Category: Market Summary

UK equities moved lower on Tuesday as escalating conflict in the Middle East drove oil prices higher and weighed on investor sentiment across European markets.

The FTSE 100 declined 0.21% by 07:20 GMT, while Germany’s DAX lost 0.36% and France’s CAC 40 slipped 0.62%. Sterling edged 0.03% higher against the US dollar to $1.3352.

Market sentiment weakened after the United States launched a third consecutive night of military strikes on Iran. According to US Central Command, the attacks targeted missile and drone facilities, including sites near the ports of Bandar Abbas and Bushehr.

The latest strikes followed Iranian attacks on Bahrain and Jordan, while the United Arab Emirates reported that Iranian missiles struck two oil tankers in the Strait of Hormuz, leaving one crew member dead and eight others injured.

US President Donald Trump said the United States would reinstate a naval blockade on Iranian ports from Tuesday and proposed imposing a 20% charge on cargo passing through the Strait of Hormuz. Iran’s foreign minister rejected the proposal as “too much,” while the International Maritime Organization stated there was “no legal basis” for such a toll.

The renewed hostilities come after President Trump formally notified Congress in a letter dated 10 July that military action against Iran had resumed on 7 July following the collapse of an April ceasefire, according to CBS News.

Away from geopolitics, UK retail sales growth slowed sharply in June, according to data released by the British Retail Consortium and KPMG. Total retail sales increased 1.9% year-on-year, down from 3.7% in May and below the 3.1% growth recorded in June 2025. In-store non-food sales declined 1.1%, while online non-food sales rose 5.1% as consumers shifted spending online during the hot weather.

Oil prices continued to climb, with Brent crude rising 2.94% to $85.75 a barrel and West Texas Intermediate gaining 2.83% to $80.36. Gold also advanced as investors sought safe-haven assets, with gold futures adding 0.68% to $4,032.72 an ounce and spot gold rising 0.66% to $4,027.42.

UK Company Round-Up

Robert Walters (LSE:RWA) reported a 3.9% decline in first-half net fee income, while second-quarter net fees were down 4.5%.

Ashmore (LSE:ASHM) exceeded expectations for net inflows as strong investor demand for emerging market assets supported client inflows.

Watches of Switzerland (LSE:WOSG) said strong demand in the United States continued into the new financial year, while trading conditions in the UK showed signs of improvement.

Debenhams (LSE:DEBS) reported that positive trading momentum extended through June and July, with its marketplace model continuing to support growth in gross merchandise value and margins.

Spire Healthcare (LSE:SPI) announced the appointment of Debbie White as chair, replacing Ian Cheshire, as takeover discussions with Toscafund continue.

Markets Prepare for a Cautious Start

U.S. equity futures pointed to a weaker open on Monday, with investors expected to trim risk after last week’s gains as renewed conflict in the Middle East pushed oil prices sharply higher.

The latest escalation between the United States and Iran has revived concerns over global energy supplies, creating fresh uncertainty for financial markets at the start of the week.

Oil Extends Rally

Crude prices advanced after the U.S. Central Command confirmed it had carried out another series of precision strikes against Iranian targets on Sunday.

Iran responded with attacks on several Gulf countries, including Bahrain, Kuwait, Qatar, Jordan and Oman, increasing fears that regional instability could spread further.

Conflicting statements from Washington and Tehran regarding the status of the Strait of Hormuz also added to market volatility, helping lift U.S. crude futures by more than 4%.

Semiconductor Shares Under Pressure

Technology stocks were also expected to weigh on sentiment following a sharp decline in SK Hynix (USOTC:HXSCL).

The South Korean chipmaker’s U.S.-listed shares dropped more than 9% in premarket trading after surging over 13% during Friday’s Nasdaq debut, dragging broader semiconductor stocks lower.

Focus Turns to Earnings and Inflation

Investors are now looking ahead to a busy week of corporate earnings and important economic data that could determine the market’s next direction.

Results are due from Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH) and Netflix (NASDAQ:NFLX).

At the same time, markets are awaiting fresh U.S. inflation figures that may influence expectations for the Federal Reserve’s upcoming policy meeting.

Daniela Hathorn, Senior Market Analyst at Capital.com, said, “Following stronger inflation readings earlier this year and a resilient labour market, investors are keen to determine whether underlying price pressures remain persistent despite the recent fall in energy prices.”

She added, “A hotter-than-expected reading would reinforce the higher-for-longer narrative and could add further support to the dollar and bond yields. Conversely, a softer report would help offset some of the inflation concerns stemming from renewed geopolitical tensions and could provide equities with a much-needed boost.”

