Category: Market News

U.S. equity futures were pointing to a subdued start on Wednesday, indicating that stocks may trade unevenly as investors pause following two consecutive sessions of gains.

After a strong kickoff to the first full trading week of the year, some market participants appear inclined to step back and reassess risk. A similar pattern unfolded on Tuesday, when futures suggested a flat opening before the Dow and the S&P 500 ultimately pushed to fresh record closing levels.

Futures trading showed little reaction to the latest employment figures from payrolls processor ADP, which indicated that private-sector hiring in the U.S. slowed slightly more than economists had anticipated in December.

According to ADP, private employment rose by 41,000 jobs last month, following a revised decline of 29,000 in November. Economists had forecast an increase of about 47,000 jobs, compared with the previously reported loss of 32,000 in the prior month.

Commenting on the report, ADP chief economist Dr. Nela Richardson said: “Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back.”

Tuesday’s session extended the early-year rally, with continued buying lifting the Dow and the S&P 500 to new all-time closing highs.

The major indexes finished just shy of their intraday peaks. The Dow climbed 484.90 points, or 1.0%, to 49,462.08, the Nasdaq gained 151.35 points, or 0.7%, to 23,547.17, and the S&P 500 advanced 42.77 points, or 0.6%, to 6,944.82.

A significant driver of the Dow’s advance was Amazon (NASDAQ:AMZN), which surged 3.4%. The company reached a record close after announcing the rollout of Alexa.com to Alexa+ Early Access users, a move seen as an effort to compete more directly with ChatGPT and Gemini.

Additional strength came from gains in Amgen (NASDAQ:AMGN), Salesforce (NYSE:CRM) and IBM Corp. (NYSE:IBM).

The broader market’s advance has continued despite a lack of immediate catalysts, as investors turn their attention to a slate of key U.S. economic releases scheduled in the days ahead.

Friday’s monthly jobs report from the Labor Department is expected to be the focal point of the week, as it could influence expectations for interest rates ahead of the Federal Reserve’s next policy meeting.

While the Fed is widely expected to keep rates unchanged at its January 27–28 meeting, markets continue to price in at least one additional quarter-point rate cut later in the year.

On the sector front, computer hardware stocks posted some of the strongest gains, with the NYSE Arca Computer Hardware Index rising 4.3%.

Higher gold prices also boosted mining shares, reflected in a 4.1% jump in the NYSE Arca Gold Bugs Index. Biotechnology stocks were also strong, pushing the NYSE Arca Biotechnology Index up 3.0%.

Semiconductor, retail and healthcare stocks also moved higher, while energy shares lagged after crude oil prices pulled back.

European stock markets traded without a clear direction on Wednesday, following broadly positive momentum in the previous session as investors weighed fresh economic data and company-specific developments.

The UK’s FTSE 100 was down around 0.6%, while France’s CAC 40 hovered close to flat. Germany’s DAX index, by contrast, advanced roughly 0.7%.

Earlier data from Germany offered mixed signals. Figures showed that the number of people out of work rose by less than expected in December, suggesting some resilience in the labour market. However, German retail sales disappointed, falling 0.6% month on month in November 2025, against expectations for a modest increase.

On the corporate front, shares in Sweden’s Skanska (BIT:1SKAB) moved higher after the construction group completed the sale of a self-developed residential and hotel project in Copenhagen.

German property company LEG Immobilien (TG:LEG) also posted strong gains after confirming the disposal of around 900 residential units for a total value of €63 million during the fourth quarter of 2025.

Meanwhile, wind turbine manufacturer Nordex (TG:NDX1) rallied sharply after being selected to supply more than 414 megawatts of turbines across 15 projects throughout Europe.

In contrast, pharmaceutical group GSK (LSE:GSK) edged lower despite announcing positive Phase III clinical trial results for its hepatitis B candidate bepirovirsen.

Oil prices moved lower on Wednesday after U.S. President Donald Trump said Washington had struck an agreement that would allow up to $2 billion of Venezuelan crude to be imported into the United States, a development expected to add to supply in the world’s biggest oil-consuming market.

Brent crude futures were down 64 cents, or 1.1%, at $60.06 a barrel by 05:50 GMT. U.S. West Texas Intermediate crude fell 82 cents, or 1.4%, to $56.44 a barrel. Both benchmarks extended losses of more than $1 from the previous session, reflecting expectations that global supply will remain plentiful this year.

