Category: Market Summary

U.S. equity futures edged higher on Thursday as traders turned their attention to another key inflation release and continued to assess results from major technology companies. Cisco Systems (NASDAQ:CSCO) slipped after the closing bell despite reporting a sharp increase in profit and revenue supported by artificial intelligence-related demand, while Applied Materials (NASDAQ:AMAT) is set to deliver its latest results later in the day. Markets are also watching the escalating dispute between Washington and Tehran over the Strait of Hormuz, with both sides claiming control of the crucial oil transit route.

U.S. futures point to a firmer open

Futures tied to Wall Street’s major benchmarks moved modestly higher ahead of Thursday’s session as investors balanced easing consumer inflation against another busy day for corporate earnings.

At 02:58 ET (06:58 GMT), Dow futures were higher by 26 points, or 0.1%. S&P 500 futures increased by 6 points, also 0.1%, while Nasdaq 100 futures climbed 29 points, equivalent to 0.1%.

U.S. equities finished Wednesday on a mixed note. The S&P 500 and Nasdaq Composite gained ground, while the Dow Jones Industrial Average slipped slightly.

Markets were supported by July consumer inflation figures showing a modest slowdown in the annual rate, broadly in line with economists’ forecasts. Although inflation remains high in absolute terms, the data strengthened expectations that the Federal Reserve will keep borrowing costs unchanged when policymakers meet in September rather than opt for another rate increase.

Treasury yields declined following the release, while the dollar weakened against a group of major currencies.

Cisco delivers strong quarter as AI orders accelerate

Cisco Systems shares came under pressure in extended-hours trading even though the networking technology group reported another strong quarter.

The muted share-price reaction reflected the high expectations already built into the stock, according to analysts cited by Reuters. Cisco shares have gained more than 60% this year as investors increasingly view the company as a beneficiary of expanding spending on artificial intelligence infrastructure.

CEO Chuck Robbins told the Wall Street Journal that demand across Cisco’s product portfolio was running at levels the company had not experienced in three decades. Large technology companies have placed billions of dollars of orders as they continue to invest heavily in AI computing and networking capacity.

Robbins described the AI boom as the “fastest-moving technology transition” Cisco has ever seen, according to the WSJ.

The company reported July-quarter net profit of $3.86 billion, or $0.97 per share, while revenue rose to $17.25 billion from $14.67 billion in the prior-year period. The top-line result came in above Wall Street forecasts.

Cisco also issued a stronger-than-expected revenue outlook for fiscal 2027, forecasting between $72.2 billion and $73.4 billion. Orders for AI infrastructure from hyperscale customers are projected at around $7.5 billion.

Applied Materials next in the earnings spotlight

Investors will also be watching Applied Materials, with the semiconductor equipment manufacturer due to report after Thursday’s market close.

Bloomberg consensus forecasts point to adjusted fiscal third-quarter earnings of $3.42 per share on net sales of $9.02 billion.

For the current quarter, analysts are looking for guidance of approximately $9.62 billion in sales and adjusted earnings of $3.72 per share.

The continuing expansion of artificial intelligence infrastructure has supported demand for advanced semiconductor manufacturing equipment. More powerful AI processors require greater quantities of silicon wafers and increasingly sophisticated production technologies, creating favourable conditions for suppliers such as Applied Materials.

In May, the company forecast more than 30% growth in its semiconductor equipment business during 2026, alongside an increase of more than 50% in packaging revenue. CEO Gary Dickerson said Applied Materials sees “an exceptionally strong foundation for sustained multi-year revenue and profit growth.”

Hormuz dispute adds to geopolitical uncertainty

Geopolitical developments remain another important driver for markets as the conflict in the Middle East continues to threaten regional energy flows.

On Thursday, the commander of an Iranian paramilitary group said the Strait of Hormuz was “under Iran’s control,” according to Al Jazeera, directly contradicting U.S. President Donald Trump’s claim a day earlier that Washington controlled the waterway.

Diplomatic efforts between the U.S. and Iran have stalled once again, with the two governments offering opposing accounts of conditions around the strait. The route carried roughly one-fifth of global oil supplies before the conflict began in late February.

An Iranian source told Reuters that talks aimed at restoring a peace framework signed in June had failed to make progress as continued fighting undermined the agreement.

