Category: Market Summary

UK equities moved lower on Monday as investors remained cautious amid heightened tensions between the US and Iran and continued uncertainty surrounding the blockade of the Strait of Hormuz.

The FTSE 100 was down 0.17% at 03:30 ET (07:30 GMT), while European markets also opened slightly weaker. Germany’s DAX declined 0.06% and France’s CAC 40 slipped 0.03%. Sterling was little changed against the US dollar at 1.3492.

Geopolitical developments remained at the centre of market attention. U.S. Central Command said the number of commercial vessels redirected as part of enforcement measures linked to the US blockade of Iran had increased to 55, compared with 53 on August 8. Two vessels have been disabled and another two boarded to enforce compliance.

CENTCOM also said more than 30 vessels had been permitted to pass through to deliver humanitarian assistance. Meanwhile, personnel aboard the USS Abraham Lincoln continued maintaining F/A-18E Super Hornets to ensure the carrier strike group remained prepared for operations.

The latest developments followed comments from U.S. President Trump on Sunday suggesting Washington was adopting a “low-key” stance towards Tehran.

“We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” Trump said, according to Axios.

A separate Wall Street Journal report published on Sunday suggested Trump could be prepared to move away from pursuing a formal nuclear agreement and instead declare success if Iran fully reopens the Strait of Hormuz. Negotiations nevertheless remain complicated by demands from Tehran, which include ending the naval blockade, withdrawing U.S. forces, easing sanctions and providing war reparations, according to Iran’s Supreme National Security Council.

Developments in Gaza also remained in focus after Trump shared an opinion piece by Hillary Clinton supporting his peace proposal. Clinton wrote that there is “no alternative framework” beyond the “20-point plan.”

Israel has rejected Trump’s separate 15-point Gaza proposal, with Prime Minister Benjamin Netanyahu saying Israeli forces “will not carry out any withdrawal until Hamas is genuinely disarmed.”

UK labour market shows signs of stabilisation

There were more encouraging signals from the UK employment market, with KPMG and the Recruitment & Employment Confederation reporting “rays of light” as permanent hiring stabilised for the first time since Liz Truss stepped down as prime minister in 2022.

The REC/KPMG permanent placements index increased to 50 in July from 49.1 in June. The temporary billings index slipped to 51.9 from 52.9, although it remained at one of its strongest levels of growth since early 2023.

“Despite ongoing uncertainty it’s encouraging that businesses are starting to press ahead with investment,” said Callum Licence, KPMG UK & Switzerland Group Head of Advisory. The improvement came after the permanent placements measure experienced its longest recorded contraction, lasting 45 months.

REC Chief Membership & Innovation Officer Maxine Bligh said “rays of light are beginning to break through for the job market as employers revive hiring plans,” with July becoming the first month in almost three years in which permanent placements did not decline.

Oil and gold prices move higher

Brent crude gained 0.13% to $83.66 per barrel, while WTI crude edged 0.14% lower to $78.08. Precious metals strengthened, with gold futures rising 0.32% to $4,413 and spot gold gaining 0.27% to $4,353.82.

UK company round-up

Serica Energy (LSE:SQZ) confirmed that its $197 million offer for Pharos Energy is final as Israel’s Ratio Petroleum continues to challenge the North Sea producer with a marginally higher competing proposal.

Plus500 (LSE:PLUS) reported a strong first-half performance, with Customer Income increasing 24% and revenue advancing 12% to multi-year highs. EBITDA also moved higher despite increased spending on customer acquisition.

U.S. equity futures moved higher on Friday after a disappointing July employment report strengthened expectations that the Federal Reserve may hold interest rates steady at its next policy meeting.

Markets reacted positively to the weaker labour market figures, with investors viewing them as reducing the likelihood of further monetary tightening in the near term.

July Employment Report Misses Forecasts

The U.S. Labor Department reported that non-farm payrolls fell by 23,000 jobs in July, following a downwardly revised increase of 20,000 in June.

Economists had forecast an increase of 88,000 jobs after June was initially reported at 57,000.

Although the figures point to slowing hiring activity, they also eased concerns that persistent labour market strength would force the Federal Reserve to tighten policy further.

