Category: Market News

  • European Stocks Rise as Oil Prices Stabilise Ahead of Fed Decision: DAX, CAC, FTSE100

    European Stocks Rise as Oil Prices Stabilise Ahead of Fed Decision: DAX, CAC, FTSE100

    European stock markets moved higher on Wednesday as the recent increase in crude oil prices paused and government bond yields eased from recent highs. Investors were also awaiting the Federal Reserve’s interest rate decision later in the day.

    The German DAX gained 0.4%, while France’s CAC 40 and the UK’s FTSE 100 each advanced 0.6%.

    Sterling weakened against other major currencies after official figures showed that UK inflation increased in August, largely reflecting higher motor fuel prices.

    UK Inflation Reaches Five-Month High

    UK annual consumer price inflation rose to 3.1% in August from 2.9% in July, matching market expectations and reaching its highest level in five months.

    Higher motor fuel prices were a principal contributor to the increase.

    Core inflation, which excludes energy, food, alcohol and tobacco, remained unchanged at 2.6%.

    The pound declined against other major currencies following the release of the data.

    Investors continued to monitor inflation and bond market developments ahead of the Federal Reserve’s monetary policy announcement.

    Vallourec, Barratt Redrow and Nordex Advance

    Several European companies recorded share price gains following corporate announcements.

    Vallourec (EU:VK), a supplier of tubular solutions for the oil, gas and new energy industries, advanced in Paris after securing a contract from Subsea7 for an offshore project in Brazil.

    British housebuilder Barratt Redrow (LSE:BTRW) also gained after reporting higher profit for fiscal 2026, supported primarily by revenue growth.

    In Germany, wind turbine manufacturer Nordex (TG:NDX1) moved higher after receiving a 91-megawatt order from TEUT Energieprojekte GmbH.

    WH Smith Declines Following Profit Guidance Update

    WH Smith (LSE:SMWH) shares fell after the retailer said it expects annual pre-tax profit to be at the lower end of its previously announced guidance range.

    The update contrasted with gains elsewhere in European equity markets.

    European stocks were broadly higher during the session, with movements in oil prices, bond yields and expectations surrounding the Federal Reserve’s interest rate decision remaining in focus.

  • Gold Recovers Ahead of Fed Announcement as Rate Increase Expectations Persist

    Gold Recovers Ahead of Fed Announcement as Rate Increase Expectations Persist

    Gold prices advanced on Wednesday, reversing part of their losses from the previous two sessions as financial markets prepared for the Federal Reserve’s interest rate announcement.

    At 06:31 GMT, spot gold (XAU/USD) was trading 0.8% higher at $4,326.44 an ounce. Gold futures also gained 0.8%, reaching $4,366.50.

    Other precious metals recorded increases. Silver (XAG/USD) rose 1.4% to $64.59 an ounce, while platinum (XPT/USD) advanced 0.7% to $1,792.43.

    The US Dollar Index was broadly unchanged at 99.57.

    Interest rate markets indicated an approximately 92% probability of a Federal Reserve rate increase, with investors assessing how higher energy costs and government bond yields could affect the central bank’s policy outlook.

    Gold Remains Below Late-August Levels

    Despite Wednesday’s recovery, gold has declined more than 3% since the beginning of September.

    The metal traded above $4,700 an ounce in late August but subsequently fell as expectations for US interest rates changed.

    Spot gold returned above $4,300 on Wednesday, remaining below its late-August highs.

    Energy prices and government borrowing costs have been important factors in recent trading.

    Oil stabilised following two consecutive sessions of gains, although uncertainty continued over the shutdown of Saudi Arabia’s East-West pipeline.

    The pipeline was attacked last week after being used to transport millions of barrels of crude per day as an alternative to shipments through the Strait of Hormuz.

    Saudi Arabia has not provided a timetable for restarting the pipeline or indicated how quickly it could increase exports through Hormuz to offset the disruption.

    Saudi Aramco has also postponed some crude deliveries to European customers.

