Category: Market News

Gold prices remained elevated in Asian markets on Monday, extending a four-week streak of gains as traders positioned for an anticipated U.S. Federal Reserve rate cut later this week.

Spot gold rose marginally, up 0.1% to $3,645.03 per ounce by 01:29 ET (05:29 GMT), staying close to last week’s record peak of $3,673.95. U.S. Gold Futures ticked down slightly to $3,682.70 per ounce.

The precious metal has gained roughly 1.5% over the past week, marking its fourth consecutive weekly increase. Year-to-date, gold has surged nearly 40%, reflecting strong safe-haven demand amid trade tensions under President Donald Trump’s administration.

Fed Decision in Focus

The Federal Reserve is set to begin its meeting on Tuesday, with a rate decision expected Wednesday. Market participants currently assign more than a 96% probability to a 25-basis-point cut, with some bets on a larger reduction. Optimism for imminent easing has grown after significant revisions to U.S. labor data highlighted a cooling job market.

In August, payroll growth was modest at just 22,000 jobs, raising unemployment to 4.3%. While the Consumer Price Index rose 0.4% month-on-month, keeping annual inflation at 2.9%, analysts note that the Fed is likely to prioritize signs of labor market weakness. Gold is particularly sensitive to interest rate expectations, as lower rates reduce the opportunity cost of holding a non-yielding asset and generally weaken the dollar.

Other Metals and Chinese Data Weigh on Markets

Other precious metals were mixed. Silver futures slipped 0.2% to $42.76 per ounce, and platinum futures remained largely flat at $1,410.45 per ounce. Copper also posted small gains, with London Metal Exchange benchmark futures up 0.3% to $10,083.30 per ton and U.S. copper futures rising 0.2% to $4.66 per pound.

Market sentiment was dampened by Chinese economic indicators. Industrial production in August expanded at its slowest pace in a year, and retail sales growth slowed compared with July, both falling short of market expectations. As the world’s largest copper importer, China’s weaker data added caution to the metals market.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil prices climbed in Asian trading on Monday, extending modest gains from last week as investors monitored potential disruptions to Russian supply following Ukrainian drone strikes targeting Moscow’s energy infrastructure.

Attention this week is also on the U.S. Federal Reserve, widely expected to cut interest rates amid growing concerns over slowing fuel demand in the country.

By 22:15 ET (02:15 GMT), Brent crude for November delivery rose 0.4% to $67.26 a barrel, while West Texas Intermediate (WTI) futures increased 0.5% to $62.72 a barrel.

Russian Supply Risks Persist

Last week, oil prices gained roughly 1% after Ukraine intensified attacks on Russian energy assets, including the Primorsk export terminal and the Kirishinefteorgsintez refinery. These strikes could temporarily take significant volumes of Russian oil offline, raising the risk of supply disruptions, particularly for major importers such as India and China.

Meanwhile, diplomatic efforts by the U.S. to de-escalate the Russia-Ukraine conflict continue, although Moscow indicated on Friday that ceasefire negotiations with Kyiv had stalled.

The U.S. has also been pursuing higher trade tariffs on China and India among G7 nations, following Washington’s late-August decision to impose a 50% tariff on Indian purchases of Russian oil. Additional Western restrictions could further tighten global supply if the conflict persists.

Focus on Fed Rate Decision

Oil markets received additional support from a softer U.S. dollar, which weakened in anticipation of a Federal Reserve rate cut this week. A series of mixed inflation readings and weaker labor market data have fueled expectations that the Fed may resume its easing cycle from September.

According to CME FedWatch, markets are currently pricing in a 96.4% probability of a 25 basis-point rate cut and a 3.6% chance of a 50 bps reduction. Lower interest rates generally stimulate economic activity, which could boost fuel demand in the coming months.

The weaker dollar also benefits commodities priced in U.S. dollars, contributing to the modest rally across oil and other markets.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equities edged higher on Monday, starting the week positively as investors awaited several key central bank meetings, including the U.S. Federal Reserve and the Bank of England.

By 07:05 GMT, Germany’s DAX was up 0.5%, France’s CAC 40 gained 0.5%, and the U.K.’s FTSE 100 rose 0.1%.

Focus on the Fed

Market participants are bracing for a critical Federal Reserve meeting later this week. Recent economic indicators suggest a softening labor market alongside subdued inflation, raising expectations of a potential rate cut when the Fed concludes its session on Wednesday. Optimism around this scenario helped push U.S. stock indices to record levels last week, with the tech-heavy Nasdaq Composite closing Friday at a new high.

The Fed is not the only central bank in the spotlight this week. The Bank of England, which cut rates five times in just over a year, is expected to hold rates steady on Thursday, even with inflation at 3.8% in July—the highest among G7 nations and nearly double the Bank of England’s medium-term target. Other central banks set to announce policy include those in Japan, Canada, and South Africa.

China Growth Slows

In Europe, there was little domestic economic data on Monday, but sentiment was affected by China’s August economic figures. Factory output and retail sales showed their slowest growth since last year, with industrial production up 5.2% year-on-year (down from 5.7% in July) and retail sales rising 3.4%, the slowest pace since November 2024.

