Category: Market Summary

U.S. stock index futures traded in positive territory ahead of Friday’s opening, indicating markets may rebound after weakness in the previous session as investors responded to stronger-than-anticipated labour market data.

Futures gained momentum after the release of the latest employment report from the U.S. Labor Department, which showed hiring activity accelerated significantly during April.

The report revealed that non-farm payrolls increased by 115,000 jobs last month following an upward revision to March’s figure, which now stands at 185,000 new positions.

Analysts had forecast job growth of 63,000, compared with the initially reported increase of 178,000 in March.

Hiring gains were concentrated in healthcare, retail, transportation and warehousing, while employment within the federal government continued to decline modestly.

Meanwhile, the unemployment rate remained unchanged at 4.3 per cent in April, matching market expectations and the level recorded in March.

The stronger employment figures may ease concerns surrounding the economic effects of rising geopolitical tensions in the Middle East, despite renewed military confrontation overnight between the United States and Iran in the Strait of Hormuz.

Reports indicated that three U.S. destroyers were targeted by Iranian missiles and drones while passing through the strategic waterway. U.S. Central Command said the threats were intercepted and retaliatory strikes were launched against Iranian military facilities linked to the attacks.

Speaking later by phone with ABC News journalist Rachel Scott, President Donald Trump described the response against Iranian targets as “just a love tap” and said the ceasefire agreement remains active.

Wall Street ended Thursday’s trading session lower after a muted start evolved into broader selling pressure later in the day, although losses were not severe.

The Dow Jones Industrial Average fell 313.62 points, or 0.6 per cent, to 49,596.97. The S&P 500 declined 28.01 points, or 0.4 per cent, to finish at 7,337.11, while the Nasdaq Composite slipped 32.75 points, or 0.1 per cent, closing at 25,806.20.

Earlier in the session, investor sentiment had been supported by hopes that diplomatic discussions between Washington and Tehran could still prevent a wider regional conflict, although traders appeared cautious about making larger commitments without firmer evidence of progress.

President Donald Trump said on Wednesday that the United States and Iran had held “good talks over the last 24 hours” and voiced confidence that an agreement could be achieved within days.

Axios also reported that U.S. officials expect Iran to respond within the next 24 to 48 hours to a proposed memorandum intended to bring the conflict to an end.

However, sentiment weakened later in the session as oil prices reversed sharply higher. U.S. crude futures rose more than 1 per cent in electronic trading after previously dropping as much as 5.5 per cent.

Oil prices rebounded following a CNN report stating that Iran is attempting to require all commercial vessels travelling through the Strait of Hormuz to comply with a newly introduced transit procedure.

CNN reported that Iran’s recently established Persian Gulf Strait Authority has issued forms that all ships must complete before crossing the waterway in order to secure safe passage.

Markets interpreted the move as an effort by Tehran to formalise oversight of the strategic shipping corridor, renewing fears of further escalation in the region.

Additional economic data released Thursday showed initial claims for unemployment benefits increased less than expected in the week ending May 2.

According to the Labor Department, first-time unemployment claims rose by 10,000 to 200,000 from the previous week’s revised total of 190,000.

Economists had expected claims to reach 205,000 compared with the originally reported 189,000 in the prior week.

Sector performance was mixed during Thursday’s trading. Technology hardware stocks were among the weakest performers, with the NYSE Arca Computer Hardware Index falling 2.9 per cent after closing at a record high the previous day.

Semiconductor shares also came under pressure, with the Philadelphia Semiconductor Index dropping 2.7 per cent.

Energy stocks declined despite the recovery in crude oil prices, while software and airline shares posted some of the session’s strongest gains.

Market Overview

UK equities opened firmer, with the FTSE 100 rising 0.38 per cent to 10,236.11 and the FTSE 250 edging 0.04 per cent higher to 22,900.7. US markets also closed in positive territory, as the Dow Jones gained 0.38 per cent, the S&P 500 added 0.60 per cent and the Nasdaq advanced 0.86 per cent amid continued support for technology shares. Investor sentiment remained focused on UK economic resilience, with borrowing costs holding near recent highs alongside forecasts for slowing house price growth and rising food inflation pressures.

Commodity markets reflected a mixed macro backdrop. Brent crude declined as concerns over global demand offset supply worries, while gold and copper moved higher on defensive positioning and expectations for continued infrastructure demand. Natural gas also edged up, while Bitcoin weakened slightly against sterling. Sterling strengthened against major currencies including the US dollar and euro as markets continued to assess UK inflation pressures and interest rate expectations.