    These developments have contributed to concerns about energy-related inflation.

    Meanwhile, the yield on the benchmark 10-year US Treasury briefly reached 5.04%, its highest level since 2007, after increasing by as much as five basis points on Tuesday.

    Rising Treasury yields can place pressure on gold prices because the metal does not provide interest income, increasing the relative appeal of yield-bearing investments.

    Fed Policy Outlook Remains Central to Trading

    Investors widely anticipated that the Federal Reserve would raise interest rates at the conclusion of its latest policy meeting.

    Market pricing suggested a probability of approximately 92% for an increase, which would be the central bank’s first rate rise since 2023.

    Attention was also focused on Federal Reserve Chair Kevin Warsh’s subsequent comments for indications of whether policymakers were considering additional increases.

    An unchanged rate decision or limited guidance on further tightening could prompt investors to seek higher yields on longer-term Treasury securities if they remained concerned about inflation.

    Such a response is a potential scenario rather than a confirmed market outcome.

    IG senior market analyst Tony Sycamore said gold had ended the previous session slightly lower at approximately $4,293.

    He attributed the decline to higher energy prices, rising bond yields, a stronger US dollar and investor positioning ahead of the Fed meeting.

    Analyst Monitors Gold’s 200-Day Moving Average

    Sycamore identified the 200-day moving average near $4,539 as an important technical reference for gold.

    According to his analysis, a recovery above that level would indicate that the decline from the $4,697 high had ended and the previous upward trend had resumed.

    Until then, he sees the possibility of a further retreat towards support around $4,200.

    Gold remains above the approximately $4,000 level recorded in July, despite its recent decline.

    Some investors continue to consider the metal for portfolio hedging purposes, although its near-term performance remains sensitive to monetary policy expectations, bond yields and movements in the US dollar.

  • Crude Oil Prices Decline as Saudi Arabia Arranges Additional Exports Through Oman

    Crude Oil Prices Decline as Saudi Arabia Arranges Additional Exports Through Oman

    Oil prices fell on Wednesday after reports that Saudi Arabia was making additional crude cargoes available to Asian refiners through Oman, providing an alternative export arrangement following disruptions to its Red Sea infrastructure.

    At 08:01 GMT, Brent crude futures declined 83 cents, or 0.76%, to $107.92 a barrel. US West Texas Intermediate futures dropped $1.41, or 1.33%, to $104.42 a barrel.

    The declines followed gains of more than $3 in the previous session, when reports of suspended loading operations at Saudi Arabia’s Yanbu export terminal raised concerns about the availability of crude supplies.

    Shipping industry sources also reported that Saudi Arabia had cancelled some cargo deliveries to European customers.

    The disruption followed attacks affecting a major Saudi pipeline used to transport crude to the Red Sea, an export route that provides an alternative to the Strait of Hormuz.

    Additional Saudi Cargoes Offered Near Sohar

    Saudi Arabia is offering more crude to Asian refiners through ship-to-ship transfers off the coast of Oman near Sohar, according to people familiar with the arrangements.

    The additional cargoes follow drone attacks that damaged the kingdom’s principal oil pipeline to the Red Sea.

    UBS analyst Giovanni Staunovo said the reports of Saudi exports through the Gulf indicated that concerns about a more extensive disruption were easing.

    Nevertheless, shipping activity through the Strait of Hormuz remained substantially below recent levels.

    Preliminary data released on Wednesday showed four visible vessel transits on Tuesday, compared with seven the previous day and a 10-day average of 18.

    Before the US-Israeli war on Iran began in late February, the strait accounted for approximately one-fifth of global oil and liquefied natural gas supplies.

    Macquarie analysts said crude, condensate and refined product flows through Hormuz had continued despite the regional conflict.

    They estimated that volumes may have exceeded 7.5 million barrels per day since fighting resumed on 30 August.

    The analysts also suggested that developments affecting the waterway were no longer translating as directly into changes in actual oil flows.

    Citi expects further escalation in the Middle East to support crude and refined fuel prices in the near term.

