Category: Market Summary

European equity markets moved lower on Friday as renewed military escalation in the Middle East lifted oil prices and revived inflation concerns. Even so, a solid start to the second-quarter earnings season helped limit losses, leaving major indexes on course to finish the week in positive territory.

The pan-European STOXX 600 slipped 0.6% during early trading but was still on track for a weekly advance of around 0.4%. Strong corporate results, particularly from leading banking groups, have supported investor sentiment throughout the week and helped cushion the broader market.

Investor confidence was challenged after the United States and Iran exchanged military strikes for a sixth consecutive day. The latest escalation pushed crude oil prices sharply higher, fuelling concerns that sustained energy inflation could slow the global disinflation process and complicate future monetary policy decisions by major central banks.

Despite the geopolitical backdrop, European markets proved more resilient than their Asian counterparts, where technology stocks led a much steeper sell-off overnight. Europe’s comparatively smaller exposure to mega-cap technology companies helped limit the downside.

Within the semiconductor sector, STMicroelectronics (BIT:STMMI) declined 5%, while ASML (EU:ASML) fell 3.5%.

Investors continued to focus on encouraging corporate earnings and signs of easing inflation in the United States earlier this week, both of which helped reduce immediate concerns over higher global interest rates despite the worsening geopolitical environment.

Attention is now turning to next week’s European Central Bank policy meeting.

Most economists expect the ECB to leave its benchmark deposit rate unchanged. However, the recent jump in oil prices has led money markets to increase expectations that interest rates could move higher later if inflationary pressures persist.

The central bank is expected to balance weakening economic growth across the eurozone against the risk that higher energy costs could generate fresh inflationary pressures.

Across Europe’s major markets, London’s FTSE 100 fell 0.3% but remained on course for a weekly gain, supported by banking shares. France’s CAC 40 declined 0.6%, Germany’s DAX eased 0.5%, while Italy’s FTSE MIB lost 1% and Spain’s IBEX 35 slipped 0.3% as investors reduced exposure to risk assets.

Among individual companies, Danske Bank (TG:DSN) declined 2.5% following the release of its latest quarterly results.

London equities came under pressure on Friday after giving up early gains, as a sixth consecutive night of U.S. military strikes on Iran weighed on global risk appetite. The cautious mood followed broad declines across Asian markets, prompting investors to move away from risk assets.

At 03:17 ET (07:17 GMT), the FTSE 100 was 0.05% higher, although gains proved fragile. Germany’s DAX declined 0.42%, while France’s CAC 40 fell 0.53%. Sterling eased 0.03% against the U.S. dollar to $1.3472.

Asian markets endured a sharp sell-off led by Japan, where the Nikkei 225 dropped 3.96% and the TOPIX lost 2.72%. Semiconductor shares came under pressure despite a positive long-term outlook from TSMC.

In Taiwan, TSMC recovered from earlier losses to close 1.23% higher as investors assessed the company’s increased capital expenditure guidance alongside broader concerns over artificial intelligence spending.

Chinese equities also weakened. The Shanghai Composite declined 3.05%, the CSI 300 fell 3.60%, and Hong Kong’s Hang Seng Index closed 2.1% lower.

Geopolitical tensions intensified after U.S. Central Command confirmed it had completed a sixth straight night of strikes against Iran. CENTCOM said fighter aircraft, drones and warships targeted “dozens” of military sites, adding that more than 50,000 U.S. personnel are now deployed across the region.

The latest military action follows the collapse of a 14-point memorandum of understanding agreed in June.

Iranian state media reported that overnight strikes hit an airport, railway station and bridges in Hormozgan province near Bandar Abbas. Casualty reports varied, with state television initially reporting three deaths and nine injuries before other state outlets later revised the death toll to “at least seven” while maintaining that nine people were wounded.

Iran responded by targeting U.S. military infrastructure in Kuwait, Bahrain and Qatar. Kuwait’s military said it was “confronting attacks by hostile drones” from Iran, although no confirmed damage to U.S. facilities was reported.

