Category: Market Summary

European equities moved lower on Wednesday, adding to the previous session’s losses as renewed conflict in the Middle East heightened inflation concerns and clouded expectations for central bank interest rate policy.

Oil prices and government bond yields jumped after U.S. President Donald Trump declared the Iran ceasefire “is over” during the NATO summit.

Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait, hours after the U.S. launched a wave of military strikes on Iran.

Market participants are also awaiting the release of the minutes from the first Federal Reserve meeting chaired by Kevi Warsh, hoping for further clues about the central bank’s future interest rate path.

The U.K.’s FTSE 100 Index was down 0.9%, while France’s CAC 40 Index and Germany’s DAX Index each dropped 1.7%.

IG Group Holdings (LSE:IGTG) declined sharply after the online trading company unveiled plans to create a new Jersey-based holding company.

Vistry (LSE:VTY) also fell heavily after the housebuilder warned of a first-half loss and revealed plans to streamline its operations.

Student accommodation specialist Unite Group (LSE:UTG) retreated after stating that annual rental growth is now expected to come in slightly below previous guidance.

Property developer Hammerson (LSE:HMSO) also lost ground after announcing the disposal of £69 million of non-core assets.

Kering (EU:KER) weakened after revealing that its Italian luxury brand Gucci had signed a 50-year exclusive beauty licensing agreement with French cosmetics group L’Oreal Co (EU:OR). L’Oreal shares were down 1 percent.

Meanwhile, energy majors BP Plc (LSE:BP.) and Shell (LSE:SHEL) advanced strongly as Brent crude climbed above $76 per barrel for the first time in two weeks amid fears of prolonged supply disruptions.

U.S. equity futures traded sharply lower on Wednesday after President Donald Trump declared the interim peace framework with Iran was no longer in effect, adding to mounting geopolitical concerns that were already weighing on investor sentiment.

By 09:03 GMT, Dow Jones futures had dropped 680 points, or 1.3%, while S&P 500 futures were down 71 points, or 0.9%. Nasdaq 100 futures also fell 381 points, or 1.3%.

Trump Says Ceasefire Arrangement Has Ended

Speaking during the NATO summit in Turkey, Trump said the temporary agreement with Iran had effectively collapsed, accusing Tehran of failing to honour the deal.

“We make a deal, and everyone’s agreed. No nuclear weapons. We make a deal. They go outside, talk to the press, they say we never even talked about it. There’s something wrong with them. They’re cuckoo. As far as I’m concerned, it’s over,” Trump said.

The comments followed reports that Iranian forces had launched attacks against U.S. military facilities in Kuwait and Bahrain in response to American military operations and Washington’s decision to revoke a sanctions waiver on Iranian oil exports.

Investors Monitor Oil and Federal Reserve Signals

Crude oil prices rose sharply as renewed conflict in the Middle East increased concerns over global energy supplies, fuelling expectations that higher fuel costs could add to inflationary pressures.

Attention is now turning to the release of the Federal Reserve’s June meeting minutes, with investors looking for clues on how policymakers are assessing inflation risks, economic resilience and the outlook for interest rates under Fed Chair Kevin Warsh.

Earnings Season Draws Closer

U.S. markets closed lower on Tuesday, led by weakness in technology shares after Samsung Electronics (USOTC:SSNHZ) released earnings that, despite beating expectations, failed to reassure investors about demand for AI-related products and memory chips.

The S&P 500 lost 0.5%, the Nasdaq Composite fell 1.2%, and the Dow Jones Industrial Average declined 0.3%.

Investors are also preparing for the start of the second-quarter earnings season, which begins later this week.

UK equities moved sharply lower on Wednesday after U.S. President Donald Trump declared the ceasefire with Iran “over,” escalating geopolitical tensions and triggering a broad sell-off across European markets while sending oil prices sharply higher.

The FTSE 100 fell 1.61% by 09:14 GMT, with Germany’s DAX down 2.54% and France’s CAC 40 losing 2.23%. Sterling also reversed earlier gains to trade 0.22% lower against the U.S. dollar at $1.3324.