The unemployment rate unexpectedly declined to 4.1% from 4.2%, while economists had anticipated no change.

Bond Yields Fall Sharply

The weaker payrolls report prompted a strong rally in U.S. government bonds.

The benchmark 10-year Treasury yield dropped by more than 1.2%, reflecting growing expectations that policymakers will adopt a more cautious approach to interest rates.

Wall Street Closed Lower Ahead of the Report

Thursday’s session ended in negative territory as investors avoided taking large positions before the employment figures.

The Dow Jones Industrial Average lost 464.02 points, or 0.9%, to finish at 53,885.10.

The S&P 500 slipped 0.2% to 7,709.96, while the Nasdaq Composite eased 0.1% to 26,348.35.

Salesforce and Industrials Drag the Dow Lower

Salesforce (NYSE:CRM) fell 3.2% after CNBC reported the company would appoint former Oracle (NYSE:ORCL) executive Miguel Milano as chief operating officer.

Boeing (NYSE:BA) and Honeywell (NASDAQ:HON) also declined sharply, losing 3.3% and 3%, respectively.

Telecom Shares Rebound While Airlines Decline

Weekly jobless claims released ahead of the payrolls report showed initial claims increased slightly to 199,000, remaining below market expectations.

Telecommunications stocks recovered strongly, with the NYSE Arca North American Telecom Index advancing 3.1%.

Oil service companies also gained as crude prices rebounded, while airline stocks weakened as higher fuel costs weighed on the sector.

Housing and brokerage stocks also finished the previous session lower.

European equity markets traded higher on Friday as investors assessed rising oil prices and awaited the latest U.S. employment report for further signals on the Federal Reserve’s next interest rate decision.

Brent crude climbed toward $83 a barrel, extending Thursday’s rally as uncertainty persisted over negotiations aimed at fully reopening the Strait of Hormuz, a key shipping corridor for global oil exports.

German Factory Output Exceeds Expectations

Economic data showed Germany’s industrial production increased by 0.2% in June, following an upwardly revised 0.7% gain in May, according to Destatis. Economists had expected output to remain unchanged during the month.

In the UK, figures from Lloyds Banking Group showed house prices were unchanged in July after rising 0.2% in June, reflecting a housing market that continues to navigate a more uncertain economic environment.

Major European Indices Move Higher

Germany’s DAX rose around 1%, outperforming its regional peers.

The UK’s FTSE 100 gained approximately 0.8%, while France’s CAC 40 advanced 0.5%.

Earnings Drive Individual Stock Moves

Despite reporting stronger-than-expected second-quarter earnings, Munich Re (TG:MUV2) fell 2.8%.

Allianz also traded lower, declining around 1% after releasing its latest financial results.

Elsewhere, Daimler Truck Holding (TG:DTG) dropped 4.2% after announcing an 18% decline in second-quarter profit.

Specialty chemicals producer Lanxess (TG:LXS) was among the weakest performers, falling nearly 5% after reporting a larger-than-expected net loss for the second quarter.

FTSE 100 flat as Lloyds flags mortgage pain; Europe near best week since June. Oxford Biomedica falls on guidance cut; Brent crude eases.

The FTSE 100 opened broadly flat on Friday, up marginally at 10,867.91 from yesterday’s close, after Lloyds Banking Group flagged pressure on UK mortgage rates. The Euronext 100 added 0.08 per cent to 1,967.32 and Germany’s DAX rose 0.33 per cent to 26,227.08, with European equities on course for their strongest weekly performance since June as a robust corporate earnings season lifted sentiment across pharmaceuticals, power infrastructure and telecommunications. On Wall Street, the Nasdaq Composite closed down 0.06 per cent at 26,348.35 and the S&P 500 slipped 0.18 per cent to 7,709.96 overnight, with investors weighing upcoming US labour market data and continued uncertainty over the path of Federal Reserve policy.

Commodity markets reflected renewed geopolitical unease, with gold, Brent crude and natural gas all easing back from yesterday’s close as tensions around the Strait of Hormuz kept energy markets on edge following reports of restricted vessel transit through the chokepoint. Copper firmed on the open, while bitcoin held steady against sterling. Sterling was little changed against the US dollar and the euro, edging fractionally higher against the yen, the Australian dollar and the Swiss franc, as currency markets took a cautious tone.

