Category: Market Summary

Market Overview

The FTSE 100 opened broadly unchanged at 10,822.26, up 0.001 per cent from its previous close, as disrupted Strait of Hormuz shipping and renewed threats to Gulf energy infrastructure kept investors cautious. The Euronext 100 slipped 0.01 per cent to 1,916.81, while Germany’s DAX was down 0.26 per cent at 25,939.98. In the US, the markets were closed for Labor Day.

Commodity markets were mixed, with copper higher while gold, Brent crude and natural gas moved lower in the provided market data, despite continuing concerns over Middle East energy supplies. Bitcoin fell against sterling. The pound strengthened marginally against the US dollar but weakened slightly against the Swiss franc, euro, Japanese yen and Australian dollar, as markets monitored geopolitical risks and upcoming economic and central bank developments.

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Market Numbers

FTSE 100: Up (+0.001%), 10,822.26
Euronext 100: Down (-0.01%), 1,916.81
DAX: Down (-0.26%), 25,939.98
NASDAQ: Closed
S&P 500: Closed

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In the Headlines

Growth strategy – Dunelm Group (LSE:DNLM)
The homewares retailer reported FY26 sales up 3.1% to £1.83 billion, while profit before tax was unchanged at £211 million. Dunelm also launched its Winning Hearts & Homes growth strategy, although unusually hot weather contributed to softer trading at the start of FY27.

Revenue growth – Journeo (LSE:JNEO)
The transport technology group reported a 53% rise in first-half revenue to £37.6 million, supported by organic growth and acquisitions. Its sales pipeline has reached £200 million, providing visibility over potential future opportunities as the group continues integrating acquired businesses.

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Currencies (vs GBP)

USD: Down (-0.00%), $1.3547
CHF: Up (+0.01%), Fr.1.0958
EUR: Up (+0.00%), €1.165
JPY: Up (+0.04%), ¥208.3665
AUD: Up (+0.00%), $1.8759
Bitcoin (BTC/GBP): Down, £58,016.20

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Commodities

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

U.S. stock futures traded in different directions on Tuesday as markets reopened after the Labor Day holiday, with investors monitoring crude oil prices, Treasury yields, economic data and expectations for the Federal Reserve’s September meeting.

Middle East developments remained another focus for markets, alongside the implications of a stronger-than-expected U.S. employment report for the path of interest rates.

Dow and S&P 500 Futures Decline

Dow Jones Futures were down 0.8% at 53,013 points, while S&P 500 Futures declined 0.3% to 7,691.3 points. Nasdaq 100 Futures were unchanged at 29,593 points.

The moves followed August employment figures that exceeded expectations, prompting markets to reassess the outlook for U.S. monetary policy.

Oil prices have also risen, adding another consideration for investors assessing inflation and the Federal Reserve’s potential policy response.

Labour Data and Treasury Auction Awaited

Markets are awaiting the weekly ADP Employment Change report, which uses a four-week moving average of private-sector employment to provide an additional measure of labour-market conditions.

The U.S. Treasury is also due to sell three-year notes. Investor demand at the auction will provide an indication of appetite for U.S. government securities following recent selling in global bond markets.

Bond prices move inversely to yields, meaning lower prices result in higher borrowing costs for issuers.

U.S. national debt has exceeded $40 trillion, with the government regularly issuing Treasury securities to fund spending and refinance existing obligations. Higher yields increase the cost associated with that borrowing.

Treasury yields also influence mortgage rates, corporate financing costs and equity valuations, making developments in government bond markets relevant across a range of financial assets.

Trump Calls for Bombardier U.S. Sales to End

President Donald Trump on Monday called for Bombardier (TSX:BBD.B) to stop selling aircraft in the United States.

Bombardier, which also trades in the U.S. under the symbol BDRAF, generates more than half of its revenue from the U.S. market, according to the supplied information.

The Canadian aircraft manufacturer is expected to generate approximately $10.2 billion in revenue during 2026. Based on the geographic exposure provided, U.S.-related sales would account for approximately $5 billion or more of that amount.

