6%, respectively.

Oil Prices Rebound

Crude prices rebounded Wednesday following sharp losses, as easing geopolitical tensions reduced concerns over supply disruption. Brent rose 1.6% to $67.25, while WTI gained 1.7% to $65.47.

U.S. crude inventories fell by 4.3 million barrels last week, according to API data, continuing a trend that supports optimism for rising fuel demand heading into the summer. Official data from the EIA is due later today.

THG PLC (LSE:THG) reported a return to revenue growth in the second quarter of 2025, maintaining its full-year guidance. The Beauty division saw an improved performance with a smaller revenue decline than in Q1, driven by strong UK sales. The Nutrition segment experienced robust growth, with Myprotein expanding its offline retail presence globally through key partnerships across the US, Europe, and Asia. This expansion is expected to increase brand visibility and sales, despite ongoing cost pressures from elevated milk and whey prices.

THG’s outlook remains cautious due to financial challenges and weak technical indicators. While recent corporate developments demonstrate strategic progress and some financial improvement, overall financial instability and negative valuation metrics continue to weigh on the stock’s score.

More about THG

THG PLC is a global e-commerce group headquartered in Manchester, UK, operating primarily through two consumer businesses: THG Beauty and THG Nutrition. THG Beauty runs online platforms such as Lookfantastic, Dermstore, and Cult Beauty, offering access to over 1,300 third-party brands alongside its own portfolio. THG Nutrition, led by Myprotein—the world’s largest online sports nutrition brand—provides health and wellness products through direct-to-consumer and offline retail channels worldwide.

Ultimate Products PLC (LSE:ULTP) has announced a live investor presentation featuring CEO Andrew Gossage and CFO Chris Dent. The session will provide shareholders with detailed insights into the company’s strategic direction, business model, and recent financial performance. Investors can access the presentation via the Equity Development website, enhancing transparency and engagement.

The company benefits from a strong valuation and positive corporate developments, which support an elevated stock score. Although revenue growth has been somewhat volatile, solid financial results and an ongoing share buyback program contribute positively. Technical indicators show neutral momentum, balancing the overall outlook.

More about Ultimate Products PLC

Ultimate Products PLC specializes in homeware brands, including the iconic Salter—the UK’s oldest houseware brand dating back to 1760—and Beldray, established in 1872.

Babcock International (LSE:BAB) has announced strong financial results for the fiscal year ending March 2025, highlighted by notable increases in revenue and operating profit, largely driven by growth in its nuclear and marine divisions. The company has raised its medium-term outlook, boosted dividend payments, and unveiled a £200 million share repurchase plan, signaling confidence in its operational momentum and strategic foothold within the defense sector. Among its key accomplishments are securing major contract wins and advancing strategic initiatives including joint ventures and enhanced training programs, reflecting Babcock’s focus on expanding capabilities and broadening its market reach.

Despite some concerns around financial leverage, Babcock International’s outlook remains optimistic, supported by encouraging earnings guidance and positive corporate developments. Technical indicators and a reasonable valuation underpin the positive sentiment, although certain business segments face ongoing challenges that require attention.

About Babcock International

Babcock International Group PLC is a leading defense and engineering services provider, delivering essential support across marine, nuclear, land, and aviation sectors. The company specializes in tailored solutions aimed at bolstering defense readiness and energy security, serving a diverse client base that includes government agencies and commercial organizations worldwide.

Helium One Global Ltd (LSE:HE1) has finalized an independent Competent Person’s Report (CPR) for its Southern Rukwa Helium Project in Tanzania, validating substantial helium resources within the recently approved 480km² mining licence area. Prepared by Sproule ERCE, the report corroborates the company’s internal resource estimates and reinforces the ongoing feasibility study. This milestone strengthens Helium One’s position in the helium sector, with plans to develop the project in phases including an Early Production System and a Central Processing Facility. The initiative aims to address tight helium supply conditions, with ongoing engagement expected with the Tanzanian government and local communities.

Despite encouraging project developments, Helium One Global’s financial challenges—marked by ongoing losses and absence of revenue—continue to weigh heavily on its stock performance. While the company’s prospects offer promise, current financial instability and unfavorable valuation metrics, coupled with mixed technical signals, advise cautious investor sentiment.