Strong Weekly Performance Provides Support

Despite Friday’s relatively subdued trading session, the major U.S. indices finished higher.

The Dow Jones rose 0.3%, the Nasdaq gained 0.3% and the S&P 500 added 0.4%. Over the full week, the Nasdaq climbed 1.7%, while the S&P 500 and Dow Jones advanced 1.2% and 0.5%, respectively.

Meta Platforms (META) led technology gains after Bank of America reaffirmed its Buy rating, while Nvidia (NASDAQ:NVDA) rose 4%. SK Hynix also impressed investors with a 13.1% gain during its first U.S. trading session.

Sector Performance Diverges

Biotechnology stocks were among Friday’s weakest performers, with the NYSE Arca Biotechnology Index falling 2.6%.

Airline shares also struggled, while housing and oil service companies outperformed, supported by strength in the property market and energy sector.

Markets Look Beyond Middle East Tensions

European equity markets traded in mixed territory on Monday as investors looked past escalating tensions in the Middle East and turned their attention to the start of the second-quarter earnings season.

Attention is shifting toward Wall Street, where major U.S. financial institutions including Goldman Sachs (NYSE:GS) and JPMorgan Chase (NYSE:JPM) are scheduled to report quarterly results on Tuesday.

Oil prices remained firmly higher after renewed missile exchanges between the United States and Iran heightened concerns over regional stability and the outlook for global crude supplies.

Major European Indices Diverge

London’s FTSE 100 slipped 0.2%, while France’s CAC 40 hovered around the flatline. Germany’s DAX outperformed its regional peers, edging 0.1% higher in early trading.

Company News

French carmaker Renault (EU:RNO) posted modest gains after England & Wales’ High Court of Justice dismissed all diesel emissions claims brought against the company.

Shares in Stellantis (BIT:STLAM) moved lower despite the automaker reporting a 10% year-on-year increase in second-quarter vehicle shipments.

Paints manufacturer AkzoNobel (EU:AKZA) advanced after rejecting a takeover proposal from Japan’s Nippon Paint for its decorative coatings business.

German healthcare group Fresenius (TG:FRE) declined by more than 1% after reaffirming its full-year guidance for adjusted earnings growth.

Among UK-listed stocks, recruiter PageGroup (LSE:PAGE) rallied almost 10% after delivering second-quarter gross profit ahead of market expectations.

Building materials distributor Grafton Group (LSE:GFTU) also traded higher after reporting growth in first-half trading and reaffirming its full-year adjusted operating profit outlook.

Property developer Derwent London (LSE:DLN) gained following the announcement of a new £100 million unsecured revolving credit facility agreed with Handelsbanken Plc.

Semiconductor stocks came under widespread selling pressure on Monday after SK Hynix posted the largest single-day decline in its history, prompting investors to lock in gains following the company’s recent Nasdaq debut while renewed geopolitical tensions added to market caution.

The weakness spread from Asian markets into Europe and U.S. premarket trading, highlighting growing concerns over lofty valuations in AI-related technology shares despite continued strength in long-term demand.

SK Hynix Sparks Global Selloff

SK Hynix shares slumped more than 15% in South Korea, setting a new record for the company’s biggest daily decline.

The move followed a strong rally that saw the stock more than triple this year ahead of last week’s U.S. listing, encouraging investors to take profits.

Samsung Electronics (USOTC:SSNHZ) also traded lower, helping push the KOSPI index down 9% and triggering a temporary 20-minute trading halt.

European Semiconductor Sector Weakens

Selling pressure extended across European technology stocks shortly after markets opened.

ASMI (EU:ASM), ASML (EU:ASML) and Besi (EU:BESI) each fell between 1% and 2%, while STMicroelectronics (EU:STMPA) slipped around 1%.

Infineon (TG:IFX) was among Germany’s weakest performers, declining roughly 2%.

U.S. Chip Stocks Set for Lower Open

U.S. semiconductor names also pointed to a weaker start.

Western Digital (NASDAQ:WDC), Micron (NASDAQ:MU), SanDisk (NASDAQ:SNDK), Seagate (NASDAQ:STX), AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) all traded sharply lower ahead of the opening bell.

Strong AI Outlook Meets Profit-Taking

SK Hynix raised more than $26 billion through its American Depositary Receipt offering last week, with the shares priced at $149 before opening at $170 and ending their first trading session up 12.8%.

“The current memory upcycle is tracking substantially stronger than expected, but our base case continues to assume normalisation in cycle dynamics, limiting upside at current levels,” said Lorraine Tan, a director at Morningstar.