Brent crude futures nevertheless edged lower on Thursday as concerns surrounding the outlook for global oil demand offset some of the fears about restricted supply.

Markets await July producer inflation

The next major macroeconomic focus will be July’s U.S. producer price index, which is expected to provide another indication of inflationary pressures ahead of the Federal Reserve’s September policy meeting.

Annual PPI inflation is forecast to ease to 4.9% from 5.5%, while the monthly reading is expected to rise by 0.2% after declining 0.3% in June.

Investors will be assessing not only the impact of volatile energy prices associated with the Iran conflict but also whether the rapid build-out of AI infrastructure is beginning to create broader cost pressures across the economy.

The combination of CPI and PPI data will also allow economists to update their expectations for the upcoming core personal consumption expenditures price index, a closely watched inflation gauge used by the Federal Reserve.

UK markets open mixed as Savills and Antofagasta report stronger earnings, while US stocks advance and Brent crude moves lower.

Market Overview

The FTSE 100 opened broadly unchanged at 10,833.58, up less than 0.01 per cent from its previous close, as investors assessed cooling UK economic growth and continuing tensions around the Strait of Hormuz. The Euronext 100 was also effectively flat at 1,973.14, while Germany’s DAX gained 0.34 per cent to 26,421.06. Overnight in the US, the Nasdaq closed higher at 26,588.49 and the S&P 500 advanced to 7,748.50, with an on-target US inflation reading easing concerns over further near-term Federal Reserve tightening.

Commodity markets were mixed, with copper, Brent crude and natural gas moving lower while gold edged higher. Oil sentiment reflected weaker global demand forecasts alongside continuing uncertainty over the Strait of Hormuz. Against sterling, the US dollar weakened marginally, while the Swiss franc, Japanese yen and Australian dollar strengthened slightly and the euro was unchanged. Bitcoin was also up against sterling.

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Market Numbers

FTSE 100: Up (+0.001%), 10,833.58
Euronext 100: Up (+0.01%), 1,973.14
DAX: Up (+0.34%), 26,421.06
NASDAQ: Up, 26,588.49
S&P 500: Up, 7,748.50

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In the Headlines

Earnings rise – Savills (LSE:SVS)
Global property services group Savills reported stronger first-half earnings as its performance improved and the acquisition of Eastdil Secured expanded its global platform. The transaction strengthens the group’s position across international real estate advisory and capital markets services.

Copper prices lift earnings – Antofagasta (LSE:ANTO)
Copper miner Antofagasta reported an 18 per cent increase in first-half revenue to $4.48 billion and a 27 per cent rise in EBITDA to $2.84 billion, supported by stronger commodity prices and cost discipline. Cash generation improved significantly, although severe weather affected production at Los Pelambres, while the group maintained its full-year copper production guidance.

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Currencies (vs GBP)

USD: Down (-0.00%), $1.3498
CHF: Up (+0.01%), Fr.1.0976
EUR: Unchanged (0.00%), €1.1708
JPY: Up (+0.01%), ¥215.0645
AUD: Up (+0.01%), $1.9107
Bitcoin (BTC/GBP): Up (0.00%), £47,342.92

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Commodities

Copper: Down
Gold: Up
Brent Crude: Down
Natural Gas: Down

European equities moved higher on Thursday as an in-line U.S. inflation report strengthened expectations that the Federal Reserve could leave interest rates unchanged at its September meeting.

The pan-European Stoxx Europe 600 Index gained 0.2%, putting the benchmark back on course towards record highs. Major regional markets also advanced, with Germany’s DAX and France’s CAC 40 both rising 0.3%.

London outperformed, with the FTSE 100 climbing 0.6% as investors also responded positively to fresh UK economic growth figures.

U.S. CPI Reduces Expectations for September Rate Hike

Wednesday’s U.S. Consumer Price Index report provided reassurance for global markets after headline inflation increased 0.1% month-on-month in July, while core inflation stood at 2.5% year-on-year.

The figures broadly matched expectations and followed last week’s unexpected contraction in U.S. nonfarm payrolls. Together, the data reduced concerns that the Federal Reserve would need to tighten monetary policy again in the immediate future.

Money markets responded by lowering the implied probability of a 25-basis-point interest rate increase at the Fed’s September 16 meeting to around 40%, compared with almost 67% a week earlier.

