Category: Market News

U.S. stock futures slipped early Thursday, suggesting a pause in momentum after the previous day’s rally. Investors continued to parse the Federal Reserve’s latest rate cut while weighing fresh concerns raised by Oracle’s (NYSE:ORCL) underwhelming forecast. Adobe (NASDAQ:ADBE), meanwhile, provided a bright spot with annual guidance that exceeded expectations.

Futures soften ahead of the open

Futures signaled a weaker start as traders digested the Fed’s third rate reduction since September together with mixed corporate news.

At 02:04 ET, Dow futures were down 213 points (–0.4%), S&P 500 futures declined 59 points (–0.9%), and Nasdaq 100 futures dropped 308 points (–1.2%).

The previous session had seen broad gains after the Fed trimmed rates by 25 basis points and Chair Jerome Powell delivered a more even-toned message than markets anticipated.

By Wednesday’s close, the S&P 500 had climbed 0.67% to 6,886.68, the Dow Jones advanced 1.05% to 48,057.75, and the Nasdaq Composite rose 0.33% to 23,654.16.

Dollar retreats as markets digest Fed stance

The U.S. dollar remained on the back foot after touching a seven-week low, pressured by Powell’s remark that he does not believe “a rate hike is anyone’s base case” in the near term.

Traders increased bets on additional policy easing in 2026, dragging the greenback lower. By 03:13 ET, the U.S. dollar index slipped 0.1% to 98.65.

Although the Fed lowered rates to a 3.50%–3.75% range, policymakers were notably divided. With earlier cuts already delivered in September and October, many officials signaled they prefer to wait for more clarity on weakening labor conditions and “somewhat elevated” inflation before acting again.

Fresh economic projections showed expectations for stronger U.S. growth in 2026—but also substantial disagreement about the path of interest rates as the administration pursues sweeping trade changes and AI continues to drive investment flows.

Attention is now turning to the White House’s upcoming decision on the next Fed chair, with Kevin Hassett viewed as the favorite. Analysts widely expect he could support the aggressive rate-cutting approach long emphasized by the president.

As ING’s James Knightley and Padhraic Garvey wrote, “Current Fed members suggest just one further cut is their 2026 central projection, but with changes coming and the jobs market cooling the risks are skewed towards them cutting by more.”

Oracle stumbles on guidance

Oracle’s shares plunged more than 12% in after-hours trading after the company issued revenue and profit projections that fell short of expectations.

Management also revealed that capital spending will rise by an additional $15 billion, intensifying concerns that massive AI-related investments are not yet converting into returns.

The company sees adjusted earnings of $1.64–$1.68 a share this quarter—below forecasts of $1.72—and expects slower-than-anticipated revenue growth of 16–18%.

The latest earnings also disappointed across key metrics, including revenue, operating income, and upcoming cloud commitments.

Adobe shines amid broader tech caution

Adobe delivered a stronger-than-expected annual outlook, suggesting the company’s AI-powered features are beginning to drive sustained demand.

Revenue for the year is projected at $25.90–$26.10 billion, above expectations. Adjusted earnings are also forecast to top street estimates.

CFO Dan Durn told Reuters that monthly active users of Adobe’s freemium tools surged 35% from a year earlier to over 70 million.

Trump calls for CNN sale

In a new twist to the ongoing media-sector drama, President Trump stated that CNN should be sold as part of any transaction involving Warner Bros Discovery (NASDAQ:WBD).

According to the president, it is “imperative that CNN be sold”, regardless of the ultimate buyer of Warner.

His comments surface as Paramount pursues a $77.9 billion hostile takeover bid for Warner, a deal that would include CNN.

European equities moved within narrow ranges on Thursday as traders assessed the impact of the U.S. Federal Reserve’s latest rate cut and grappled with renewed uncertainty surrounding the artificial intelligence trade.

By 03:05 ET, Germany’s DAX was down 0.3%, the UK’s FTSE 100 slipped 0.1%, and France’s CAC 40 edged up 0.1%.

Fed cuts rates but signals a cautious path ahead

The Federal Reserve lowered its benchmark interest rate by 25 basis points on Wednesday to a range of 3.5%–3.75%, in line with expectations. However, policymakers also indicated that additional cuts may be put on hold as they await clearer signs on inflation and labor-market trends.