Middle East Tensions Intensify

Speaking on the sidelines of the NATO summit in Ankara, Turkey, Trump described Iran’s leadership as “sick” and said dealing with the country was “a waste of time,” following overnight U.S. strikes on more than 80 Iranian targets.

Regional tensions escalated further as Bahrain activated missile warning sirens for a third time on Wednesday after Iran and Kuwait exchanged fire. Iran’s Revolutionary Guard said it had targeted U.S. military facilities in both countries, claiming Washington had violated a ceasefire agreement, while Kuwait’s military said its air defence systems were “confronting hostile missile and drone attacks.”

Iranian state media also reported explosions in the port city of Bushehr, home to the country’s only civilian nuclear power plant, although no casualties were reported.

The latest developments followed accusations that Iran was responsible for attacks on three commercial vessels transiting the Strait of Hormuz.

“U.S. Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs,” CENTCOM said.

The United States also revoked a sanctions waiver that had allowed Iran to export oil, prompting Iran’s foreign ministry to describe the move as a “clear violation” of last month’s memorandum.

Parliament Speaker Mohammad Bagher Qalibaf said, “The era of bullying and extortion is over. It leads nowhere. We don’t fold.”

Oil Extends Rally While Gold Retreats

Oil prices surged as investors priced in increased supply risks. Brent crude climbed 6.27% to $78.78 a barrel, while West Texas Intermediate rose 6.42% to $74.99.

ING analysts noted that the front end of the Brent futures curve had returned to backwardation, while American Petroleum Institute data showed U.S. crude inventories declined by 400,000 barrels last week, alongside larger-than-expected draws in gasoline and distillate stocks.

Additional pressure on energy markets came from increased Ukrainian drone attacks on Russian refineries, tightening diesel supplies and lifting the ICE gasoil crack spread above $50 a barrel. European natural gas prices also strengthened, with TTF futures rising more than 4% to above €48/MWh as storage levels remained below seasonal averages.

Gold prices moved lower as rising oil prices and shifting market sentiment dominated trading. Gold futures fell 2.27% to $4,063.70 an ounce, while spot gold declined 1.26% to $4,054.66.

ING analysts noted that China’s central bank extended its gold-buying programme for a 20th consecutive month in June, providing longer-term support even as short-term price movements continue to reflect expectations for U.S. Federal Reserve policy ahead of this week’s FOMC minutes.

UK Corporate Highlights

Unite Group (LSE:UTG) said reservations for the 2026/27 academic year had reached 86% of available beds, supported by strong direct-let demand, while maintaining its full-year earnings guidance.

Jet2 (LSE:JET2) reported that summer passenger bookings were 7.1% higher than a year earlier, with improving booking trends supported by easing geopolitical tensions.

IG Group (LSE:IGG) announced plans to establish a Jersey-based holding company as part of a broader strategic review designed to enhance shareholder value.

Ofcom fined Virgin Media £28 million after finding the company repeatedly made it difficult for customers to cancel contracts between 2022 and 2024.

Severn Trent Water (LSE:SVT) was found by Ofwat to have breached wastewater obligations, although the regulator opted not to impose a financial penalty after considering the company’s remedial actions.

Vistry (LSE:VTY) said it expects to report a first-half pre-tax loss of around £30 million and confirmed that Chief Financial Officer Tim Lawlor will step down.

FTSE 100 edges higher while European markets fall. Jet2 reports record passenger growth, Vistry resets strategy and Brent crude rises.

Market Overview

The FTSE 100 opened marginally higher, while broader European markets weakened as the Euronext 100 slipped and Germany’s DAX fell more than one per cent. Overnight, US markets also closed lower, with the Nasdaq and S&P 500 both retreating as investors reacted to escalating tensions in the Gulf, monitored Federal Reserve policy expectations and assessed the impact of heightened geopolitical uncertainty on global risk sentiment.