The decline in expectations for higher borrowing costs provided additional support for equities and reduced one of the principal sources of uncertainty facing global markets.

“The US July CPI number offered up nothing in the way of a surprise,” said Sam Hill, head of market insights at Lloyd’s Bank.

“The market is likely to still view it as corroborating the deceleration seen last month, creating additional breathing space for the Fed It is hard to see a September hike on that basis. The hawks’ concerns will continue to develop, but a trigger is lacking against that mix for the moment.”

UK Economy Expands 0.4% in Second Quarter

UK economic data provided an additional boost to sentiment in London, with gross domestic product expanding 0.4% during the second quarter.

The result matched economists’ forecasts and indicated that the British economy maintained positive momentum despite elevated interest rates.

Resilience within consumer-facing services helped support the quarterly expansion, offering evidence that domestic activity continues to withstand restrictive borrowing conditions.

For the Bank of England, the figures provide further evidence that the economy remains resilient enough to allow policymakers to retain a cautious, data-dependent approach towards monetary easing without an immediate threat of recession.

The economic backdrop also provided support for domestically exposed lenders and industrial companies within the FTSE 100.

Oil Retreats but Remains Above $80

Crude prices eased from recent multi-week highs on Thursday, although oil remained above $80 a barrel as geopolitical uncertainty continued to support the market.

Investors remain focused on tensions between Washington and Tehran surrounding shipping access through the Strait of Hormuz.

Despite continuing diplomatic efforts, the United States and Iran remain divided over the conditions required for a permanent peace agreement. As a result, geopolitical risk continues to be reflected in global energy prices and freight costs.

European Economic Data Comes Into Focus

Investors are also awaiting additional economic releases from Europe later in the session.

Spain’s final July inflation figures and Eurozone industrial production data are due, providing further indications of whether disinflation and manufacturing activity are developing in line with European Central Bank expectations heading into the autumn.

The figures could influence expectations for the ECB’s next policy moves as officials balance easing inflation pressures against the health of the regional economy.

Pandora Rises While Thyssenkrupp Slips

Among individual stocks, Pandora (LSE:0FND) gained almost 3% after its second-quarter results exceeded expectations and the company raised its earnings outlook.

Thyssenkrupp (TG:TKA), meanwhile, fell 1.5% despite narrowing its 2026 guidance towards the upper end of its previous range.

European markets therefore remained supported by easing U.S. interest-rate concerns and resilient UK economic data, while geopolitical risks and upcoming European macroeconomic releases continued to shape the outlook.

UK equities moved modestly lower on Thursday as investors assessed a slowdown in British economic growth alongside continuing geopolitical uncertainty surrounding the Strait of Hormuz.

As of 03:06 ET (07:06 GMT), the FTSE 100 was down 0.10%, underperforming its major European counterparts. Germany’s DAX advanced 0.40%, while France’s CAC 40 gained 0.27%.

Sterling was broadly steady against the U.S. dollar, with GBP/USD trading near 1.3481, down around 0.10%.

UK GDP Growth Cools in Second Quarter

Preliminary figures from the Office for National Statistics showed that the UK economy expanded 0.4% during the second quarter of 2026, matching economists’ forecasts but slowing from growth of 0.6% in the opening three months of the year.

The monthly figures provided a somewhat stronger signal heading into the second half. GDP increased 0.3% in June, beating expectations for a decline.

That followed unchanged output in May, which was revised down from an earlier estimate of 0.1% growth, while April’s 0.1% contraction was left unrevised.

The stronger June performance helped offset the subdued start to the quarter, although the overall figures confirmed that the pace of UK economic expansion moderated from the first quarter.

Strait of Hormuz Tensions Keep Investors Cautious

Geopolitical developments remained another major influence on market sentiment as uncertainty surrounding the Strait of Hormuz continued.

U.S. Central Command said on Wednesday that American forces had redirected 59 commercial vessels, disabled three and boarded two as of August 12 as part of efforts to enforce a naval blockade against Iran. CENTCOM described the operation as America’s “steel wall blockade” in the Strait of Hormuz.

U.S. President Donald Trump said earlier on Wednesday that the United States had “total control” of the Strait of Hormuz and would retain it. He described the naval operation as a “wall of steel” and said Iran had no navy, air force or effective military leadership.

Meanwhile, Iranian Foreign Minister Abbas Araghchi criticised France and other Western countries over what he characterised as hypocrisy regarding human rights.