During the post-meeting press conference, Chair Jerome Powell noted that the reductions delivered so far have pushed policy rates into “a range of plausible estimates of the neutral rate and leave it well positioned to determine the extent of further changes to rates based on incoming economic data.”

The decision revealed widening divisions within the central bank—three members dissented, with two preferring no cut at all and one advocating a larger, 50-basis-point reduction.

Analysts at Vital Knowledge cautioned that, “Two of the biggest market tailwinds in 2025 (global monetary policy easing and a unified AI momentum trade) won’t be in place in 2026, creating a much more uncertain landscape for stocks.”

Oracle disappoints, dragging on sentiment

Doubts around AI profitability deepened after Oracle (NYSE:ORCL) released results following Wednesday’s U.S. market close. The company offered weaker-than-expected guidance on both revenue and profit, and said capital spending would rise by $15 billion compared with prior projections—highlighting that heavy AI-related investments are not yet translating into the earnings growth many had hoped for.

“Despite management’s commitment to its IG (investment-grade) debt rating, AI debt funding concerns were unresolved,” Jefferies analysts wrote.

Light European earnings; Munich Re and Drax in focus

European earnings were relatively sparse, though Munich Re (TG:A289EQ) guided for €64 billion in insurance revenue for 2026, topping the €62 billion consensus and indicating stronger growth ahead. The reinsurer released the forecast alongside a new five-year strategic plan stretching to 2030, replacing its previous three-year cycle.

In the UK, Drax Group (LSE:DRX) said full-year 2025 earnings should land near the upper end of consensus expectations thanks to strong operational performance.

SNB expected to hold rates

Thursday’s European economic calendar is quiet, but markets are watching the Swiss National Bank closely as it sets policy later in the day. Analysts widely expect rates to remain at 0.0%, despite recent underwhelming inflation and GDP readings.

“The bar to a negative policy rate is high,” Nomura analysts said, suggesting the current stance could persist for some time.

Oil retreats after vessel seizure

Crude prices slipped, giving back part of Wednesday’s gains. Concerns over supply disruptions resurfaced after the U.S. seized a sanctioned tanker near Venezuela.

Brent crude fell 0.7% to $61.78 a barrel, while West Texas Intermediate dropped 0.7% to $58.05.

Oil had initially climbed after the seizure, which highlighted risks to Venezuelan exports and introduced a fresh supply premium. Investors remain attentive to Ukraine peace negotiations and the Fed’s policy outlook, as lower rates can stimulate economic activity and, in turn, bolster oil demand.

UK equities were largely unchanged on Thursday, with the pound edging lower and European indices delivering a mixed performance as investors digested the Federal Reserve’s latest interest rate reduction.

By 08:18 GMT, the FTSE 100 was fractionally lower at –0.02%, while the pound eased 0.1% against the dollar, trading just above 1.33. Elsewhere in Europe, Germany’s DAX slipped 0.2%, whereas France’s CAC 40 inched up 0.08%.

UK roundup

Fresh data from the Royal Institution of Chartered Surveyors (RICS) pointed to mounting strain in the UK housing market in November. The latest Residential Market Survey showed all near-term indicators turning negative, with nationwide house prices coming under gentle downward pressure. Analysts observed that estate agents showed little enthusiasm following the government’s recent Budget statement.

In corporate news, FirstGroup PLC (LSE:FGP) has purchased the UK sightseeing bus operations of RATP Développement SA for about £17 million, bolstering its First Bus network in both London and Bath. The assets include 63 buses split between the two cities, a freehold depot in Wandsworth, a leased facility in Keynsham, and around 190 employees.

Workspace Group PLC (LSE:WKP), the capital’s leading provider of flexible offices, said it has agreed to sell two lower-conviction properties for £11.8 million, consistent with their September 2025 valuation and reflecting a net initial yield of 5.7%.

Workspace Group PLC (LSE:WKP), London’s largest provider of flexible office space, announced Thursday that it has agreed to sell two lower-conviction assets for a combined £11.8 million.

The transaction aligns with the September 2025 valuation and reflects a net initial yield of 5.7%.