No specific policy action implementing Trump’s statement was identified in the supplied material. The financial consequences for Bombardier would therefore depend on whether restrictions are introduced and their eventual terms.

Iran Warns of Persian Gulf Maritime Exclusion Zone

Iran has threatened to establish a maritime exclusion zone across the Persian Gulf in response to what it described as U.S. “economic warfare.”

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Iran’s latest missile attacks represented a warning and that further economic pressure would result in an exclusion zone extending across the Gulf towards the perimeter of the U.S. blockade.

Rezaei also said Iran’s posture towards U.S. warships and military bases had been “fundamentally recalibrated.”

Separately, attacks by Iranian-backed Houthi forces on Saudi Arabia have increased attention on the security of regional energy facilities and shipping routes.

Any disruption to Persian Gulf energy shipments could affect global oil supplies and prices. The eventual impact would depend on the nature, scale and duration of any disruption.

Brent Extends Rally Towards $100

Brent crude rose 1.4% on Tuesday to its highest level in six weeks, extending its advance to a third consecutive session.

The international benchmark has recently traded around $99 a barrel amid U.S.-Iran tensions and concerns about possible disruption to energy supplies in the region.

Higher crude prices can feed into transportation and production costs and affect inflation. However, their eventual influence on Federal Reserve policy would depend on how long prices remain elevated, broader inflation trends and other economic data.

Investors are consequently monitoring whether Brent reaches the $100-a-barrel level alongside developments in U.S. bond markets, economic data and the Middle East.

European equities moved lower on Tuesday as crude oil prices extended their recent advance and investors assessed expectations for an interest-rate increase from the European Central Bank later this week.

The pan-European STOXX 600 fell 0.2%, with declines across several major markets and sectors, including growth stocks, industrials and consumer discretionary companies.

Germany’s DAX and London’s FTSE 100 both declined 0.2%, while France’s CAC 40 fell 0.4%.

Iranian Threats Add to Oil Supply Concerns

Crude oil benchmarks advanced for a third consecutive session, extending a multi-day increase that has kept Brent crude above $90 a barrel.

The latest move followed statements from Iranian military officials warning that Iran would retaliate against further U.S. or allied strikes by targeting energy infrastructure in the Persian Gulf, including U.S. oil and gas assets in the region.

The statements came as markets continued to monitor disruption around the Strait of Hormuz, a major transit route for global energy supplies.

For European companies and economies that depend on imported energy, sustained increases in oil prices could raise input costs and contribute to inflation. The extent of any effect on corporate earnings or economic activity will depend on the duration and scale of the increase.

Markets Price in ECB Rate Increase

Investors were also preparing for Thursday’s European Central Bank Governing Council meeting.

Money markets were pricing in a high probability of a 25-basis-point interest-rate increase.

Expectations for higher rates followed preliminary August Eurozone inflation data showing headline consumer prices rising 3.3% year-on-year. Energy prices increased 14.3%.

With energy prices continuing to rise, some investment banks, including Deutsche Bank, have begun factoring in the possibility of additional ECB tightening after September, including another increase before the end of the year.

German 10-year Bund yields were trading near multi-year highs of 3.36%. Higher bond yields can increase borrowing costs for companies and affect the relative valuations of equities and fixed-income assets.

U.S. CPI Data Could Influence Federal Reserve Expectations

Investors are also awaiting U.S. Consumer Price Index data scheduled for later in the week.

The inflation report follows U.S. nonfarm payroll figures showing the economy added 162,000 jobs in August.

Markets are assessing whether the inflation data will alter expectations for the Federal Reserve’s Sept. 15-16 policy meeting, including the possibility of a 25-basis-point rate increase.

A higher-than-expected inflation reading could increase market expectations for tighter monetary policy, while softer inflation could reduce expectations for additional rate increases. The eventual policy decision remains subject to incoming data and the Federal Reserve’s assessment.