A New York Times report concerning events around last month’s NATO summit in Ankara also said Iran had obtained precise information about Trump’s location. According to the report, U.S. officials identified a surface-to-air missile threat against his aircraft, leading to the use of a decoy operation.

Gold and Oil Prices Move Lower

Precious metals weakened during Thursday’s session despite the continuing geopolitical uncertainty.

Gold futures fell 0.70% to $4,436.65 an ounce, while spot gold declined 0.65% to approximately $4,380.

Oil prices also moved lower. Brent crude slipped 0.48% to $88.55 a barrel, while WTI crude declined 0.53% to $82.83.

Energy markets remain sensitive to developments around the Strait of Hormuz given the waterway’s importance to international oil and gas shipments.

UK Round-Up

Antofagasta (LSE:ANTO) reported a 27% increase in first-half core earnings as stronger copper prices helped counter weaker production. The miner also reduced its 2026 production forecast following a shutdown at one of its operations.

Entain (LSE:ENT) exceeded expectations for first-half core profit, with strong customer engagement around the World Cup and cost-saving measures helping the gambling group absorb the impact of higher UK gaming taxes.

With domestic economic growth losing some momentum and geopolitical uncertainty remaining elevated, investors are likely to continue monitoring incoming UK data and developments in the Middle East for direction.

Warnings of a sharp acceleration in UK food inflation have so far failed to materialise, with intense supermarket competition, stronger supplier hedging and consumer resistance to higher prices helping contain the impact of rising industry costs.

Britain’s food sector warned in February that surging energy prices following U.S. and Israeli strikes on Iran could push food price inflation towards 10% by Christmas. Six months later, the direction of travel has been markedly different, with food inflation falling to its lowest level in almost two years.

UK food and non-alcoholic beverage prices increased 1.7% in the 12 months to June 2026, slowing from 2.2% in May and recording the weakest rate since August 2024.

That was comfortably below the 3.6% June rate projected by the Bank of England in April and far short of the more than 9% increase the Food and Drink Federation had anticipated by December.

Supermarket Competition Keeps a Lid on Prices

One of the biggest factors limiting food inflation has been the increasingly aggressive battle between Britain’s major grocery chains.

Tesco (LSE:TSCO), Sainsbury’s (LSE:SBRY), Asda, Morrisons, Marks & Spencer (LSE:MKS), Aldi and Lidl are competing intensely for customers, making retailers reluctant to pass the full impact of higher costs onto shoppers.

Fresh and chilled products have become particularly important battlegrounds because consumers frequently use prices in these categories when deciding where to shop. Some supermarkets have consequently accepted pressure on margins to maintain competitive shelf prices.

Branded food producers have also been cautious about demanding substantial price increases, partly because doing so could encourage consumers to switch towards cheaper supermarket own-label alternatives.

“The single biggest factor behind food inflation not progressing as strongly as we thought is the competitive intensity of the industry,” Shore Capital’s head of consumer research Clive Black said.

Worldpanel by Numerator data showed Tesco’s market share slipped during June and July for the first time since July 2023, demonstrating that even Britain’s largest supermarket is facing significant competitive pressure.

Chief executive Ken Murphy has described the UK grocery sector as an “incredibly competitive” market.

Promotions Help Consumers Manage Grocery Bills

Retailers are also relying heavily on promotions to attract and retain shoppers following years of weak improvements in living standards and an extended cost-of-living squeeze.

Nearly one-third of grocery purchases were made on promotion during the four weeks to June 14, according to Worldpanel.

A weekly pricing study from The Grocer provides another indication of the intensity of competition. Five major supermarket groups have each ranked as the cheapest retailer during at least one of the publication’s last 15 surveys.

The continued expansion of German-owned Aldi and Lidl has added further pressure, forcing traditional supermarket groups to remain competitive on everyday prices as well as promotional offers.

“There’s lots of things going on to manage cost push inflation and keep a lid on the price that the consumer sees on the shelf,” said Kunal Kothari, a fund manager at Aviva Investors, which owns shares in Tesco and Sainsbury’s.

Cost Savings Give Supermarkets More Flexibility

Behind the competition on supermarket shelves is a significant push to reduce operating expenses.