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Market Numbers

FTSE 100: Up (0.38%), 10,236.11
FTSE 250: Up (0.04%), 22,900.7
DOW: Up (0.38%), 49,720.4
NASDAQ: Up (0.86%), 28,744.5
S&P 500: Up (0.60%), 7,371.3

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In the Headlines

Fuel Supply Warning – International Consolidated Airlines Group (LSE:IAG)
British Airways owner IAG warned that fuel supply shortages could become a growing operational risk for airlines, highlighting ongoing pressure across energy and aviation supply chains. The comments come as fuel markets remain volatile and airlines continue managing higher operating costs.

Barclays Target Raised – Barclays PLC (LSE:BARC)
RBC Capital lifted its price target on Barclays following the bank’s first-quarter results, citing stronger profitability and resilient performance in investment banking operations. The move may support sentiment towards UK banking shares amid expectations for higher interest rates to persist.

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Currencies (vs GBP)

USD: Up (0.49%), $1.3617
EUR: Up (0.09%), €1.1564
JPY: Up (0.32%), ¥213.337
AUD: Up (0.11%), $1.881880
Bitcoin (BTC/GBP): Down (-0.53%), £58,726.1

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Commodities

Brent Crude: Down (-2.76%), 99.225
Gold: Up (0.11%), 4,727.875
Copper: Up (2.00%), 6.2728
Natural Gas: Up (0.99%), 2.9555

Global financial markets traded cautiously on Friday as renewed military tensions between the United States and Iran near the Strait of Hormuz pressured equities and kept investors focused on geopolitical risks.

“Markets still aren’t pricing in the worst-case scenario,” Deutsche Bank strategists led by Henry Allen wrote in their morning note to clients.

Traders were also closely monitoring preparations for President Donald Trump’s upcoming summit with China, while another round of software company earnings sparked major premarket volatility across the technology sector. Later in the day, attention will turn to the release of the April U.S. employment report.

Oil prices reverse course after early surge

Oil prices moved lower on Friday after initially rallying following renewed clashes involving U.S. and Iranian forces near the Strait of Hormuz. Brent crude briefly climbed roughly 3% during Asian trading hours before giving back those gains and falling back below the $100 per barrel mark.

The escalation unsettled investors just days after signs emerged that Washington and Tehran could be approaching a broader diplomatic agreement.

President Donald Trump said the ceasefire established last month remained in place despite the latest military exchanges. Even with Friday’s turbulence, crude prices are still heading toward an estimated weekly decline of around 7% as hopes for diplomacy continue to support market expectations.

Trump-Xi meeting remains in focus

Geopolitical developments remained a key theme ahead of Trump’s planned meeting with Chinese President Xi Jinping in Beijing next week.

The summit would mark the first visit by a sitting U.S. president to China since 2017 and comes at a particularly delicate moment for global investors. Talks are expected to focus on the Iran conflict, trade relations and broader economic cooperation.

CNBC reported that the American business delegation accompanying Trump could be smaller than those sent by several other countries in recent months. Investors are also looking for further details regarding a possible future visit by Xi to the United States.

Asian and European markets retreat

Asian stock markets weakened after Wall Street pulled back from record levels overnight. Japanese and South Korean equities retreated as renewed tensions in the Middle East dampened investor appetite for risk assets.

Japan’s Nikkei 225 finished the session down 0.2%, while South Korea’s KOSPI recovered from earlier declines to close modestly higher.

European equities also moved lower, with the STOXX 600 dropping as much as 0.9% in early trading after the U.S. military said it had intercepted attacks targeting three naval vessels near the Strait of Hormuz.

Despite the cautious tone across global markets, U.S. stock futures pointed slightly higher ahead of the labor market data, with S&P 500 futures rising around 0.3%.

Investors await key U.S. labor data

Market participants are now focused on Friday’s U.S. nonfarm payrolls report for fresh insight into the strength of the economy and the Federal Reserve’s future interest rate path.

Last month’s payroll report showed job creation of 178,000 positions, marking the strongest reading in 15 months.

“That’s an important one, as Fed pricing has already shifted in a hawkish direction given the energy shock,” Allen said.

Economists currently expect payroll growth of 50,000 jobs in April, which would represent the first consecutive monthly increase since May of last year. The unemployment rate is forecast to remain unchanged at 4.3%.