    The bank forecasts a reopening of the Strait of Hormuz during the fourth quarter of 2026, supported by diplomatic efforts involving regional countries. The timing remains Citi’s projection rather than an established outcome.

    European Diesel Futures Reach Record Closing Level

    European diesel futures settled at a record high on Tuesday and reached their highest intraday level since April.

    The increase reflected constraints on crude and refined product shipments associated with the Middle East conflict.

    Staunovo said diesel prices were likely to remain supported unless a peace agreement was reached or conditions in Russia improved.

    Unexpected US Stock Build Adds to Selling Pressure

    An increase in US petroleum inventories provided another factor behind Wednesday’s decline in crude prices.

    Market sources citing American Petroleum Institute figures said crude oil, gasoline and distillate stocks had all risen during the week ended 11 September.

    US crude inventories increased by 7.1 million barrels. Analysts surveyed by Reuters had expected a decline of approximately 1.6 million barrels.

    Gasoline and distillate inventories also recorded unexpected increases, contributing to downward pressure on oil prices.

    Haitong Futures said the inventory data weighed on crude prices but maintained that higher regional stock levels did not resolve the broader constraints affecting global oil supplies.

    The market therefore faced two developments: additional Saudi export arrangements and higher US inventories on one side, and continuing restrictions affecting Middle Eastern crude and fuel shipments on the other.

  • US Futures Advance Before Fed Announcement as Crude Retreats and OpenAI Funding Talks Emerge: Dow Jones, S&P, Nasdaq, Wall Street

    US Futures Advance Before Fed Announcement as Crude Retreats and OpenAI Funding Talks Emerge: Dow Jones, S&P, Nasdaq, Wall Street

    US equity futures edged higher on Wednesday ahead of the Federal Reserve’s monetary policy announcement, while oil prices declined following an unexpected increase in American inventories. Investors also assessed developments in artificial intelligence, including comments from Meta Chief Executive Mark Zuckerberg and a report about potential financing for OpenAI.

    At 07:12 GMT, Dow Jones futures advanced 129 points, or 0.3%. S&P 500 futures increased 21 points, also 0.3%, and Nasdaq 100 futures rose 145 points, or 0.5%.

    The gains followed a decline in Wall Street’s main indices during the previous session, when US government bond yields approached their highest levels in nearly two decades.

    The rise in yields coincided with higher crude prices as the conflict in the Middle East expanded, adding to market concerns about inflation and the possibility of further interest rate increases.

    Vital Knowledge analysts described a feedback cycle in which rising oil prices contribute to higher bond yields, affect investor sentiment and increase pressure on central banks to tighten monetary policy.

    Federal Reserve Rate Increase Expected

    Investors broadly anticipated a quarter-percentage-point rate increase when the Federal Open Market Committee concluded its two-day meeting on Wednesday.

    A 25-basis-point rise would take the federal funds rate to a range of 3.75% to 4%.

    Persistent inflation and a resilient US labour market have contributed to expectations that the central bank will increase borrowing costs.

    President Donald Trump has advocated lower interest rates. The Federal Reserve, meanwhile, faces the potential trade-off between containing inflation and limiting the effects of higher borrowing costs on economic activity and employment.

    Attention will also turn to Federal Reserve Chair Kevin Warsh’s comments following the announcement.

    Investors are seeking indications of whether the anticipated increase would be a one-off adjustment or the first move in a broader tightening cycle. Warsh has previously opposed providing detailed forward guidance on interest rates.

    Brent and WTI Fall but Remain Above $100

    Oil futures declined after US inventory data showed an unexpectedly large increase in crude stocks.

    At 07:06 GMT, Brent futures were down 1.2% at $107.47 a barrel. West Texas Intermediate futures fell 1.8% to $103.94.

    Despite Wednesday’s declines, both benchmarks had risen by at least 5% over the preceding week as disruptions to Middle Eastern oil infrastructure and shipping affected supply expectations.