Speaking on Thursday, U.S. President Donald Trump said the United States was “winning big” in Iran and that Americans would see “the fruits” of the campaign “very, very shortly,” although he did not provide further details during his televised address on election security.

Earlier in the day, White House press secretary Karoline Leavitt said Iran “very much continues to talk” with Washington despite the ongoing strikes, which she said were carried out in response to Iran attacking commercial vessels in breach of the June agreement.

Commodity markets reflected the heightened geopolitical uncertainty. Brent crude rose 0.33% to $84.50 a barrel, while U.S. West Texas Intermediate crude gained 0.73% to $79.52. Spot gold advanced 0.56% to $3,998.72 an ounce, with gold futures adding 0.26% to $4,002.32.

UK market round-up

Wise (LSE:WSE) reported a 25% increase in first-quarter net revenue, supported by continued growth in cross-border payment volumes and customer balances. The fintech group also reaffirmed its guidance for the full financial year.

Burberry (LSE:BRBY) posted 5% growth in first-quarter comparable store sales, matching market expectations as robust demand in the United States offset weaker consumer spending across Europe and the Middle East amid ongoing regional tensions.

U.S. equity futures traded lower ahead of Thursday’s opening bell, with investors taking a more cautious stance after two consecutive days of gains as renewed geopolitical risks and weakness in technology stocks weighed on sentiment.

Nasdaq 100 futures led the declines, reflecting broad selling pressure across the semiconductor sector.

TSMC drops despite strong quarterly results

Taiwan Semiconductor (NYSE:TSM) was among the biggest movers before the open, with its U.S.-listed shares falling 4.4%.

Although the chipmaker reported second-quarter earnings ahead of expectations, investors focused on the company’s plans to significantly increase capital spending.

“While the case for boosting capacity is clear at a time when there is a large gap between supply and demand, shareholders will want TSMC to retain some discipline even as it looks to meet orders piling up,” said AJ Bell head of markets Dan Coatsworth.

Oil climbs as conflict intensifies

Energy markets also remained in focus as U.S. crude futures climbed back above $80 per barrel following another round of military action between the United States and Iran.

Washington carried out fresh strikes on Iranian targets overnight, while Tehran responded with attacks on U.S. military bases in Gulf nations and warned it could strike “all the infrastructure in the region” if President Donald Trump proceeds with threats against Iranian energy and transport infrastructure.

Inflation data boosts hopes for steady interest rates

Wednesday’s market gains were driven by softer-than-expected producer inflation data.

The Producer Price Index fell 0.3% in June, compared with expectations for a smaller decline, while annual producer inflation slowed to 5.5%.

The latest figures followed weaker consumer inflation data earlier in the week, reinforcing expectations that the Federal Reserve may keep interest rates unchanged.

“Traders are rapidly retreating from rate-hike bets,” FHN Financial Chief Economist Chris Low said. “Fed funds futures see the odds of a hike this month now at 9% and have a hike fully priced in by December. Yesterday, it was September.”

Investors monitor earnings and geopolitics

Despite easing inflation pressures, investors remained focused on the escalating conflict in the Middle East.

President Donald Trump told Fox News that the United States could target Iranian power plants and bridges next week “unless they get to the table and negotiate.”

Brokerage and airline stocks outperformed during Wednesday’s session, while semiconductor, networking and computer hardware companies lagged behind the broader market as investors rotated away from technology.

European equity markets traded lower on Thursday as investors assessed rising geopolitical risks in the Middle East alongside a fresh wave of corporate earnings announcements.

Losses were partly cushioned after new economic data showed the U.K. economy returned to growth in May, supported by stronger activity in the services sector.

UK economy returns to growth

Figures released by the Office for National Statistics showed that U.K. gross domestic product expanded by 0.1% in May, reversing the 0.1% decline recorded in April, which had marked the first monthly contraction since October 2025.

On an annual basis, the economy grew 1.3% in May.