The FTSE 100 was broadly unchanged on Tuesday as investors monitored disruption to shipping through the Strait of Hormuz and reports of further Houthi attacks on energy infrastructure in Saudi Arabia.

The FTSE 100 was up 0.02% at 03:28 ET (07:28 GMT). Elsewhere in Europe, Germany’s DAX declined 0.15%, while France’s CAC 40 fell 0.27%.

Sterling was down 0.03% against the U.S. dollar at 1.3535.

Houthi Attacks and Hormuz Shipping Remain in Focus

Houthi forces struck several energy facilities in southern Saudi Arabia early on Tuesday, according to the Saudi Energy Ministry, which reported fires at multiple sites and injuries to personnel.

The Saudi-led coalition said 73 people, including women and children, had been injured in recent Houthi attacks on civilian and economic sites, describing the attacks as a “dangerous escalation.”

Shipping data compiled by Kpler showed seven commodity vessels transited the Strait of Hormuz on Monday, compared with eight on Sunday. The 10-day average stood at 10 vessels, its lowest level since May.

Qatar Foreign Ministry spokesperson Majed Al-Ansari told U.S. media that reopening the strait remained the priority and warned of an “industrial catastrophe” if the disruption continued.

Iraqi prime ministerial financial adviser Mazhar Muhammad Salih said diversifying pipeline routes had become formal “state strategy” as Iraq seeks to protect exports of approximately 3.4 million barrels per day.

Iran and U.S. Exchange Statements Over Naval Blockade

Iran’s acting defence minister, Brigadier General Majid Ibn Reza, told state broadcaster IRIB that Iran had the technology to strike U.S. warships enforcing the naval blockade.

The U.S. State Department said Washington would take “decisive measures” and would not allow Iran to “hold the global economy hostage.”

Investors were also awaiting the return of U.S. markets following Monday’s Labor Day holiday, alongside several economic and monetary policy events scheduled later in the week.

Jefferies strategist Mohit Kumar said positioning in U.S. Treasuries and Bunds had reached stretched levels and indicated that a benign U.S. CPI reading on Friday could prompt a rally in rates markets.

The European Central Bank is due to hold its monetary policy meeting on Thursday.

UK Government Set to Announce Israeli Settlement Trade Ban

The UK government was expected to announce a ban on trade in goods from Israeli settlements in the occupied West Bank.

The Foreign Secretary was due to address Parliament on the measure on Tuesday.

Copper Reaches Record as Oil Prices Rise

Copper reached a record $14,626 a tonne on the London Metal Exchange before trading 0.71% higher at $14,619.95.

The move came amid tight global supply and expectations of expanded U.S. tariffs on copper imports. Chile also reduced its full-year copper production forecast for a second consecutive quarter.

Brent crude increased 1.72% to $98.67 a barrel, while WTI crude rose 2.94% to $94.17.

December gold futures declined 0.5566% to $4,447.10 an ounce, while spot gold was little changed at $4,403.95.

UK Company Round-Up

Computacenter (LSE:CCC) said it expects 2026 profit to exceed previous forecasts, supported by demand in its North American operations associated with artificial intelligence infrastructure.

Dunelm (LSE:DNLM) launched a three-year growth plan that includes £100 million of planned cost reductions.

European equities edged lower on Monday as investors assessed developments in the Persian Gulf and expectations for an interest-rate increase at the European Central Bank’s policy meeting on Thursday.

The pan-European STOXX 600 fell 0.1%, remaining near multi-week lows. Germany’s DAX and France’s CAC 40 traded within narrow ranges.

Among individual stocks, Novartis (TG:NOT) fell 3.4% after a trial of its cholesterol drug failed to meet its main goal.

Iran plans restricted zone outside Strait of Hormuz

Iranian authorities said they plan to declare a restricted zone outside the Strait of Hormuz in the coming days.

The announcement followed U.S. strikes that disabled three Iranian oil tankers over the weekend. Washington said the action was in response to an Islamic Revolutionary Guard Corps ballistic missile attack targeting two U.S. Navy warships.