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Market Numbers

FTSE 100: Up (0.001%), 10,867.91
Euronext 100: Up (0.08%), 1,967.32
DAX: Up (0.33%), 26,227.08
NASDAQ: Down (-0.06%), 26,348.35
S&P 500: Down (-0.18%), 7,709.96

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In the Headlines

US Expansion Drives Growth – Sanderson Design Group (LSE:SDG)
Sanderson Design Group reported a 6 per cent rise in first-half revenue to £51.4 million, driven by strong North American demand and a 137 per cent jump in direct-to-consumer online sales. Management reaffirmed full-year profit expectations despite continued softness in the UK home furnishings market.

Guidance Cut Despite Client Wins – Oxford Biomedica (LSE:OXB)
Oxford Biomedica lowered its 2026 revenue guidance to between £180 million and £200 million after client order delays and a six-month setback at its North Carolina facility, despite record client wins and 9 per cent first-half growth. Shares fell sharply as the guidance cut renewed concerns over execution following previous forecast misses.

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Currencies (vs GBP)

USD: Up (0.00%), $1.3455
CHF: Up (0.01%), Fr.1.0931
EUR: Down (-0.00%), €1.1675
JPY: Up (0.01%), ¥213.1535
AUD: Up (0.01%), $1.9131
Bitcoin (BTC/GBP), £47,773.12

Commodities

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

US equity futures traded with little direction on Friday as investors awaited the release of July’s employment report, a key indicator that could shape expectations for the Federal Reserve’s next policy move. Markets were also monitoring renewed geopolitical tensions after another Houthi attack on Saudi Arabia, while negotiations between Iran and Oman over the Strait of Hormuz continued.

Futures Trade Cautiously Before Payrolls Release

As of 02:52 ET (06:52 GMT), Dow Jones futures were down 0.1%, S&P 500 futures were broadly unchanged and Nasdaq 100 futures edged 0.2% higher.

Thursday’s session ended lower on Wall Street. The Nasdaq Composite slipped 0.06% after earnings from memory chip manufacturers Sandisk (NASDAQ:SNDK) and Western Digital (NASDAQ:WDC) failed to justify investors’ elevated expectations despite solid quarterly results.

The Dow Jones Industrial Average declined 0.85%, snapping a five-day winning streak, while the S&P 500 lost 0.18%.

Analysts at Vital Knowledge said it was “impressive the index didn’t fall more than it did considering a number of negatives,” pointing to rising Treasury yields, disappointing technology guidance, higher oil prices and renewed concerns over Federal Reserve independence.

Labour Market Figures Could Shift Interest Rate Expectations

The market’s main focus is now the US nonfarm payrolls report.

Economists forecast that 88,000 jobs were created in July, up from 57,000 in June, while the unemployment rate is expected to remain at 4.2%.

Although hiring has slowed in recent months, layoffs have remained limited. Labour force participation has also weakened as tighter immigration policies and demographic trends reduce the number of available workers.

Recent economic reports have shown softer employment in the services sector, although broader indicators continue to suggest that domestic demand remains resilient.

Investors will be assessing whether the latest employment figures strengthen the case for further Federal Reserve tightening or support expectations that interest rates will remain unchanged.

Fresh Houthi Attack Raises Regional Concerns

Saudi Arabia warned of escalating regional instability after an attack by Iran-backed Houthi forces left 11 civilians injured.

The incident came despite reports that Iran and Oman are close to agreeing new arrangements for shipping through the Strait of Hormuz. However, uncertainty remains over whether any agreement can restore confidence in one of the world’s most important oil shipping routes.

President Donald Trump said the waterway is “sort of open right now,” while Iranian officials described negotiations as being in the “final stage.”

Brent crude climbed 1.2% to $83.46 a barrel as energy markets reacted to the latest developments.

Meta Faces $942 Million Court Penalty

Meta Platforms (NASDAQ:META) has been ordered to pay more than $900 million following a New Mexico court ruling over child safety on Facebook and Instagram.

The judgement follows an earlier jury decision that found the company had breached consumer protection laws. Alongside the financial penalty, Meta has been instructed to strengthen safety measures for younger users.