Despite the encouraging data, the FTSE 100 fell 0.4%, while Germany’s DAX and France’s CAC 40 both declined 1.1%.

Sterling also weakened against the U.S. dollar after reports suggested Home Secretary Shabana Mahmood is the leading candidate to become the UK’s next Chancellor.

Corporate news drives stock moves

Delivery Hero (TG:DHER) declined after Uber Technologies (NYSE:UBER) formally launched a public takeover offer valuing the German food delivery company at €41.50 per share.

TotalEnergies (LSE:TTE) also came under pressure after the French energy group said the conflict in the Middle East had reduced its second-quarter production by approximately 210,000 barrels of oil equivalent per day.

Experian (LSE:EXPN) traded lower after reaffirming its full-year outlook without upgrading guidance.

Ocado (LSE:OCDO) also lost ground after announcing additional delays to two automated fulfilment centres currently under development.

Mining group BHP (LSE:BHP) weakened after reporting a 5% decline in fourth-quarter copper production.

ABB (TG:ABB) also moved lower after announcing its $5.5 billion acquisition of British automation specialist Rotork, while Rotork shares surged on the agreed takeover.

Publicis and BASF outperform

Among the stronger performers, Publicis Groupe (EU:PUB) advanced after posting robust second-quarter results and raising its full-year guidance.

German chemicals producer BASF (TG:BAS) also gained after increasing its outlook for full-year EBITDA before special items.

US equity futures were little changed on Thursday as investors weighed encouraging corporate earnings against geopolitical uncertainty and prepared for another busy day of economic releases. Record quarterly results from Taiwan Semiconductor Manufacturing Company also reinforced confidence that investment in artificial intelligence infrastructure remains strong.

Inflation concerns ease as focus shifts to earnings

Following Wednesday’s gains, Wall Street futures traded in a narrow range as investors turned their attention back to company results and macroeconomic indicators.

At 04:00 ET, futures on the S&P 500 were down 0.2%, Nasdaq 100 futures declined 0.4%, while Dow Jones futures were broadly unchanged.

Recent inflation data has strengthened expectations that the Federal Reserve can leave interest rates unchanged in the coming months, reducing one of the market’s biggest concerns. Investors are now looking to corporate earnings to determine whether current equity valuations remain justified.

TSMC delivers another strong quarter

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) reported record second-quarter earnings after demand for advanced AI processors remained exceptionally strong.

Net profit increased 77% year over year to T$706.6 billion (US$22 billion), comfortably surpassing analysts’ forecasts.

As the primary chip manufacturer for companies including Nvidia and Apple, TSMC’s results are viewed as a key measure of global investment in artificial intelligence. The figures also followed positive guidance from ASML, adding further evidence that spending on AI infrastructure continues to accelerate.

Apple approval lifts Chinese technology stocks

Chinese technology shares advanced after Apple (NASDAQ:AAPL) received regulatory approval to launch Apple Intelligence features in China.

Alibaba (NYSE:BABA) gained almost 5%, while Baidu (NASDAQ:BIDU) rose around 4% as investors welcomed the approval, which clears the way for Apple’s AI services in one of its largest markets.

The development is expected to benefit both Apple and its domestic technology partners involved in supporting its artificial intelligence ecosystem.

Markets monitor geopolitical developments

Geopolitical risks remained firmly on investors’ radar following another round of US military action targeting Iran.

Although markets have become more resilient to daily developments, concerns remain that any disruption to shipping through the Strait of Hormuz could push energy prices higher and complicate the inflation outlook.

Investors await fresh market catalysts

Attention now turns to quarterly results from Netflix (NASDAQ:NFLX), GE Aerospace (NYSE:GE), State Street (NYSE:STT) and U.S. Bancorp (NYSE:USB), alongside June retail sales and weekly jobless claims data.

These releases are expected to provide a clearer picture of the strength of the US economy and help determine whether this year’s rally in equities can continue.