Oil prices rose by around 1% on Monday following gains of nearly 10% during the previous week, with Brent crude trading above $90 a barrel.

Approximately 20% of global seaborne oil and gas flows pass through the Strait of Hormuz, putting the waterway in focus as markets assess the potential implications of military activity or transit restrictions for energy supplies.

Markets price in ECB rate increase

Investors are also preparing for the European Central Bank’s monetary policy decision on Thursday.

Money markets were pricing in a 25-basis-point interest-rate increase. Preliminary August data showed headline Eurozone inflation at 3.3%, with energy components rising 14.3%.

European sovereign bond yields remained elevated ahead of the meeting, with Germany’s 10-year Bund yield trading near multi-year highs.

Higher borrowing costs are also being monitored for their potential effect on rate-sensitive sectors, including real estate and construction.

U.S. inflation data in focus ahead of Fed meeting

Markets will also receive U.S. Consumer Price Index data later this week, ahead of the Federal Reserve’s September 15-16 policy meeting.

The inflation report follows U.S. employment data released on Friday showing that 162,000 jobs were added in August.

Investors will use the CPI figures to assess the inflation outlook and expectations for the Federal Reserve’s next interest-rate decision.

Brent crude moved higher on Monday as another round of military exchanges between the United States and Iran kept attention on shipping through the Strait of Hormuz. Investors were also looking ahead to U.S. inflation figures due later this week.

U.S. equity markets were scheduled to remain closed for a holiday. The upcoming inflation report is among the economic indicators markets are assessing ahead of the Federal Reserve’s next interest-rate decision.

Brent futures gained 1.1% to $97.31 a barrel as of 03:02 ET (07:02 GMT), extending a rise of nearly 10% recorded during the previous week.

Iran has indicated that it plans to declare a restricted zone near the Strait of Hormuz “in the coming days.” The announcement followed U.S. strikes over the weekend that disabled three Iranian oil tankers.

The United States said the strikes were retaliation for an Islamic Revolutionary Guard Corps ballistic missile attack targeting two U.S. Navy warships.

Shipping data cited in media reports showed traffic through Hormuz at its lowest since May. Two vessels passed through the strait on Saturday and six on Sunday, while the 10-day moving average fell to 10.

Around 125 large commodity vessels travelled through Hormuz each day before the Iran conflict began in late February, representing approximately one-fifth of global tanker traffic.

Iran’s economy faces U.S. pressure

Restrictions on shipping through Hormuz have kept energy supplies in focus as markets assess the implications of oil prices for inflation and interest rates.

The six-month conflict remains at a stalemate. Vital Knowledge analysts described the U.S. as either “incapable” or “unwilling” to bring the fighting to an end and said Tehran was “digging its heels.”

The analysts also said Washington appeared to be “winning the war of Hormuz.”

Reuters reported that a U.S. naval blockade of Iranian ports and tighter sanctions were restricting Iran’s oil exports and access to foreign currency, citing Iranian insiders and regional sources.

Whether the measures result in renewed negotiations remains uncertain. Vital Knowledge said U.S. pressure could ultimately amount to a “Pyrrhic victory as Tehran’s economic desperation prompts it to escalate the conflict even further.”

U.S. envoys hold talks in Ukraine and Russia

Two envoys of U.S. President Donald Trump visited Kyiv on Sunday as part of efforts to restart discussions concerning the war between Ukraine and Russia.

Jared Kushner, Trump’s son-in-law, and Special Envoy Steve Witkoff also travelled to Moscow over the weekend. The two discussed proposals for ending the conflict with Russian President Vladimir Putin, according to a White House official cited by the Wall Street Journal.

Further details are expected in “the coming weeks,” the official said.

Ukraine and Russia refrained from recent bombing campaigns while the diplomatic visits took place, according to the source.

Nvidia’s Huang comments on artificial general intelligence

Nvidia (NASDAQ:NVDA) Chief Executive Jensen Huang said artificial general intelligence had arrived following the launch of OpenAI’s GPT-6 Astra.