Market participants noted that the agreement could initially force shipments originally destined for China to be redirected. Venezuela is also thought to be seeking to clear millions of barrels currently held in tankers and storage facilities, partly to avoid further escalation with the United States.

Trump had earlier warned that Venezuela must open its oil sector to U.S. companies or face the risk of intensified military action. Shortly thereafter, U.S. forces captured Venezuelan President Nicolás Maduro over the weekend.

Analysts broadly expect the deal to weigh on prices in an already well-supplied market. “Venezuela’s oil exports to the United States have first and foremost disrupted the U.S. market, which will also deepen the global oversupply,” said Yang An, an analyst at Haitong Futures.

Analysts at Morgan Stanley estimate that the oil market could move into a surplus of as much as 3 million barrels per day in the first half of 2026, citing weak demand growth last year alongside rising output from both OPEC and non-OPEC producers.

That said, analysts at BMI, part of Fitch Solutions, said in a note on Wednesday that an influx of higher volumes of low-cost Venezuelan crude could slow investment and capacity expansion in the U.S. and other producing regions.

Venezuela has recently been selling its flagship Merey crude at a steep discount of around $22 per barrel to Brent for delivery at its ports. “That raises the expected price of oil over the medium term, especially if the Venezuelan regime survives,” the BMI analysts added.

Gold prices edged lower in Asian trading on Wednesday, retreating from sharp gains earlier in the week as investors moved to lock in profits. The pullback came as the U.S. dollar strengthened modestly and markets continued to weigh elevated geopolitical risks alongside anticipation of key U.S. economic releases.

Spot gold was down around 1% at $4,450.55 an ounce by 02:13 ET (07:13 GMT), while U.S. gold futures for March delivery slipped 0.8% to $4,460.55 an ounce. The decline followed a strong two-session rally, during which bullion was buoyed by safe-haven demand triggered by a sudden escalation in tensions between the United States and Venezuela.

Focus shifts from geopolitics to U.S. data

Momentum faded midweek as traders took profits and refocused on macroeconomic signals. A mild rebound in the U.S. dollar also weighed on prices by making gold more expensive for buyers using other currencies.

Geopolitical uncertainty remains high after U.S. forces carried out an operation in Venezuela that resulted in the capture of President Nicolás Maduro, an event that unsettled global markets and initially drove investors toward traditional safe havens such as gold.

U.S. President Donald Trump has since said Washington is planning to sell Venezuelan oil and is in discussions with Caracas over future energy arrangements. While the potential reintroduction of Venezuelan crude to global markets via U.S.-controlled channels has eased some supply concerns in the oil market, it has done little to reduce broader geopolitical anxiety.

Investor attention is now turning toward upcoming U.S. economic data, particularly Friday’s closely watched non-farm payrolls report. The figures are expected to play a key role in shaping expectations for monetary policy at the Federal Reserve. Markets are currently pricing in two additional interest rate cuts this year, a backdrop that has generally been supportive for gold by lowering the opportunity cost of holding non-yielding assets.

Broader metals complex retreats

Other metals also pulled back after recent rallies. Silver fell 2.1% to $79.26 an ounce, while platinum dropped sharply, sliding 6% to $2,302.60 an ounce, as investors reassessed risk exposure following the surge in prices.

In base metals, benchmark copper futures on the London Metal Exchange eased 0.5% to $13,133.20 a tonne, while U.S. copper futures declined 1.2% to $6.02 a pound. Both contracts had touched record highs earlier in the week before reversing lower.

Futures tied to major U.S. equity benchmarks struggled to establish a clear direction on Wednesday, as investors balanced fading geopolitical tensions with anticipation of a heavy flow of U.S. economic indicators. President Donald Trump said the United States and Venezuela have reached an agreement under which Caracas will export up to $2 billion of domestically produced crude oil to the U.S., just days after a high-profile U.S. military operation that resulted in the capture of Venezuela’s leader. Separately, attention is also turning to corporate earnings, with Constellation Brands set to release its latest quarterly results amid signs of slowing demand.

U.S. futures lack conviction

U.S. stock futures moved little in early trading, reflecting a cautious tone as market participants weighed recent geopolitical developments against the prospect of fresh macroeconomic data.

By 02:47 ET, futures on the Dow Jones Industrial Average were higher by 46 points, or 0.1%. In contrast, S&P 500 futures edged down 6 points, or 0.1%, while Nasdaq 100 futures slipped 50 points, or 0.2%.