Commodity markets reflected the increase in geopolitical risk, with Brent crude rising sharply while copper, gold and natural gas also moved higher. Bitcoin edged lower against sterling. Sterling strengthened slightly against the US dollar but weakened modestly against the Swiss franc, euro, Japanese yen and Australian dollar as investors sought traditional safe-haven assets amid concerns over energy supplies and shipping through the Strait of Hormuz.

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Market Numbers

FTSE 100: Up (0.001%), 10,666.09

Euronext 100: Down (-0.03%), 1,912.02

DAX: Down (-1.14%), 25,174.68

NASDAQ: Down, 25,818.69

S&P 500: Down, 7,503.85

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In the Headlines

Passenger growth – Jet2 (LSE:JET2)

Jet2 reported record passenger growth, launched a £250 million share buyback programme and expanded its presence at London Gatwick. The update highlights continued demand for leisure travel while reinforcing confidence in shareholder returns and long-term expansion plans.

Strategic reset – Vistry (LSE:VTY)

Vistry said first-half earnings will be affected as it prioritises cash generation through discounted sales, lower-risk developments and tighter capital allocation. The measures are intended to strengthen the balance sheet and support longer-term profitability despite near-term earnings pressure.

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Currencies (vs GBP)

USD: Up (0.02%), $1.3347

CHF: Down (-0.01%), Fr.1.0798

EUR: Down (-0.01%), €1.1706

JPY: Down (-0.02%), ¥216.7045

AUD: Down (-0.01%), $1.9281

Bitcoin (BTC/GBP): Down, £47,017.91

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Commodities

Copper: Up

Gold: Up

Brent Crude: Up

Natural Gas: Up

Tech stocks expected to lead declines at the open

U.S. equity futures traded lower on Tuesday, indicating a weaker start for Wall Street as investors looked set to trim exposure following Monday’s rally. Technology shares were expected to be the main drag after renewed concerns about artificial intelligence spending weighed on the semiconductor sector.

Samsung sell-off sparks broader chip weakness

Market sentiment deteriorated after South Korean chipmaker Samsung Electronics suffered a near 7% decline despite reporting a 19-fold increase in second-quarter operating profit.

The market reaction suggested investors remain cautious about whether the rapid pace of AI-related investment can be maintained.

“Although Samsung’s results were stellar, investors are getting nervous about the scale of money ploughing into AI and whether it’s a bubble waiting to burst,” said Dan Coatsworth, head of markets at AJ Bell.

Chip stocks also faced fresh pressure after Reuters reported that Chinese AI startup DeepSeek is working on its own artificial intelligence processor, potentially reducing future dependence on established chip suppliers.

Strong finish on Monday

Wall Street ended Monday’s session with broad-based gains following the Independence Day holiday.

The Nasdaq Composite rose 288.49 points, or 1.1%, to 26,121.16, while the S&P 500 gained 54.19 points, or 0.7%, to finish at 7,537.43. The Dow Jones Industrial Average added 155.84 points, or 0.3%, ending at a record closing high of 53,055.91.

Hardware stocks led the rally

Technology companies drove most of Monday’s advance, with computer hardware names posting the strongest gains.

The NYSE Arca Computer Hardware Index climbed 3.4%, helped by a 4.4% rise in Dell Technologies (NYSE:DELL) after President Donald Trump highlighted the company’s computers during an Oval Office event.

The NYSE Arca Networking Index gained 2.8%, while the Philadelphia Semiconductor Index advanced 2.2%.

Elsewhere, brokerage firms, banks and steel producers also moved higher, while pharmaceutical, telecommunications, housing and utility stocks lagged the broader market.

Services activity remains in expansion territory

Economic data showed the U.S. services sector continued to grow in June, although at a slightly slower pace.

The Institute for Supply Management reported its Services PMI eased to 54.0 from 54.5 in May, matching market expectations. Any reading above 50 signals continued expansion.

European markets delivered a mixed performance on Tuesday as investors took profits in technology stocks following recent gains, while renewed geopolitical concerns weighed on sentiment after reports that two commercial vessels were struck by Iranian missiles in the Strait of Hormuz, lifting both oil prices and government bond yields.