Retailers have been implementing cost-saving programmes to compensate for higher wages, taxes, regulatory expenses and other pressures, giving them greater scope to avoid passing every cost increase directly to consumers.

Tesco has generated more than £2.2 billion ($3 billion) of savings during the past four years and is targeting another £500 million this year.

Supply-chain automation has contributed to those efficiencies, while artificial intelligence is increasingly being deployed to improve product markdown decisions and reduce food waste.

These measures have allowed retailers to redirect some savings towards maintaining lower prices even as other areas of their cost bases have increased.

Suppliers Better Prepared for Commodity Volatility

Food manufacturers and suppliers have also changed their approach following the inflation shock triggered by Russia’s invasion of Ukraine.

Companies that were previously exposed to sudden increases in energy and ingredient prices are now hedging costs further in advance, reducing their vulnerability to short-term commodity market volatility.

“They’ve learnt their lessons,” Tesco’s Murphy said. “People are a lot better hedged this time round,” he added.

Lower prices for some soft commodities, including cocoa and coffee, have provided additional assistance to producers and retailers.

Morgan Stanley UK economist Bruna Skarica has also highlighted the tougher competitive environment facing Tesco this year. The supermarket had previously been able to increase prices while simultaneously gaining market share in 2023 and 2025, but that strategy has become harder to repeat in 2026.

Lower Inflation Comes at a Cost to Profits

Consumers may have avoided the food price increases previously feared, but supermarkets themselves are feeling the financial consequences.

Both Tesco and Sainsbury’s have provided unusually broad ranges for their full-year profit guidance. At the lower ends of those forecasts, earnings would decline compared with the previous year.

That highlights the trade-off facing the industry: retailers can absorb higher costs and protect market share, but doing so places pressure on margins and profitability.

The situation also raises questions over how long supermarkets can continue shielding households if operating and supply-chain expenses remain elevated.

Food Price Risks Have Not Disappeared

Food inflation has also remained relatively subdued across the euro zone, although broader UK inflation has generally been higher than in other parts of Europe. This could indicate that British supermarkets and suppliers have absorbed a larger proportion of recent cost increases rather than immediately passing them through to consumers.

For households, the trend offers some relief from broader cost-of-living pressures as Prime Minister Andy Burnham’s government places affordability among its early priorities.

However, the outlook remains uncertain. Britain’s continuing drought is emerging as a potential threat to agricultural output and food costs in 2027, while energy and commodity markets remain vulnerable to geopolitical disruption.

The experience of the past six months suggests retailers and suppliers are better equipped to manage sudden cost shocks than during the previous inflation cycle. Whether they can continue doing so without materially damaging profitability will be a key question for the remainder of the year.

U.S. stock futures moved higher on Wednesday, pointing to a rebound at the opening bell after the major indices declined in the previous session, as July inflation figures broadly matched economists’ expectations.

Futures strengthened following the Labor Department’s latest consumer price report, which showed prices rising 0.1% in July after declining 0.4% in June. The monthly increase was in line with forecasts.

Core consumer prices, excluding food and energy, advanced 0.2% during July after showing no change in June. That reading also matched market expectations.

Headline and core inflation rates ease

Annual headline inflation slowed slightly to 3.4% in July from 3.5% in June, while the annual core rate moderated to 2.5% from 2.6%.

Both readings were consistent with economists’ forecasts, potentially easing some concerns about persistent inflation and the implications for the Federal Reserve’s interest-rate policy.

Technology shares linked to artificial intelligence could provide additional momentum after investors responded positively to quarterly results and guidance from CoreWeave (NASDAQ:CRWV) and Super Micro Computer (NASDAQ:SMCI).

However, further gains in crude oil could temper risk appetite following deadly attacks involving vessels in the Red Sea and Gulf of Oman.

Major Wall Street indices declined on Tuesday

U.S. equities finished mostly lower on Tuesday after an uncertain start gave way to selling pressure later in the session, extending the modest declines recorded on Monday.

The Nasdaq fell 159.91 points, or 0.6%, to 26,445.45. The S&P 500 lost 24.91 points, or 0.3%, to close at 7,728.20, while the Dow Jones Industrial Average declined 184.13 points, or 0.3%, to 53,791.85.

Although all three benchmarks recovered from their intraday lows, they remained in negative territory at the closing bell.