Berkshire Hathaway Set to Release Results

Investors are also preparing for Berkshire Hathaway’s (NYSE:BRK.B) quarterly earnings announcement on Saturday.

The results will provide another update on the investment group’s performance under Greg Abel, with markets also watching for changes to Berkshire’s investment portfolio following recent purchases and disposals.

European stock markets traded modestly higher on Friday and remained on course to deliver their best weekly performance since late June, as another strong round of corporate earnings continued to lift investor sentiment and pushed major regional indices to fresh record highs.

The pan-European STOXX Europe 600 Index gained 0.2% in early trading and was on track for a weekly rise of around 1.4%, its strongest five-day advance in almost six weeks. Investors have become increasingly optimistic as stronger-than-expected company results have prompted a reassessment of corporate fundamentals and the outlook for interest rates.

Germany’s DAX added 0.3%, while France’s CAC 40 and London’s FTSE 100 each advanced 0.2%.

Strong Earnings Continue to Support Markets

European equity markets have repeatedly reached new record levels this week, driven by robust second-quarter results from companies across sectors including pharmaceuticals, power infrastructure and telecommunications.

Earnings for companies within the STOXX 600 are now expected to increase by nearly 21% compared with a year ago, a significant improvement from the 12.5% growth forecast at the beginning of the reporting season. The stronger earnings outlook has reinforced investor confidence in European equities.

The week’s gains have also been helped by lower government bond yields as oil prices retreated from recent highs, easing inflation concerns and reducing cost pressures for energy-intensive industries.

Middle East Developments Return to Focus

Geopolitical uncertainty returned to the forefront on Friday after reports indicated that Iranian lawmakers are examining draft legislation that would formally prohibit US, Israeli and other designated “hostile” vessels from passing through the Strait of Hormuz, a critical route for around one-fifth of global oil shipments.

The proposal could complicate ongoing diplomatic efforts led by Oman and Qatar to improve maritime security and reduce tensions in the region.

Genel Jumps as Investors Await US Jobs Data

Among individual stocks, shares in Genel (LSE:GENL) climbed 12% after the company rejected a takeover proposal.

Investors are also awaiting the release of the US Labour Department’s July nonfarm payrolls report. Economists expect employment growth to recover while the unemployment rate remains unchanged at 4.2%, a combination that would reinforce the resilience of the US labour market while keeping inflation concerns firmly on the Federal Reserve’s agenda.

Financial markets currently assign roughly equal odds to a 25-basis-point Federal Reserve interest rate increase at its 16 September meeting.

European investors will be watching the US employment data closely for clues on whether continued economic strength in the world’s largest economy could influence global monetary policy and keep borrowing costs elevated through the autumn.

UK equities traded modestly higher on Friday as higher oil prices continued to support energy stocks, while fresh data from Lloyds highlighted renewed pressure on mortgage borrowers following the recent escalation in the Middle East.

By 03:30 ET (07:30 GMT), the FTSE 100 was up 0.22%. Elsewhere in Europe, Germany’s DAX advanced 0.33% and France’s CAC 40 gained 0.26%. Sterling weakened slightly against the US dollar, with GBP/USD slipping 0.07% to 1.3449.

Hormuz Shipping Slump Keeps Energy Markets on Edge

Investors remained focused on developments in the Strait of Hormuz after shipping activity fell sharply. Reuters, citing Kpler data, reported that only 33 vessels transited the waterway between Monday and Thursday, compared with 50 during the same period a week earlier. Just six crude oil tankers departed the strait during the week, while traffic through the Bab al-Mandeb route increased to 26 vessels on Thursday, indicating that some shipping is being redirected.

The disruption followed explosions near Iran’s Qeshm Island on Thursday evening, which the semi-official Fars news agency linked to reported military strikes. Brent crude surged almost 4% in the previous session before extending gains on Friday.

Diplomatic Tensions Continue to Influence Markets

Political developments remained mixed. Iranian Parliament Speaker Mohammad Bagher Ghalibaf criticised the United States, writing on X that “using bullying + broken promises + fake news as leverage is a failed strategy,” describing Washington’s approach as “theater diplomacy.”