Although demand for high-bandwidth memory chips used in AI data centres remains robust, Monday’s decline suggests investors are becoming increasingly cautious after the sector’s remarkable gains this year.

Global markets opened the week cautiously as renewed conflict between the United States and Iran sent crude prices sharply higher, pressured equity futures and shifted investor focus toward a crucial week of second-quarter earnings.

At the same time, heavy selling in Asian semiconductor stocks has sparked debate over whether enthusiasm for artificial intelligence shares is beginning to cool, even as demand for advanced chips remains strong.

Investors Respond to Geopolitical Risks

U.S. equity futures traded mixed after another exchange of military strikes between Washington and Tehran heightened uncertainty over the global economic outlook.

At 04:53 ET (08:53 GMT), S&P 500 futures were down 0.3%, Nasdaq 100 futures had fallen 1%, while Dow Jones futures edged up 0.03%.

Technology stocks looked set to underperform following sharp losses among Asian chipmakers, while traders also prepared for a wave of quarterly earnings reports expected to provide fresh insight into corporate investment and AI-related spending.

Hormuz Uncertainty Keeps Markets on Edge

Attention remains focused on the Strait of Hormuz after conflicting statements from the United States and Iran regarding access to the strategic shipping route.

U.S. Central Command said it had launched additional strikes against Iranian targets to reduce threats to commercial shipping, while President Donald Trump maintained that the passage remained open.

Iran, however, continued to insist that the Strait had been closed.

With roughly 20% of the world’s seaborne oil moving through the waterway, investors remain alert to any disruption that could intensify inflationary pressures and weigh on global growth.

Oil Prices Extend Their Advance

Energy markets continued to rally as geopolitical risks mounted.

Brent crude gained 4.8% to $79.65 a barrel, while West Texas Intermediate rose 5% to $74.98 after both benchmarks had already posted strong gains during the previous week.

Higher oil prices are generally supportive for energy producers but can increase costs for industries such as aviation, logistics and consumer discretionary businesses through higher fuel and transportation expenses.

Semiconductor Sector Faces Profit-Taking

Asian semiconductor stocks came under pressure, led by a near-14% decline in SK Hynix shares despite the company’s successful Nasdaq debut.

The weakness pushed South Korea’s KOSPI index down more than 5%, temporarily triggering a trading halt.

The decline appeared to reflect investor profit-taking ahead of earnings season rather than any deterioration in demand for AI hardware.

Meanwhile, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) continued to demonstrate strong underlying demand, reporting a 36% year-on-year increase in second-quarter revenue to T$1.27 trillion.

Corporate Results Become the Main Focus

While geopolitical developments continue to dominate headlines, investors are increasingly turning their attention to second-quarter earnings.

The upcoming results will be closely scrutinised to determine whether companies can continue delivering the earnings growth needed to support elevated market valuations, particularly across the technology sector.

FTSE 100 edges higher as oil prices climb on Middle East tensions, while Genedrive and PageGroup lead the UK corporate headlines.

Market Overview

The FTSE 100 opened 0.01 per cent higher at 10,498.05, while the Euronext 100 slipped 0.09 per cent to 1,906.09 and Germany’s DAX fell 0.12 per cent to 25,036.04. Overnight, the Nasdaq closed higher at 26,281.61 and the S&P 500 gained to 7,575.39 as investors assessed renewed tensions in the Middle East after US strikes on Iran, driving a sharp rise in oil prices and tempering risk appetite across European markets.

Commodity markets reflected the geopolitical backdrop, with Brent crude strengthening sharply while gold also edged higher on safe-haven demand. Copper weakened alongside natural gas, while Bitcoin traded lower. Against sterling, the US dollar, Swiss franc, euro and Japanese yen all strengthened slightly, while the Australian dollar was little changed.

---

Market Numbers

FTSE 100: Up (+0.01%), 10,498.05
Euronext 100: Down (-0.09%), 1,906.09
DAX: Down (-0.12%), 25,036.04
NASDAQ: Up, 26,281.61
S&P 500: Up, 7,575.39

---

In the Headlines

Annual results – Genedrive (LSE:GDR)
Genedrive reported higher annual revenue as adoption of its NHS-approved pharmacogenetic test accelerated and international commercial activity expanded. The update highlights growing momentum in the company’s commercial rollout and supports its long-term growth strategy.

Trading update – PageGroup (LSE:PAGE)
PageGroup maintained its full-year outlook after second-quarter trading improved from the first quarter, with demand stabilising across several regions. The update suggests recruitment markets remain challenging but are showing signs of recovery.