Wall Street ended the previous session in positive territory, supported by a rally in semiconductor shares linked to continued enthusiasm around artificial intelligence. Memory and storage technology companies, including Seagate Technology, SanDisk and Micron Technology, benefited from comments made by Nvidia chief executive Jensen Huang at a closely watched technology conference. Huang said the company’s next generation of chips will feature an additional layer of storage technology designed to allow chatbots to deliver faster responses to longer and more complex queries.

Elsewhere, Moderna shares jumped nearly 11% after analysts at BofA Global Research raised their price target for the biotechnology group.

Energy stocks, however, retreated after gains earlier in the week that followed the U.S. military action targeting Venezuelan President Nicolas Maduro. Shares in Chevron fell 4.5%, while Exxon Mobil declined 3.4%.

Trump confirms oil export deal with Venezuela

President Trump said on Tuesday that Washington and Caracas have agreed on a deal that will see Venezuela export up to $2 billion of crude oil to the United States.

Trump has previously insisted that Venezuela and its interim president, Delcy Rodríguez, grant the U.S. and American oil companies full “access” to the country’s extensive and highly profitable oil industry. He has warned that failure to meet these demands could expose Venezuela to further U.S. military intervention.

In a post on social media, Trump said Venezuela would be “turning over” between 30 million and 50 million barrels of “sanctioned oil” to the United States. Millions of barrels have been unable to leave the country since Washington imposed a blockade in December.

According to Reuters, the agreement could initially force the diversion of oil shipments that were previously bound for China, which has been one of Venezuela’s largest crude buyers over the past decade.

Oil prices moved lower following the announcement. Brent crude futures were down 0.9% at $60.18 a barrel, while U.S. West Texas Intermediate crude fell 1.2% to $56.46 a barrel.

Focus shifts toward economic data

Analysts at ING said in a note that the “shock” from the U.S. strike on Venezuela has “largely faded,” with oil prices returning to levels seen before the incident and equity markets continuing to advance.

“Unless the U.S. escalates threats on Greenland or intervenes again in Venezuela, markets should refocus on data in the second half of the week,” the analysts, including Frantisek Taborsky and Francesco Pesole, wrote.

The White House has said Trump is weighing options to acquire Greenland, including the possible use of military force, arguing that the territory is strategically important for U.S. national security. European leaders have strongly opposed the idea.

Despite lingering uncertainty around U.S. foreign policy ambitions, market attention is expected to pivot toward a series of closely watched U.S. economic releases.

Economists forecast that data from payrolls processor ADP will show private-sector employers added around 49,000 jobs in December, following a decline of 32,000 in November. Separately, another report is expected to show that job openings — a key gauge of labour demand — edged down slightly to about 7.61 million in November.

Labour market conditions have been central to recent interest rate decisions by the Federal Reserve. Policymakers cut borrowing costs several times in 2025, placing greater emphasis on supporting a weakening jobs outlook than on signs of stubborn inflation.

ISM services data in focus

Markets are also awaiting fresh data on activity in the U.S. services sector. The non-manufacturing purchasing managers’ index from the Institute for Supply Management is expected to ease slightly to 52.2 in December from 52.6 in the previous month.

In November, the services sector was largely stable, with subdued hiring and rising input costs. Because services account for more than two-thirds of total U.S. economic output, the ISM report could offer important insight into the health of the world’s largest economy toward the end of the fourth quarter.

Constellation Brands earnings ahead

On the corporate front, investors are preparing for results from Constellation Brands. According to Bloomberg estimates, the company is expected to report adjusted earnings per share of $2.64 for its fiscal third quarter on net sales of roughly $2.16 billion.

Beer shipment volumes are forecast to decline by 2.91%, while depletion volumes — which measure sales to end consumers — are expected to fall by 3.96%. The beer segment accounts for the majority of Constellation’s overall revenue.

Constellation and rivals such as Molson Coors and Brown-Forman have been grappling with softer demand for alcoholic beverages, alongside higher tariffs on aluminium cans that have squeezed profit margins. In addition, concerns around immigration policy and broader economic uncertainty have weighed on spending among Latino consumers in the U.S., a key demographic for brands such as Corona and Modelo.

European stock markets were largely steady on Wednesday after a run of record closes, as investors paused to digest recent geopolitical events and positioned themselves ahead of a heavy schedule of U.S. economic releases.