“AGI has arrived,” Huang wrote on X on Sunday while congratulating OpenAI.

OpenAI has described Astra as its most intelligent and aligned system, citing performance across computer use, software engineering, cybersecurity, science and professional work.

According to Huang, Astra was trained on more than 100,000 Nvidia Grace Blackwell NVLink72 systems.

“From ChatGPT to o1 to Astra in 4 years,” Huang wrote, adding that another 400,000 Nvidia GPUs were coming online.

Amazon Prime Air aircraft crashes at Miami airport

At least five people were reported killed and another five injured after an Amazon (NASDAQ:AMZN) Prime Air cargo aircraft operated by 21 Air overran a runway at Miami International Airport on Sunday.

Prime Air Flight 7598 left the airport’s diagonal runway at around 2 p.m. local time before coming to rest at the northwest end of the airport, according to a spokesperson cited by Investing.com. The aircraft struck several vehicles and caught fire.

The cause of the runway overrun was not immediately known, and the Federal Aviation Administration is expected to investigate the incident.

A separate accident in February 2019 involved an Amazon-branded Boeing 767 operated by Atlas Air, which crashed near Houston while flying from Miami and killed all three people aboard. The earlier accident involved a different aircraft and operator.

FTSE 100 opens flat as Gulf tensions support Brent crude, while Standard Life reports higher profit and IQE posts strong revenue growth.

Market Overview

The FTSE 100 opened broadly unchanged at 10,830.97, while the Euronext 100 slipped 0.01 per cent to 1,910.43 and Germany’s DAX edged 0.01 per cent lower to 26,043.94. European sentiment remained cautious as the US-Iran confrontation and proposed restrictions around the Strait of Hormuz raised concerns over energy supplies, while investors also assessed the prospect of an ECB rate increase. In the US, the Nasdaq closed lower at 26,506.99 and the S&P 500 fell to 7,718.60.

Commodity markets reflected the geopolitical uncertainty, with Brent crude and gold higher, while copper and natural gas moved lower. Bitcoin fell against sterling. Currency moves were limited, with the US dollar, Swiss franc and Australian dollar strengthening marginally against the pound, the euro unchanged and the Japanese yen slightly weaker. Oil remained supported by concerns that further US-Iran attacks on shipping could prolong disruption to Middle East supplies.

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Market Numbers

FTSE 100: Down (0.001%), 10,830.97
Euronext 100: Down (0.01%), 1,910.43
DAX: Down (0.01%), 26,043.94
NASDAQ: Down, 26,506.99
S&P 500: Down, 7,718.60

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In the Headlines

Profit rises – Standard Life (LSE:SDLF)
Standard Life reported a 25% increase in first-half adjusted operating profit to £563 million, alongside higher cash generation and assets under administration. The retirement savings group is also pursuing its proposed £2 billion acquisition of Aegon UK, which would expand its position in the UK pensions and savings market.

Revenue growth – IQE (LSE:IQE)
Compound semiconductor materials supplier IQE reported a 43% rise in first-half revenue to £64.6 million, supported by stronger photonics and wireless sales and demand from AI data centres, defence and advanced sensing. The company expects full-year revenue growth of more than 30% and plans to move to the London Stock Exchange’s Main Market by 2027.

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Currencies (vs GBP)

USD: Up (+0.01%), $1.3517
CHF: Up (+0.00%), Fr.1.0948
EUR: Unchanged (0.00%), €1.1639
JPY: Down (-0.00%), ¥211.145
AUD: Up (+0.01%), $1.8757
Bitcoin (BTC/GBP): Down, £58,619.49

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Commodities

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

The FTSE 100 traded 0.13% lower on Monday as developments in the U.S.-Iran conflict and shipping through the Persian Gulf remained in focus.

As of 03:25 ET (07:25 GMT), Germany’s DAX was also down 0.13%, while France’s CAC 40 declined 0.07%. Sterling gained against the U.S. dollar, with GBP/USD up 0.077% at 1.3525.