The properties being divested are Peer House, a 10,000 sq. ft. office building near Gray’s Inn Road, and Blocks A and B at Parkhall Business Centre in Dulwich, which total 23,000 sq. ft. of light industrial and office accommodation.

Workspace will continue to own the remaining portion of Parkhall Business Centre—comprising 99,000 sq. ft. of office, studio, and workshop space—which it classifies as a conviction asset under the portfolio strategy it introduced in June.

With this latest transaction, the company has now exchanged or completed £106 million of low-conviction asset sales, moving it closer to its two-year goal of realising £200 million from such disposals.

Chief Executive Officer Lawrence Hutchings said: “Today’s disposals are another disciplined step towards optimizing our portfolio through our conviction-led approach. Recycling capital out of lower-conviction assets sharpens our focus on the buildings where customer demand and returns are strongest.”

FirstGroup plc (LSE:FGP) has purchased the UK sightseeing bus businesses of RATP Développement SA in a deal valued at roughly £17 million, strengthening its First Bus presence in both London and Bath.

The transaction covers sightseeing services currently operated under the Tootbus brand and includes 63 vehicles—42 based in London and 21 in Bath—along with a freehold depot in Wandsworth, a leased depot in Keynsham, and around 190 staff across the two sites.

In London, the acquisition provides greater diversification within the capital’s transport landscape and creates an opportunity for FirstGroup to enhance its service offering. The company also plans to pursue additional Transport for London (TfL) red bus route contracts using the Wandsworth depot as a base.

For Bath, the deal similarly broadens FirstGroup’s local operations and secures extra depot capacity to support future growth.

The acquired businesses generated £15.9 million in revenue and posted an operating loss of £0.6 million for the year ended December 31, 2023. FirstGroup anticipates a small loss in the first full year of ownership but expects the business to return to profitability thereafter. By FY 2029, the company projects around £30 million in annual revenue, supported by expansion in First Bus London’s TfL contract portfolio.

The acquisition is being funded through existing cash reserves. As a result, FirstGroup now expects FY 2026 adjusted net debt of £140–150 million.

Graham Sutherland, Chief Executive Officer of FirstGroup, said: “The acquisition of the bus operations in London and Bath, in line with our UK-focused growth and diversification strategy, will allow us to further diversify and expand our footprint in two of our key markets. The integration of the businesses will also create material operational and cost synergies and the opportunity to grow our London route portfolio over time.”

Bill Cahill, MD of First Bus London, and Doug Claringbold, MD of First Bus West of England, will lead the integration and development of the newly acquired operations.

Drax Group PLC ADR (LSE:DRX) said Thursday that it anticipates its adjusted EBITDA for full-year 2025 will come in near the top of analyst expectations, supported by strong operational performance across the business.

The company noted that current analyst consensus places adjusted EBITDA for 2025 at £902 million, within a range of £892 million to £909 million as of December 4.

Looking further ahead, Drax is maintaining its target of generating £600–700 million in adjusted EBITDA annually after 2027. It also expects its existing operations to produce roughly £3 billion in free cash flow between 2025 and 2031—a level that would underpin more than £1 billion in shareholder returns and up to £2 billion in growth-focused investments.

The group has already locked in about £2.3 billion in contracted forward power sales between 2025 and Q1 2027 tied to its Renewables Obligation biomass, pumped storage, and hydro generation assets. For 2025 and 2026, Renewables Obligation output is fully hedged, with over £1 billion in related ROCs.

Drax continues to advance its growth pipeline in flexible generation, including gigawatt-scale opportunities in battery energy storage. In October, the company struck a deal to acquire three BESS projects totaling 260MW, with staged payments of £157.2 million scheduled between 2025 and 2028.

The company is also assessing ways to unlock additional value at its Drax Power Station site. This includes preparing a planning submission for a potential 100MW data centre that could be operational in 2027, while longer-term evaluations explore options for more than 1GW of total data centre capacity.

“It is vital that the UK maintains its energy security and delivers affordable routes to decarbonisation into the 2030s and beyond,” said Drax Group CEO Will Gardiner. “By 2050, demand for power is expected to double, while secure gas generation reduces and intermittent renewable generation increases, meaning more dispatchable and reliable generation will be required.”