Corporate Developments

In corporate news, German defence firm Rheinmetall (TG:RHM) announced an agreement to acquire the military shipbuilding division of the Luerssen Group, Naval Vessels Luerssen, marking its expansion into naval construction. Transaction terms were not disclosed, and the deal is expected to close early next year, subject to antitrust approval.

Meanwhile, AO World (LSE:AO.) boosted its profit forecast and announced its first-ever £10 million share buyback after reporting double-digit revenue growth for H1 2025.

Oil Markets

Oil prices rose Monday, continuing recent gains amid concerns over Russian supply disruptions following Ukrainian drone strikes on Moscow’s energy infrastructure. At 03:05 ET, Brent futures climbed 0.3% to $67.22 per barrel, while U.S. West Texas Intermediate crude rose 0.1% to $62.75 per barrel. Both benchmarks gained more than 1% last week as attacks targeted Russia’s Primorsk export terminal and the Kirishinefteorgsintez refinery, potentially reducing crude output and affecting key markets such as India and China.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Greencoat Renewables Plc (LSE:GRP) reported a post-tax loss of €68 million for H1 2025, compared with a €34.6 million profit in the same period last year, as weaker wind conditions and lower power prices negatively affected output and valuations.

The Dublin-listed renewable investor generated €68.7 million in gross cash and €64.8 million in net cash after project-level debt repayments, providing dividend cover of 1.8x gross and 1.7x net. Revenue totaled €160.2 million, with implied EBITDA of €89.8 million. Electricity production reached 1,830 GWh, 15% below budget, which the company described as “one of the weakest Northern European wind resource periods on record.” Solar output met expectations.

Dividends for the period were 3.41 cents per share (€37.9 million), keeping Greencoat on track for its 2025 target of 6.81 cents. Net asset value stood at €1.12 billion (101.0 cents per share) as of 30 June, down from €1.23 billion (110.5 cents) at the end of 2024. Gross asset value was €2.48 billion.

The company completed the sale of a 116 MW portfolio of six Irish assets, including a 50% stake in Knockacummer, for €156.2 million, a 4% premium to book value. Proceeds of €139 million were applied to debt repayment, reducing pro forma gearing to approximately 52%. Total group debt was €1.35 billion (55% of gross asset value) before the disposal-linked repayment, and cash stood at €140.8 million, including €89.1 million of unrestricted cash.

Chairman Rónán Murphy said the portfolio, “delivered gross dividend cover of 1.8x whilst decisive action resulted in material progress on a range of strategic initiatives.”

He highlighted the asset disposal, new power purchase agreements, and an additional Johannesburg Stock Exchange listing as key steps to strengthen the balance sheet.

Greencoat extended its €350 million revolving credit facility to 2028 and entered swaps to lock in a 3.9% cost of debt through 2030. From October, the weighted average cost of debt is expected to be around 3.4%, compared with 2.9% at midyear.

The company plans to continue asset recycling, having raised more than €200 million through disposals since late 2024. Murphy noted: “Our strategy continues to adapt to evolving sector and capital market dynamics,”

adding that the EU’s binding 2030 target of 42.5% renewable generation is supporting demand for clean energy.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

AO World (LSE:AO.) increased its profit outlook and announced its first-ever share buyback on Monday, following a period of double-digit revenue growth in the first half of the year.

The online electricals retailer reported that B2C revenues grew 11% during the period, while group revenues, including contributions from MusicMagpie, rose 13%. The company reaffirmed its guidance for continued double-digit B2C growth in fiscal 2026. Adjusted profit-before-tax guidance was raised from £40–50 million to £45–50 million, reflecting a 6% increase at the midpoint.

AO also confirmed a £10 million share repurchase program. The company reported a net cash position of approximately £70 million for H1, exceeding prior estimates.

Following the update, Jefferies increased its forecast for AO’s fiscal 2026 net cash position from £35 million to £45 million. The investment firm noted that this trading update represents the 10th guidance upgrade since summer 2022.

Analysts highlighted AO World’s strong performance across service, membership programs, and cost management, though no category-specific revenue breakdowns were provided.

Shares of AO closed at 83.40p prior to the announcement. Jefferies maintained its “buy” rating and a 150p price target, implying an 80% increase from the most recent closing price.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

JPMorgan has reaffirmed its “overweight” rating on J Sainsbury Plc (LSE:SBRY) and added the grocer to its Positive Catalyst Watch, citing better execution and supportive industry trends. The announcement pushed Sainsbury’s shares up 5% on Monday.

The brokerage also lifted its price target from 330p to 363p, suggesting an 18% upside from the September 12 close of 307p.

The move comes ahead of Sainsbury’s first-half results, due on 6 November, with JPMorgan anticipating earnings above guidance. The firm raised its fiscal 2026 EBIT estimate by around 5.5%, forecasting £1.13 billion versus company guidance of roughly £1 billion. It also projected adjusted earnings per share of 26.9p for fiscal 2026 and 33.5p for fiscal 2027, both exceeding consensus expectations.