European equity markets traded little changed on Thursday as investors balanced easing inflationary pressures in the United States against rising geopolitical risks in the Middle East. While expectations of a patient Federal Reserve provided support, escalating tensions involving Washington and Tehran continued to keep energy prices elevated and limited risk appetite.

Markets remain steady despite geopolitical uncertainty

The pan-European STOXX 600 was broadly unchanged in early trading, outperforming weaker sentiment across Asian technology markets.

Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB also traded close to flat, while London’s FTSE 100 slipped 0.4%.

Investor sentiment remained heavily influenced by developments in the Middle East. Oil prices stayed near one-month highs after further US military strikes in Iran, while Tehran warned that the conflict could develop into what it described as an “existential war” with the United States.

Softer US data supports rate expectations

Providing some support to markets, the latest US inflation data reinforced expectations that the Federal Reserve is unlikely to tighten monetary policy in the near term.

Producer Price Index (PPI) figures released overnight came in below expectations, adding to recent evidence of moderating consumer inflation and a cooling labour market.

As a result, financial markets have reduced expectations of further policy tightening, with the implied probability of a Federal Reserve interest rate increase as early as July falling to around 10%.

Earnings season and AI remain in focus

Investors are also awaiting quarterly results from Taiwan Semiconductor Manufacturing Company (NYSE:TSM), widely viewed as a key indicator of demand across the semiconductor and artificial intelligence industries.

The update is expected to provide further insight into the durability of global investment in AI infrastructure as the second-quarter earnings season gathers pace.

Analysts currently expect companies within the STOXX 600 to deliver earnings growth of approximately 14.5% year over year, representing the strongest rate of profit growth in more than three years. However, much of that increase is being driven by a sharp rise in energy sector earnings following higher oil prices linked to geopolitical tensions.

Excluding oil and gas companies, underlying earnings growth across European businesses is expected to be closer to 5.5%, with investors closely monitoring management commentary on profit margins and artificial intelligence-related investment.

Movers

Among individual stocks, Rotork (LSE:ROR) surged 65% after ABB agreed to acquire the engineering company in a US$5.5 billion deal.

Partners Group (LSE:PEY) fell 7% following the release of its quarterly results.

Frasers Group (LSE:FRAS) declined 5% after reporting annual results that fell short of profit expectations.

The FTSE 100 traded lower on Thursday as escalating tensions between the United States and Iran overshadowed better-than-expected UK economic data, while investors continued to assess the potential impact of disruption to global energy markets.

The FTSE 100 fell 0.37% by 07:25 GMT, extending the previous session’s losses. Elsewhere in Europe, Germany’s DAX declined 0.22% and France’s CAC 40 slipped 0.21%. Sterling was little changed against the US dollar at $1.3535.

UK economy grows faster than expected

Fresh figures from the Office for National Statistics showed the UK economy expanded more strongly than forecast.

Gross domestic product increased 0.7% over the three months to May, comfortably ahead of economists’ expectations for 0.5% growth. Annual GDP growth accelerated to 1.3%, marking the fastest pace in 13 months.

On a monthly basis, the economy grew 0.1% in May after contracting 0.1% in April, with the services sector providing the main support through a 0.3% increase in output.

Iran tensions continue to dominate market sentiment

Despite the encouraging economic data, geopolitical developments remained the primary focus for investors.

A spokesman for Iran’s military headquarters warned that “all infrastructure in the region” would be “crushed under the steel blows” of Iran’s armed forces if the United States proceeded with threats to target Iranian infrastructure. The comments followed remarks by US President Donald Trump, who warned on Wednesday that Washington would “knock out all their power plants… all their bridges” unless Tehran returned to negotiations.

Military activity intensified overnight as US forces reportedly carried out strikes around Tehran and in Semnan province, while Iran responded with missile and drone attacks targeting Bahrain, Jordan and Kuwait. Iran’s Revolutionary Guard said it had struck a US base in Jordan following what it described as an American attack near a children’s cancer hospital in Ahvaz.