    Attacks by Iran-backed Houthi militants prompted Saudi Arabia to close an east-west pipeline that had provided an alternative route for crude exports bypassing the Strait of Hormuz.

    The country also suspended loading operations at Yanbu. Reuters reported that Saudi Arabia had offered additional cargoes to Asian refiners through ship-to-ship transfers near Sohar, Oman.

    The Houthis’ expanded control over parts of western Yemen has added to concerns about the Bab el-Mandeb Strait, another important route for international oil shipments.

    Meta CEO Addresses AI Safety Debate

    Meta (NASDAQ:META) Chief Executive Mark Zuckerberg called for independent evaluations of artificial intelligence systems rather than a general slowdown in their development.

    In a social media post on Tuesday evening, Zuckerberg argued that user alignment and trust would become increasingly important competitive factors for AI models and agents.

    He also disclosed that Meta had postponed the release of its latest Muse model to address safety and security matters.

    The comments followed an essay by Anthropic Chief Executive Dario Amodei advocating slower AI development because of potential risks.

    According to the supplied report, OpenAI Chief Executive Sam Altman and xAI head Elon Musk supported Amodei’s position.

    Nvidia Chief Executive Jensen Huang expressed a different view on the safety debate, while President Trump emphasised competition between the United States and China in artificial intelligence.

    OpenAI Reportedly Considers Financing at $1.2 Trillion Valuation

    OpenAI has discussed a potential funding round that would value the company at $1.2 trillion, The Wall Street Journal reported, citing a person familiar with the discussions.

    The proposed financing would take place before a potential initial public offering. The report did not establish that an agreement had been reached or provide a confirmed listing date.

    Altman has ruled out an IPO this year, citing AI safety concerns.

    OpenAI previously completed a $122 billion financing round in March at a valuation of $852 billion, with SoftBank, Amazon and Nvidia among the participants.

    The company has reported one billion active users and said more than 200 million businesses use its AI products.

    The Journal reported that OpenAI’s revenue increased to $6.7 billion in the three months to June from $5.7 billion in the first quarter.

    However, the report said a decline in operating margin had affected expectations that OpenAI could become profitable before a potential public listing.

    The reported financing discussions remain preliminary, and the valuation would depend on the terms of any completed transaction.

  • Barratt Redrow Revenue, WH Smith Trading

    Barratt Redrow Revenue, WH Smith Trading

    FTSE 100 rises as Barratt Redrow reports revenue growth and WH Smith maintains profit guidance. Gold gains while Brent crude falls ahead of the Fed.

    Market Overview

    The FTSE 100 opened 0.38 per cent higher at 10,697.83, supported by gains in mining stocks as investors awaited the Federal Reserve’s interest-rate decision. European markets also advanced, with the Euronext 100 rising 0.57 per cent and Germany’s DAX gaining 0.37 per cent. In the US, the Nasdaq closed lower at 25,981.57, while the S&P 500 declined to 7,585.73.

    Commodity markets were mixed, with copper and gold moving higher, while Brent crude and natural gas declined. Oil prices remained under pressure amid rising US crude inventories, despite concerns about Saudi supply. Bitcoin fell against sterling, while the pound gained against the Swiss franc, euro and Japanese yen but weakened against the US and Australian dollars. Investors continued to monitor Middle East developments ahead of the Federal Reserve’s policy announcement.


    Market Numbers

    FTSE 100: Up (+0.38%), 10,697.83

    Euronext 100: Up (+0.57%), 1,887.39

    DAX: Up (+0.37%), 25,497.25

    NASDAQ: Down, 25,981.57

    S&P 500: Down, 7,585.73


    In the Headlines

    Revenue Growth – Barratt Redrow (LSE:BTRW)
    Barratt Redrow reported a 6.6 per cent increase in FY26 revenue to £6.06 billion, with home completions rising 5 per cent to 17,667. Adjusted profit before tax declined 7.1 per cent, while the group reported £73 million in integration cost synergies.