Mohit Kumar, an analyst at Jefferies, said investors could become “desensitized to the Middle East, as long as oil stays around of below $80,” arguing that broader market fundamentals remain supportive thanks to a resilient US labour market and strong global liquidity.

However, Kumar identified higher US government bond yields as the primary concern, calling 10-year Treasury yields near 4.70% the “biggest worry.” He noted that oil prices between $75 and $80 remain around 25% to 30% above pre-conflict levels, warning this would “feed into inflation globally.”

He also suggested that a potential agreement between Iran and Oman over shipping in the Strait of Hormuz would be unlikely to satisfy Washington because it would effectively hand Iran greater control over the strategic waterway. Referring to reports that Tehran wants to restrict US and Israeli vessels from using the strait, Kumar said “we are still some distance from a deal.”

Reuters separately reported that any reopening of the Strait of Hormuz may require concessions from Washington, as the United States opposes any arrangement granting Iran control or the right to collect transit fees, while Tehran continues to insist on retaining influence over the route.

Meanwhile, US President Donald Trump acknowledged that certain American weapons stockpiles were “a little bit tighter” than others, while dismissing reports that the ongoing five-month conflict had significantly depleted US military supplies. His comments followed media reports, denied by the White House, that he had questioned Defence Secretary Pete Hegseth over ammunition levels.

Lloyds Reports Slower UK House Price Growth

In the UK, Lloyds’ latest House Price Index showed property prices were unchanged in July after rising 0.2% in June. The average UK home was valued at £299,253, while annual house price growth slowed to 0.1%, the weakest reading since November 2023.

“The UK housing market remained steady in July, with the average property price effectively unchanged over the month,” said Amanda Bryden, Head of Mortgages at Lloyds. She added that mortgage rates “have edged higher again after easing earlier in the summer” following the recent escalation in Middle East tensions.

Oil and Gold Extend Gains

Oil prices continued to move higher, with Brent crude rising 0.70% to $83.08 a barrel and US West Texas Intermediate adding 0.36% to $77.57.

Safe-haven demand also lifted precious metals. Gold futures climbed 1.04% to $4,345.47 an ounce, while spot gold gained 1.1% to $4,286.50.

UK Corporate News

• JD Sports (LSE:JD.) has appointed former IKEA chief executive Peter Agnefjäll as its new chair, with the appointment taking effect on 1 September.
• Goodwin (LSE:GDWN) is in discussions over the sale of its defence business following order delays, according to a report by the Financial Times.

U.S. equity futures traded close to flat on Thursday as investors adopted a cautious stance ahead of Friday’s closely watched July employment report, which is expected to provide fresh guidance on the outlook for Federal Reserve interest rate policy.

With one of the week’s most important economic releases still to come, traders appeared reluctant to place aggressive bets at the opening bell.

Weekly jobless claims remain lower than expected

Ahead of Friday’s payrolls release, the Labor Department reported that initial jobless claims rose modestly during the week ended August 1.

New unemployment benefit claims increased to 199,000 from the prior week’s revised 198,000. The figure was below economists’ expectations of 202,000, indicating that layoffs remain subdued and the labour market continues to show resilience.

Markets are forecasting that the U.S. economy added 88,000 jobs in July, following an increase of 57,000 in June.

SanDisk slides despite earnings beat

Technology stocks were set for a weaker start after SanDisk (NASDAQ:SNDK) dropped roughly 10% in pre-market trading.

The memory chip manufacturer reported quarterly results ahead of expectations, but investors focused instead on guidance that fell short of the market’s elevated expectations.

Wednesday’s rally loses momentum

Wall Street initially extended its recent gains on Wednesday before sellers emerged later in the session.

The Dow Jones Industrial Average closed up 263.24 points, or 0.5%, at 54,349.12. Meanwhile, the S&P 500 slipped 0.2% to 7,723.55 and the Nasdaq Composite lost 0.8% to finish at 26,363.44.

The pullback followed four consecutive sessions of gains that had pushed both the Dow and S&P 500 to record highs.

AI-related names remain under pressure

Investor sentiment toward AI-related companies weakened after SpaceX (NASDAQ:SPCX) reported higher-than-expected revenue but disclosed a sharp rise in capital expenditure, sending its shares down 13.6%.