Germany’s industrial output beats expectations

Economic data released by Destatis showed Germany’s industrial production rose more strongly than forecast in May.

Industrial output increased 0.9% month-on-month, accelerating from April’s revised 0.2% gain. It marked the strongest monthly expansion since September.

Compared with the same month last year, industrial production was unchanged after declining 0.9% in April.

UK housing market returns to growth

In the UK, the latest Halifax survey compiled by S&P Global showed house prices rose for the first time in four months during June.

Average house prices increased 0.2% month-on-month, reversing the 0.2% decline recorded in May and exceeding economists’ expectations for a 0.1% increase.

European indices move in different directions

Germany’s DAX declined 0.5%, while France’s CAC 40 gained 0.3%. The UK’s FTSE 100 outperformed, rising 0.6%.

Technology shares remained under pressure as investors reassessed valuations following the sector’s strong AI-driven rally. Infineon Technologies (TG:IFX) dropped 5.4%, while ASML Holding (EU:ASML) lost 5.1%.

Company movers

Victrex (LSE:VCT) surged 19% after reaffirming its full-year guidance and reporting stronger-than-expected third-quarter revenue growth.

Halma (LSE:HLMA) slipped more than 1% after announcing the acquisition of French automated tissue sample management specialist Dreampath Diagnostics.

Shell (LSE:SHEL) advanced 3% after improving its second-quarter outlook for liquefied natural gas (LNG) production.

Keller Group (LSE:KLR) climbed 21% to a record high after upgrading its full-year earnings guidance.

US equity futures traded slightly lower on Tuesday after the Dow Jones Industrial Average reached another record high in the previous session, with investors assessing Samsung Electronics’ (USOTC:SSNHZ) blockbuster earnings, fresh remarks from Federal Reserve Governor Christopher Waller and renewed geopolitical tensions in the Middle East.

Markets pause after record Wall Street close

As of 03:02 ET (07:02 GMT), Dow Jones futures were little changed, while S&P 500 futures slipped 0.2% and Nasdaq 100 futures fell 0.8%.

Wall Street ended Monday on a positive note, with the Dow closing above the 53,000 mark for the first time. Technology stocks led the gains, particularly semiconductor names such as Advanced Micro Devices (NASDAQ:AMD) and Western Digital (NASDAQ:WDC). Broadcom (NASDAQ:AVGO) also advanced after announcing a custom chip partnership with Apple, helping the Philadelphia Semiconductor Index recover from last week’s losses.

Despite the strong headline performance, Deutsche Bank cautioned that market breadth remained weak.

“On paper the headlines were pretty decent,” analysts led by Jim Reid wrote. “But under the surface, things weren’t quite as robust as they seemed.”

Samsung delivers record profit but shares retreat

Samsung Electronics reported preliminary second-quarter operating profit of 89.4 trillion won, or approximately US$58 billion, nearly twenty times higher than the same period last year and above market expectations. Revenue is forecast to reach 171 trillion won.

Even so, Samsung’s shares dropped more than 6% in Seoul as investors questioned whether current valuations across the AI semiconductor sector have become too demanding.

Fed keeps inflation firmly in focus

Investors also weighed comments from Federal Reserve Governor Christopher Waller, who warned that inflation risks have become a greater concern than labour market weakness.

Waller said employment conditions have stabilised while inflation is “taking off,” reiterating that the Federal Reserve’s 2% inflation objective remains essential and will not be compromised.

Banks reportedly consider payments network acquisition

The Wall Street Journal reported that JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and PNC Financial Services (NYSE:PNC) have discussed acquiring one of Fiserv’s (NASDAQ:FISV) debit payment networks.

According to the report, ownership of a payments network could help banks reduce the impact of federal interchange fee restrictions, although discussions remain preliminary and no transaction is considered imminent.

Strait of Hormuz tensions intensify

Geopolitical concerns also remained elevated after Axios reported that Iran launched missiles at commercial vessels in the Strait of Hormuz, ending a week-long pause in attacks.