    Summer Trading – WH Smith (LSE:SMWH)
    WH Smith reported a 5 per cent increase in revenue during summer trading and maintained its full-year profit guidance of £75 million. The update provides investors with an indication of trading performance ahead of the retailer’s annual results.


    Currencies (vs GBP)

    USD: Up (+0.08%), $1.3482

    CHF: Down (-0.01%), Fr.1.1039

    EUR: Down (-0.04%), €1.1673

    JPY: Down (-0.15%), ¥208.879

    AUD: Up (+0.01%), $1.8901

    Bitcoin (BTC/GBP): Down, £56,233.43


    Commodities

    Copper: Up

    Gold: Up

    Brent Crude: Down

    Natural Gas: Down

  • European Natural Gas Prices Rise as Storage Levels Remain Below Seasonal Average

    European Natural Gas Prices Rise as Storage Levels Remain Below Seasonal Average

    European and British wholesale natural gas prices increased on Wednesday, with lower-than-average storage levels and disruptions to liquefied natural gas (LNG) shipments remaining in focus.

    The benchmark Dutch front-month TTF contract rose 2.7% to approximately €82.00 per megawatt-hour (MWh), resuming its advance after a pause on Tuesday.

    In Britain, the equivalent NBP wholesale gas contract gained 2.5% to 203.00 pence per therm, reaching levels not seen for several years.

    EU Gas Storage Stands at 68% of Capacity

    Underground natural gas storage facilities across the European Union were approximately 68% full, around 16 percentage points below the five-year seasonal average.

    The figures indicate a lower level of stored gas than usual as the summer injection season approaches its conclusion.

    European utilities face higher costs when replenishing reserves, while disruptions to shipping through the Strait of Hormuz have restricted LNG supplies from the Persian Gulf.

    The combination of lower storage levels and reduced LNG flows has contributed to concerns about gas availability ahead of the winter heating season.

    ECB Policymakers Monitor Energy-Related Inflation

    The increase in natural gas prices has also become a focus for European Central Bank policymakers.

    The ECB raised its deposit facility rate by 25 basis points to 2.50% last Thursday.

    Governing Council member Peter Kazimir subsequently identified natural gas and electricity prices as significant risks to the eurozone inflation outlook, placing greater emphasis on these costs than on crude oil.

    Kazimir warned that higher gas prices could feed through to household electricity bills and agricultural production costs, including fertiliser.

    Eurozone headline inflation reached 3.3% in August, with the energy component increasing 14.3%.

    ECB policymakers have indicated that further action could be necessary if persistent energy price increases cause medium-term inflation to move further above the central bank’s 2% target.

    Markets Await Federal Reserve Decision

    The rise in European gas prices coincided with expectations of further monetary policy tightening.

    Market pricing indicated an 86% to 92% probability of a Federal Reserve interest rate increase at Wednesday’s meeting.

    Money markets also anticipated another ECB rate increase before the end of the year.

    Energy market participants continued to assess the implications of LNG supply disruptions, below-average European storage levels and higher inflation for wholesale gas prices.

  • European Stocks Rise as Markets Await Federal Reserve Interest Rate Decision: DAX, CAC, FTSE100

    European Stocks Rise as Markets Await Federal Reserve Interest Rate Decision: DAX, CAC, FTSE100

    European equities moved higher on Wednesday, recovering some of the previous session’s losses as investors awaited the Federal Reserve’s interest rate decision.

    The Stoxx Europe 600 gained 0.5% after falling to its lowest level in three months on Tuesday. European markets have recently faced pressure from higher oil prices, risks to shipping in the Middle East and rising government bond yields.

    London’s FTSE 100 advanced 0.4%, while France’s CAC 40 gained 0.3%. Spain’s IBEX 35 and Italy’s FTSE MIB each rose 0.6%. Germany’s DAX also increased.

    Markets Price in a 92% Probability of a Fed Rate Increase

    Investors were awaiting the conclusion of the Federal Open Market Committee’s two-day meeting later on Wednesday.

    Interest rate futures tracked by CME FedWatch indicated an approximately 92% probability of a 25-basis-point increase in US borrowing costs.