Advanced Micro Devices (NASDAQ:AMD) also fell 7%, despite delivering stronger-than-expected quarterly earnings.

Disney and healthcare stocks provide support

Disney (NYSE:DIS) helped support the Dow after climbing 3.7% on stronger-than-expected quarterly results.

Amgen (NASDAQ:AMGN) advanced 4.6%, while Nvidia (NASDAQ:NVDA) gained 3.4%.

ADP points to softer hiring

Private payroll processor ADP reported that private-sector employment increased by 44,000 jobs in July, below economists’ forecasts of 75,000.

June’s figure was revised down to 95,000 from 98,000.

Energy weak, gold miners rally

Falling crude prices weighed on energy shares, with the NYSE Arca Oil Index declining 3% and the Philadelphia Oil Service Index falling 2.5%.

Gold miners outperformed as bullion prices strengthened, lifting the NYSE Arca Gold Bugs Index 7.6% to its highest close in more than a month.

European equity markets reached new record levels on Thursday as investors drew support from robust corporate earnings, optimism surrounding negotiations linked to the Strait of Hormuz, and stronger-than-expected economic data from Germany.

According to Destatis, German factory orders rose 3.1% month over month in June, significantly above the revised 0.3% increase recorded in May and well ahead of economists’ expectations for a 0.5% gain. On an annual basis, new orders accelerated to 6.5%, compared with 4.5% in the previous month.

Meanwhile, Iran said it was finalising a shipping agreement with Oman covering commercial traffic through the Strait of Hormuz, while rejecting reports that the United States was participating in the negotiations.

Major European indices advance

France’s CAC 40 gained 0.7%, while Germany’s DAX and the UK’s FTSE 100 both traded around 0.2% higher.

UK stocks in focus

Tullow Oil (LSE:TLW) fell 5.3% after investors reacted to concerns over the company’s unchanged debt position.

Wizz Air (LSE:WIZZ) slipped 1% after reporting a quarterly net loss that exceeded market expectations.

WPP (LSE:WPP) surged 23% as the advertising giant exceeded forecasts with its first-half profit and margin performance.

Persimmon (LSE:PSN) added 4% after stating that full-year home completions are expected to reach the upper end of previous guidance.

Serco (LSE:SRP) climbed 6% after reporting stronger first-half underlying earnings and announcing an expansion of its share buyback programme.

German stocks post mixed performance

Fresenius (TG:FRE) advanced 1.6% after posting solid second-quarter earnings and raising its outlook for 2026.

SGL Carbon (TG:SGL) gained 5% after returning to profitability in the second quarter.

Commerzbank (TG:CBK) rose 1.2% following record first-half financial results.

Nordex (TG:NDX1) added 2.5% after securing a contract from Turkerler Holding to supply approximately 525 MW of wind turbines.

Henkel (TG:HEN) jumped 4.6% after delivering strong interim results and upgrading its organic growth forecast for 2026.

Deutsche Telekom (TG:DTE) rallied almost 6% after increasing its 2026 share buyback programme by up to €3 billion.

Siemens (TG:SIE) dropped 5% after issuing a profit outlook that disappointed investors.

Merck (TG:MRK) gained 1.7% after improving its full-year sales and earnings guidance.

Other European movers

Swisscom (TG:SWJ) advanced 4.3% after reaffirming its 2026 revenue outlook alongside solid quarterly results.

Adecco (TG:ADI1) declined 3% after weaker-than-expected gross margins and operating cash flow weighed on investor sentiment.

Banco BPM (BIT:BAMI) climbed 5.3% after raising its profit guidance for 2026.

U.S. equity futures were little changed on Thursday as markets balanced optimism over diplomatic progress in the Middle East against a busy corporate earnings calendar and awaited key labour market data due later this week.

At 01:17 ET (05:17 GMT), Dow Jones futures were up 122 points, or 0.2%, while S&P 500 futures also gained 0.2%. Nasdaq 100 futures slipped 0.1%, as weakness in large technology stocks continued to weigh on sentiment.

Wall Street ended Wednesday’s trading on a mixed note. The Dow Jones Industrial Average added 0.5%, while the S&P 500 declined 0.2% and the Nasdaq Composite lost 0.8%.