Analysts noted steady momentum in Sainsbury’s grocery operations and improvements at Argos, which has returned to positive sales growth after several quarters of decline.

“We now sit c10% above the company guidance for retail Adj. operating profit of c£1bn (c10% above consensus as well),” JPMorgan said in its report.

Sector data supported the brokerage’s view. In the four weeks to 10 August, Sainsbury’s sales rose 4.8% year-on-year, outpacing total market growth of 4%, according to Worldpanel by Numerator. The grocer also gained 12 basis points of market share, while competitors Asda and Morrisons continued to lose ground.

JPMorgan highlighted upcoming catalysts, including easier September comparisons, the Christmas trading season, and continued strength in Sainsbury’s “Taste the Difference” premium range, which expanded 15% in fiscal 2025. The line has grown from £1.2 billion in 2019/20 sales to £1.6 billion in 2023/24, averaging roughly 7% annual growth.

The analysts valued Sainsbury using a discounted cash flow model, assuming a weighted average cost of capital of 10.2% and a terminal growth rate of 1%, arriving at a fair value of 363p per share by February 2027.

JPMorgan stated that the Positive Catalyst Watch reflects short-term confidence ahead of upcoming results, noting that its broader “overweight” rating continues to rely on the stability of the U.K. grocery market and ongoing capital return prospects.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Shield Therapeutics (LSE:STX) has successfully secured £1.5 million through the placement of new ordinary shares, driven by strong institutional investor demand, to support the growth of its flagship product, ACCRUFeR®, in the U.S. market. The share issuance, completed at a premium, will strengthen the company’s working capital, expand its shareholder base, and position Shield to accelerate sales with the goal of achieving positive cash flow by the end of 2025.

The company’s outlook is shaped by strong technical performance, reflecting positive market momentum. However, financial challenges—including negative profitability and cash flow constraints—remain significant. Valuation metrics, such as a negative P/E ratio and the absence of a dividend yield, also weigh on the stock’s attractiveness.

About Shield Therapeutics

Shield Therapeutics plc is a commercial-stage specialty pharmaceutical company focused on treating iron deficiency with its innovative therapy, ACCRUFeR®/FeRACCRU® (ferric maltol). In the U.S., the company operates through a collaboration with Viatris and has licensed its product to pharmaceutical partners in Europe, China, and Japan. ACCRUFeR® is the first FDA-approved oral iron therapy for iron deficiency and anemia, addressing a significant unmet medical need.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

S4 Capital Plc (LSE:SFOR) reported a 12.7% decrease in net revenue for H1 2025, with operational EBITDA down nearly 31%. Despite these setbacks, the company improved its net debt position by £37 million, demonstrating effective cash flow management. The firm remains focused on its strategy of AI-driven solutions aimed at enhancing productivity and client engagement. Key new business wins, including partnerships with General Motors and Amazon, are expected to contribute to stronger performance in H2 2025. The board is also considering an enhanced final dividend for the year, contingent on improved second-half results and liquidity targets.

S4 Capital’s outlook reflects ongoing financial challenges and valuation concerns, with a negative P/E ratio and declining revenues. Technical indicators present mixed signals, while the earnings call highlighted both achievements and hurdles. Although the dividend yield provides some support, high leverage and profitability issues continue to pose risks.

About S4 Capital Plc

S4 Capital Plc is a digital advertising and marketing company specializing in digital transformation through first-party data. The firm creates, produces, and distributes digital advertising content and is organized into two main divisions: Marketing Services and Technology Services. Its unified structure aims to provide clients with seamless solutions, particularly in volatile economic conditions.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Fiinu Plc (LSE:BANK) has successfully raised up to £900,000 through the issuance of 4,500,000 new ordinary shares at 20 pence each. The fundraise, representing a 33% premium over a previous subscription, will bolster the company’s working capital, supporting enhanced operational capacity and reinforcing its market position.

About Fiinu Plc

Fiinu Plc is an AIM-listed financial services company (ticker: BANK) focused on delivering innovative banking solutions and financial products. The firm specializes in leveraging technology to enhance customer experience and operational efficiency in the financial sector.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Bango PLC (LSE:BGO) posted a 5% increase in total revenue to $25.2 million for H1 2025, alongside a 66% rise in adjusted EBITDA. The company’s Digital Vending Machine® (DVM) platform doubled active subscriptions to 19.2 million, driven by both new customer acquisitions and greater adoption among existing clients. Strategic partnerships and the launch of a fully integrated Super Bundling platform have reinforced Bango’s presence in the subscription bundling market, positioning the company for future growth and stronger cash generation.

Bango’s outlook is supported by robust financial performance, particularly in revenue growth and cash flow stability. However, mixed technical signals and the absence of profitability and dividend yield temper expectations, resulting in a moderate overall outlook.

About Bango PLC

Bango PLC helps content providers expand their paying customer base through global partnerships. It revolutionizes digital content monetization by enabling online payments for mobile users worldwide. The Digital Vending Machine® is central to the growth of the subscriptions economy, supporting major clients such as Amazon, Google, and Microsoft in scaling their subscriber networks.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.