By 09:05 GMT, the pan-European Stoxx 600 was little changed. Germany’s DAX added around 0.4%, while France’s CAC 40 slipped 0.3% and the UK’s FTSE 100 fell 0.6%.

At the company level, shares in Nestlé extended losses from the previous session after the group said it was recalling certain infant nutrition products due to a potential contamination issue.

Market participants appeared to be looking past the shockwaves from a U.S. military strike over the weekend that resulted in the capture of Venezuelan leader Nicolás Maduro. Analysts suggested that, while the event was significant, financial markets were increasingly shifting their attention away from geopolitics toward upcoming macroeconomic signals from the United States.

Focus is now turning to a series of key U.S. labour market indicators. Economists expect data from payrolls processor ADP to show that private-sector employers added around 49,000 jobs in December, rebounding from a decline of 32,000 in November. Separate figures are also expected to indicate a modest dip in job openings — a measure of labour demand — to about 7.61 million in November.

The strength of the labour market has been central to recent interest rate decisions by the Federal Reserve, which cut borrowing costs several times in 2025 as policymakers prioritised supporting a softening employment backdrop over persistent inflation pressures.

Investors are also awaiting fresh data on activity in the U.S. services sector. Services account for more than two-thirds of U.S. economic output, meaning the forthcoming survey from the Institute for Supply Management could offer important clues about the state of the world’s largest economy toward the end of the fourth quarter.

Oil prices fall

Oil prices moved lower, with Brent crude futures down 0.9% at $60.18 a barrel and U.S. West Texas Intermediate crude falling 1.2% to $56.46.

The decline followed comments from Donald Trump, who said on Tuesday that Washington and Caracas had reached an agreement allowing Venezuela to export up to $2 billion of domestically produced crude to the United States.

Trump has previously pressed Venezuela and interim president Delcy Rodríguez to grant the U.S. and American energy companies full “access” to the country’s oil sector, warning that failure to comply could prompt further U.S. military action. In a social media post, Trump said Venezuela would be “turning over” between 30 million and 50 million barrels of “sanctioned oil” to the U.S., after exports had been largely halted since a blockade was imposed in December.

Bernstein has outlined a new forecast for copper prices in 2026, projecting an average of around $11,500 per tonne in the first quarter of the year before prices ease back to roughly $10,000 per tonne in the third and fourth quarters as current market momentum begins to cool.

In its analysis, Bernstein notes that copper has recently surged to record levels above $13,000 per tonne. The rally has been fuelled by a combination of supply-side disruptions, including geotechnical issues, alongside man-made factors such as arbitrage-driven trading activity and labour strikes. On Wednesday morning, copper was trading at about $13,238 per tonne.

The firm said today’s elevated pricing reflects the strong structural support provided by global electrification trends, which continue to underpin copper’s long-term value. At the same time, speculative positioning has helped keep prices stretched at unusually high levels.

Looking ahead, Bernstein expects prices to come under pressure as demand growth moderates and substitution effects increase. The analysts also flagged the possibility that weaker electric vehicle sales could weigh on sentiment in the second half of 2026, contributing to a gradual pullback in prices.

The research group cautioned that adverse macroeconomic news flow could accelerate any correction. In particular, negative developments linked to artificial intelligence or electric vehicles could prompt a swift reversal of speculative inflows into copper, leading to sharp price adjustments.

UK equities moved lower in early dealings on Wednesday, with the pound also edging down against the US dollar, while stock markets across continental Europe showed a mixed picture.

By 08:21 GMT, London’s FTSE 100 was down around 0.3%. Sterling weakened by roughly 0.09% against the dollar, slipping below the 1.35 level. Elsewhere in Europe, Germany’s DAX rose about 0.5%, while France’s CAC 40 was marginally lower, down 0.09%.

UK market highlights

GSK (LSE:GSK) was in focus after reporting positive Phase III trial data for bepirovirsen, a potential first-in-class treatment for chronic hepatitis B. The investigational antisense oligonucleotide met its primary endpoints in both the B-Well 1 and B-Well 2 studies, delivering statistically significant and clinically meaningful functional cure rates compared with standard treatment alone. The company also noted stronger efficacy in patients with baseline hepatitis B surface antigen levels below 1,000 IU/ml.