---

Currencies (vs GBP)

USD: Down (-0.02%), $1.3386
CHF: Down (-0.02%), Fr.1.0836
EUR: Down (-0.04%), €1.1738
JPY: Down (-0.02%), ¥216.7225
AUD: Up (+0.00%), $1.9282
Bitcoin (BTC/GBP): Down, £47,039.00

---

Commodities

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

European equity markets opened lower on Monday as renewed conflict in the Middle East weighed on investor sentiment, while a sharp rise in oil prices supported energy stocks after Iran announced the closure of the Strait of Hormuz.

The pan-European STOXX 600 slipped 0.2% in early trading. Germany’s DAX lost 0.3%, France’s CAC 40 declined 0.2%, while London’s FTSE 100 outperformed with a 0.2% gain, supported by its heavy weighting in oil majors.

Energy Stocks Outperform

The jump in crude prices lifted shares across the European energy sector.

Shell (LSE:SHEL) rose 1.8%, while BP (LSE:BP.) advanced 2.7%. TotalEnergies (EU:TTE) gained 2.3%, with Maurel & Prom (EU:MAU), Eni (BIT:ENI) and other oil producers also benefiting from the stronger commodity backdrop.

The rise in energy stocks helped limit losses across the broader European market.

Strait of Hormuz Concerns Lift Crude Prices

Investor sentiment deteriorated after hostilities between the United States and Iran intensified over the weekend.

Iran’s Revolutionary Guards announced that the Strait of Hormuz had been closed “until further notice” following an attack on a commercial vessel and subsequent U.S. military retaliation.

U.S. Central Command disputed the claim, stating that the strategic shipping route remained open to lawful maritime traffic.

Even so, fears of potential disruption along a passage responsible for transporting around one-fifth of global seaborne oil supplies sent energy markets sharply higher.

Both Brent crude and West Texas Intermediate (WTI) climbed by more than 4.4%.

Recent Market Rally Faces Pressure

Monday’s decline marked a reversal after European equities recovered ground during the latter part of last week.

Technology companies and semiconductor stocks had led those gains, supported by optimism over artificial intelligence investment and hopes that diplomatic efforts in the Middle East would ease geopolitical tensions.

With the latest escalation, investors are now reassessing risk exposure, and further weakness could erase much of last week’s recovery.

Markets Await ECB Signals

Attention later in the day will turn to comments from European Central Bank Executive Board member Isabel Schnabel.

Investors will be looking for fresh clues on the outlook for interest rates, particularly given Schnabel’s reputation as one of the ECB’s more hawkish policymakers and her consistently cautious approach to reducing borrowing costs.

Akzo Nobel Advances on Takeover Interest

Among individual movers, Akzo Nobel (EU:AKZA) gained around 3% after Nippon Paint submitted an offer for the company’s decorative paints business.

European oil and gas shares moved higher on Monday after fresh military exchanges between the United States and Iran intensified concerns over global energy supplies, pushing crude prices sharply higher.

The renewed escalation has also renewed uncertainty over the interim agreement reached between Washington and Tehran last month, which had been intended to reopen the Strait of Hormuz and support further diplomatic negotiations.

Crude Prices Jump on Supply Concerns

Brent crude futures climbed 2.9% to $78.24 a barrel by 04:25 ET (08:25 GMT), while U.S. West Texas Intermediate (WTI) gained 2.7% to $73.34 a barrel.

The rally followed reports that Iran had once again declared the Strait of Hormuz closed, raising fears of further disruption to one of the world’s most important energy shipping routes.

European Oil Producers Advance

Higher crude prices boosted energy stocks across Europe, with the STOXX Europe 600 Oil & Gas index rising 1.2%, making it one of the strongest-performing sectors on the broader STOXX 600.

Among individual companies, OMV (TG:OMV) and Repsol (TG:REP) gained around 1% and 2%, respectively.

TotalEnergies (EU:TTE), Maurel & Prom (EU:MAU), Eni (BIT:ENI) and Equinor (TG:DNQ) all advanced between 1% and 2.1%, while Shell (LSE:SHEL) rose 1.1% and BP (LSE:BP.) added 2.3%.

Strait of Hormuz Traffic Declines

The market reaction followed another weekend of military escalation between the United States and Iran.

Iran launched strikes against U.S. facilities across the Gulf on Sunday, while the country’s Revolutionary Guards said on Monday that American military bases in Kuwait and Bahrain had also been targeted.

The conflict has affected shipping activity through the Strait of Hormuz, a strategic passage that normally handles around one-fifth of global daily oil and liquefied natural gas supplies.

According to ship-tracking company Kpler, vessel movements through the strait fell to their lowest level in five weeks on Sunday, with only six ships completing the transit.