Hormuz uncertainty keeps crude prices elevated

Oil prices contributed to Tuesday’s weaker market sentiment, with U.S. crude futures climbing more than 1% after surging by over 5% during Monday’s session.

The continued advance reflected uncertainty over whether the Strait of Hormuz could be reopened.

According to Reuters, Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, said the strategic waterway would remain closed until Tehran’s conditions were met.

The approaching release of Wednesday’s CPI figures also encouraged investors to remain cautious during the previous session.

Hardware and energy stocks buck broader decline

Computer hardware shares were among Tuesday’s strongest performers despite weakness across the wider equity market. The NYSE Arca Computer Hardware Index jumped 4.6%, reaching its highest closing level in two months.

Higher crude prices also lifted oil producers, pushing the NYSE Arca Oil Index up 2%.

Housing stocks recorded notable gains, while steel and retail shares were among the weaker areas of the market.

European equities traded with little overall direction on Wednesday as fresh attacks on shipping involving the U.S. and Yemen’s Iran-aligned Houthis renewed concerns about potential supply disruptions and reduced hopes of bringing the months-long Iran conflict to an end.

Major regional indices were mixed. France’s CAC 40 Index slipped 0.2%, while the U.K.’s FTSE 100 Index edged 0.1% higher and Germany’s DAX Index advanced 0.5% following confirmation that German inflation accelerated in July.

German inflation rises to 2.8%

Final figures from Destatis showed German consumer prices increased 2.8% year on year in July, accelerating from 2.3% in June and matching previous estimates.

The rise was partly driven by higher energy prices following the end of the government’s fuel tax measures. The July reading was the highest since April, when inflation reached 2.9%.

EU-harmonised inflation also increased as expected, reaching a three-month high of 2.8% in July compared with 2.4% in June.

Balfour Beatty and ABN AMRO shares climb

In corporate trading, Balfour Beatty (LSE:BBY) shares surged after the British construction group raised its annual operating profit forecast following a sharp increase in first-half earnings.

Dutch lender ABN AMRO (EU:ABN) also advanced strongly after delivering solid second-quarter results and upgrading its full-year income guidance.

Germany’s Indus Holding (TG:INH) rallied after reporting a substantial improvement in first-half earnings and raising its outlook for the full 2026 financial year.

Bechtle and Bilfinger move lower

Elsewhere, IT services provider Bechtle (TG:BC8) declined despite reporting higher second-quarter bottom-line earnings and increasing its guidance for the full financial year.

Industrial services group Bilfinger (TG:GBF) also fell after indicating that its full-year EBITA margin is now expected to finish at the lower end of its guidance range.

UK markets open mixed as Balfour Beatty raises guidance, Evoke faces higher gaming duties and Brent crude rises on Hormuz risks.

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Market Overview

The FTSE 100 opened unchanged at 10,844.19, while the Euronext 100 edged 0.01 per cent lower to 1,976.84 and Germany’s DAX gained 0.19 per cent to 26,442.42. European markets remained cautious as investors monitored the escalating US-Iran standoff over the Strait of Hormuz and awaited US inflation data. Overnight on Wall Street, the Nasdaq closed lower at 26,445.45, while the S&P 500 declined to 7,728.20.

Commodity markets were mixed, with copper and natural gas higher, gold slightly lower and Brent crude rising as the closure of the Strait of Hormuz and continuing Houthi strikes kept supply risks in focus. Against sterling, the US dollar, Japanese yen and Australian dollar strengthened marginally, the Swiss franc weakened slightly and the euro was unchanged, while Bitcoin rose slightly.

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Market Numbers

FTSE 100: Unchanged (0.00%), 10,844.19
Euronext 100: Down (-0.01%), 1,976.84
DAX: Up (+0.19%), 26,442.42
NASDAQ: Down, 26,445.45
S&P 500: Down, 7,728.20

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In the Headlines

Guidance raised – Balfour Beatty (LSE:BBY)
Infrastructure group Balfour Beatty raised its 2026 guidance after first-half underlying profit from its earnings-based businesses increased 42 per cent, supported by stronger UK and US operations. Higher expectations for profit growth and cash generation, alongside increased shareholder returns, strengthen visibility for the year ahead.

Gaming duties weigh – Evoke (LSE:EVOK)
Betting and gaming group Evoke reported broadly stable first-half revenue, with online growth helping offset retail closures, but higher UK gaming duties weighed on profitability. The company is pursuing efficiency measures while progressing towards the proposed Bally’s Intralot transaction.