U.S. Central Command released footage showing the Iranian tanker M/T Kylo, also referred to as the “Noxen,” sinking in the Gulf of Oman following U.S. strikes. The operation also disabled the M/T Downy near Kharg Island and the M/T Stark 1 near Jask, according to the report.

CENTCOM said the strikes followed Iranian Revolutionary Guard Corps missile launches targeting two U.S. Navy vessels. It said the missiles were evaded and there were no U.S. casualties.

Iran plans to announce a new restricted zone in the Gulf and approve maps for a shipping corridor through the Strait of Hormuz. Tehran has said it will commit to keeping the waterway open if the United States ends attacks and threats against Iran.

The developments follow the breakdown of a June ceasefire in the six-month U.S.-Israeli conflict with Iran, with renewed strikes affecting shipping in the region.

U.S. War Secretary Pete Hegseth said, “It’s simple: if Iran shoots at U.S. ships, we will destroy (and sink) their oil tankers.” CENTCOM commander Adm. Brad Cooper said Iran would face “an even higher economic cost” for further attacks. Iran’s Foreign Ministry described the U.S. strikes as a “war crime” and a breach of the UN Charter.

ING commodities strategists said in a Monday note that “the oil market remains well-supported with little sign of a peace between the US and Iran,” adding that Iran’s proposed restricted zone outside Hormuz “could put additional vessels in the Gulf of Oman at risk.”

Oil shipments have continued despite the conflict. The U.S. energy secretary cited throughput of “a little more than 9m b/d” through Hormuz under U.S. Navy escort. Speculators increased their net-long position in ICE Brent by 37,837 lots to 261,435 as of last Tuesday.

Jefferies’ Mohit Kumar said interest rates were higher and risk assets weaker on Friday after U.S. payroll figures exceeded expectations, with the probability of a September Federal Reserve rate increase moving to around 60%.

Kumar said Jefferies has “stayed away from long end rates since July, as we did not see an easy way out of the US Iran war,” and identified this week’s U.S. consumer price inflation data and Wednesday’s European Central Bank decision as upcoming events for markets, alongside developments in the Gulf.

Britain’s Energy Secretary Ed Miliband discussed de-escalation with Saudi Foreign Minister Prince Faisal bin Farhan by telephone, according to the Saudi foreign ministry, which cited efforts to “enhance the security and safety of international waterways.”

UK housing data also drew attention. Lloyds figures showed British house prices declined 0.4% year-on-year in August, the first annual decrease since November 2023, compared with economists’ expectations for a 0.2% increase. Prices fell 0.2% month-on-month against forecasts for a 0.1% rise.

Brent crude increased 0.95% to $97.19 a barrel, while WTI rose 0.66% to $92.09. December gold futures declined 0.74% to $4,443.59, and spot gold was down 0.73% at $4,398.04.

UK company news

TotalEnergies (LSE:TTE) moved its Papua LNG project closer to a final investment decision after reducing planned capital expenditure to about $14 billion through contract rebidding and design optimisation. The company also finalised an amended gas agreement with Papua New Guinea and established an LNG marketing joint venture with Kumul Petroleum.

IQE (LSE:IQE) reported a first-half adjusted core profit of £6 million, compared with a loss in the prior period, supported by demand from AI infrastructure, data centre and defence customers. The company said momentum continued into the second half and reiterated its full-year forecast.

Waterland plans to make an offer for Gamma Communications (LSE:GAMA) above Epiris’ £1.08 billion bid, according to the Sunday Times. Gamma agreed last week to a 1,120 pence-per-share offer from Epiris. Waterland plans to sell two divisions to Giacom if its proposed acquisition succeeds.

Standard Life (LSE:SDLF) reported first-half profit above expectations, with the results supported by new business growth and demand for pension risk transfer transactions.

U.S. equity futures moved lower on Friday after the latest employment report showed stronger-than-expected job creation in August, shifting investor attention back towards the outlook for Federal Reserve interest rates.