London equities traded slightly higher on Monday despite renewed geopolitical tensions in the Middle East, with gains among energy stocks helping offset broader investor caution after fresh U.S. military action against Iran.

The FTSE 100 rose 0.07%, while Germany’s DAX fell 0.16% and France’s CAC 40 slipped 0.20%. Sterling also weakened against the U.S. dollar, with GBP/USD down 0.16% at 1.3386 by 03:25 ET (07:25 GMT).

Oil Prices Jump After Fresh U.S. Strikes

Crude prices climbed sharply after the U.S. launched another series of strikes against Iranian targets on Sunday.

U.S. Central Command said the operation was designed to further reduce Iran’s ability to threaten commercial shipping passing through the Strait of Hormuz, a vital route for global energy supplies.

Speaking to NBC’s Meet the Press, U.S. President Donald Trump said the waterway remained operational.

“It’s open,” he said, adding, “We bombed the hell out of them last night.”

His comments contrasted with those from Iran’s Persian Gulf Strait Authority (PGSA), which said the strait remained closed while a security review was carried out and that shipping would only resume once “stability and calm are restored.”

The latest military action followed strikes on Saturday, when CENTCOM said approximately 140 Iranian military targets were hit, bringing the total to more than 300 targets over three consecutive nights after Iranian forces allegedly attacked the Cyprus-flagged container vessel M/V GFS Galaxy.

Iranian Foreign Minister Abbas Araghchi wrote on X on 11 July: “Iran has so far kept its word, unlike the so-called U.S. Treasury Secretary who is violating Para 9 of the MoU,” adding, “that violation follows other violations and missteps by the United States” and that “there can only be mutual compliance.”

Meanwhile, CBS News reported that Iranian officials had privately told advisers to President Trump that the attack on commercial shipping had been carried out by a rogue faction and was not intended to derail negotiations. According to the report, discussions involving Vice President JD Vance, Jared Kushner and Steve Witkoff continued in Oman over the weekend.

Energy Markets React

Brent crude climbed 3.8% to $78.86 a barrel, while U.S. West Texas Intermediate crude gained 3.7% to $74.06 as traders priced in the possibility of supply disruptions in the Gulf.

Gold moved lower despite the geopolitical uncertainty, with gold futures falling 1.2% to $4,065.02 an ounce and spot gold declining 1.6% to $4,056.82.

UK Corporate Highlights

Among UK-listed companies, PageGroup (LSE:PAGE) reported stronger-than-expected second-quarter gross profit, with growth in the Americas and Asia-Pacific helping offset weaker conditions across Europe and the UK.

ME Group International (LSE:MEGP) reaffirmed its full-year profit guidance after saying trading improved following a slowdown in April that was linked to weaker consumer confidence in France.

Plus500 (LSE:PLUS) also maintained its full-year outlook after reporting its strongest first-half revenue performance in three years, supported by increased customer trading activity and continued expansion in the U.S. market.

U.S. equity futures traded close to unchanged on Friday as investors adopted a cautious approach following Thursday’s rally, with attention shifting toward the upcoming earnings season and key inflation data due next week.

With limited economic releases scheduled before the weekend, markets appeared content to consolidate recent gains while awaiting fresh guidance from corporate America.

Major Companies Prepare to Report

Several blue-chip companies are set to launch the second-quarter earnings season, including Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH) and Netflix (NASDAQ:NFLX).

According to Daniela Hathorn of Capital.com, investors will focus not only on earnings but also on management commentary.

“Investors will be looking for confirmation that AI-related investment continues to translate into robust earnings growth and resilient margins, particularly among the large technology companies that have driven much of this year’s rally,” she said.

She added, “With valuations still elevated, earnings guidance could prove just as important as the headline results themselves.”

Tech Shares Continue to Lead

Thursday’s advance was driven primarily by technology companies, with the Nasdaq outperforming the broader market.

Strong interest surrounding SK Hynix’s (USOTC:HXSCL) U.S. listing and Micron Technology’s (NASDAQ:MU) $3 billion semiconductor investment announcement helped reinforce optimism across the sector.

Oil Retreat Offers Additional Support

Energy prices moved lower despite ongoing geopolitical tensions in the Middle East, easing immediate concerns over inflation and supporting broader market sentiment.

The decline in crude prices weighed on energy stocks, while technology, computer hardware, semiconductor and gold-related shares outperformed.

Investors now turn their attention to next week’s earnings reports and inflation releases, both of which are expected to play a significant role in shaping expectations for Federal Reserve policy and the direction of equity markets.