Software earnings spark sharp stock moves

Quarterly earnings from software companies generated some of the largest individual stock swings ahead of Friday’s opening bell.

Akamai (NASDAQ:AKAM) surged nearly 30% in premarket trading after announcing a $1.8 billion long-term cloud services agreement tied to a frontier artificial intelligence model provider.

Bill Holdings (NYSE:BILL) climbed 12% after posting quarterly revenue and earnings above analyst expectations, supported by stronger transaction volumes and subscriber-related fees.

Meanwhile, several other software companies came under heavy pressure following their earnings releases. HubSpot (NYSE:HUBS), Trade Desk (NASDAQ:TTD) and Cloudflare (NASDAQ:NET) all posted double-digit losses in premarket trading.

European equities moved lower on Friday as renewed hostilities between the U.S. and Iran pushed oil prices higher and weakened expectations for a near-term diplomatic breakthrough.

U.S. President Donald Trump stated that the ceasefire remained active even as clashes continued in the Gulf region, while Washington continued to wait for Tehran’s response to its proposal aimed at ending the conflict.

The pan-European STOXX 600 declined 0.8% to 611.69 points by 0703 GMT. Major indexes across the region also traded lower, with Germany’s DAX falling 0.9% and London’s FTSE 100 losing 0.5%.

Investor sentiment in Europe has remained highly reactive to geopolitical developments, as the region’s reliance on imported energy fuels worries about inflationary pressures and slower economic growth. Markets are currently pricing in at least three interest rate increases from the European Central Bank over the coming year.

Sentiment was further pressured by Trump’s warning that the European Union could face “much higher” tariffs if trade agreement obligations are not fulfilled by July 4.

Company Movers

Among individual stocks, British Airways parent IAG (LSE:IAG) dropped 5.2% after the airline group projected annual profit below previous expectations, citing sharply higher jet fuel expenses.

Meanwhile, Spanish travel technology firm Amadeus gained 3.7% after posting quarterly core earnings that exceeded analyst forecasts while reaffirming its outlook.

Market Overview

UK and European equities traded lower in early dealings, with the FTSE 100 down 0.67 per cent at 10,369.14 and the FTSE 250 lower alongside broader regional weakness. Germany’s DAX slipped 0.32 per cent, while US markets were more resilient overnight, with the Dow Jones rising 1.24 per cent and the S&P 500 edging 0.06 per cent higher. Investor focus remains on geopolitical tensions linked to the Iran conflict, alongside scrutiny of UK banking valuations, local election implications and ongoing cost pressures facing UK housebuilders.

Commodity markets reflected the geopolitical backdrop, with Brent crude remaining elevated despite easing 2.63 per cent from recent highs. Gold and copper both advanced, pointing to continued demand for defensive assets and industrial metals, while natural gas also moved higher. Sterling strengthened against the US dollar and Japanese yen but weakened slightly versus the euro and Australian dollar. Bitcoin traded firmer against the pound as risk appetite stabilised.

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Market Numbers

FTSE 100: Down (-0.67%), 10,369.14
FTSE 250: Down (-0.57%), 5,632.10
DOW: Up (1.24%), 49,910.59
NASDAQ: Up (0.25%), 22,888.87
S&P 500: Up (0.06%), 7,342.60

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In the Headlines

Oil Windfall – Shell (SHEL)
Shell reported stronger profits as elevated oil prices linked to the Iran conflict supported earnings. The update highlights how major energy producers are benefiting from sustained volatility in global energy markets.

Defence Outlook – BAE Systems (BA.)
BAE Systems reiterated confidence in its long-term growth outlook as rising global security concerns continue to drive defence spending. The company’s comments reinforce expectations of sustained demand across the aerospace and defence sector.

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Currencies (vs GBP)

USD: Up (0.21%), $1.362
EUR: Down (-0.02%), €1.1568
JPY: Up (0.14%), ¥213.0045
AUD: Down (-0.13%), $1.8761
Bitcoin (BTC/GBP): Up (0.25%), £22,888.87

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Commodities

Brent Crude: Down (-2.63%), 97.99
Gold: Up (0.34%), 4,735.76
Copper: Up (0.65%), 6.2082
Natural Gas: Up (0.35%), 2.8695

U.S. stock index futures moved modestly higher on Thursday as investors continued to monitor signs of progress toward a potential peace agreement between the United States and Iran. At the same time, crude prices hovered near the $100-per-barrel level, easing from recent peaks but remaining substantially above levels seen before the conflict began.