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Currencies (vs GBP)

USD: Up (+0.01%), $1.3508
CHF: Down (-0.00%), Fr.1.0957
EUR: Unchanged (0.00%), €1.1703
JPY: Up (+0.00%), ¥215.154
AUD: Up (+0.00%), $1.9125
Bitcoin (BTC/GBP): Up, £47,118.43

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Commodities

Copper: Up
Gold: Down
Brent Crude: Up
Natural Gas: Up

U.S. equity futures traded mostly higher as investors awaited July inflation data that could influence expectations for Federal Reserve monetary policy. CoreWeave (NASDAQ:CRWV) rallied after artificial intelligence demand helped the cloud infrastructure provider deliver another quarter of record revenue, while high investment costs remained in focus. In the Middle East, shipping through the Strait of Hormuz declined to a one-week low as hopes of a near-term reopening continued to fade.

Wall Street futures advance ahead of CPI

U.S. stock futures were largely in positive territory ahead of the consumer price index release, with markets assessing how the latest inflation reading could affect the Fed’s policy path for the rest of 2026.

At 03:09 ET (07:09 GMT), Dow futures were little changed. S&P 500 futures rose 13 points, or 0.2%, while Nasdaq 100 futures gained 117 points, or 0.4%.

The advance followed a weaker previous session for Wall Street’s main indices, with volatile crude prices contributing to uncertainty. Conflicting developments in the Middle East caused oil to swing sharply, adding to fears that prolonged high energy prices could keep inflation elevated and increase pressure on central banks.

Some economic indicators offered encouragement, however. Deutsche Bank analysts said recent U.S. releases “generally came in on the positive side,” with small business optimism among the figures exceeding forecasts.

Inflation figures could shape Fed expectations

July’s CPI report is now the key focus for investors, with headline inflation forecast to slow marginally to 3.4% year on year from 3.5%.

Energy costs remain an important component of the inflation outlook. Gasoline prices have been elevated since the Iran war started in late February, raising the prospect that higher energy costs could feed into broader price pressures.

“Core” CPI, which excludes food and energy, is expected to ease to 2.5% from 2.6%.

Vital Knowledge analysts said inflation would remain substantially above the Fed’s target even if the forecasts prove accurate. While higher rates could be used to tackle persistent price growth, tighter policy could also put additional pressure on economic activity and an increasingly fragile labour market.

Deutsche Bank noted that policymakers generally favour the core personal consumption expenditures price index over CPI when assessing inflation. However, the PCE figures are not scheduled for release for another couple of weeks.

“But today’s CPI and tomorrow’s [producer price index] (where a few components feed into the PCE) will offer us an initial steer on prices in July and will help to shape the upcoming market narrative,” the analysts wrote in a note.

AI boom drives another record quarter for CoreWeave

CoreWeave shares climbed more than 15% in extended-hours trading after the company reported record revenue for a fifth consecutive quarter, supported by intense demand for AI computing capacity.

Its backlog of contracted future sales increased to $104 billion, almost double the level recorded in November. The company also reported $25 billion in net new customer commitments secured so far during the current quarter.

Chief Executive Michael Intrator called it the “strongest bookings quarter” in CoreWeave’s history.

CoreWeave’s business involves acquiring advanced Nvidia AI processors, installing them in data centres and renting the resulting computing capacity to customers. June-quarter revenue reached $2.58 billion, surpassing analysts’ forecasts.

The scale of the investment required to satisfy demand remains a key concern. Vital Knowledge analysts said capital expenditure was “elevated and ran ahead of expectations.” CoreWeave has recorded $1.64 billion in net losses since its initial public offering in March 2025 as it continues spending heavily to expand capacity.

Hormuz vessel numbers decline further

Only eight vessels were tracked through the Strait of Hormuz on Tuesday, according to shipping data reported by Reuters, marking the lowest level for a week.

Ship operators have increasingly sought to avoid the strategically important passage as violence in the Middle East continues. Fresh attacks announced by the U.S. and the Iran-backed Houthis in Yemen on Tuesday further reduced optimism that shipping through the strait could soon return to normal.

Hormuz carried around one-fifth of the world’s oil before the Iran war erupted in late February. The latest vessel count was below the 10-day average of roughly 12 and was the lowest recorded since August 5, Reuters said.