In a separate announcement, Reckitt Benckiser Group (LSE:RKT) said it intends to return around £1.6 billion to shareholders via a special dividend, following the completion of the sale of its Essential Home business to Advent International. The group plans to pay a special dividend of 235 pence per existing ordinary share to shareholders on the register at 6:00 p.m. on Friday, 30 January 2026. Payments are expected on 20 February 2026 for ordinary shareholders and on 27 February 2026 for ADR holders.

Meanwhile, Topps Tiles Plc (LSE:TPT) reported a solid start to its 2026 financial year. Revenue excluding CTD rose 3.7% year on year in the first quarter, while the core Topps Tiles brand delivered like-for-like growth of 2.0%, its fifth consecutive quarter of comparable sales growth. The performance was supported by strong demand from trade customers, with trade sales up 3.7% compared with the same period last year.

Topps Tiles Plc (LSE:TPT) reported a positive opening to its 2026 financial year, with group revenue excluding CTD rising 3.7% year on year. The core Topps Tiles brand recorded its fifth consecutive quarter of like-for-like growth, up 2.0%, continuing to outperform a UK home improvement market that remains under pressure.

Performance was supported by continued growth in trade sales and digital channels under the group’s Mission 365 strategy, alongside strong like-for-like gains at the streamlined CTD business. These factors helped offset ongoing cost inflation. During the quarter, Topps Tiles completed the required disposals within CTD and progressed the integration of the Fired Earth brand and website, further strengthening its multi-brand offering.

Digital performance continued to improve, with online sales increasing to 19.7% of total group revenue. The company is also rolling out new customer engagement tools to support conversion and retention across channels. Recently appointed chief executive Alex Jensen has now fully assumed leadership of the business, providing continuity as the group looks to build on recent strategic and financial progress through 2026.

Overall, Topps Tiles’ outlook is underpinned by solid trading momentum and supportive technical indicators. Strategic initiatives focused on digital expansion and portfolio optimisation are contributing positively, although elevated leverage and operational cost pressures remain areas to manage. The company’s valuation and dividend yield continue to add to its appeal for investors.

More about Topps Tiles

Topps Tiles Plc is the UK’s largest specialist retailer of tiles and related products, supplying domestic, commercial and housebuilder customers. The group serves homeowners, trade professionals, contractors, architects and designers through 296 Topps Tiles stores, a London-based commercial showroom, a 22-store CTD estate and a portfolio of ten customer-facing websites, combining a nationwide physical footprint with a growing digital platform.

Aptamer Group plc (LSE:APTA) reported a 27% year-on-year increase in unaudited first-half revenue to £0.83 million, supported by a fee-for-service order book exceeding £2.0 million for FY26 and a broader sales pipeline valued at £3.1 million. The board said this visibility underpins its expectation that full-year revenue will come in materially ahead of the prior year.

The group continues to accelerate its shift from development-stage activities toward commercialisation. During the period, Aptamer signed non-exclusive licensing agreements with Twist Bioscience and Alphazyme, generating upfront payments alongside the potential for future royalty income. Additional licensing discussions are ongoing for its Optimer® binders across diagnostics and enzyme applications, while the company has also secured a top-three pharmaceutical partner for a radioligand development programme. This was complemented by significant repeat business from other leading pharmaceutical clients.

Operational progress extended beyond licensing. Aptamer reported continued advancement of programmes with Unilever, the development of new Optimer® immunohistochemistry reagents for a global diagnostics group, and further de-risking of its fibrotic liver disease therapeutic candidate. Management said these developments enhance the group’s intellectual property portfolio and validate its dual revenue model, combining fee-for-service work with higher-margin, recurring licensing income, while reinforcing its position as a specialist technology partner to blue-chip customers in pharma, diagnostics and consumer goods.

Despite the strategic momentum, the company’s outlook remains constrained by weak underlying financial metrics, including ongoing losses and negative cash flows, alongside historically volatile revenue. These pressures are partly offset by supportive technical indicators, which show a clear upward trend in the share price. Valuation remains challenged by the lack of profitability and the absence of dividend guidance.

More about Aptamer Group Plc

Aptamer Group plc is an AIM-listed life sciences company developing next-generation synthetic binders through its proprietary Optimer® platform. The technology is applied across pharmaceuticals, diagnostics, consumer goods and emerging areas such as radioligand therapies. The group is increasingly focused on building higher-margin, recurring revenues through fee-for-service discovery projects and non-exclusive licensing agreements that monetise its intellectual property on a global scale.