Strait of Hormuz concerns keep investors cautious

Strategists continued to warn that tensions around the Strait of Hormuz could remain elevated for an extended period.

Jefferies strategist Mohit Kumar said shipping through the vital energy corridor “has slowed down significantly,” adding that Iran currently appears unwilling to negotiate.

Kumar said the latest escalation differs from previous confrontations, which had been “meant as an objective to gain an upper hand in negotiations and to eventually de-escalate the situation,” arguing Iran is unlikely to “give up its claim of sovereignty over the Strait that easily” and that he was “doubtful whether there is a unified leadership in Iran that can take that decision.”

Jefferies said it was “keeping risk levels low” while continuing to expect “eventually we will get a deal even if it’s a fudge,” although the firm believes the current standoff could continue “for a few weeks,” leaving oil prices under continued upward pressure.

Meanwhile, US Vice President JD Vance described the recent attacks as part of a “delicate diplomatic dance” during an interview with Joe Rogan, while President Trump said separately, “We’ll find out whether or not we settle with them or we just finish it off.”

Commodities and corporate news

Brent crude slipped 0.38% to US$84.63 per barrel, while West Texas Intermediate eased 0.08% to US$79.54. Gold futures fell 0.55% to US$4,029.27 an ounce, with spot gold down 0.88% at US$4,025.62.

Among UK-listed companies, Crest Nicholson (LSE:CRST) warned operating profit is likely to come in at the lower end of its FY2026 guidance and confirmed an extension to a key banking covenant waiver.

Ocado (LSE:OCDO) said it continues to pursue new retail partnerships in the United States while maintaining its target of becoming cash flow positive.

TotalEnergies (LSE:TTE) said higher oil and gas prices linked to Middle East tensions are expected to support second-quarter earnings.

Premier Foods (LSE:PFD) reported a 4% increase in first-quarter branded sales, helped by strong demand for its grocery and sweet treats portfolio.

Frasers Group (LSE:FRAS) declined to provide guidance for FY2027, citing uncertainty surrounding ongoing takeover activity involving Hugo Boss and Accent Group.

SSE (LSE:SSE) reaffirmed its earnings guidance after reporting higher investment across its electricity networks and stronger renewable generation, while also announcing the appointment of former National Grid chief executive John Pettigrew to its board.

FTSE 100 edges lower as Iran tensions offset UK GDP strength. Frasers posts stronger results, Foxtons cuts guidance and Brent crude rises.

Market Overview

The FTSE 100 opened marginally lower, while Germany’s DAX also slipped and the Euronext 100 was broadly unchanged. Overnight, US markets finished higher, with both the Nasdaq and S&P 500 extending gains. Investors balanced stronger-than-expected UK GDP data against continuing tensions surrounding Iran, while higher oil prices and geopolitical uncertainty kept risk appetite in check.

Commodity markets reflected the cautious tone. Brent crude continued to strengthen as concerns over potential disruption to global oil supplies supported prices, while gold was unchanged and copper edged lower. Natural gas was little changed, Bitcoin was broadly flat against sterling, and major currency pairs versus the pound showed only modest moves.

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Market Numbers

FTSE 100: Down (-0.01%), 10,514.96

Euronext 100: Up (+0.00%), 1,915.62

DAX: Down (-0.37%), 24,908.18

NASDAQ: Up, 26,269.23

S&P 500: Up, 7,572.40

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In the Headlines

Strong results – Frasers Group (LSE:FRAS)

Frasers Group reported higher revenue and improved retail profitability as international expansion continued to gather pace. The update highlights continued momentum in its Sports Direct-led growth strategy and reinforces management’s focus on expanding the business across overseas markets.

Guidance cut – Foxtons (LSE:FOXT)

Foxtons reduced its profit guidance after warning that lettings reforms and a weaker housing market are weighing on trading conditions. The update points to ongoing pressure on the UK property sector despite the group’s efforts to manage costs and maintain operational resilience.