Technology stocks remained under pressure after investors reacted to reports that SpaceX (NASDAQ:SPCX) plans to significantly increase spending on artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) also moved lower after Elon Musk said SpaceX would no longer use the company’s latest AI chips, despite AMD posting broadly encouraging quarterly results.

Economic releases also painted a mixed picture. ADP data showed that private-sector hiring slowed more than expected in July, although wage growth remained strong for workers changing jobs. Separate figures pointed to stronger activity across the U.S. services sector, supported by rising new orders and production, while employment weakened and inflationary pressures accelerated. Investors are now looking ahead to Friday’s closely watched U.S. non-farm payrolls report.

Diplomatic developments remain in focus

Attention also remained fixed on negotiations between Washington and Tehran.

Although President Donald Trump has repeatedly said discussions with Iran are progressing positively, no formal agreement has yet been announced.

Reuters reported that U.S. officials continue to insist any deal must prevent Iran from controlling access to the Strait of Hormuz, the strategic waterway that previously handled around 20% of global oil and liquefied natural gas exports.

However, the news agency also reported that a proposed arrangement between Iran and Oman would give Tehran oversight of vessels entering the Gulf through the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmail Baghaei said both countries have agreed on the geographic coordinates of a designated shipping corridor.

A senior Iranian official also told Reuters that Tehran is seeking transit charges of up to 7% of the value of cargo carried by commercial vessels. Before the conflict, commercial shipping passed through the strait without paying such fees.

Oil prices edged around 0.3% lower after a volatile session on Wednesday, with traders continuing to assess the implications for inflation and future central bank policy.

Sandisk exceeds estimates but guidance prompts profit-taking

Sandisk (NASDAQ:SNDK) reported quarterly results ahead of analysts’ forecasts, benefiting from stronger pricing and robust demand for memory products used in data centres.

For the first quarter of fiscal 2027, the company forecast revenue of between $10.3 billion and $10.8 billion, broadly matching analysts’ expectations of $10.62 billion. Adjusted earnings per share are expected to range between $44.00 and $46.00, compared with a consensus estimate of $44.21.

Despite expanding its share repurchase programme and delivering another quarter of exceptional growth, investors focused on guidance that largely met expectations rather than exceeding them. Shares fell about 2% in after-hours trading.

Fourth-quarter revenue climbed to $8.97 billion, representing sequential growth of 51% and an increase of 372% from a year earlier. GAAP net income rose to $6.90 billion, or $43.97 per diluted share, compared with a loss of $23 million, or $0.16 per share, in the same period last year.

Block upgrades annual outlook

Block (NYSE:XYZ) reported quarterly revenue and earnings above market expectations and increased its forecast for adjusted profit for the full year.

The financial technology company also issued stronger-than-expected adjusted profit guidance for the current quarter, although its Class A shares slipped slightly in premarket trading.

Block’s portfolio includes the Square payments platform, the Afterpay buy-now-pay-later business and Cash App, its largest revenue-generating platform, which enables digital payments, personal finance services and bitcoin trading.

Originally founded as Square in 2009 by Twitter co-founder Jack Dorsey, the company rebranded as Block in 2021 to reflect its broader ambitions in blockchain and digital technologies.

Moderna wins FDA approval for first mRNA flu vaccine

Moderna (NASDAQ:MRNA) announced that the U.S. Food and Drug Administration has approved mFLUSIVA for adults aged 50 and over, making it the company’s first mRNA influenza vaccine and its fourth product authorised by the regulator.

The biotechnology company expects to begin shipping the vaccine to selected U.S. retailers in the coming weeks ahead of the 2026-2027 respiratory virus season. Worldwide, the approval makes mFLUSIVA Moderna’s fifth authorised product.

The decision follows a unanimous recommendation from the FDA’s advisory committee and is supported by Phase 3 clinical trial data involving more than 40,800 participants across 11 countries.

For adults aged 65 and older, the vaccine received accelerated approval based on immune response data from a separate U.S. study involving 2,992 participants. Moderna said further post-marketing studies will be conducted to confirm long-term clinical benefits in older adults.

The company’s shares moved higher in extended trading.