About Helium One Global Ltd

Helium One Global Ltd is a helium exploration company with a focus on Tanzania’s Southern Rukwa region. It also holds a 50% stake in the Galactica-Pegasus helium project located in Colorado, USA.

ITM Power (LSE:ITM) has introduced Hydropulse GmbH, a new subsidiary dedicated to decentralized green hydrogen production tailored for industrial customers throughout Europe. Leveraging ITM’s proprietary NEPTUNE technology, Hydropulse aims to overcome traditional barriers in green hydrogen projects by delivering a scalable, cost-effective solution that requires no upfront capital investment or technology risk for clients. This approach is expected to unlock numerous stalled projects, particularly in sectors with steady hydrogen demand such as chemicals and steel manufacturing.

Hydropulse’s innovative business model is designed to provide a reliable revenue stream for ITM Power while expanding its footprint in the green hydrogen market.

The outlook for ITM Power remains mixed. Although the company faces significant financial hurdles and challenging valuation metrics, recent technical signals and positive corporate initiatives offer some optimism. Strong short-term momentum is evident, but underlying financial weaknesses continue to raise concerns. Strategic partnerships and contract acquisitions present promising growth avenues, yet improving financial stability will be key to boosting investor confidence and long-term stock performance.

About ITM Power

Founded in 2000 and listed on the AIM segment of the London Stock Exchange since 2004, ITM Power is headquartered in Sheffield, UK. The company is a leading developer of electrolysers based on proton exchange membrane (PEM) technology, enabling the production of green hydrogen from renewable electricity and water.

Liontrust Asset Management (LSE:LIO) has announced its financial results for the year ending 31 March 2025, reporting a decline in gross profit to £157.7 million and adjusted profit before tax of £48.3 million. Despite this downturn, the firm has upheld its full-year dividend payout and introduced a new Capital Allocation Policy aimed at fostering sustainable long-term growth and enhancing shareholder value.

To improve operational efficiency and investment processes, Liontrust has implemented key changes, including the integration of BlackRock’s Aladdin platform and the outsourcing of trading operations to BNY. These initiatives are designed to strengthen decision-making capabilities while driving cost savings.

The company remains focused on broadening its fund offerings and expanding its global distribution network, positioning itself to benefit from a growing preference for active asset management amid a complex market landscape.

Liontrust’s outlook reflects a blend of financial pressures and strategic progress, with bearish technical signals balanced by strong dividend returns and management’s demonstrated confidence through insider purchases and share repurchases. While challenges persist, the attractive dividend yield may appeal to income-focused investors, though caution is advised given ongoing operational hurdles.

About Liontrust Asset Management

Liontrust Asset Management Plc is a UK-based independent fund management company specializing in active investment strategies. Serving both domestic and international clients, Liontrust offers a diverse suite of funds and services. The company is recognized for its award-winning investment approaches, strong brand reputation, and commitment to delivering alpha through active portfolio management.

Filtronic plc (LSE:FTC) has reported full-year 2025 results that outperformed market forecasts, posting a remarkable 120% rise in revenue to £56.3 million alongside an adjusted EBITDA of at least £16.6 million. The company has deepened its involvement in the European space sector as well as aerospace and defense, securing key contracts with major players including Viasat, the European Space Agency, and Airbus.

Technological innovations such as the Prometheus V-band Amplifier underscore Filtronic’s leadership in advanced microelectronics. Looking ahead to FY2026, the firm is optimistic, backed by a strong order pipeline and plans to relocate and expand its manufacturing facilities to support growing demand.

Filtronic’s solid financial results and strategic developments have positively influenced its market standing. While technical indicators show bullish momentum, investors should remain cautious due to overbought signals. Additionally, a high price-to-earnings ratio tempers the overall valuation outlook.

About Filtronic

Filtronic is a global pioneer in advanced microelectronics, specializing in the design and production of critical communication network components. With a legacy spanning over 45 years, the company operates two manufacturing sites and three engineering centers worldwide. Filtronic’s solutions serve demanding sectors including space, aerospace, defense, telecommunications infrastructure, and emergency communications. Its focus lies in developing proprietary intellectual property into customized products that deliver higher bandwidth, lower latency, and improved connectivity for high-growth applications.