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Currencies (vs GBP)

USD: Down (-0.05%), $1.3539

CHF: Down (-0.05%), Fr.1.0895

EUR: Unchanged (0.00%), €1.1804

JPY: Down (-0.01%), ¥219.431

AUD: Unchanged (0.00%), $1.932

Bitcoin (BTC/GBP): Down, £47,421.03

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Commodities

Copper: Down

Gold: Unchanged

Brent Crude: Up

Natural Gas: Unchanged

U.S. stock futures traded higher on Wednesday after another encouraging inflation report strengthened hopes that the Federal Reserve may not need to raise interest rates in the near term. Investors, however, remained cautious as rising oil prices and escalating tensions in the Middle East continued to cloud the broader outlook.

Producer prices fall more than expected

Markets reacted positively after the U.S. Labor Department reported that producer prices declined by 0.3 percent in June, exceeding expectations for a 0.1 percent decrease.

The annual producer inflation rate also slowed to 5.5 percent from a revised 6.0 percent in May, adding to evidence that inflationary pressures may be easing.

The figures followed Tuesday’s weaker-than-expected consumer inflation report, reinforcing expectations that the Federal Reserve could adopt a more patient approach to monetary policy.

Rising oil prices limit optimism

Despite the softer inflation data, gains across equity futures remained measured as crude oil prices continued to climb.

During an interview with Fox News, President Donald Trump warned that further military action against Iran remained possible.

“unless they get to the table and negotiate.”

Higher energy prices have raised concerns that inflation could prove more persistent, potentially delaying any future reduction in interest rates.

Technology stocks lead Wall Street higher

U.S. markets closed higher on Tuesday, led by gains in technology shares.

The Nasdaq Composite climbed 0.9 percent, while the S&P 500 added 0.4 percent. The Dow Jones Industrial Average finished only slightly higher after being weighed down by a sharp decline in IBM (NYSE:IBM).

IBM falls while chip stocks rebound

IBM shares plunged more than 25 percent after the company released preliminary quarterly results that disappointed investors.

Meanwhile, semiconductor stocks recovered strongly, with the Philadelphia Semiconductor Index rising 2.5 percent and the NYSE Arca Computer Hardware Index gaining 2.7 percent.

Steel, networking and gold-related shares also posted solid gains, while healthcare, pharmaceutical and airline stocks underperformed.

Investors are continuing to monitor incoming economic data and geopolitical developments for further direction.

European equity markets were little changed on Wednesday as investors balanced another round of encouraging corporate earnings against rising geopolitical risks in the Middle East.

Government bond yields across the euro area remained close to multi-year highs amid concerns that tensions between the United States and Iran could escalate further, keeping investors cautious despite several positive company updates.

Major indices remain under pressure

Germany’s DAX declined 0.6 percent, while the UK’s FTSE 100 slipped 0.1 percent. France’s CAC 40 traded broadly flat during the session.

ASML leads technology sector higher

ASML Holding (EU:ASML) was among the strongest performers after the Dutch semiconductor equipment manufacturer raised its annual sales guidance for the second time this year, reflecting continued strength in artificial intelligence-related investment.

Corporate earnings drive individual movers

Dr. Martens (LSE:DOCS) advanced after reaffirming its full-year outlook ahead of its annual general meeting.

Hunting (LSE:HTG) also posted solid gains after reporting resilient first-half trading and maintaining its 2026 guidance.

Norwegian oil producer Aker BP (FTSE:SSAK) moved higher following stronger-than-expected second-quarter results.

Luxury goods group Richemont (TG:RITN) rallied after quarterly sales exceeded expectations, supported by robust demand for its jewellery division.

Retail and mining stocks lag

B&M European Value Retail (LSE:BME) came under pressure after reporting modest first-quarter sales growth.

Mining group Antofagasta (LSE:ANTO) also traded lower after reporting a 9.5 percent decline in first-half copper production.

Meanwhile, Delivery Hero (TG:DHER) lost ground after confirming it is in advanced discussions with Uber Technologies regarding a potential takeover proposal.