The Labor Department reported that nonfarm payrolls increased by 162,000 in August. July’s figure was revised to a gain of 21,000 jobs from the previously reported decline of 23,000.

Economists had forecast an increase of 55,000 jobs for August.

The unemployment rate was unchanged at 4.1%, compared with expectations for an increase to 4.2%.

Treasury yields moved higher following the release as investors considered what the employment figures could mean for the Federal Reserve’s September policy decision.

“Constantly changing interest rate expectations have kept investors on their toes this week,” said Dan Coatsworth, head of markets at AJ Bell.

Treasury Yields Rise as Markets Reassess Fed Outlook

Expectations for a September interest rate increase had fallen earlier in the week following comments from Federal Reserve Governor Christopher Waller.

CME Group’s FedWatch Tool showed a 52.4% probability of a quarter-point increase, compared with 63.2% on Wednesday.

In an interview with Reuters, Waller indicated that he was leaning towards keeping rates unchanged at the upcoming meeting. He said he would be “inclined to support” holding rates steady if forthcoming economic figures continued to show “some signs of disinflation.”

Waller’s comments had contributed to a decline in Treasury yields before Friday’s employment report.

Dow, Nasdaq and S&P 500 Post Thursday Gains

Wall Street had advanced during the previous session as investors responded to lower Treasury yields and changing expectations for monetary policy.

The Dow Jones Industrial Average climbed 624.16 points, or 1.2%, to 53,686.11. The Nasdaq Composite rose 366.23 points, or 1.4%, to 26,584.06, while the S&P 500 gained 81.11 points, or 1.1%, to 7,747.71.

Several equity sectors also recorded gains. The NYSE Arca Gold Bugs Index advanced 3.8%, the NYSE Arca Broker/Dealer Index gained 3.5% and the Dow Jones U.S. Software Index increased 3.2%.

Computer hardware and banking shares also moved higher, while oil services stocks declined.

Snowflake Jumps 16.6% Following Earnings

Snowflake (NYSE:SNOW) gained 16.6% during Thursday’s session after reporting fiscal second-quarter results that exceeded expectations and issuing higher guidance.

Friday’s payroll figures subsequently shifted the market focus back towards the labour market and its potential implications for monetary policy.

Investors will assess the employment report alongside forthcoming economic data as they consider the possible outcome of the Federal Reserve’s September meeting.

European equity markets traded mixed on Friday as investors awaited the August U.S. nonfarm payrolls report for further indications about the Federal Reserve’s monetary policy outlook.

Expectations for a U.S. interest rate increase eased after Federal Reserve Governor Christopher Waller indicated that he favours keeping rates unchanged at the central bank’s upcoming policy meeting.

The French CAC 40 and the U.K.’s FTSE 100 were both down 0.1%, while Germany’s DAX gained 0.2%.

German Factory Orders Rise 2.5% in July

European investors also assessed German factory orders, which increased by more than expected in July, supported by demand for ships, railway rolling stock and aircraft.

Factory orders rose 2.5% month on month, according to Destatis, compared with expectations for an increase of 0.3%. The June increase was revised to 3.7%.

On an annual basis, German factory orders increased 13.1% in July, accelerating from growth of 7.2% in the previous month.

Volkswagen Shares Rise Following Future Plan 2030 Update

Volkswagen (TG:VOW3) shares advanced after the German automaker announced plans to cut an additional 50,000 jobs as part of its Future Plan 2030 transformation programme.

The company also said it plans to invest a three-figure billion sum over the coming years as part of the programme.

Alstom Gains Following VIA Rail Canada Agreement

Alstom (EU:ALO) shares rose 1.6% after the French rail equipment manufacturer signed an agreement with VIA Rail Canada.

Under the agreement, Alstom will design, engineer, manufacture and support a new Long-Distance, Regional and Remote fleet for passenger services across Canada.

Investors remained focused on the forthcoming U.S. employment figures, which could influence expectations for the Federal Reserve’s next policy decision.