Brent crude rebounds as reopening hopes fade

Brent crude futures gained 0.6% to $89.46 a barrel after another volatile session driven by developments surrounding Hormuz.

Comments from Qatar’s Foreign Ministry and Pakistan’s Defense Minister initially encouraged hopes of progress towards an agreement to reopen the strait, briefly pushing oil prices lower. Brent fell as far as $86.60 a barrel during the session.

Those losses were subsequently reversed after Iranian state media indicated that Tehran would keep Hormuz blocked until conditions presented over the weekend were fulfilled. Iran’s Secretary of the Supreme National Security Council separately said that any agreement with Oman concerning the waterway would “remain a separate issue from the strait’s closure.”

European equities were subdued on Wednesday, holding close to record highs as a six-session advance in crude oil and worsening tensions in the Middle East kept investors cautious ahead of a crucial US inflation report.

The pan-European Stoxx Europe 600 Index edged 0.1% higher, with major regional markets showing similarly limited moves. Germany’s DAX gained 0.2%, France’s CAC 40 moved 0.1%, while London’s FTSE 100 was virtually unchanged.

Economic figures from Europe offered some stability before attention shifted towards the US data. Final inflation readings for July confirmed annual headline consumer price growth of 2.8% in both Germany and Italy. However, those figures were overshadowed by renewed volatility in energy markets, with crude oil recording its longest run of consecutive gains since late April.

Brent crude climbed towards $89 a barrel as the conflict involving Iran and shipping routes through the Persian Gulf showed little sign of easing. Despite repeated claims from U.S. President Donald Trump that a peace agreement was close, negotiations appeared to have reached a deadlock.

Prospects for a diplomatic breakthrough weakened further after Trump introduced tougher counter-conditions, including a demand for Tehran to pay direct compensation related to the conflict. Iran responded by warning that the Strait of Hormuz would remain closed until Washington satisfied its demands.

Tensions at sea also intensified after Yemen’s Iran-aligned Houthis carried out fresh attacks against military supply vessels.

The continued increase in energy and other input costs adds another challenge to an already uncertain economic environment, with investors now turning their attention to Wednesday’s US Consumer Price Index report.

The inflation figures are particularly important because of the increasingly difficult policy decision facing the Federal Reserve. Last week’s unexpectedly weak US employment report showed the economy lost 23,000 jobs in July and included substantial downward revisions to previous figures. Following the report, market-implied expectations for a September Fed rate increase fell to around 45%, compared with 67% beforehand.

A weaker-than-anticipated inflation reading could reinforce expectations that slowing labour demand is helping bring price pressures closer to target, potentially allowing central banks on both sides of the Atlantic to keep interest rates unchanged into the autumn.

In contrast, stronger inflation driven by persistent energy and services costs could increase concerns about “stagflation,” a scenario in which policymakers are forced to maintain elevated borrowing costs even as economic growth deteriorates.

Despite Wednesday’s cautious trading, the STOXX 600 has gained approximately 11% since the beginning of the year, highlighting the resilience of European equities following a particularly volatile July.

The index has advanced 1.75% so far in August, although that trails the roughly 3% rise recorded by the S&P 500 Index over the same period.

US markets have benefited significantly from gains among mega-cap technology companies and artificial intelligence-related stocks. European indices, by comparison, have greater exposure to industrial, automotive and consumer discretionary companies, leaving them more sensitive to weak regional growth, tariffs and rising raw-material costs.

The approaching end of the second-quarter earnings season is also reducing one source of support for European equities.

Corporate results have helped underpin markets during the past month, with aggregate STOXX 600 earnings showing growth of almost 21% year-on-year. Banking groups have benefited from healthy net interest margins, while defence and power-grid infrastructure companies have experienced strong demand.

However, most European companies have now released their quarterly results. As a result, the flow of positive earnings surprises that helped support equities through late July is fading, increasing the market’s dependence on economic data and geopolitical developments for its next significant move.

European stocks on the move

Among individual companies, Vestas (TG:VWSB) surged 15% after upgrading its full-year earnings outlook.

Bilfinger (TG:GBF) dropped more than 6% following the release of its second-quarter results, while Balfour Beatty (LSE:BBY) climbed almost 10% after raising its profit forecasts.