    That compared with market pricing of roughly 50% a week earlier. The change followed persistent US inflation readings and higher energy prices.

    Brent crude remained above $113 a barrel following reported attacks on Saudi pipeline infrastructure and shipping disruptions in the Red Sea.

    A quarter-point increase would represent the Federal Reserve’s first rate rise since mid-2023.

    The anticipated decision follows the European Central Bank’s move last week to increase its deposit facility rate to 2.50%.

    Investors Await Fed Guidance on Future Policy

    Alongside the interest rate announcement, investors are awaiting Federal Reserve Chair Kevin Warsh’s press conference and updated monetary policy projections.

    Market participants are seeking indications of whether a potential rate increase would represent a single adjustment in response to energy-related inflation risks or the beginning of a broader tightening cycle.

    Other central bank decisions are also approaching.

    The Bank of Japan is expected to raise interest rates by 25 basis points to 1.25% on Friday, according to the expectations described in the source material.

    Meanwhile, the US 10-year Treasury yield remained near multi-year highs after briefly exceeding 5% on Tuesday.

    European equities’ gains came as investors assessed the implications of higher energy prices, government bond yields and prospective changes in monetary policy.

  • Eurozone Bond Yields Remain Near Multi-Year Highs Ahead of Federal Reserve Decision

    Eurozone Bond Yields Remain Near Multi-Year Highs Ahead of Federal Reserve Decision

    Eurozone government bond yields remained near multi-year highs on Wednesday as investors awaited the Federal Reserve’s monetary policy announcement, with markets pricing in a 25-basis-point US interest rate increase.

    Germany’s two-year Schatz yield stood at 3.25%, close to its highest level in three years. The benchmark 10-year Bund yield was around 3.544%, its highest level since 2011.

    Longer-dated German bonds recovered some ground following several sessions of selling. The 30-year yield eased to approximately 3.897%, retreating from a 15-year high.

    France’s 30-year government bond yield also declined from its highest level since 2002.

    Markets Price in a 92% Probability of a Fed Rate Increase

    Market pricing indicated an approximately 92% probability that the Federal Open Market Committee would raise interest rates by 25 basis points at its meeting on Wednesday.

    Such a move would represent the Federal Reserve’s first rate increase since mid-2023.

    Investors are awaiting Federal Reserve Chair Kevin Warsh’s post-meeting press conference for indications of whether the expected increase would be a single adjustment in response to inflation risks or the beginning of a broader tightening cycle.

    The anticipated decision follows the European Central Bank’s rate increase last week, which brought its deposit facility rate to 2.50%.

    Energy Prices Remain a Factor in Interest Rate Expectations

    Higher energy prices continued to influence inflation expectations and government bond markets.

    Brent crude remained above $113 a barrel following reported strikes on Saudi pipeline infrastructure and shipping disruptions in the Red Sea.

    The increase in oil prices has contributed to concerns about the potential impact of energy costs on businesses and consumers.

    Money market pricing indicated expectations of another 25-basis-point increase in ECB interest rates before the end of the year.

    Investors were also anticipating further monetary policy tightening from the Bank of Japan on Friday.

    The movements in European bond yields reflected expectations for central bank policy against a backdrop of higher energy prices, with shorter-term German yields remaining near multi-year highs despite some declines in longer-dated yields.

  • FTSE 100 Rises 0.45% as Mining Stocks Gain and UK Inflation Reaches 3.1%

    FTSE 100 Rises 0.45% as Mining Stocks Gain and UK Inflation Reaches 3.1%

    The FTSE 100 rose 0.45% on Wednesday morning, supported by gains in mining shares as metals prices increased, while investors assessed UK inflation data and developments in the Middle East.

    At 07:27 GMT, Germany’s DAX was up 0.26% and France’s CAC 40 gained 0.29%. Sterling was little changed against the US dollar, rising 0.01% to $1.3479.