Separately, UK Maritime Trade Operations said a tanker near the Omani coast had been struck by an unidentified projectile, causing a fire. The incidents followed unsuccessful indirect talks between Washington and Tehran over security in the strategic waterway.

European equity markets were little changed on Tuesday as investors adopted a cautious stance towards technology stocks amid growing concerns over valuations linked to the artificial intelligence boom, while attention also turned to the NATO summit in Turkey for potential defence spending announcements.

The pan-European STOXX 600 index was broadly unchanged at 650.84 points by 07:13 GMT after ending the previous session just below record highs.

Technology stocks lead market declines

Technology shares were the weakest performers, with the sector falling 1.6% as semiconductor companies extended the global selloff triggered by concerns that the recent rally in AI-related stocks may have become overstretched.

Chip equipment manufacturer ASML (EU:ASML) and semiconductor producer Infineon (TG:IFX) both declined around 4%.

Siemens Energy (TG:SIE) also came under pressure, falling 5.5% after Barclays downgraded the stock to “underweight” from “equal-weight.”

The weakness followed a negative session in Asia, where Samsung Electronics (USOTC:SSNHZ) shares fell despite issuing strong earnings guidance, while Nasdaq futures were also trading nearly 1% lower, reflecting broader caution towards technology shares.

Defence companies remain in focus

In contrast, European defence stocks edged higher as investors monitored the NATO summit in Turkey, where member states were expected to announce new defence agreements in response to continued pressure from the United States to increase military spending across Europe.

The defence sector has been the strongest performer within the STOXX 600 so far this month.

Swedish defence manufacturer Saab (TG:SDV1) gained 5.3% after Morgan Stanley upgraded the stock to “overweight” from “underweight.”

Shell advances after guidance update

Elsewhere, Shell (LSE:SHEL) rose 2.2% after the energy group modestly increased its outlook for integrated gas production during the second quarter.

FTSE 100 opens steady as Shell upgrades second-quarter trading outlook, Capita addresses pension concerns and Brent crude edges lower.

Market Overview

The FTSE 100 opened broadly unchanged at 10,651.30, while the Euronext 100 edged 0.07 per cent higher and Germany’s DAX slipped 0.21 per cent at the open. Overnight, the Nasdaq closed higher at 26,121.16 and the S&P 500 gained to 7,537.43 as investors balanced improving UK housing data, the start of the NATO summit and expectations for upcoming Federal Reserve policy signals.

Commodity markets were mixed, with copper, gold, Brent crude and natural gas all trading lower at the open, while Bitcoin fell against sterling. Sterling was broadly steady against the major currencies as oil markets continued to weigh renewed Strait of Hormuz security concerns against Saudi price cuts and higher OPEC+ supply expectations.

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Market Numbers

FTSE 100: Down (-0.00%), 10,651.30

Euronext 100: Up (+0.07%), 1,935.63

DAX: Down (-0.21%), 25,764.94

NASDAQ: Up, 26,121.16

S&P 500: Up, 7,537.43

In the Headlines

Trading Update – Shell (LSE:SHEL)

Shell said second-quarter trading and refining performance is expected to be stronger than previously guided, signalling resilient earnings despite ongoing volatility across global energy markets. The update may support investor confidence ahead of the company’s full quarterly results.

Pension Administration – Capita (LSE:CPI)

Capita responded to concerns surrounding its administration of the Civil Service Pension Scheme, seeking to reassure stakeholders over service delivery and operational performance. The update is relevant as investors continue to monitor execution and contract quality across the outsourcing business.

Currencies (vs GBP)

USD: Down (-0.00%), $1.3394

CHF: Up (+0.00%), Fr.1.0784

EUR: Up (+0.00%), €1.1707

JPY: Up (+0.00%), ¥217.113

AUD: Down (-0.03%), $1.9259

Bitcoin (BTC/GBP): Down, £47,131.58

Commodities

Copper: Down

Gold: Down

Brent Crude: Down

Natural Gas: Down