Wall Street futures extend positive momentum

At 03:39 ET, futures linked to the Dow Jones Industrial Average were up 113 points, or 0.2%. S&P 500 futures gained 15 points, also up 0.2%, while Nasdaq 100 futures advanced 77 points, or 0.3%.

The gains followed another record close for major U.S. indexes on Wednesday after reports suggested Washington and Tehran could be moving closer to an agreement that may end the war that has continued for more than two months.

Technology stocks also helped support broader market sentiment following strong earnings-related updates from companies tied to semiconductors and artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) lifted chip stocks after signalling that AI-related demand remains resilient. Shares of AI server producer Super Micro Computer (NASDAQ:SMCI) surged more than 24% after issuing stronger-than-expected quarterly revenue guidance.

“[S]tocks exploded higher thanks to Iran optimism, another round of strong earnings, and additional fodder for AI bulls,” analysts at Vital Knowledge said.

Diplomatic efforts between Washington and Tehran continue

The Wall Street Journal reported that U.S. and Iranian officials have been working with mediators on a one-page proposal intended to restart negotiations on a long-term peace settlement. Talks are reportedly expected to begin next week in Pakistan.

According to the report, negotiations over the following month would attempt to resolve disagreements surrounding Iran’s nuclear programme and sanctions relief, although major sticking points remain on uranium enrichment and international inspections.

President Donald Trump said on Wednesday that the United States had effectively “won” the conflict and described recent discussions with Tehran as having been “very good” during the previous 24 hours.

Earlier in the day, Trump wrote on social media that the U.S. military campaign against Iran, launched alongside Israel in late February, would conclude if Tehran “agrees to give what has been agreed to.” He also warned that military operations could restart if negotiations fail to produce an agreement.

Iranian officials have offered mixed reactions. Iran’s foreign minister said the government was reviewing the latest American proposal and would communicate its response through Pakistan, which has often served as an intermediary between the two countries. However, separate reports cited an Iranian official who dismissed the U.S. proposal as merely an American “wish list.”

CNN reported that Iran is expected to provide its formal response to mediators by Thursday.

Oil markets remain volatile around $100 a barrel

Oil prices continued to fluctuate as traders assessed the likelihood of shipping activity resuming through the Strait of Hormuz following weeks of disruption.

Brent crude futures were recently down 2% at $99.23 per barrel.

Energy markets have experienced sharp price increases since the conflict began, largely due to the effective closure of the Strait of Hormuz, a key route for roughly one-fifth of global oil shipments. Although crude prices have pulled back from recent highs, they remain significantly elevated compared with pre-war levels.

Higher energy prices have pushed gasoline prices in the United States above $4.50 per gallon, levels not seen since the height of the pandemic-era energy crisis in 2022.

Trump said he had expected oil prices to rise even more sharply, telling reporters he thought crude could reach “$200, $250.”

He added that even at those levels, the war against Iran would have been “worth it.”

U.S. and China reportedly considering AI negotiations

The Wall Street Journal also reported that Washington and Beijing are weighing the possibility of formal talks focused on artificial intelligence.

The topic may be included in discussions during a planned summit next week in Beijing between President Donald Trump and Chinese President Xi Jinping.

According to the report, discussions would likely focus on risks linked to advanced AI systems, including unpredictable model behaviour, autonomous weapons technologies and AI-driven attacks carried out by non-state groups.

U.S. Treasury Secretary Scott Bessent is expected to lead the American delegation in any future discussions, while China has yet to appoint its lead representative.

Shell beats profit expectations despite reducing buybacks

Shell (NYSE:SHEL) reported adjusted earnings of $6.92 billion for the first quarter of 2026, ahead of analyst forecasts of $6.36 billion and above the $5.58 billion reported during the same period last year.

The energy giant said stronger trading and optimisation performance in its Downstream and Renewables businesses, alongside improved refining margins, higher realised prices and lower operating costs, helped drive profit growth.

Shell also reduced its quarterly share repurchase programme to $3 billion from $3.5 billion in the prior quarter.

Adjusted EBITDA increased to $17.7 billion from $15.3 billion a year earlier. Operating cash flow totalled $6.1 billion, impacted by an $11.2 billion working capital outflow tied to commodity price movements affecting inventories and receivables.