    UK consumer price inflation increased to 3.1% in the 12 months to August, compared with 2.9% in July, according to the Office for National Statistics. The reading matched forecasts, with higher motor fuel costs contributing to the increase.

    ING developed markets economist James Smith said the rise in inflation had been anticipated, with weekly fuel price data suggesting that the headline rate could reach 3.4% next month.

    Smith noted that food inflation declined to 1.1%, while core consumer price inflation remained at 2.6%.

    ING expects inflation to peak at approximately 3.7% early next year and maintains a base case in which the Bank of England leaves interest rates unchanged into 2027.

    Smith said any November interest rate increase would be more closely linked to sustained energy prices and their implications for the Bank’s inflation forecasts than to the latest inflation figures alone.

    Barratt Redrow Leads FTSE 100 Gains as Mining Shares Advance

    Barratt Redrow (LSE:BTRW) rose 6.8% after reporting adjusted profit before tax of £572.8 million, exceeding the consensus estimate of £540.3 million.

    The housebuilder also reduced its home completion guidance for the 2027 financial year, citing delays in the planning process.

    Mining shares advanced alongside higher metals prices.

    Fresnillo (LSE:FRES) gained 2.88%, while Antofagasta (LSE:ANTO) rose 2.8%. Anglo American (LSE:AAL) increased 1.86% and Rio Tinto (LSE:RIO) added 1.16%.

    Silver prices climbed 2.23%, copper gained 0.61%, platinum advanced 0.74% and palladium rose 1.35%.

    The movements came as markets continued to assess supply risks associated with the conflict in the Middle East.

    China Calls for US-Iran Negotiations as Oil Prices Decline

    Chinese Foreign Minister Wang Yi called for renewed negotiations between Washington and Tehran on Wednesday during a visit to Beijing by Iranian Foreign Minister Abbas Araghchi.

    Wang urged the two countries to resume substantive discussions on outstanding issues and rebuild a negotiating framework based on the consensus reached following the Islamabad memorandum of understanding.

    Separately, Iranian state media reported that the country’s Revolutionary Guard had shot down a US MQ-9 drone over Qeshm Island.

    In Washington, the US House of Representatives passed a War Powers Resolution concerning Iran by 220 votes to 204 on Tuesday.

    Seven Republican lawmakers supported the resolution, compared with four in an earlier vote.

    A Congressional Budget Office estimate cited in reporting put the cost of the conflict at $38 billion and indicated that US missile-interceptor stockpiles were being depleted.

    In commodity markets, Brent crude declined 0.93% to $107.74 a barrel, while West Texas Intermediate fell 1.47% to $104.27.

    Gold futures increased 0.95% to $4,373.70 an ounce, while spot gold rose 0.91% to $4,333.84.

    UK Corporate Updates: Moonpig, WH Smith and Babcock

    Moonpig (LSE:MOON) maintained its outlook for the 2027 financial year, with revenue growth at its core Moonpig platform offsetting a planned reduction in reported Experiences revenue.

    WH Smith (LSE:SMWH) said it expects full-year headline profit before tax of approximately £75 million, at the lower end of its previous guidance range. The retailer cited increased promotional activity and higher costs.

    Babcock International (LSE:BAB) reaffirmed its full-year guidance, reporting continued demand across its marine, nuclear and land operations amid increased defence expenditure.

  • Games Workshop Shares Rise 2.2% as Company Declares 70p Dividend

    Games Workshop Shares Rise 2.2% as Company Declares 70p Dividend

    Games Workshop (LSE:GAW) shares rose 2.2% on Wednesday after the miniature wargames manufacturer issued a trading update and announced a further dividend.

    The company reported that trading through 30 August 2026 was in line with the board’s expectations for the financial year.

    Games Workshop also declared a dividend of 70 pence per share, bringing total dividends announced so far in the 2027 financial year to £3 per share.

    The trading update confirmed that the company’s performance remained consistent with its existing expectations, with no changes to its full-year outlook disclosed in the supplied information.

    Games Workshop manufactures and sells miniature wargames and associated products.