NewRiver REIT plc (LSE:NRR) announced Thursday that it has signed a conditional agreement with the Mid-Sussex District Council to establish a joint venture aimed at redeveloping The Martlets shopping centre in Burgess Hill.

The scheme, which already has planning approval, will overhaul the 1970s-era complex and convert it into a contemporary hub for retail, leisure, and residential living. Plans call for 172 new apartments, a 102-room hotel, 4,645 square meters of additional retail—including a 1,950-square-meter grocery store—and upgraded public spaces.

The joint venture will move forward once a number of conditions are fulfilled, such as the sale of the residential portion of the site—currently under offer—and the completion of pre-lease agreements for both the grocery store and hotel, where legal discussions are reportedly well advanced.

NewRiver expects these conditions to be satisfied by the end of March 2026, paving the way for construction to begin in summer 2026 and conclude in 2028.

Allan Lockhart, CEO of NewRiver REIT, called the agreement “a major milestone in the realization of a flagship downtown redevelopment project and the creation of a high-impact and transformative partnership.”

He added that the company has collaborated with the Mid-Sussex District Council for years to “implement a low-capital and commercially viable strategy to redevelop The Martlets”.

Shares of Entain PLC (LSE:ENT) slipped 3.5% on Thursday after the sports betting and gaming group revealed that Chief Financial Officer Rob Wood will be leaving the company in 2026, concluding a 13-year tenure.

The FTSE 100 company confirmed that Michael Snape will take over as Group CFO and Executive Director on March 6, 2026. Snape, who brings more than 20 years of senior finance experience, is set to join as CFO Designate in February 2026. Wood will remain at the business until June 2026 to support a seamless handover.

Wood has played a pivotal role in reshaping Entain into a major global operator firmly anchored in regulated markets. His exit comes as the firm continues advancing its strategic agenda across the betting and gaming landscape.
“His expertise and dedication have helped us to successfully transform into the global business we are today,” said Group CEO Stella David, reflecting on Wood’s contributions.

Snape currently serves as Group CFO of International Distribution Services (IDS), a global logistics provider. His background also includes senior finance positions at Walgreens Boots Alliance, Tesco, and Waitrose.

Entain added that trading so far this year remains consistent with market expectations for fiscal 2025. The company plans to publish its FY2025 results on March 5, 2026, with analyst estimates pointing to EBITDA of £1.139 billion.

Geo Exploration Limited (LSE:GEO) has released an update on its recently secured Gorge Project in Western Australia, outlining early-stage exploration efforts aimed at uncovering large-scale gold deposits. The project, supported by a newly granted exploration licence, expands GEO’s portfolio into a historically underexplored region that has previously yielded encouraging indications of mineralisation. With licence acquisition now complete, the company is preparing for high-resolution surveys and a drilling programme scheduled for 2026. These steps mark meaningful progress toward evaluating what could become a significant bedrock gold discovery, strengthening GEO’s position within the gold exploration sector and creating new value opportunities for stakeholders.

More about Geo Exploration Limited

Geo Exploration Limited is active in the mining sector, concentrating on the exploration and development of gold resources. The company’s strategy centres on identifying and advancing large Intrusion-Related Gold Systems (IRGS) across Western Australia, with a focus on expanding its landholdings to support long-term exploration growth.

Anglo Asian Mining (LSE:AAZ) has reported major improvements at its Gedabek flotation plant, where newly installed filter presses and a thickener have contributed to record copper production in November. These upgrades form part of the company’s wider plan to boost operational efficiency and increase overall processing capacity, aligning with the growing global demand for copper and supporting Anglo Asian’s long-term growth strategy.

Although the production gains are encouraging, the company’s broader outlook continues to be shaped by significant financial pressures that require strategic attention. Even so, favourable technical indicators and supportive corporate developments introduce a measure of optimism, suggesting that meaningful recovery could be achievable if financial challenges are effectively addressed.

More about Anglo Asian Mining

Anglo Asian Mining plc is a copper and gold producer with mining and exploration assets across Azerbaijan. The company aims to evolve into a multi-asset, mid-tier producer by 2030, with copper becoming its primary output. This transition is expected to be driven by the development of new mines—including Xarxar, Garadag, and Zafar—alongside the expansion of its existing operations.